<PAGE> 1
FORM 10-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
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 1-9640
------
MERCHANTS GROUP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 16-1280763
- ------------------------------- -------------------
(State or other (I.R.S. Employer
jurisdiction ofincorporation or Identification No.)
organization)
250 Main Street, Buffalo, New York 14202
- ---------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716) 849-3333
--------------
Securities registered pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>
Name of each exchange on
Title of each class which registered
- -------------------- ----------------
<S> <C>
Common Stock, $.01 American Stock Exchange, Inc.
par value per share
</TABLE>
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months (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. X Yes No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. X
---
As of March 1, 1996, 3,213,894 shares of common stock were
outstanding. The aggregate market value of the common shares held by non-
affiliates of Merchants Group, Inc. on March 1, 1996 was $53,260,092.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the 1996 Annual Meeting
of Stockholders are incorporated by reference into Part III.
<PAGE> 2
MERCHANTS GROUP, INC.
ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 1995
<TABLE>
<CAPTION>
PART I PAGE
------- ----
<S> <C>
ITEM 1. BUSINESS. 3
ITEM 2. PROPERTIES. 25
ITEM 3. LEGAL PROCEEDINGS. 25
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. 26
PART II
-------
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED 27
STOCKHOLDER MATTERS.
ITEM 6. SELECTED FINANCIAL DATA. 28
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 30
CONDITION AND RESULTS OF OPERATIONS.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. 38
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 38
ACCOUNTING AND FINANCIAL DISCLOSURE.
PART III
--------
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. 39
ITEM 11. EXECUTIVE COMPENSATION. 39
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS 39
AND MANAGEMENT.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. 39
PART IV
-------
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND 40
REPORTS ON FORM 8-K.
</TABLE>
2
<PAGE> 3
PART I
Item 1. BUSINESS.
GENERAL
Merchants Group, Inc. (the "Company") was incorporated in August 1986
as a Delaware holding company which, through its wholly owned subsidiary
Merchants Insurance Company of New Hampshire, Inc. ("MNH"), offers property and
casualty insurance to preferred risk individuals and small to medium size
businesses in the northeastern United States.
ADMINISTRATION
The Company and MNH operate and manage their business in conjunction
with Merchants Mutual Insurance Company ("Mutual"), a New York domiciled mutual
property-casualty insurance company, under a management agreement (the
"Management Agreement"). The Company and MNH do not have any significant
operating assets and have no employees. Under the Management Agreement, Mutual
provides the Company and MNH with the facilities, management and personnel
required to operate their day-to-day business, including investment management.
All costs incurred by Mutual with respect to underwriting expenses are shared
pro rata between Mutual and MNH based upon their annual direct premiums
written, and unallocated loss adjustment expenses are allocated on the basis of
the number of claims outstanding each month that are attributable to each
company. All of Mutual's and MNH's investment expenses are shared pro rata
based upon the average book value of the invested assets of each company. MNH
also pays Mutual an annual management fee of $50,000. The Management Agreement
requires that the Company and MNH pay Mutual 110% of Mutual's costs of
providing them with non-insurance related services, and that the Company pay
Mutual an annual fee of one half of one percent (.5%) of the average book value
of the Company's invested assets exclusive of the Company's shares of MNH.
Since the inception of the Management Agreement, Mutual has not provided the
Company or MNH with any non-insurance related services.
The Management Agreement is designed to prevent conflicts of interest
or to deal with them on an equitable basis should they occur. Generally,
business opportunities which are presented to the common officers or employees
of the companies must be presented to each company's Board of Directors and
approved and determined to be fair to each company in the transaction by a
majority of the directors of each company who are not affiliated with any other
company in the transaction.
3
<PAGE> 4
Any amendment or modification of the Management Agreement must be
approved by the New York Insurance Department. The Management Agreement may be
terminated by any party to the agreement upon five years written notice to each
of the other parties. Mutual and MNH have jointly developed and paid for all
accounting, computer and insurance marketing systems used in their businesses.
In the event of termination of the Management Agreement, each company has a
right, at no cost, to obtain copies of all these systems, together with the
right to use these systems in perpetuity.
From 1975 through 1984, MNH and Mutual pooled their insurance
businesses pursuant to a pooling agreement (the "Pooling Agreement"). Prior to
January 1, 1983, premiums and losses were allocated 10% to MNH and 90% to
Mutual; thereafter, pursuant to an amendment to the Pooling Agreement, the
respective pooling percentages were 25% for MNH and 75% for Mutual.
The Pooling Agreement was terminated effective December 31, 1984. The
termination provided for the runoff of unearned premiums, losses and expenses
associated with insurance contracts effective prior to January 1, 1985
according to the pooling percentages set forth in the Pooling Agreement. For
insurance contracts effective subsequent to December 31, 1984, premiums written
and related premiums earned, losses and loss adjustment expenses ("LAE"),
commissions, premium taxes, and assessments are retained by the company which
issues the insurance policies.
MARKETING
The Company markets its products through approximately 665 independent
agencies, which also represent Mutual. Generally, the Company's agents are
located in suburban and rural areas. The Company primarily directs its
marketing efforts to its independent agents and believes the more closely it
works with those agents, the more likely it becomes that the agents will place
business with the Company. The Company believes the opportunity for growth
exists through further penetration of existing agents' new and renewal
business, as well as selective expansion of this group of agents in the future.
Management believes that the loss of any particular agent or group of related
agents would not have a material adverse impact on the operating results or
financial position of the Company.
The Company believes that as a regional insurance company, it has
certain advantages, including a closer relationship with its agents and a
better knowledge of its operating territories, that enable it to compete
effectively against larger national carriers. The Company believes it
distinguishes itself from its competitors by providing its agents and
policyholders with superior service, products that target the preferred segment
of the commercial and personal insurance markets, and an agents' compensation
program which, in addition to standard commission rates, provides agents with a
profit sharing plan and bonus commissions for certain
4
<PAGE> 5
commercial lines of business.
The Company services its agents from five Strategic Business Centers
and from its home office in Buffalo, New York. The Strategic Business Centers
are located in the Company's operating territories and focus primarily on
policy sales and underwriting. The manager of a Strategic Business Center
appoints new agents, agrees upon annual unit sales and premium objectives with
the principal of the agency, and ensures that the principal of the agency
communicates these objectives to the agency's sales staff. Strategic Business
Center managers and Agency Business Managers, or "ABM's," develop customized
"game plans" for each agent, which identify the opportunities to increase
business and the actions required to achieve the objectives agreed to by the
agent and the Company.
In each of its Strategic Business Centers, the Company uses ABM's who
are trained underwriters with at least five years of underwriting experience.
ABM's meet with an agent's sales staff on a frequent basis to underwrite the
Company's renewal policies, as well as to solicit and underwrite policies new
to the agent and/or to the Company. ABM's carry laptop computers and can
provide quotes for substantially all lines of business at the agents' offices.
The Company believes personal contact between ABM's, who have underwriting
authority, and an agent's sales staff provides the Company with a competitive
advantage compared to many other property and casualty insurers, whose field
representatives have no underwriting authority. By placing its underwriting
decision maker in the agent's office, and thereby simplifying the underwriting
process, the Company believes it can improve the retention rate on its renewal
policies, as well as attract new policies.
Each Strategic Business Center has an Agents' Advisory Council that
meets at least twice a year. The Advisory Councils provide a forum for the
Company and its agents to discuss issues of mutual interest, and to assure that
the agents' business needs are being met. Additionally, the Chairmen of the
Advisory Councils from each Strategic Business Center meet twice a year with
senior officers of the Company.
In addition to standard commissions paid as a percentage of premiums
written, the Company's agents are eligible to participate in the Agents' Profit
Sharing Plan, which rewards agents based on premiums written and a two year
loss and allocated loss adjustment expense ("LAE") ratio on business placed by
the agent with the Company. Payments under the Agents' Profit Sharing Plan for
1995 totalled $1,266,000 or 1.3% of direct premiums written, and increased
participating agents' commissions received from the Company by approximately
22%. The Company believes the terms of its Agents' Profit Sharing Plan
encourage its agents to increase the volume of profitable business they place
with the Company. In June 1994, the Company instituted an Agent's Stock Option
Program for MNH's agents which granted options to purchase 22,500 shares
5
<PAGE> 6
of the Company's common stock to 54 agencies based on their volume and
profitability. The Company believes the Agents' Stock Option Program aligns
the interests of its agents more closely with the interests of the Company and
its stockholders.
Unlike many of its competitors, the Company pays the same commission
rate on policies billed directly to the insured by the Company and on policies
billed to the agent and, in turn, re-billed to the insured by the agent. By
offering to bill the insured directly for both personal and commercial
policies, the Company helps its agents minimize their administrative costs
without a reduction in commission income. Approximately 75% of the voluntary
premiums written by the Company in 1994 and 1995 were billed directly to
policyholders.
In order to assist its independent agents to compete more effectively
with insurance companies that have direct sales forces, and to strengthen its
relationship with those agents, the Company is providing advanced automation
services, such as download capability, to many of its agents. Download
capability, the electronic transmission of policy transactions from a company
to an agency database, is a significant step in helping agents and the Company
achieve the goal of single-entry, multiple company interface. The benefits to
agents are simplified client management, more time available for sales
activities, and fewer errors. Currently, the Company is downloading policy
transactions to approximately 70 agents for private passenger automobile and
homeowners' policies. The Company plans to offer download capability for
commercial insurance policies when the property-casualty insurance industry
adopts standards. The Company believes that developing automation capabilities
to facilitate the sharing of information with its agents will improve its
competitive position compared to other property and casualty insurers that do
not have such capabilities.
INSURANCE UNDERWRITING
The Company is licensed to issue insurance policies in 13 states,
primarily in the northeastern United States. In 1995, net premiums written
totaled $97,577,000, with 58% of the net premiums written derived from
commercial lines of insurance and 42% from personal lines of insurance.
6
<PAGE> 7
The following table sets forth the distribution of the Company's direct
premiums written by state for the years indicated:
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1993 1994 1995
----- ----- -----
<S> <C> <C> <C>
New York 65% 65% 64%
New Hampshire 12 12 11
New Jersey 12 11 14
Rhode Island 3 4 4
Pennsylvania 4 3 3
Massachusetts 2 3 3
Other 2 2 1
----- ----- -----
Total 100% 100% 100%
===== ===== =====
</TABLE>
The Company is licensed to underwrite most major lines of property and
casualty insurance. It issues policies primarily to preferred individuals and
small to medium size commercial risks. In general, the Company does not insure
risks that involve a high potential of loss or have a long-tail reporting
period. The types of risks insured in the Company's lines of business include:
- Personal automobile - full coverage of family-owned standard
performance automobiles, generally requiring drivers with no major violations
or at-fault accidents in the last three years, and minimal youthful operator
exposure.
- Homeowners' - properties generally with no losses in the last three
years that are less than 30 years old and valued between $75,000 and $300,000.
- Commercial automobile - primarily light and medium use vehicles
operating in a limited radius, with complete background information required of
all drivers.
- Commercial multi-peril - properties with medium to high construction
quality and low to moderate fire exposure, and occupancies with low to moderate
exposure to hazardous materials and processes.
- General liability - low hazard service, mercantile and light
processing businesses, generally with no losses in the last three years and
with three years of business experience.
- Workers' compensation - risks with low loss frequency and severity,
low to moderate exposure to hazardous materials and processes, and favorable
experience modification factors. Generally, workers' compensation insurance is
written in conjunction with other commercial insurance.
7
<PAGE> 8
The Company's underwriting strategy is to offer its insurance at rates
which are designed to cover its costs, including the costs of any involuntary
business associated with a particular line of insurance or a particular
territory. This pricing strategy makes the Company's rates non-competitive with
respect to certain lines of insurance or certain geographic regions. For
example, the Company's published rates for personal automobile insurance in the
New York City metropolitan area and other densely populated areas within its
region of operations are significantly higher than those of some of its
competitors. The Company believes that its pricing strategy allows the Company
to write the types of insurance for which the price charged reflects the cost
of providing coverage.
Agents of the Company are also agents of Mutual, which generally sells
the same lines of insurance as the Company to standard risk individuals and
businesses. Applicants that meet the Company's preferred risk criteria are
issued policies by the Company. Applicants that do not meet the Company's
underwriting criteria, but which meet the less restrictive criteria of Mutual,
are issued policies by Mutual, generally at higher premium rates. Under a quota
share agreement with Mutual, the Company assumed 10% of the standard risks
insured by Mutual, which would not generally meet the Company's more stringent
underwriting guidelines. The terms of the agreement allow Mutual to reduce its
cessions to MNH to 0% of Mutual's direct voluntary premiums written for any
calendar year prior to the beginning of that calendar year. In December 1995,
Mutual informed the Company that it would reduce its cessions to MNH to 0% of
its direct voluntary premiums written for calendar year 1996.
The Company establishes premium rates for most of its policies based on
loss experience, in some cases after considering prospective loss costs
suggested by the Insurance Services Office, Inc., an industry advisory group,
for the preferred individual and commercial classes of business that it
insures. The Company establishes rates independently for its personal
automobile and homeowners insurance policies and its specialty products, such
as contractors coverall and businessowners' policies.
8
<PAGE> 9
The following table shows, for each of the years in the three year
period ended December 31, 1995, (i) the amount of the Company's net premiums
written attributable to various personal lines and commercial lines and (ii)
underwriting results attributable to each such line as measured by the calendar
year loss ratio for such line. The loss ratio is the ratio of incurred losses
to net premiums earned for a given period.
<TABLE>
<CAPTION>
Year ended December 31,
-------------------------------------------------------------------------
1993 1994 1995
-------------------------------------------------------------------------
Premiums Premiums Premiums
Written Written Written
-------------------------------------------------------------------------
Loss Loss Loss
Amount % Ratio Amount % Ratio Amount % Ratio
-------------------------------------------------------------------------
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Personal
Auto Liability $23,285 25.5% 67.7% $21,278 23.6% 79.2% $22,556 23.1% 78.2%
Auto Physical
Damage 11,430 12.5 37.3 10,603 11.8 53.0 11,546 11.8 52.1
Homeowners'
Multi-Peril 5,638 6.2 62.7 5,808 6.4 76.5 6,606 6.8 77.8
Total 40,353 44.2 58.0 37,689 41.8 71.5 40,708 41.7 70.7
Commercial
Auto Liability 12,726 14.0 68.3 12,572 13.9 74.9 13,496 13.8 69.5
Auto Physical
Damage 3,037 3.3 46.2 2,918 3.2 41.1 3,047 3.1 51.8
Commercial
Multi-Peril 17,983 19.7 56.9 19,034 21.1 76.4 20,845 21.4 71.3
Workers'
Compensation 9,045 9.9 98.3 10,229 11.3 54.0 12,223 12.5 94.7
Other Lines 8,048 8.9 62.4 7,745 8.7 58.8 7,258 7.5 56.0
Total 50,839 55.8 66.8 52,498 58.2 67.1 56,869 58.3 72.7
Total Personal
and Commercial $91,192 100.0% 62.8% $90,187 100.0% 68.9% $97,577 100.0% 71.9%
======= ====== ======= ====== ======= ======
</TABLE>
Calendar year loss ratios set forth in the table above include an estimate
of losses for that accident year, as well as increases or decreases made in
that year for prior accident year losses. Depending on the size of the increase
in prior accident year losses, calendar year ratios may not be as indicative of
the profitability of policies in force in a particular year as accident year
ratios, which do not take into account increases in reserves for prior accident
year losses.
9
<PAGE> 10
Since 1987, the Company has pursued a strategy of controlled growth in
commercial insurance in its existing territories. As a result, voluntary
commercial direct premiums written comprise a greater portion of the Company's
total voluntary direct premiums written than in previous years. The following
table sets forth the composition of voluntary direct premiums written for 1991
through 1995:
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Commercial 57% 57% 60% 62% 62%
Personal 43 43 40 38 38
---- ---- ---- ---- ----
Total 100% 100% 100% 100% 100%
=== === === === ===
</TABLE>
COMMERCIAL LINES
The Company's commercial business is primarily retail and mercantile in
nature and generally consists of small to medium size, low hazard commercial
risks which as a group have relatively stable loss ratios. The Company's
underwriting criteria exclude lines of business and classes of risks that are
considered by the Company to be high hazard or volatile, or which involve
latent injury potential or other long-tail liability exposures. Although the
commercial underwriting objectives of the Company and Mutual are similar, the
Company has refined its selection criteria to include specific classes of
businesses, occupancies, and operations with lower hazard ratings, which
present a relatively lower exposure to loss and are charged a correspondingly
lower premium. The Company offers specialized products within the commercial
multi-peril line such as the Contractors Coverall Plus for artisan and trade
contractors, the Super Businessowners' Program and BusinessElite for specified
retail, service and office risks.
Despite the lack of significant premium rate increases since 1988 in
most of its commercial lines and the increased competition in the lines of
business that the Company targets, the Company believes it can insure
commercial business profitably by selecting those classes of risks that offer
better profit potential. The Company competes for commercial business based
upon the service it provides to agents and policyholders, the compensation it
pays to its agents, and in certain instances, the price of its products. The
Company establishes prices after considering its costs, the exposures inherent
in a particular class of risk, potential investment income, projected future
trends in loss frequency and severity, and the degree of competition within a
specific territory. Accordingly, the relative prices of the Company's
commercial products vary considerably in relation to competitors' prices.
10
<PAGE> 11
PERSONAL LINES
The Company offers personal automobile and homeowners' insurance to
preferred risk individuals, generally requiring experienced drivers with no
accidents or moving violations in the last three years for personal automobile
insurance, and medium to high value homes with systems that are less than
thirty years old in fire protected areas for homeowners' insurance. Personal
automobile premium rates attempt to cover costs associated with required
participation in involuntary personal automobile programs, in addition to the
costs directly associated with the policies written voluntarily.
The Company and Mutual have developed automated underwriting
procedures for personal automobile and homeowners business, which perform an
initial review of policy applications based upon established underwriting
guidelines. Applications that do not meet the guidelines for automated
acceptance are either referred to personal lines underwriters who review the
applications and assess exposure, or rejected if the risk characteristics are
such that neither the Company nor Mutual would accept the insured.
As a condition to writing voluntary business in most states in which
it operates, the Company must participate in state-mandated programs which
provide insurance for individuals and businesses unable to obtain insurance
voluntarily, primarily for personal automobile insurance. The legislation
creating these programs usually allocates a pro rata portion of the risks
attributable to such insureds to each company writing voluntary business in the
state on the basis of its voluntary premiums written or the number of
automobiles which it insures voluntarily.
The Company's gross (direct and assumed) premiums written attributable
to involuntary policies were $11,010,000, $9,274,000, and $11,317,000 in 1993,
1994 and 1995, respectively, mostly in New York. The Company is unable to
predict the level of its annual involuntary business for 1996 or future years.
CLAIMS
Insurance claims on policies written by the Company are investigated
and settled by claims adjustors employed by Mutual pursuant to the Management
Agreement. The Company and Mutual maintain several claims offices within their
operating territories. In areas where there is insufficient claim volume to
justify the cost of internal claims staff, the Company and Mutual use
independent appraisers and adjustors to investigate and settle claims. The
Company's claims policy emphasizes timely investigation of claims, settlement
of meritorious claims for equitable amounts, maintenance of adequate reserves
for claims and control of external claims adjustment expenses. In order to
support its claims policy, the Company has implemented a program designed to
ensure that claims are assigned an accurate value, based on available
information, as soon as practical. The program
11
<PAGE> 12
includes the centralization of certain branch claims operations and an emphasis
on the training of claims adjustors and supervisors by senior claims staff.
This claims policy is designed to support the Company's marketing policy and
provide agents and policyholders with prompt service and support.
Claims settlement authority levels are established for each adjustor,
supervisor and manager based on their expertise and experience. When the
Company receives notice of a claim, it is assigned to an adjustor based upon
its type, severity and line of business. The claims staff then reviews the
claim, obtains appropriate documentation and establishes a loss reserve. Claims
that exceed certain dollar amounts or that cannot be readily settled are
assigned to senior claims staff.
LOSS AND LAE RESERVES
The Company, like other insurance companies, establishes reserves for
losses and LAE. These reserves are estimates intended to cover the probable
ultimate cost of settling all losses incurred and unpaid, including those
losses not yet reported to the Company. An insurer's ultimate liability is
likely to differ from such estimates because during the life of a claim, which
may be many years, additional facts affecting an insurer's liability may become
known. The reserves of an insurer are frequently adjusted based on monitoring
by the insurer and periodic review by state insurance departments. Since 1989,
the Company has retained an independent actuarial firm to satisfy state
insurance departments' requirements with respect to the reporting of reserves
for losses and LAE.
Loss reserves are established for known claims based on the type and
circumstance of the loss and the results of similar losses. For claims not yet
reported to the Company, loss reserves are based on statistical information
from previous experience periods, adjusted for inflation, trends in court
decisions and economic conditions. LAE reserves are intended to cover the
ultimate cost of investigating all losses that have occurred and defending
lawsuits, if any, arising from such losses. LAE reserves are evaluated
periodically using statistical techniques which compare current costs with
historical data. Inflation is implicitly reflected in the reserving process
through analysis of cost trends, and review of historical reserve results. With
the exception of an immaterial amount relating to workers' compensation claims,
loss reserves are not discounted for financial statement purposes.
The Company's reserving process is based on the assumption that past
experiences, adjusted for the effect of current developments and trends, are
relevant in predicting future events. In the absence of specific developments,
the process also assumes that the legal climate regarding the claims process
and underlying liabilities remains constant. Other assumptions employed by the
Company or its actuarial firm change from time to time as
12
<PAGE> 13
circumstances change. In estimating loss and LAE reserves, the Company employs
a number of actuarial methods, depending on their applicability to each line of
business, in order to balance the advantages and disadvantages of each method.
No single method is used to estimate loss and LAE reserves. Although different
actuarial methods may give rise to different reserve estimates, which could be
higher or lower than the reserves actually established by the Company, the
Company believes that those differences are not material.
The Company has recorded increases in reserves for prior accident year
losses in subsequent years. These increases were necessary because of several
factors, including inaccurate estimation of the extent of liability associated
with a number of claims involving serious injuries relating to the 1985 through
1989 accident years, claims handling practices in the late 1980's that did not
produce accurate and timely reserve levels for a broad range of claims, and a
shift in the Company's mix of business from personal lines to commercial lines,
which requires different technical claims expertise which the Company had to
develop. During 1995, the Company experienced greater than anticipated
severity (claim value) in liability claims related to its homeowners,
businessowners, workers compensation and commercial package lines of insurance.
13
<PAGE> 14
The following table sets forth the changes in the reserve for losses
and LAE for 1993, 1994 and 1995.
<TABLE>
<CAPTION>
Year-Ended December 31,
------------------------------
1993 1994 1995
-----------------------------
(in thousands)
<S> <C> <C> <C>
Reserve for losses and LAE
at beginning of year $86,159 $ 93,896 $104,015
Less reinsurance recoverables - 3,957 6,401
------- ------- -------
Net balance at beginning of
year 86,159 89,939 97,614
Provision for losses and LAE
for claims occurring in:
Current year 60,282 65,818 67,150
Prior years 2,125 4,982 11,045
------- ------- ------
62,407 70,800 78,195
------- ------- ------
Losses and LAE payments for
claims occurring in:
Current year 22,903 28,574 25,175
Prior years 35,724 34,551 36,916
------- ------- -------
58,627 63,125 62,091
------- ------- -------
Reserve for losses and LAE
at end of year, net 89,939 97,614 113,718
Plus reinsurance recoverables 3,957 6,401 6,004
------- ------- --------
Balance at end of year $93,896 $104,015 $119,722
======= ======== ========
</TABLE>
In recent years, the escalation of repair costs, medical expenses and
jury awards have necessitated significant periodic upward adjustments in
reserves by many property and casualty insurers, including the Company. In
1993, 1994 and 1995, the Company increased its reserves for prior years by
$2,125,000, $4,982,000, and $11,045,000, respectively. The increases in
reserves for prior years made in 1993 was primarily attributable to higher than
anticipated severity of liability claims on commercial multi-peril and workers'
compensation policies. The increase in reserves for prior years made in 1994
was primarily attributable to the $3,135,000 settlement of the AIP matter
discussed in Item 7. "Management's Discussion and Analysis of Financial
Condition and Results of Operations" as well as higher than anticipated
severity of liability claims on auto, commercial multi-peril and workers'
compensation policies. The increase in reserves for prior years made in 1995
was primarily attributable to higher than anticipated severity of liability
claims on homeowners, businessowners, workers compensation and commercial
package lines of insurance.
14
<PAGE> 15
The first line of the following table presents, as of the end of the
year at the top of each column, the estimated amount of unpaid losses and LAE
for claims arising in that year and in all prior years, including claims that
had occurred but were not yet reported to the Company. For each column, the
rows of the table present, for the same group of claims, the amount of unpaid
losses and LAE as re-estimated as of the end of each succeeding year. The
estimate is modified as more information becomes known about the number and
severity of claims for each year. The "cumulative deficiency" represents the
change in the estimated amount of unpaid losses and LAE from the end of the
year at the top of each column through the end of 1995.
For each column in the table, the change from the liability for losses
and LAE shown on the first line to the liability as re-estimated as of the end
of the following year was included in operating results for the following year.
That change includes the change in the previous year's column from the
liability as re-estimated one year later to the liability as re-estimated two
years later, which, in turn, includes the change in the second preceding column
from the liability as re-estimated two years later to the liability as
re-estimated three years later, and so forth.
The rows of the lower portion of the table present, as of the end of
each succeeding year, the amount of paid losses and LAE for claims unpaid at
the end of the year at the top of each column.
15
<PAGE> 16
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
----- ------ ------- ------- ------- ------ ------- -------- ------ ------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Liability for losses and LAE $26,207 $32,137 $44,778 $55,412 $66,892 $71,222 $77,274 $86,159 $89,939 $97,614
Liability re-estimated as of:
One year later 26,466 33,520 47,519 57,238 75,614 77,548 80,841 88,284 94,921 108,659
Two years later 27,806 33,873 47,112 61,534 76,310 75,987 81,743 91,224 100,607
Three years later 28,832 34,429 51,023 61,928 73,578 78,106 83,693 95,396
Four years later 29,564 39,086 52,104 61,014 75,672 79,563 87,105
Five years later 30,316 38,404 51,249 61,787 76,746 81,308
Six years later 30,740 38,049 51,764 62,201 77,026
Seven years later 30,573 38,411 52,141 62,332
Eight years later 30,712 38,368 52,035
Nine years later 30,444 38,283
Ten years later 30,217
Cumulative Deficiency - $ (4,010) (6,146) (7,257) (6,920) (10,134) (10,086) (9,831) (9,237) (10,668) (11,045)
- % (15.3) (19.1) (16.2) (12.5) (15.1) (14.2) (12.7) (10.7) (11.9) (11.3)
Paid (Cumulative) as of:
One year later 12,913 15,225 20,649 21,393 32,538 32,666 30,082 35,724 34,551 36,916
Two years later 19,178 21,907 28,049 37,459 47,816 47,339 50,490 56,003 56,965
Three years later 22,957 26,159 38,936 47,816 58,489 61,585 63,925 69,863
Four years later 25,500 31,943 44,819 52,758 66,466 70,219 72,917
Five years later 27,337 34,076 46,931 56,732 71,322 75,018
Six years later 28,268 35,356 48,985 59,162 73,558
Seven years later 29,017 36,644 50,547 59,994
Eight years later 29,719 37,495 50,815
Nine years later 29,931 37,525
Ten years later 29,787
</TABLE>
16
<PAGE> 17
The loss and LAE reserves reported in the Company's consolidated
financial statements prepared in accordance with generally accepted accounting
principles ("GAAP") differ from those reported in the statements filed by MNH
with the New Hampshire Insurance Department in accordance with statutory
accounting principles ("STAT") as follows:
<TABLE>
<CAPTION>
As of December 31,
----------------------
1993 1994 1995
------ ------ -----
(in thousands)
<S> <C> <C> <C>
Loss and LAE reserves on a
STAT basis $88,386 $96,624 $113,059
Adjustments:
Loss reserves ceded under a
quota share agreement with
an unrelated party 1,482 927 595
Ceded reinsurance balances
recoverable 3,957 6,401 6,004
Write-down of reinsurance
recoverable 71 63 64
-------- ------- --------
Loss and LAE reserves on a
GAAP basis $93,896 $104,015 $119,722
======= ======== ========
</TABLE>
Reinsurance
The Company follows the customary industry practice of reinsuring a
portion of the exposure under its policies and as consideration pays to its
reinsurers a portion of the premium received on its policies. Insurance is
ceded principally to reduce an insurer's liability on individual risks and to
protect against catastrophic losses. Although reinsurance does not legally
discharge an insurer from its primary liability for the full amount of coverage
provided by its policies, it does make the assuming reinsurer liable to the
insurer to the extent of the reinsurance ceded.
The Company is a party to reinsurance contracts under which certain
types of policies are automatically reinsured without the need for approval by
the reinsurer with respect to the individual risks that are covered ("treaty"
reinsurance). The Company also is a party to reinsurance contracts which are
handled on an individual policy or per risk basis and require the specific
agreement of the reinsurer as to each risk insured ("facultative" reinsurance).
Occasionally, the Company may secure facultative reinsurance to supplement its
coverage under treaty reinsurance.
17
<PAGE> 18
Since 1980, most of the Company's treaty and facultative reinsurance has
been placed with General Reinsurance Corporation ("GenRe"), the largest
reinsurer domiciled in the United States. The Company's excess of loss
arrangements with GenRe for automobile liability, general liability and
workers' compensation insurance provide for recovery of losses over $500,000 up
to a maximum of $5,000,000 per occurrence. For claims occurring prior to 1993,
the $500,000 threshold is indexed for inflation for casualty lines other than
workers' compensation and New York State no-fault, and applies retroactively to
all occurrences until they are settled. There is no index provision for
casualty claims occurring after 1992. This coverage is supplemented by
additional treaty reinsurance placed with GenRe covering losses up to
$5,000,000 in excess of the first $5,000,000.
Property reinsurance agreements with GenRe provide for recovery of
property losses over $500,000 up to $2,000,000 per occurrence without any index
provision. Property catastrophe coverage placed with many reinsurers worldwide
provides for recovery of 95% of up to $37,000,000 above aggregate retained
losses of $3,000,000 for each natural disaster. The property catastrophe
coverage limits are shared by the Company and Mutual on a pro rata basis based
upon the gross reported losses of the Company and Mutual for a covered event.
The reinsurance premium rate paid to GenRe varies by each line of business.
As of December 31, 1995, the Company had $6,007,000 of reinsurance
recoverable on unpaid losses and paid losses, all of which it expects to
recover. The excess of loss reinsurance agreement with GenRe has no definite
term, but may be renegotiated yearly. The property catastrophe reinsurance
agreement expires December 31, 1996.
In 1987, the Company and GenRe agreed to limit the losses which could be
recovered by the Company under its excess of loss treaties with GenRe for the
1980 through 1986 accident years in exchange for a cap on retrospective
premiums due GenRe. At December 31, 1995, recoverable losses have exceeded the
cap by $370,000, and the excess losses have been retained by the Company.
Effective January 1, 1993, Mutual and MNH entered into a quota share
reinsurance agreement under which MNH assumed 10% of Mutual's direct voluntary
written premiums and related losses and allocated LAE in exchange for a
reinsurance commission of 35%. The agreement also provides for MNH to pay a
contingent commission to Mutual equal to any underwriting profit on the
premiums assumed. Mutual pays the ceded premiums, net of commissions and paid
losses, to MNH on a monthly basis and MNH invests these funds and earns
investment income. To the extent commissions and paid losses exceed premiums,
MNH is required to pay the net monthly balance to Mutual. The agreement has a
term ending on January 1, 1996, and may be terminated by either party effective
as of that date or on any January 1 thereafter with the prior approval
18
<PAGE> 19
of the New York Superintendent of Insurance upon six months' notice to the
other party. In addition, the agreement may be terminated by MNH at any time
if any amount payable to MNH by Mutual becomes more than 90 days overdue or if
there is a change in control of Mutual approved by the New York Superintendent
of Insurance. Further, the agreement allows Mutual to reduce its cessions to
MNH to 0% of Mutual's direct voluntary premiums written for any calendar year
prior to the beginning of that calendar year. In December 1995, Mutual
notified the Company that it was reducing its cessions to the Company for
calendar year 1996 to 0% of its voluntary direct written premiums.
INVESTMENTS
The primary source of funds for investment by the Company is premiums
received. Although premiums, net of commissions and other underwriting costs,
are taken into income ratably over the terms of the policies, they provide
funds for investment from the date they are received. Similarly, although
establishment of and changes in reserves for losses and LAE are included in
results of operations immediately, the amounts so set aside may be invested
until the Company pays those claims.
The investments of the Company are regulated by New Hampshire insurance
law and are reviewed by the Board of Directors of the Company. Other than
certain short-term investments held to maintain liquidity, the Company
primarily invests in medium-term bonds, mortgage-backed and other asset-backed
securities including collateralized mortgage obligations, and tax-exempt
securities. The mortgage-backed securities he1d by the Company are typically
purchased at expected yields which are greater than comparable maturity
Treasury securities and are AAA or AA rated.
The Company had $60,837,000 of tax-exempt bonds in its investment
portfolio at December 31, 1995. The Company believes these tax-exempt bonds
are of high quality (rated A or better) and offer an after-tax total return
greater than comparable taxable securities.
As of December 31, 1995, the Company owned $3,000,000 stated value of
Signet Group PLC ("Signet") (formerly Ratners Group, PLC) auction rate
preference shares. These securities have a variable dividend rate reset every
28 days through auction procedures. Beginning in 1991, the auction process
failed, due to the lack of a sufficient number of buyers willing to purchase
the shares. In 1992, Signet suspended dividend payments on all of its
preference shares, including those owned by the Company. No dividends were
received during the period from 1992 to 1995. This investment is carried at
its fair value of $1,500,000 at December 31, 1995. The Company has not accrued
or recorded any dividend income related to this investment since 1991.
19
<PAGE> 20
At December 31, 1995, the Company had $4,470,000 of short-term
investments with maturities less than 30 days, and $2,557,000 of non-
investment grade securities, which includes the Signet preference shares.
These non-investment grade securities represented 1.3% of its investment
portfolio.
The table below gives information regarding the Company's investments as
of the dates indicated.
<TABLE>
<CAPTION>
As of December 31,
---------------------------------------------------------
1993 1994 1995
----- ------ ------
Amount % Amount % Amount %
--------- - -------- - -------- -
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Fixed Maturities (1):
U.S. Government
and Agencies $ 54,614 31.1% $ 49,113 28.8% $ 58,421 30.4%
Corporate Bonds 36,521 20.8 50,742 29.7 63,997 33.3
Tax-Exempt Bonds 77,884 44.3 62,050 36.3 60,837 31.7
-------- ------ -------- ----- -------- ------
Total Bonds 169,019 96.2 161,905 94.8 183,255 95.4
Short-Term Invest-
ments(2) 2,113 1.2 4,455 2.6 4,470 2.3
Other(3) 4,630 2.6 4,387 2.6 4,493 2.3
-------- ------ -------- ----- -------- ------
Total Invested
Assets $175,762 100.0% $170,747 100.0% $192,218 100.0%
======== ====== ======== ====== ======== ======
- -------------------------------
<FN>
(1) Fixed Maturities are shown at their carrying amounts in the respective
balance sheet. Held to Maturity fixed maturities are included at
amortized cost. Available for Sale fixed maturities are included at
fair value.
(2) Shown at cost, which approximates fair value.
(3) Shown at unpaid principal balance or estimated fair value.
</TABLE>
The table below sets forth the Company's net investment income and net
realized gains, excluding the effect of income taxes, for the periods shown:
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------
1993 1994 1995
--------------------------
(dollars in thousands)
<S> <C> <C> <C>
Average investments (1) $165,585 $176,791 $181,760
Net investment income 9,155 9,849 10,368
Net investment income
as a percentage of average
investments (2) 5.5% 5.6% 5.7%
Net realized gains (losses)
on investments $ 1,467 $ 20 $ (832)
- ------------------------------------
<FN>
(1) At amortized cost.
(2) The tax equivalent yield for the years ended December 31, 1993, 1994 and
1995 were 6.2%, 6.4%, and 6.6%, respectively, assuming an effective
tax rate of 34%.
</TABLE>
20
<PAGE> 21
The table below sets forth the carrying value of bonds and percentage
distribution of various maturities at the dates indicated. Fixed Maturities
are shown at their carrying amounts in the respective balance sheet. Held to
Maturity fixed maturities are included at amortized cost. Available for Sale
fixed maturities are included at fair value. The estimated repayment date was
used instead of the ultimate repayment date for mortgage backed and other asset
backed securities.
<TABLE>
<CAPTION>
As of December 31,
---------------------------------------------------
1993 1994 1995
---- ---- ----
Amount % Amount % Amount %
---------- - ----------- - ---------- -
(dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
1 year or less $ 19,982 11.8% $ 10,560 6.5% $ 24,175 13.2%
1 year through 5
years 92,390 54.7 94,697 58.5 114,823 62.7
5 years through 10
years 56,647 33.5 49,825 30.8 36,967 20.1
More than 10 years - - 6,823 4.2 7,290 4.0
-------- ---- ---------- ------ ------- ---
Total $169,019 100.0% $161,905 100.0% $183,255 100.0%
======== ====== ======== ====== ======== ======
</TABLE>
COMPETITION
The property and casualty insurance business is highly competitive. The
Company is in direct competition with many national and regional multiple-line
insurers, many of which are substantially larger than the Company and have
considerably greater financial resources. Competition is further intensified
by the independent agency system because each of the independent agents who
sells the Company's policies also represents one or more other insurers. Also,
the Company's agents compete with direct writing insurers and this indirectly
affects the Company.
Historically, the property and casualty industry has tended to be
cyclical in nature. During the "up" cycle, or "hard market," the industry is
characterized by price increases, strengthening of loss and LAE reserves,
surplus growth and improved underwriting results. Near the end of the "up"
cycle, an increase in capacity causes insurance companies to begin to compete
for market share on the basis of price. This price competition causes the
emergence of the "down" cycle, or "soft market," characterized by a reduction
in the premium growth rate and a general decline in profitability. Generally,
the down cycle is eventually accompanied by a decline in the adequacy of loss
and LAE reserves and a decrease in premium writing capacity. The property
casualty insurance industry has experienced a cyclical downturn for the past
eight years due primarily to intense premium rate competition, which has
resulted in lower profitability. Many of the circumstances which led to the
current cyclical downturn in the property and casualty insurance industry
continue to exist, and the Company cannot predict when or if market conditions
for the industry will improve.
21
<PAGE> 22
REGULATION
GENERAL
MNH is subject to regulation under applicable insurance statutes,
including insurance holding company statutes, of the various states in which it
writes insurance. Insurance regulation is intended to provide safeguards for
policyholders rather than to protect stockholders of insurance companies or
their holding companies. Insurance laws of the various states establish
regulatory agencies with broad administrative powers including, but not limited
to, the power to grant or revoke licenses to transact insurance business and to
regulate trade practices, investments, premium rates, the deposit of
securities, the form and content of financial statements and insurance
policies, accounting practices and the maintenance of specified reserves and
capital. The regulatory agencies of each state have statutory authority to
enforce their laws and regulations through various administrative orders, civil
and criminal enforcement proceedings, and the suspension or revocation of
certificates of authority. In extreme cases, including insolvency, impending
insolvency and other matters, a regulatory authority may take over the
management and operation of an insurer's business and assets.
Under insolvency or guaranty laws in the states in which MNH operates,
insurers doing business in those states can be assessed up to prescribed limits
for policyholder losses caused by other insurance companies that become
insolvent. The extent of any requirement for MNH to make any further payment
under these laws is not determinable. Most laws do provide, however, that an
assessment may be excused or deferred if it would threaten a solvent insurer's
financial strength. In addition, MNH is required to participate in various
mandatory pools or underwriting associations in certain states in which it
operates.
The property and casualty insurance industry has been the subject of new
regulations and legislative activity in various states attempting to address
the affordability and availability of different lines of insurance. The
regulations and legislation generally restrict the discretion an insurance
company has in operating its business. Specific regulatory developments which
could materially adversely affect the operations of the Company include, but
are not limited to, the possible repeal of or amendment to the
McCarran-Ferguson Act (which exempts insurance companies from a variety of
federal regulatory requirements) and rate roll-back legislation. It is not
possible to predict the effect, if any, that new regulations and legislation
would have on the Company and MNH.
22
<PAGE> 23
The Company depends on cash dividends from MNH to pay cash dividends to
its stockholders and to meet its expenses. MNH is subject to New Hampshire
state insurance laws which restrict its ability to pay dividends without the
prior approval of state regulatory authorities. These restrictions limit
dividends to those that, when added to all other dividends paid within the
preceding twelve months, would not exceed 10% of the insurer's policyholders'
surplus as of the preceding December 31st. The maximum amount of dividends
that MNH could pay during any twelve month period ending in 1996 without the
prior approval of the New Hampshire Insurance Commissioner is $4,661,000.
In certain states in which it operates, MNH is required to maintain
deposits with the appropriate regulatory authority to secure its obligations
under certain insurance policies written in the jurisdiction. At December 31,
1995, investments of MNH having a par value of $1,800,000 were on deposit with
regulatory authorities.
MNH and Mutual are required to file detailed annual reports with the
appropriate regulatory agency in each of the states in which they do business.
Their business and accounts are subject to examination by such agencies at any
time, and the laws of many states require periodic examination. During 1995
the New Hampshire Insurance Department issued its report on MNH for the 5 year
period ended December 31, 1992. In its report the New Hampshire Insurance
Department concluded that MNH's loss and loss adjustment expense reserves were
deficient; however, no regulatory action was taken related to this report.
Also, during 1995 the New York Insurance Department issued its report on the
Mutual's financial condition as of December 31, 1994, and concluded that
Mutual's loss and loss adjustment expense reserves were adequate.
In 1993 the National Association of Insurance Commissioners ("NAIC")
adopted a risk-based capital measurement formula to be applied to all property
and casualty insurance companies. The formula calculates a minimum required
statutory net worth, based on the underwriting, investment, credit, loss
reserve and other business risks inherent in an individual company's
operations. Any insurance company that does not meet threshold risk-based
capital measurement standards could be forced to reduce the scope of its
operations and ultimately could become subject to statutory receivership
proceedings. MNH's capital substantially exceeds the statutory minimum as
determined by the risk based capital measurement formula as of December 31,
1995.
The NAIC has established eleven financial ratios (the Insurance
Regulatory Information System, or "IRIS") to assist state insurance departments
in their oversight of the financial condition of insurance companies operating
in their respective states. The NAIC calculates these ratios based on
information submitted by insurers on an annual basis and shares the information
with the applicable state insurance departments. The ratios relate to
leverage, profitability, liquidity and loss
23
<PAGE> 24
reserve development. Each of the Company's ratios for 1991 through 1994 fell
within the usual or acceptable range as published by the NAIC. Three of the
Company's ratios as of December 31, 1995 relating to profitability and loss
reserve development fell outside of the acceptable range of ratios. All three
of the ratios were outside of the acceptable ranges due to the $11,045,000
increase in the provision for losses and LAE recorded in 1995, for claims
occurring in years prior to 1995, as discussed in this Item under the heading
"Loss and LAE Reserves".
RATES
Premium rate regulations vary greatly among states and lines of
insurance, but generally require approval of the regulatory authority or
limited review by the authority prior to changes in rates. However, in New
York, insurers writing in designated commercial risk, professional liability
and public entity insurance markets may periodically revise rates within the
limits of applicable flexibility bands ("flex-bands") on a file and use basis,
but must obtain the Department's prior approval in order to implement rate
increases or decreases beyond these flex-bands.
INSURANCE HOLDING COMPANIES
The Company is subject to statutes governing insurance holding company
systems. Typically, such statutes require the Company to file information
periodically concerning its capital structure, ownership, financial condition
and general business operations and material inter-company transactions not in
the ordinary course of business. Under the terms of applicable New Hampshire
statutes, any person or entity desiring to purchase shares which would result
in such person beneficially owning 10% or more of the Company's outstanding
voting securities would be required to obtain regulatory approval prior to the
purchase.
INVOLUNTARY INSURANCE
As a condition to writing voluntary insurance in most of the states in
which it operates, the Company must participate in programs that provide
insurance for persons unable to obtain insurance voluntarily. Uncertainties as
to the size of the involuntary market population make it difficult to predict
the amount of involuntary business in a given year. Further complicating the
ability to predict assignments in New York is the Territorial Credit Program
("TCP") instituted by the Department in 1990. The TCP provides companies
credits against their NYAIP assignments based upon their voluntary automobile
writings in designated territories two years prior to the assignment year.
Designated territories are territories in which the ratio of NYAIP-insured car
years to total-insured car years exceeds the statewide average of the same
ratio. The designated territories are primarily in or near the New York City
metropolitan area, an area in which the Company does not have, or intend to
develop, a significant market presence. The Company's voluntary market share
24
<PAGE> 25
in the designated territories is less than its statewide market share, which may
result in an increase in the Company's NYAIP assignments in 1996 and subsequent
years.
EMPLOYEES
The Company has no employees. At December 31, 1995, Mutual had 352
full-time employees. The Company believes that Mutual's relationship with its
employees is satisfactory.
Item 2. PROPERTIES.
Although the Company has no facilities, it benefits from the facilities
of Mutual pursuant to the Management Agreement, under which the Company is
charged a proportionate share of the costs of such facilities.
The Company's corporate headquarters are located in Buffalo, New York in
a building owned by Mutual that contains approximately 113,000 square feet of
office space. Mutual also has regional underwriting and/or claims office
facilities in Buffalo, Albany and Central Islip, New York; Bedford, New
Hampshire; and Moorestown, New Jersey. All of the offices except the Buffalo
office are leased.
Item 3. LEGAL PROCEEDINGS.
On January 31, 1995, a New York State trial court dismissed a purported
class action lawsuit which was filed in 1993 against the Company, Mutual, MNH
and certain directors of the Company and of Mutual (the "defendants") on behalf
of the then minority shareholders of the Company. The Court, in granting the
defendants' motion, held that plaintiff's claims, to the extent they have any
merit, are derivative in nature. The complaint, which sought equitable relief
and unspecified money damages, alleged that the defendants breached their
fiduciary obligations to the minority shareholders of the Company, and
defrauded the minority shareholders, by causing MNH to purchase from the FDIC a
surplus note issued by Mutual and simultaneously reducing the principal amount
plus accrued return on such surplus note to $1,350,000, which is the amount MNH
paid to the Federal Deposit Insurance Corporation ("FDIC") for the note, and by
approving the public sale of the Company's common stock sold in July 1993 at
what the plaintiff alleges was an inadequate price. On March 31, 1995, the
plaintiff filed a motion with the trial court for permission to reargue the
defendants motion to dismiss. On September 29, 1995, the trial court denied
the plaintiff's motion to reargue. The plaintiff then filed an amended
complaint dated November 6, 1995, which asserts the same claims as were
asserted in his class action lawsuit but in the form of a derivative suit. The
Company's Board of Directors appointed a special committee to investigate and
determine the Company's position with respect to this derivative lawsuit, and,
based on that committee's report and
25
<PAGE> 26
recommendation, the Board of Directors determined in its business judgment that
continuation of this lawsuit was not in the Company's best interest.
Accordingly, the Company and the other defendants filed a motion to dismiss
this lawsuit on February 23, 1995, and that motion is pending.
MNH, like many other property and casualty insurance companies, is
subject to environmental damage claims asserted by or against its insureds.
Management of the Company is of the opinion that based on various court
decisions throughout the country such claims should not be recoverable under
the terms of MNH's insurance policies because of either specific or general
coverage exclusions contained in the policies. However, there is no assurance
that the courts will agree with MNH's position in every case, nor can there be
assurance that material claims will not be asserted under policies which a
court will find do not explicitly or implicitly exclude claims for
environmental damages. Management, however, is not aware of any pending claim
or group of claims which would result in a liability that would have a material
adverse effect on the financial condition of the Company or MNH.
In addition to the foregoing matters, MNH is a defendant in a number
of other legal proceedings in the ordinary course of its business. Management
of the Company is of the opinion that the ultimate aggregate liability, if any,
resulting from such proceedings will not materially affect the financial
condition of the Company or MNH.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
26
<PAGE> 27
PART II
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.
The Company's common stock is traded on the American Stock Exchange (AMEX
symbol: MGP). The following table sets forth the high and low closing prices of
the common stock for the periods indicated as reported on the American Stock
Exchange.
<TABLE>
<CAPTION>
1995: High Low
- ----- ---- ---
<S> <C> <C>
Fourth Quarter $19.38 $16.75
Third Quarter 19.63 16.38
Second Quarter 18.88 14.75
First Quarter 15.75 14.50
1994:
- -----
Fourth Quarter $15.25 $14.12
Third Quarter 16.75 15.12
Second Quarter 16.50 14.50
First Quarter 17.12 14.50
</TABLE>
The number of stockholders of record of the Company's Common Stock as of
March 1, 1996 was 127. Securities held by nominees are counted as one
stockholder of record.
The Company began paying a quarterly cash dividend of $.05 per share to its
common stockholders during the third quarter of 1993. Continued payment of this
dividend and its amount will depend upon the Company's operating results,
financial condition, capital requirements and other relevant factors, including
legal restrictions applicable to the payment of dividends by its insurance
subsidiary, MNH.
As a holding company, the Company depends on dividends from its subsidiary,
MNH, to pay cash dividends to its stockholders. MNH is subject to New Hampshire
state insurance laws which restrict its ability to pay dividends without the
prior approval of state regulatory authorities. These restrictions limit
dividends to those that, when added to all other dividends paid within the
preceding twelve months, would not exceed 10% of the insurer's policyholders'
surplus as of the preceding December 31. The maximum amount of dividends that
MNH could pay during any twelve month period ending in 1996 without prior
approval of the New Hampshire Insurance Commissioner is $4,661,000.
27
<PAGE> 28
Item 6. SELECTED FINANCIAL DATA.
The selected financial data set forth in the following table for each of
the five years in the period ended December 31, 1995 have been derived from the
audited consolidated financial statements of the Company.
<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
(in thousands, except per share amounts)
<S> <C> <C> <C> <C> <C>
Income Data:
- ------------
Net premiums written $ 90,988 $84,341 $91,192 $ 90,187 $ 97,577
======== ======= ======= ========= =========
Net premiums earned $ 89,136 $87,912 $88,181 $ 90,845 $ 94,749
Net investment income 10,764 9,003 9,155 9,849 10,368
Net realized investment
gains (losses) 1,687 1,066 1,467 20 (832)
Other revenues 845 615 693 638 259
-------- ------- ------- --------- ---------
Total revenues 102,432 98,596 99,496 101,352 104,544
-------- ------- ------- --------- ---------
Losses and loss
adjustment expenses 63,049 61,803 62,407 70,800 78,195
Amortization of deferred
policy acquisition costs 23,621 23,297 23,739 24,424 25,458
Other underwriting expenses 7,012 7,143 6,020 5,892 7,709
-------- ------- ------- --------- ---------
Total expenses 93,682 92,243 92,166 101,116 111,362
-------- ------- ------- --------- ---------
Income (loss) before
income taxes 8,750 6,353 7,330 236 (6,818)
Provision (benefit)
for income taxes 2,490 1,238 1,727 (895) (2,999)
-------- ------- ------- --------- ---------
Income (loss) before
cumulative effect of change
in accounting for income
taxes 6,260 5,115 5,603 1,131 (3,819)
Cumulative effect of change
in accounting for income
taxes -- -- 306 -- --
-------- ------- ------- --------- ---------
Net income (loss) $ 6,260 $ 5,115 $ 5,909 $ 1,131 $ (3,819)
======== ======= ======= ========= =========
</TABLE>
28
<PAGE> 29
Merchants Group, Inc.
Selected Financial Data - continued
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------
1991 1992 1993 1994 1995
---- ---- ---- ---- ----
(in thousands, except per share amounts)
<S> <C> <C> <C> <C> <C>
Primary and fully diluted
earnings (loss) per
share:
Before cumulative effect
of change in accounting
for income taxes $ 2.91 $ 2.31 $ 2.12 $ .36 $ (1.19)
Cumulative effect of
change in accounting
for income taxes -- -- .12 -- --
-------- -------- -------- -------- ---------
Primary and fully diluted
earnings (loss) per
share $ 2.91 $ 2.31 $ 2.24 $ .36 $ (1.19)
======== ======== ======== ======== =========
Weighted average number
of shares outstanding:
Primary 2,005 2,108 2,641 3,177 3,219
Fully diluted 2,407 2,109 2,641 3,177 3,220
Balance Sheet Data:
- -------------------
(at year end)
-------------
Total investments $144,977 $157,478 $175,762 $170,747 $ 192,218
Total assets 181,405 193,202 219,188 227,750 252,808
Reserve for losses and
loss adjustment expenses 77,274 86,159 93,896 104,015 119,722
Unearned premiums 44,296 40,725 46,006 45,449 48,773
Stockholders' equity 51,792 53,265 75,083 67,279 69,970
Dividend Data:
- --------------
Cash dividend per
common share $ -- $ -- $ .10 $ .20 $ .20
======== ======== ======== ======== =========
</TABLE>
29
<PAGE> 30
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
1995 Compared to 1994.
- ----------------------
Total revenues increased 3% from $101,352,000 in 1994 to $104,544,000 in
1995. Of the $3,192,000 increase, $3,904,000 was attributable to a 4% increase
in net premiums earned and $519,000 was attributable to an 5% increase in net
investment income. These increases were partly offset by a $852,000 decrease in
net realized investment gains and a $379,000 decrease in other revenues.
Net premiums written increased 8% from $90,187,000 in 1994 to $97,577,000
in 1995, primarily due to 10% increase in direct premiums written. This increase
in direct premiums written was partially offset by a 48% decrease in premiums
written assumed from Mutual in accordance with the quota share reinsurance
agreement between Mutual and MNH. In December 1995, Mutual informed MNH that it
would exercise its option to reduce its cessions to MNH under the agreement to
0% of Mutual's direct voluntary premiums written effective for calendar year
1996, including premiums written in 1995 but which were unearned as of December
31, 1995. As a result, premiums written assumed by the Company from Mutual under
this reinsurance agreement decreased from $4,086,000 in 1994 to $2,110,000 in
1995.
Voluntary commercial lines direct premiums written increased 11% from
$51,602,000 in 1994 to $57,304,000 in 1995. Commercial lines retention rates
held constant and commercial lines policies in force increased 1% in 1995
compared to 1994. Average premium per policy increased 10% in 1995 compared to
1994. Direct premiums written in each commercial line of business, except
contractors' coverall, increased in 1995 compared to 1994.
Voluntary personal lines direct premiums written increased 7% from
$32,101,000 in 1994 to $34,393,000 in 1995. Private passenger automobile direct
premiums written, which comprised 79% of total voluntary personal lines direct
premiums written in 1995, increased 5% in 1995 compared to 1994. Homeowners'
direct premiums written increased 17% in 1995 compared to 1994 due to a 4%
increase in policies in force and a 13% increase in average premium per policy.
Net investment income increased 5% from $9,849,000 in 1994 to $10,368,000
in 1995, primarily due to a 3% increase in average invested assets. On a taxable
equivalent basis, net investment income increased 3% in 1995 compared to 1994.
30
<PAGE> 31
The Company's investment in Signet included in other long-term investments
is carried at fair value. During 1995, the Company recorded an $840,000 loss on
its investment in Signet which is included as a component of realized investment
gains and losses in the consolidated statement of income. There were no material
gains or losses realized from the sale of investments in 1994 or 1995.
Losses and LAE increased 10% from $70,800,000 in 1994 to $78,195,000 in
1995. The loss and LAE ratio increased from 77.9% in 1994 to 82.5% in 1995. As a
result of greater than expected reported loss experience during 1995, the
Company increased its estimate for claims that occurred in 1989 through 1994 for
the homeowners, businessowners, workers' compensation, and commercial lines of
business. Partly offsetting these increases was a reduction in the Company's
estimate of automobile insurance claims that occurred in 1993 and 1994. The net
increase in the reserve for prior year losses and LAE approximated $11,000,000
and added 11.6 percentage points to the loss and LAE ratio in 1995.
Losses in 1994 included $3,135,000 paid to Mutual as a one time settlement
for losses relating to the 1985 through 1994 accident years on involuntary
automobile insurance policies issued by Mutual under automobile insurance plans
("AIP").
In accordance with various states' AIP rules, Mutual historically has
received the assignment of MNH's, as well as its own, AIP policies based on its
and MNH's combined voluntary automobile market share, issued the policies and
settled the claims associated with those polices. Mutual then allocated the
results of the involuntary AIP business to MNH based on MNH's share of the
combined voluntary automobile business of Mutual and MNH.
In July 1994, Mutual informed the Company that it had failed to identify
and bill MNH during the period January 1, 1985 through June 30, 1994 for a
portion of MNH's share of AIP losses paid by Mutual in that period. The amount
of unbilled AIP losses was approximately $7,500,000. After extensive
negotiations, between the Company's and Mutual's independent Directors, MNH
agreed to pay Mutual $3,135,000 in full and complete settlement of the unbilled
AIP paid losses for the period noted above. This settlement increased the 1994
loss and LAE ratio by 3.5 percentage points.
Also included in losses in 1994 was approximately $2,400,000 of losses
related to severe winter weather that struck the northeastern United States. The
losses from these storms increased the loss and LAE ratio in 1994 by 2.6
percentage points.
31
<PAGE> 32
In 1995, the Company increased its reserve for losses and LAE related to
prior years by $11,045,000, compared to an increase in reserve for losses and
LAE related to prior years of $4,982,000 recorded in 1994.
Involuntary automobile insurance business increased MNH's calendar year
loss and LAE ratio by approximately 3.1 percentage points and decreased MNH's
calendar year loss and LAE ratio by .6 percentage points for the years ended
December 31, 1994 and 1995, respectively. The combined ratio on involuntary
automobile business was greater than the combined ratio on voluntary automobile
business.
The ratio of policy acquisition costs and other underwriting expenses to
net premiums earned increased from 33.4% in 1994 to 35.0% in 1995. In 1995,
other underwriting expenses included approximately $1,100,000 related to the
1995 resignation of the Company's former Chief Executive Officer. These expenses
added approximately 1.2 percentage points to the ratio of policy acquisition
costs and other underwriting expenses to net premiums earned in 1995.
Commissions, premium taxes and other state assessments that vary directly
with the Company's premium volume represented 20.6% of net premiums earned in
1995 and 1994. Certain other underwriting expenses, such as salaries, employee
benefits, and other operating expenses vary indirectly with volume and comprise
the remainder of the Company's underwriting expenses.
The Company recorded an income tax benefit in 1995 and 1994. The benefits
recorded were larger than that calculated using the statutory federal income tax
rate due to tax exempt bond income.
1994 Compared to 1993.
- ----------------------
Total revenues increased 2% from $99,496,000 in 1993 to $101,352,000 in
1994. Of the $1,856,000 increase, $2,664,000 was attributable to a 3% increase
in net premiums earned and $694,000 was attributable to an 8% increase in net
investment income. These increases were partly offset by a $1,447,000 decrease
in net realized investment gains and a $55,000 decrease in other revenues.
Net premiums written decreased 1% from $91,192,000 in 1993 to $90,187,000
in 1994, primarily due to a decline in the premiums assumed from Mutual in
accordance with the quota share reinsurance agreement. The Company assumed
$6,114,000 and $4,086,000 of written premiums from Mutual in 1993 and 1994,
respectively, under the terms of this agreement. This decrease in net premiums
written was partially offset by a 2% increase in direct written premiums.
32
<PAGE> 33
Voluntary commercial lines direct premiums written increased by 7% from
$48,304,000 in 1993 to $51,602,000 in 1994. Commercial lines retention rates
held constant in 1994 compared to 1993 as did the number of commercial policies
in force. Average premium per policy increased 3% in 1994 compared to 1993.
Direct premiums written in each commercial line of business, except contractors'
coverall, increased in 1994 compared to 1993.
Voluntary personal lines direct premiums written increased 2% from
$31,575,000 in 1993 to $32,101,000 in 1994. Private passenger automobile direct
premiums written, which comprised 82% of total voluntary personal lines direct
premiums written in 1994, were unchanged in 1994 compared to 1993. Homeowners'
direct premiums written increased 10% in 1994 compared to 1993.
Net investment income increased 8% from $9,155,000 in 1993 to $9,849,000 in
1994, primarily due to a 7% increase in average invested assets. On a taxable
equivalent basis, net investment income increased 9% in 1994 compared to 1993.
Losses and LAE increased 13% from $62,407,000 in 1993 to $70,800,000 in
1994. The loss and LAE ratio increased from 70.8% in 1993 to 77.9% in 1994.
Losses in 1994 included $3,135,000 paid to Mutual as a one time settlement for
losses relating to the 1985 through 1994 accident years on involuntary
automobile insurance policies issued by Mutual under AIP's.
Also included in losses in 1993 and 1994, respectively, were approximately
$630,000 and $2,400,000, of losses related to severe winter weather that struck
the northeastern United States. The losses from these storms increased the loss
and LAE ratio in 1993 and 1994 by .7 and 2.6 percentage points, respectively.
In 1994, the Company increased its reserve for losses and LAE related to
prior years by $4,982,000, compared to an increase in reserve for losses and LAE
related to prior years of $2,125,000 recorded in 1993. Approximately $3,100,000
of the $4,982,000 related to the settlement of AIP losses with Mutual.
Involuntary automobile insurance business increased MNH's calendar year
loss and LAE ratio by approximately 2.1 and 3.1 percentage points for the years
ended December 31, 1993 and 1994, respectively. The combined ratio on
involuntary automobile business was substantially greater than the combined
ratio on voluntary automobile business.
The ratio of policy acquisition costs and other underwriting expenses to
net premiums earned decreased from 33.7% in 1993 to 33.4% in 1994. In 1993,
policy acquisition costs and other underwriting expenses included a $368,000
credit for New Hampshire Business and Profits Tax credits, relating to the years
1989 through 1992. Excluding the effect of this non-recurring credit, the ratio
of amortized policy acquisition costs and other
33
<PAGE> 34
underwriting expenses to net premiums earned in 1993 would have been 34.2%
Commissions, premium taxes and other state assessments that vary directly
with the Company's premium volume represented 20.6% of net premiums earned in
1994, compared to 21.6% of net premiums earned in 1993. In addition, certain
other underwriting expenses, such as salaries, employee benefits, and other
operating expenses vary indirectly with volume and comprise the remainder of the
Company's underwriting expenses.
The Company recorded an income tax benefit in 1994. The benefit recorded
was larger than that calculated using the statutory federal income tax rate due
to tax exempt bond income. The Company's effective federal income tax rate on
operating income for 1993 was 23.6%. Tax exempt bond income reduced the
Company's effective tax rate by 10 percentage points in 1993.
Liquidity and Capital Resources
- -------------------------------
In developing its investment strategy, the Company determines a level of
cash and short-term investments which, when combined with expected cash flow, is
estimated to be adequate to meet expected cash obligations. Historically, the
excess of premiums collected over payments on claims, combined with cash income
from investments, has provided the Company with short-term funds in excess of
normal operating demands for cash.
Net cash provided by operations increased by $4,190,000 from $8,315,000 in
1994 to $12,505,000 in 1995. This increase resulted primarily from a $1,547,000
increase in premiums collected, a $1,034,000 decrease in payments of losses and
LAE and a $702,000 decrease in income taxes paid.
Net cash used in investing activities increased $4,785,000 from
$7,688,000 in 1994 to $12,473,000 in 1995. This increase resulted
primarily from a $6,375,000 decrease in cash provided by the maturity or sale
of fixed maturities.
Net cash used in financing activities decreased $602,000 from $613,000 in
1994 to $11,000 in 1995 primarily due to a $624,000 increase in proceeds from
the exercise of employee stock options.
The Company has several objectives with respect to its investment
portfolio, which include maximizing total return while protecting policyholders'
surplus, maintaining flexibility and liquidity, and maintaining a reasonable
duration match between assets and liabilities. Like other property casualty
insurers, the Company relies on premiums as a major source of cash, and
therefore liquidity. Cash flows from the Company's investment portfolio, either
in the form of interest or principal payments, are an additional source of
liquidity. Because the duration of the Company's investment portfolio and
liabilities are relatively matched, substantial increases or decreases in market
interest
34
<PAGE> 35
rates are not expected to have a material effect on the Company's liquidity,
or its results of operations.
The Company generally designates newly acquired fixed maturity investments
as available for sale and carries these investments at fair value. In December
1995, the Company re-assessed the classification of all its fixed maturity
investments as permitted by the Financial Accounting Standards Board. As a
result, the Company reclassified as available for sale certain fixed maturity
securities that had previously been classifed as held to maturity. This transfer
resulted in a $1,044,000 increase in stockholders' equity at December 31, 1995.
The Company's investment in Signet cumulative auction rate preference
shares included in other long-term investments is carried at its fair value of
$1,500,000 at December 31, 1995. During 1995, the Company determined that the
decline in fair value of its Signet investment was other than temporary and
recorded an $840,000 loss in its Consolidated Statement of Income as a component
of realized gains and losses. Subsequent adjustments to the fair value of Signet
are considered temporary and are recorded directly to stockholders' equity.
As a result of the decrease in market interest rates during 1995 and their
favorable impact on bond prices, and the effect of the realized loss recognized
on the Signet investment, the Company recorded a before tax reduction of
$9,880,000 to its unrealized losses during 1995.
At December 31, 1995 the Company's bond portfolio represented 95.3% of
invested assets. Management believes that this level of bond holdings will not
adversely affect the Company's liquidity because it expects that cash receipts
from net premiums written and investment income will be sufficient to enable the
Company to satisfy its cash obligations in 1996. Furthermore, a substantial
portion of the Company's bond portfolio is invested in mortgage-backed and other
asset-backed securities, which, in addition to interest income, provide monthly
paydowns of bond principal.
At December 31, 1995, $81,597,000, or 44.5% of the Company's bond portfolio
was invested in mortgage-backed and other asset-backed securities, primarily
planned amortization class ("PAC") and sequential pay collateralized mortgage
obligations ("CMO"). A PAC-CMO has an amortization schedule that is protected
against prepayment risk under a wide range of interest rate scenarios and is
therefore less susceptible to prepayment risk than other mortgage backed
securities. The Company has not invested in the more volatile types of CMO
products such as interest only, principal only or inverse floating rate
securities. All of the Company's CMO investments have an active secondary market
and their effect on the Company's liquidity does not differ from that of other
fixed maturity investments. The Company does not own any other derivative
financial instruments such as futures or options.
35
<PAGE> 36
At December 31, 1995, $2,557,000, or 1.3%, of the Company's investment
portfolio was invested in non-investment grade securities.
As a holding company, the Company is dependent upon cash dividends from MNH
to meet its obligations and pay any cash dividends. MNH is subject to New
Hampshire insurance laws which place certain restrictions on its ability to pay
dividends without the prior approval of state regulatory authorities. These
restrictions limit dividends to those that, when added to all other dividends
paid within the preceding twelve months, would not exceed 10% of the insurer's
policyholders' surplus as of the preceding December 31. The maximum amount of
dividends that MNH could pay during any twelve month period ending in 1996
without the prior approval of the New Hampshire Insurance Commissioner is
$4,661,000. The Company paid a $.05 per share quarterly cash dividend to its
common stockholders totalling $635,000 in 1995.
On November 1, 1994, Mutual filed an application with the New York
Insurance Department ("Department") to convert from a mutual to a stock
corporation under the New York law that permits a mutual insurance company to
demutualize. In a demutualization, a mutual insurance company's policyholders
and surplus note holders are entitled to receive their equitable share of that
company's appraised fair market value in cash or securities or a combination
thereof. Mutual's application is currently pending with the Department and must
ultimately be approved by the Department and Mutual's policyholders after the
Department has determined Mutual's fair market value based upon an independent
appraisal. The Company has advised Mutual and the Department of its interest in
sponsoring Mutual's demutualization, and Mutual has granted the Company a right
of first refusal in that regard. The Company would consider acquiring Mutual if
it determines that the appraised value is acceptable and it has sufficient
capital to fund the acquisition. In the event the Company is not able to acquire
Mutual at a price, on terms or in a time frame acceptable to the Company, the
Company may elect to develop its own management structure and might, therefore,
terminate the Management Agreement, subject to its required five year notice
provision, or request that Mutual and the Department agree to amend the
Management Agreement. Such an amendment might include, but not be limited to, a
shortening of the termination period.
MNH, like many other property and casualty insurance companies, is subject
to environmental damage claims asserted by or against its insureds. Management
of the Company is of the opinion that based on various court decisions
throughout the country, such claims should not be recoverable under the terms of
MNH's insurance policies because of either specific or general coverage
exclusions contained in the policies. However, there is no assurance that the
courts will agree with MNH's position in every case, nor can there be assurance
that material claims will not be asserted under policies which a court will find
do not explicitly or implicitly exclude claims for environmental damages.
36
<PAGE> 37
Management, however, is not aware of any pending claim or group of claims
which would result in a liability that would have a material adverse effect on
the financial condition of the Company or MNH.
Industry and regulatory guidelines suggest that the ratio of a property and
casualty insurer's annual net premiums written to its statutory surplus should
not exceed 3 to 1. The Company has consistently followed a business strategy
that would allow it to meet this 3 to 1 regulatory guideline. MNH's ratio of net
premiums written to statutory surplus during 1995 was 2.1 to 1.
Inflation
- ---------
Inflation affects the Company, like other companies in the property and
casualty insurance industry, by contributing to higher losses, LAE and operating
costs, as well as greater investment income resulting from the higher interest
rates which can prevail in an inflationary period. Premium rates, however, may
not keep pace with inflation since competitive forces generally limit the
Company's ability to increase premium rates.
The Company considers inflationary trends in estimating its reserves for
claims reported and for incurred but not reported claims. Management believes
that its policy of timely recording and settling claims has helped it to lessen
the potential effect that inflation can have on claims which remain open for
several years.
Federal Taxation
- ----------------
The Company and MNH are subject to federal income taxation under the
provisions of the Internal Revenue Code of 1986, as amended.
37
<PAGE> 38
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The consolidated financial statements required in response to this Item are
submitted as part of Item 14 (a) of this report.
Quarterly data for the two most recent fiscal years is set forth below:
<TABLE>
<CAPTION>
Three months ended
------------------
3/31 6/30 9/30 12/31
---- ---- ---- -----
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
1995
- ----
Net premiums earned $ 22,710 $ 23,392 $ 24,432 $ 24,215
Net investment income 2,523 2,588 2,559 2,698
Net realized investment
losses -- (832) -- --
Other revenues
(expenses), net 273 (224) 50 160
-------- -------- -------- --------
Total revenues 25,506 24,924 27,041 27,073
======== ======== ======== ========
Income (loss) before
income taxes 1,525 (7,899) (2,198) 1,754
Net income (loss) 1,111 (3,916) (1,996) 982
Net income (loss) per
common share .35 (1.23) (.62) .30
1994
- ----
Net premiums earned $ 22,562 $ 22,643 $ 23,314 $ 22,326
Net investment income 2,550 2,420 2,415 2,464
Net realized investment
gains (losses) (3) 30 (3) (4)
Other revenues 82 182 185 189
-------- -------- -------- --------
Total revenues 25,191 25,275 25,911 24,975
======== ======== ======== ========
Income (loss) before
income taxes (283) (1,382) 1,942 (41)
Net income (loss) 25 (771) 1,449 428
Net income (loss) per
common share .01 (.24) .46 .13
</TABLE>
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
38
<PAGE> 39
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
The Company's definitive proxy statement which will be filed with the
Commission pursuant to Regulation 14A within 120 days after the end of the
Company's fiscal year is incorporated herein by reference.
Item 11. EXECUTIVE COMPENSATION.
The Company's definitive proxy statement which will be filed with the
Commission pursuant to Regulation 14A within 120 days after the end of the
Company's fiscal year is incorporated herein by reference.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.
The Company's definitive proxy statement which will be filed with the
Commission pursuant to Regulation 14A within 120 days after the end of the
Company's fiscal year is incorporated herein by reference.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
The Company's definitive proxy statement which will be filed with the
Commission pursuant to Regulation 14A within 120 days of the end of the
Company's fiscal year is incorporated herein by reference.
39
<PAGE> 40
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K.
(a) (1) The following financial statements of Merchants Group,
Inc. are included on pages F-1 to F-24:
Report of Independent Accountants
Consolidated Balance Sheet - December 31, 1994 and 1995.
Consolidated Statement of Income - Years ended December
31, 1993, 1994 and 1995.
Consolidated Statement of Changes in Stockholders'
Equity - Years ended December 31, 1993, 1994 and 1995 .
Consolidated Statement of Cash Flows - Years ended
December 31, 1993, 1994 and 1995.
Notes to Consolidated Financial Statements.
(2) The following financial statement schedules of Merchants Group,
Inc. are filed herewith pursuant to Item 8:
Schedule I -
Summary of Investments - Other Than Investments in
Related Parties.
Schedule II -
Amounts Receivable From Related Parties, and
Underwriters, Promoters and Employees Other Than
Related Parties.
Schedule III -
Condensed Financial Information of Registrant.
Schedule V -
Supplemental Insurance Information (see Schedule X).
Schedule VI - Reinsurance
Schedule X -
Supplemental Insurance Information Concerning Property
- Casualty Subsidiaries
(b) Reports on Form 8-K.
There were no reports on Form 8-K filed for the quarter ended
December 31, 1995.
(c) Exhibits required by Item 601 of Regulation S-K:
(3) (a) Restated Certificate of Incorporation (incorporated
by reference to Exhibit No. 3C to Amendment No. 1 to
the Company's Registration Statement (No. 33-9188)
on Form S-1 filed on November 7, 1986).
40
<PAGE> 41
(b) Restated By-laws (incorporated by reference to
Exhibit No. 3D to Amendment No. 1 to the Company's
Registration Statement (No. 33-9188) on Form S-1
filed on November 7, 1986).
(10) (a) Management Agreement dated as of September 29, 1986
by and among Merchants Mutual Insurance Company,
Registrant and Merchants Insurance Company of New
Hampshire, Inc. (incorporated by reference to
Exhibit No. 10A to the Company's Registration
Statement (No. 33-9188) on Form S-1 filed on
September 30, 1986).
(b) Agreement of Reinsurance No. 6922 between Merchants
Mutual Insurance Company, Merchants Insurance
Company of New Hampshire, Inc. and General
Reinsurance Corporation (incorporated by reference
to Exhibit No. 10E to the Company's Registration
Statement (No. 33-9188) on Form S-1 filed on
September 30, 1986).
(c) Agreement of Reinsurance No. 7299 between Merchants
Mutual Insurance Company, Merchants Insurance
Company of New Hampshire, Inc. and General
Reinsurance Corporation, (incorporated by reference
to Exhibit No. 10o to the Company's 1987 Annual
Report on Form 10-K (File No. 1-9640) filed on March
19, 1988).
(d) Agreement of Reinsurance dated January 27, 1993,
between Merchants Mutual Insurance Company and
Merchants Insurance Company of New Hampshire, Inc.
(incorporated by reference to Exhibit (3) in the
Company's Current Report on Form 8-K (File No.
1-9640) filed on January 29, 1993).
(e) Agreement of Reinsurance No. 8009 between Merchants
Mutual Insurance Company, Merchants Insurance
Company of New Hampshire, Inc. and General
Reinsurance Corporation, (filed herewith).
(f) Property Catastrophe Reinsurance Agreement (HCI
Agreement No. 345) between Merchants Mutual
Insurance Company, Merchants Insurance Company of
New Hampshire, Inc. and General Reinsurance
Corporation, et. al., dated January 1, 1995,
(incorporated by reference to Exhibit No. 10e to the
Company's 1994 Annual
41
<PAGE> 42
Report on Form 10-K (File No.
1-9640) filed on March 31, 1995).
* (g) Merchants Mutual Capital Accumulation Plan
(incorporated by reference to Exhibit No. 10G to the
Company's Registration Statement (No. 33-9188) on
Form S-1 filed on September 30, 1986).
* (h) Merchants Mutual Capital Accumulation Plan, second
amendment, effective January 1, 1994 (incorporated
by reference to Exhibit No. 10G to the Company's
1994 Annual Report on Form 10-K (File No. 1-9640)
filed on March 31, 1995).
* (i) Merchants Mutual Capital Accumulation Plan Trust
Agreement dated September 30, 1992 (incorporated by
reference to Exhibit No. 10Q to the Company's 1992
Annual Report on Form 10-K (File No. 1-9640) filed
on March 31, 1993).
* (j) Merchants Mutual Supplemental Executive Retirement
Plan dated as of December 29, 1989 and Agreement of
Trust dated as of December 29, 1989 (incorporated by
reference to Exhibit No. 10K to the Company's 1989
Annual Report on Form 10-K (File No. 1-9640) filed
on March 21, 1990).
* (k) Amendment dated June 10, 1992 to Agreement of Trust
under Merchants Mutual Supplemental Executive
Retirement Plan dated as of December 29, 1989
(incorporated by reference to Exhibit No. 10R to the
Company's 1992 Annual Report on Form 10-K (File No.
1-9640) filed on March 31, 1993).
* (l) Merchants Group, Inc. 1986 Stock Option Plan As
Amended Through February 16, 1993 (incorporated by
reference to Exhibit No. 10E to the Company's 1992
Annual Report on Form 10-K (File No. 1-9640) filed
on March 31, 1993).
(m) Form of Amended Indemnification Agreement entered
into by Registrant with each director and executive
officer of Registrant (incorporated by reference to
Exhibit No. 10N to Amendment No. 1 to the Company's
Registration Statement on (No. 33-9188) Form S-1
filed on November 7, 1986).
42
<PAGE> 43
* (n) Merchants Mutual Insurance Company Incentive
Compensation Plan, as amended January 24, 1996
(filed herewith).
* (o) Employment Agreement between Robert M. Zak and
Merchants Mutual Insurance Company dated as of June
1, 1994 (incorporated by reference to Exhibit No.
10O to the Company's 1994 Annual Report on Form 10-K
(File No. 1-9640) filed on March 31, 1995).
(11) (a) Statement re computation of per share earnings
(incorporated herein by reference to Note 1 to the
Consolidated Financial Statements included in Item
8).
(21) List of Subsidiaries of Registrant (incorporated by
reference to Exhibit No. 22 to the Company's
Registration Statement (No. 33-9188) on Form S-1
filed on September 30, 1986).
(23) Consent of Independent Accountants.
(27) Financial Data Schedule (filed herewith).
(28) (a) Schedule P furnished to state insurance regulatory
authorities by Merchants Insurance Company of New
Hampshire, Inc. for the year ended December 31, 1995
(filed herewith).
* Indicates a management contract or compensation plan or
arrangement.
43
<PAGE> 44
MERCHANTS GROUP, INC.
SCHEDULE I - SUMMARY OF INVESTMENTS -
OTHER THAN INVESTMENTS IN RELATED PARTIES
December 31, 1995
(in thousands)
<TABLE>
<CAPTION>
Amount at
which shown
Amortized Market in the
Type of Investment cost value balance sheet
------------------ ---- ----- -------------
<S> <C> <C> <C>
Fixed maturities:
United States Government
and government agencies
and authorities $ 29,100 $ 28,832 $ 28,853
Corporate bonds 12,037 11,968 11,968
Mortgage and asset backed
securities 81,166 82,489 81,597
Tax exempt bonds 60,423 60,837 60,837
-------- -------- --------
Total fixed maturities 182,726 $184,126 183,255
-------- ======== --------
Short-term investments 4,470 4,470
Other 6,053 4,493
-------- --------
$193,249 $192,218
======== ========
</TABLE>
44
<PAGE> 45
MERCHANTS GROUP, INC.
SCHEDULE II - AMOUNTS RECEIVABLE FROM RELATED PARTIES,
AND UNDERWRITERS, PROMOTERS AND EMPLOYEES OTHER
THAN RELATED PARTIES
Years ended December 31, 1993, 1994 and 1995
(in thousands)
<TABLE>
<CAPTION>
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Receivable from (payable to)
Merchants Mutual Insurance
Company(1):
Balance at beginning of period $(2,827) $(760) $ (397)
Increase (decrease) 2,067 363 1,488
------- ----- -------
Balance at end of period $ (760) $(397) $ 1,091
======= ===== =======
</TABLE>
(1) Under a Management Agreement, Merchants Mutual Insurance Company ("Mutual")
provides employees, services and facilities for Merchants Insurance Company
of New Hampshire, Inc. ("MNH") to carry on its insurance business on a cost
reimbursed basis. The balance in the intercompany receivable (payable)
account indicates the amount due from (to) Mutual for the excess
(deficiency) of premiums collected over (from) payments for losses,
employees, services and facilities provided to MNH.
45
<PAGE> 46
MERCHANTS GROUP, INC.
SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in thousands except per share and share amounts)
BALANCE SHEET
- -------------
<TABLE>
<CAPTION>
December 31,
--------------------
1994 1995
---- ----
<S> <C> <C>
Assets
------
Investment in subsidiary $ 64,230 $ 66,362
Other assets 3,251 3,908
-------- --------
Total Assets $ 67,481 $ 70,270
======== ========
Liabilities and Stockholders' Equity
------------------------------------
Other liabilities $ 202 $ 300
-------- --------
Total liabilities 202 300
-------- --------
Stockholders' equity:
Preferred stock, $.01 par value,
authorized and unissued 3,000,000
shares -- --
Preferred stock, no par value, $424.30
stated value, no shares issued or
outstanding at December 31, 1994
or 1995 -- --
Common stock, $.01 par value,
authorized 10,000,000 shares;
issued and outstanding of
3,158,188 shares at December 31, 1994 and
3,213,894 shares at December 31, 1995 32 32
Additional paid in capital 34,678 35,302
Unrealized investment gains (losses),
net of tax (6,878) (357)
Accumulated earnings 39,447 34,993
-------- --------
Total stockholders' equity 67,279 69,970
-------- --------
Total liabilities and stockholders'
equity $ 67,481 $ 70,270
======== ========
</TABLE>
46
<PAGE> 47
MERCHANTS GROUP, INC.
SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Continued
(in thousands except per share and share amounts)
INCOME STATEMENT
- ----------------
<TABLE>
<CAPTION>
Year ended
December 31,
------------------------------
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Revenues:
Equity in net income (loss)
of subsidiary $ 6,030 $ 1,307 $(2,856)
Investment income 123 69 73
Net realized investment losses -- -- (840)
------- ------- -------
Total revenues 6,153 1,376 (3,623)
Expenses:
General and administrative expenses 295 336 246
------- ------- -------
Operating income before income taxes 5,858 1,040 (3,869)
Income tax benefit (51) (91) (50)
------- ------- -------
Net income $ 5,909 $ 1,131 $(3,819)
======= ======= =======
</TABLE>
47
<PAGE> 48
MERCHANTS GROUP, INC.
SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in thousands)
STATEMENT OF CASH FLOWS
- -----------------------
Increase (Decrease) in Cash and Cash
Equivalents:
<TABLE>
<CAPTION>
Year ended
December 31,
--------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Cash flows from operating activities: $ (250) $(129) $(311)
-------- ----- -----
Cash flows from investing activities:
Receipt of subsidiary common
stock dividend 2,162 600 800
Additional investment in
subsidiary (10,567) -- --
Sale (purchase) of other
investments, net (3,763) 143 (480)
-------- ----- -----
Cash flows from investing
activities (12,168) 743 320
Cash flows from financing activities:
Cash dividend on common stock (316) (631) (635)
Repayment of funds borrowed
to repurchase preferred stock (1,925) -- --
Repurchase of preferred stock -- -- --
Proceeds from sale of common stock 15,921 -- --
Expenses related to sale of common
stock (1,271) -- --
Exercise of common stock options 11 19 624
-------- ----- -----
Cash flows from financing
activities 12,420 (612) (11)
Net increase (decrease) in cash and
cash equivalents 2 2 (2)
Cash and cash equivalents, beginning
of year 1 3 5
-------- ----- -----
Cash and cash equivalents, end of year $ 3 $ 5 $ 3
======== ===== =====
</TABLE>
48
<PAGE> 49
MERCHANTS GROUP, INC.
SCHEDULE III - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(in thousands)
STATEMENT OF CASH FLOWS - continued
- -----------------------
<TABLE>
<CAPTION>
Year ended
December 31,
------------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Reconciliation of Net Income to Net
Cash Provided By Operations:
Net income (loss) $ 5,909 $ 1,131 $(3,819)
Adjustments to reconcile net income
to net cash provided by operations:
Equity in (income) loss
of subsidiary (6,030) (1,307) 2,856
Net realized investment losses -- -- 840
Increase (decrease) in liabilities (300) 136 98
Increase (decrease) in other
(non-investment) assets -- (292) 94
Other, net 171 203 (380)
------- ------- -------
Net cash provided by (used in)
operating activities $ (250) $ (129) $ (311)
======= ======= =======
</TABLE>
NOTES TO CONDENSED FINANCIAL STATEMENTS
- ---------------------------------------
Cash dividends of $2,162,000, $600,000 and $800,000 were paid to the
Registrant by its consolidated subsidiary in the years ended December 31, 1993,
1994 and 1995, respectively.
49
<PAGE> 50
MERCHANTS GROUP, INC.
SCHEDULE VI - REINSURANCE
Years ended December 31, 1993, 1994 and 1995
(in thousands)
<TABLE>
<CAPTION>
Percentage
Ceded Assumed of amount
Gross to other from other Net assumed
amount companies companies amount to net
------ --------- --------- ------ ----------
<S> <C> <C> <C> <C> <C>
Year ended December 31, 1993
Property and Casualty Premiums $88,198 $ 6,094 $ 9,088 $91,192 10.0%
Year ended December 31, 1994
Property and Casualty Premiums $89,808 $ 6,876 $ 7,255 $90,187 8.0%
Year ended December 31, 1995
Property and Casualty Premiums $98,553 $ 7,548 $ 6,572 $97,577 6.7%
</TABLE>
50
<PAGE> 51
MERCHANTS GROUP, INC.
SCHEDULE X - SUPPLEMENTAL INSURANCE INFORMATION CONCERNING
PROPERTY - CASUALTY SUBSIDIARIES
Years ended December 31, 1993, 1994 and 1995
(in thousands)
<TABLE>
<CAPTION>
Reserves Losses & loss Amoritiza- Paid
for adjustment tion of losses
Deferred losses Discount expenses incurred deferred and
policy & loss if any, Net related to policy loss
acquis- adjust- deducted Net invest- (1) (2) acquisi- adjust- Direct
ition ment from Unearned earned ment Current Prior tion ment premiums
costs expenses reserves premiums premiums income years years costs expenses written
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year ended:
December 31, 1993 $11,763 $ 93,896 $ 21 $46,006 $88,181 $ 9,155 $60,282 $ 2,125 $23,739 $58,627 $88,198
December 31, 1994 $11,587 $104,015 $242 $45,449 $90,845 $ 9,849 $65,818 $ 4,982 $24,424 $63,125 $89,808
December 31, 1995 $12,165 $119,722 $460 $48,773 $94,749 $10,368 $67,150 $11,045 $25,458 $62,091 $98,553
</TABLE>
51
<PAGE> 52
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Merchants Group, Inc.
Date: March 26, 1996 BY: /s/ Robert M. Zak, Senior Vice President
---------------------------------------
Robert M. Zak, Senior Vice President
and Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
--------- ----- ----
/s/ Richard E. Garman Director, Chairman March 26, 1996
- -------------------------- of the Board
Richard E. Garman
/s/ Brent D. Baird Director, President March 26, 1996
- --------------------------
Brent D. Baird
/s/ Robert M. Zak Director, Sr. VP & March 26, 1996
- -------------------------- COO (principal
Robert M. Zak financial and
accounting officer)
/s/ Lawrence P. Castellani Director March 26, 1996
- --------------------------
Lawrence P. Castellani
/s/ Frank J. Colantuono Director March 26, 1996
- --------------------------
Frank J. Colantuono
/s/ Henry P. Semmelhack Director March 26, 1996
- --------------------------
Henry P. Semmelhack
52
<PAGE> 53
Report of Independent Accountants
---------------------------------
To the Board of Directors
and Stockholders of
Merchants Group, Inc.
In our opinion, the consolidated financial statements listed in the index
appearing under Item 14(a)(1) and (2) on page 40 present fairly, in all material
respects, the financial position of Merchants Group, Inc. and its subsidiary at
December 31, 1995 and 1994, and the results of their operations and their cash
flows for each of the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles. These financial
statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
As discussed in Note 8 to the financial statements, the Company changed its
method of accounting for income taxes in 1993.
Buffalo, New York
February 20, 1996
F-1
<PAGE> 54
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED BALANCE SHEET
--------------------------
(in thousands)
<TABLE>
<CAPTION>
December 31,
-------------------
1994 1995
---- ----
<S> <C> <C>
Assets
------
Investments:
Fixed maturities:
Held to maturity at amortized cost
(fair value $31,863 in 1994
and $20,348 in 1995) $ 33,933 $ 19,477
Available for sale at fair value
(amortized cost $135,034 in 1994
and $163,249 in 1995) 127,972 163,778
Other long-term investments at
fair value (amortized cost
$5,557 in 1994 and $6,053 in 1995) 4,387 4,493
Short-term investments 4,455 4,470
-------- --------
Total investments 170,747 192,218
Cash 18 39
Interest due and accrued 1,965 1,886
Premiums receivable, net of allow-
ance for doubtful accounts of
$368 in 1994 and $416 in 1995 18,051 20,360
Deferred policy acquisition costs 11,587 12,165
Ceded reinsurance balances receivable 7,632 7,014
Prepaid reinsurance premiums 2,370 2,866
Receivable from affiliate -- 1,091
Federal income taxes receivable 1,197 3,143
Deferred federal income tax benefit 7,738 5,491
Other assets 6,445 6,535
-------- --------
Total assets $227,750 $252,808
======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-2
<PAGE> 55
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED BALANCE SHEET
--------------------------
(in thousands except share amounts)
<TABLE>
<CAPTION>
December 31,
----------------------
1994 1995
---- ----
<S> <C> <C>
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Reserve for losses and loss
adjustment expenses $ 104,015 $ 119,722
Unearned premiums 45,449 48,773
Other liabilities 10,610 14,343
Payable to affiliate 397 --
--------- ---------
Total liabilities 160,471 182,838
--------- ---------
Stockholders' equity:
Preferred stock -- --
Common stock, issued and outstanding
3,158,188 shares at December 31, 1994
and 3,213,894 shares at December 31, 1995 32 32
Additional paid in capital 34,678 35,302
Unrealized investment losses, net of tax (6,878) (357)
Accumulated earnings 39,447 34,993
--------- ---------
Total stockholders' equity 67,279 69,970
--------- ---------
Commitments and contingent liabilities -- --
Total liabilities and
stockholders' equity $ 227,750 $ 252,808
========= =========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-3
<PAGE> 56
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED STATEMENT OF INCOME
--------------------------------
(in thousands except per share and share amounts)
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Revenues:
Net premiums earned $ 88,181 $ 90,845 $ 94,749
Net investment income 9,155 9,849 10,368
Net realized investment gains
(losses) 1,467 20 (832)
Other revenues 693 638 259
---------- ----------- -----------
Total revenues 99,496 101,352 104,544
---------- ----------- -----------
Expenses:
Net losses and loss adjustment
expenses 62,407 70,800 78,195
Amortization of deferred policy
acquisition costs 23,739 24,424 25,458
Other underwriting expenses 6,020 5,892 7,709
---------- ----------- -----------
Total expenses 92,166 101,116 111,362
---------- ----------- -----------
Income (loss) before income taxes
and cumulative effect of change
in accounting principle 7,330 236 (6,818)
Provision (benefit) for income taxes 1,727 (895) (2,999)
---------- ----------- -----------
Income (loss) before cumulative
effect of change in accounting for
income taxes 5,603 1,131 (3,819)
Cumulative effect of change in
accounting for income taxes 306 -- --
---------- ----------- -----------
Net income (loss) $ 5,909 $ 1,131 $ (3,819)
========== =========== ===========
Primary and fully diluted earnings
(loss) per share:
Income (loss) before cumulative
effect of change in accounting
principle $ 2.12 $ .36 $ (1.19)
Cumulative effect of change in
accounting for income taxes .12 -- --
---------- ----------- -----------
Net income (loss) $ 2.24 $ .36 $ (1.19)
========== =========== ===========
Weighted average number of shares outstanding:
Primary 2,641,493 3,176,624 3,219,463
Fully diluted 2,641,493 3,176,624 3,220,292
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-4
<PAGE> 57
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
---------------------------------------------------------
(in thousands except per share and share amounts)
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Common stock:
Beginning of year $ 21 $ 32 $ 32
Issuance of additional shares 11 -- --
-------- -------- --------
End of year 32 32 32
-------- -------- --------
Additional paid in capital:
Beginning of year 20,009 34,659 34,678
Exercise of common stock options 11 19 624
Issuance of additional shares 14,639 -- --
-------- -------- --------
End of year 34,659 34,678 35,302
-------- -------- --------
Unrealized investment gains (losses), net of tax:
Beginning of year (119) 1,445 (6,878)
Appreciation (depreciation) 2,370 (12,611) 9,880
Benefit (provision) for
income taxes (806) 4,288 (3,359)
-------- -------- --------
End of year 1,445 (6,878) (357)
-------- -------- --------
Accumulated earnings:
Beginning of year 33,354 38,947 39,447
Net income (loss) 5,909 1,131 (3,819)
Cash dividends (316) (631) (635)
-------- -------- --------
End of year 38,947 39,447 34,993
-------- -------- --------
Total stockholders' equity $ 75,083 $ 67,279 $ 69,970
======== ======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-5
<PAGE> 58
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
INCREASE (DECREASE) IN CASH
---------------------------
(in thousands)
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Cash flows from operations:
Collection of premiums $ 86,145 $ 92,397 $ 93,944
Payment of losses and loss
adjustment expenses (58,627) (63,125) (62,091)
Payment of other underwriting expenses (29,895) (30,444) (29,903)
Investment income received 9,320 9,775 10,479
Investment expenses paid (179) (166) (125)
Income taxes paid (1,932) (760) (58)
Other cash receipts 693 638 259
--------- -------- --------
Net cash provided by operations 5,525 8,315 12,505
--------- -------- --------
Cash flows from investing activities:
Proceeds from fixed maturities sold
or matured 127,591 21,696 15,321
Purchase of fixed maturities (145,380) (25,851) (27,800)
Net (increase) decrease in other
long-term investments (977) (922) 164
Net (increase) decrease in short-term
investments 3,902 (2,342) (15)
Purchase of equipment, net (83) (269) (143)
--------- -------- --------
Net cash used in investing activities (14,947) (7,688) (12,473)
--------- -------- --------
Cash flows from financing activities:
Funds repaid to repurchase
preferred stock (1,925) -- --
Repayment of funds borrowed to
acquire short-term investments (2,995) -- --
Proceeds from sale of common stock 15,921 -- --
Proceeds from exercise of common
stock options -- -- 624
Expenses related to sale of
common stock (1,271) -- --
Cash dividends and other (net) (305) (613) (635)
--------- -------- --------
Net cash provided by (used in)
financing activities 9,425 (613) (11)
--------- -------- --------
Increase in cash 3 14 21
Cash beginning of year 1 4 18
--------- -------- --------
Cash end of year $ 4 $ 18 $ 39
========= ======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-6
<PAGE> 59
MERCHANTS GROUP, INC.
---------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATIONS
---------------------------------------------------------------
(in thousands)
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------
1993 1994 1995
---- ---- ----
<S> <C> <C> <C>
Net income (loss) $ 5,909 $ 1,131 $ (3,819)
Adjustments:
Depreciation and amortization 530 22 100
Net realized investment (gains)
losses (1,467) (20) 832
(Increase) decrease in assets:
Interest due and accrued (369) (88) 79
Premiums receivable (92) (820) (2,309)
Deferred policy acquisition costs (970) 176 (578)
Ceded reinsurance balances
receivable (6,878) 984 618
Prepaid reinsurance premiums (2,270) (100) (496)
Receivable from affiliate -- -- (1,091)
Federal income taxes receivable -- (1,197) (1,946)
Deferred federal income tax benefit (323) (396) (1,111)
Other assets (1) (5,375) (141)
Increase (decrease) in liabilities:
Reserve for losses and loss
adjustment expenses 7,737 10,119 15,707
Unearned premiums 5,281 (557) 3,324
Other liabilities 693 4,862 3,733
Payable to affiliate (2,067) (363) (397)
Federal income taxes payable (188) (63) --
------- -------- --------
Net cash provided by operations $ 5,525 $ 8,315 $ 12,505
======= ======== ========
</TABLE>
The accompanying notes are an integral
part of these consolidated financial statements.
F-7
<PAGE> 60
MERCHANTS GROUP, INC.
---------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
1. Significant Accounting Policies
-------------------------------
Principles of consolidation and basis of presentation
-----------------------------------------------------
The consolidated financial statements of Merchants Group, Inc. (the
Company) include the accounts of the Company, its wholly owned
subsidiary, Merchants Insurance Company of New Hampshire, Inc. (MNH),
and M.F.C. of New York, Inc., an inactive premium finance company which
is a wholly owned subsidiary of MNH. MNH is a stock property and
casualty insurance company domiciled in the state of New Hampshire. MNH
offers property and casualty insurance to preferred risk individuals and
small to medium sized businesses in the Northeast United States,
primarily in the states of New York, New Hampshire and New Jersey where
a majority of its policies are written. As a holding company, the
Company has had no operations.
The consolidated financial statements have been prepared in conformity
with generally accepted accounting principles (GAAP) which differ in
some respects from those followed in reports to insurance regulatory
authorities. In the 1995 Annual Statement filed with regulatory
authorities, MNH reported statutory capital of $31,458,000 and total
surplus of $46,609,000. MNH's net income (loss) as reported in its
Annual Statement was ($4,490,000) in 1995, $900,000 in 1994 and
$4,642,000 in 1993. All significant intercompany balances and
transactions have been eliminated. Certain 1994 amounts have been
reclassified to conform with the 1995 presentation.
The preparation of consolidated financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
Investments
-----------
Fixed maturities consist primarily of debt securities. The Company has
classified its investments in fixed maturities as either available for
sale or held to maturity. Fixed maturities classified as held to
maturity are presented at amortized cost and consist of debt securities
that management intends and has the ability to hold until maturity.
F-8
<PAGE> 61
Fixed maturities classified as available for sale are presented at fair
value and consist of debt securities that management may not hold until
maturity. The net aggregate unrealized gain or loss, net of applicable
income taxes, related to fixed maturities available for sale is included
as a component of stockholders' equity.
In December 1995, the Company re-assessed the appropriateness of the
accounting classification of its fixed maturity investments as permitted
by the FASB. As a result of this re-assessment the Company reclassified
certain fixed maturity securities with an amortized cost and fair value
of $15,674,000 and $15,639,000 respectively, from held to maturity to
available for sale which resulted in a $1,044,000 increase in
stockholders' equity at December 31, 1995.
Other long-term investments include collateralized mortgage obligation
residuals, carried at unpaid principal balances which do not vary
significantly from fair value, a $1,350,000 capital advance carried at
cost, which approximates fair value (see Note 3) and auction rate
preference shares carried at fair value (see Note 5). Short-term
investments, consisting primarily of money market mutual funds, have
original maturities of three months or less, and are carried at cost,
which approximates fair value. Realized gains and losses on the sale of
investments are based on the cost of the specific investment sold.
Other financial instruments
---------------------------
The fair values of the Company's other financial instruments,
principally premiums receivable and certain non-insurance related
liabilities, do not vary significantly from the amounts assigned in
these financial statements.
Premium revenue
---------------
Premiums are recorded as revenue ratably over the terms of the policies
written (principally one year). Unearned premiums are calculated using
a monthly pro rata method.
Deferred policy acquisition costs
---------------------------------
Policy acquisition costs, such as commissions (net of reinsurance
commissions), premium taxes and certain other underwriting expenses, are
deferred and amortized over the terms of the related insurance policies.
Deferred policy acquisition costs do not exceed estimated recoverable
amounts after allowing for anticipated investment income.
F-9
<PAGE> 62
Reserve for losses and loss adjustment expenses
-----------------------------------------------
Liabilities for unpaid losses and loss adjustment expenses are
estimates of future payments to be made to settle all insurance claims
for reported losses and estimates of incurred but not reported losses
based upon past experience modified for current trends. With the
exception of an immaterial amount for workers' compensation losses,
loss reserves are not discounted. Estimated amounts of salvage and
subrogation on unpaid losses are deducted from the liability for
unpaid claims. The estimated liabilities may be more or less than the
amount ultimately paid when the claims are settled. Management and its
independent consulting actuaries regularly review the estimates of
reserves needed and any changes are reflected in current
operating results.
Structured settlements have been negotiated for claims on certain
insurance policies. Structured settlements are agreements to provide
periodic payments to claimants, and are funded by annuities purchased
from various life insurance companies. Because the Company remains
primarily liable for payment of these claims, a reserve for loss and
loss adjustment expense and the corresponding deposit which is included
in other assets are recorded in the Company's consolidated balance sheet
at December 31, 1994 and 1995.
Reinsurance
-----------
Reinsurance assumed from business written through state reinsurance
facilities has been reflected in unearned premiums, loss reserves,
premiums earned and losses incurred based on reports received from such
pools. Ceded reinsurance premiums, losses and ceding commissions are
netted against earned premiums, losses and commission expense,
respectively.
Income taxes
------------
The Company and its wholly owned subsidiary file a consolidated federal
income tax return. The Company adopted Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes", effective
January 1, 1993. SFAS No. 109 requires the use of the liability method
when accounting for income taxes. This approach requires the recognition
of deferred tax liabilities and assets for the expected future tax
consequences of temporary differences between the carrying amounts and
the tax bases of assets and liabilities. Adoption of SFAS 109 resulted
in the recognition of an additional deferred tax benefit as of January
1, 1993 of $306,000, which was recorded as a cumulative effect of a
change in accounting principle in the 1993 Consolidated Statement of
Income.
F-10
<PAGE> 63
Earnings per share
------------------
Primary and fully diluted earnings per share were computed by dividing
net income by the weighted average number of shares of common stock
outstanding during each year. Primary and fully diluted earnings per
share for 1993, 1994 and 1995, assume the exercise of 59,741, 65,166 and
22,083 shares of common stock options, respectively.
2. Stockholders' Equity
--------------------
Preferred and common stock
--------------------------
Stockholders' equity is comprised of the following:
Preferred stock, no par value, $424.30 stated value, 10,000 shares
authorized; no shares issued or outstanding at December 31, 1994 or
December 31, 1995. The Company also has 3,000,000 shares of $.01 par
value preferred stock which is authorized and unissued.
Common stock, $.01 par value, authorized 10,000,000 shares; issued and
outstanding 3,158,188 shares at December 31, 1994 and 3,213,894 shares
at December 31, 1995.
Sale of common stock
--------------------
In July 1993, the Company sold 1,061,425 shares of its common stock in a
secondary public offering at $15.00 per share. Net proceeds to the
Company from the sale of its stock after underwriters' discount of
$997,000 and offering expenses of $274,000 were $14,650,000. As part of
the offering, Merchants Mutual Insurance Company (Mutual) sold 900,000
of its 1,155,000 shares of the Company's common stock. Mutual owned 7.9%
of the Company's common stock at December 31, 1995 (see Note 3).
Dividends
---------
The Company depends on dividends from its subsidiary, MNH, to pay cash
dividends to its stockholders and to meet its expenses. MNH is subject
to New Hampshire state insurance laws which restrict its ability to pay
dividends without the prior approval of state regulatory authorities.
These restrictions limit dividends to those that, when added to all
other dividends paid within the preceding twelve months, would not
exceed 10% of the insurer's policyholders' surplus as of the preceding
December 31. The maximum amount of dividends that MNH could pay during
any twelve month period ending in 1996, without the prior approval of
the New Hampshire Insurance Commissioner is $4,661,000. The Company has
paid a quarterly cash dividend to its common stockholders since the
third quarter of 1993. Dividends paid during 1995 totalled to $635,000.
F-11
<PAGE> 64
Stock option plan
-----------------
The Board of Directors has reserved 200,000 shares of common stock for
issuance to officers and key employees of the Company and its
affiliates, including Mutual, under a qualified and non-qualified stock
option plan. Options may be granted at the fair market value of the
Company's stock on the date of grant with durations of up to 10 years.
In March 1994, the Company's Board of Directors approved a stock option
program providing for the issuance to certain of MNH's independent
insurance agents, options to purchase a total of 25,000 shares of the
Company's common stock. In connection with this program, the Board of
Directors approved a plan to repurchase up to 25,000 shares of the
Company's common stock in the open market. In June 1994, the Company
issued options to purchase 22,500 shares of common stock to certain of
MNH's agents under the option program. These options are exercisable
after May 31, 1996 at $16.38 per share.
No options were granted in 1995. During 1995 options for 55,706 shares
were exercised. At December 31, 1995, options to purchase 49,333 shares
were outstanding, of which 27,771 were exercisable. These options carry
exercise prices ranging from $9.38 to $16.38 per share.
In October 1995, the Financial Accounting Standards Board (FASB) issued
SFAS No. 123 "Accounting for Stock Based Compensation". This statement
requires the Company to either apply a fair value measurement to any
stock options granted by the Company or to continue to apply the
valuation provisions of existing accounting standards, but with pro
forma net income and earnings per share disclosures using a fair value
methodology to value the stock options.
The Company is required to adopt the disclosure requirements of SFAS No.
123 by the end of 1996. Measurement of compensation cost under SFAS No.
123, if adopted is effective for all awards granted after the beginning
of the fiscal year in which that method is first applied. Management is
currently reviewing the provisions of SFAS No. 123. If the fair value
based measurement provisions are adopted they are not expected to have a
material impact on the results of operations or financial condition of
the Company.
F-12
<PAGE> 65
3. Related Party Transactions
--------------------------
The Company and MNH do not have any paid employees. Under a management
agreement, Mutual provides the Company and MNH with the facilities,
management and personnel required to manage their day-to-day business.
All underwriting, administrative, claims and investment expenses
incurred on behalf of Mutual and MNH are shared on an allocated cost
basis, determined as follows: for underwriting and administrative
expenses, the respective share of total direct premiums written for
Mutual and MNH serves as the basis of allocation; for claims expenses,
the average number of outstanding claims is used; investment expenses
are shared based on each company's share of total invested assets.
Mutual also receives an annual management fee of $50,000 from MNH.
Management believes that the methods used to allocate expenses to MNH
and Mutual are reasonable and fair to both companies. The management
agreement may be terminated by either Mutual or the Company upon five
years written notice.
MNH's agents are also licensed to sell Mutual's products. The agents are
informed of the underwriting criteria of each company as well as the
classes of business that are acceptable to each company. Underwriters
review each application submitted by an agent to determine which
company's underwriting criteria the risk meets and then issue a policy
in the appropriate company. Involuntary automobile policies are shared
in accordance with the plan assignment ratios of the applicable
governing jurisdictions. The payable to or receivable from Mutual is
non-interest bearing and represents the net of premiums collected and
loss and operating expense payments made by Mutual on behalf of MNH.
This balance is settled in cash on a monthly basis.
In January 1993, MNH purchased from the Federal Deposit Insurance
Corporation (FDIC) for $1,350,000 a capital advance which had been made
to Mutual by a savings institution which was seized by the FDIC in 1991.
That savings institution had provided the advance to Mutual in 1982 and
1985 in accordance with the provisions of Section 1307 of the New York
Insurance Law. In connection with MNH's purchase of the capital advance
from the FDIC, the capital advance was rewritten in order to obtain the
required consents of Mutual and the New York Insurance Department. The
new capital advance is for $1,350,000 and carries a dividend of 4% per
annum. Mutual cannot repay the capital advance or pay dividends without
the prior approval of the Superintendent of the New York Insurance
Department. The capital advance is included in other long-term
investments.
F-13
<PAGE> 66
On November 1, 1994, Mutual filed an application with the New York
Insurance Department to convert from a mutual company to a stock
corporation. The Company has indicated to Mutual its willingness to
consider sponsoring this conversion.
The Company is subject to statutes governing insurance holding company
systems. Under the terms of the applicable New Hampshire statute, any
person or entity desiring to effect a purchase or other acquisition of
the Company's securities that would result in such person or entity
owning 10% or more of the Company's outstanding voting securities would
be required to obtain the approval of the New Hampshire Insurance
Department prior to the purchase or other acquisition.
Effective January 1, 1993, Mutual and MNH entered into a quota share
reinsurance agreement under which MNH assumes 10% of Mutual's direct
voluntary written premium and related losses in exchange for a
reinsurance commission of 35%. The agreement also provides for MNH to
pay a contingent commission to Mutual equal to any underwriting profit
on the premiums assumed. The agreement allows Mutual the option to
reduce its cessions to MNH to 0% for any calendar year. Mutual informed
MNH that it will reduce its cessions under the agreement to 0% of its
direct voluntary written premiums for calendar year 1996.
In accordance with various states' automobile insurance plan (AIP)
rules, Mutual historically has received the assignment of AIP polices
based upon its and MNH's combined voluntary automobile market share,
issued the policies and settled the claims associated with those
policies. Mutual then allocated the results of the involuntary AIP
business to MNH through a series of accounting entries based on MNH's
share of the combined voluntary business of Mutual and MNH.
During 1994, Mutual informed the Company that it had failed to identify
and bill to MNH during the period January 1, 1985 through June 30, 1994
a portion of MNH's share of AIP losses paid by Mutual in that period.
The amount of unbilled AIP losses was approximately $7,500,000. After
extensive negotiations, between the Company's and Mutual's independent
Directors, MNH agreed to pay Mutual $3,135,000 in full and complete
settlement of the unbilled AIP paid losses for the period noted above.
This amount is included in loss and loss adjustment expenses for the
year ended December 31, 1994.
F-14
<PAGE> 67
4. Reserve for Losses and Loss Adjustment Expenses
-----------------------------------------------
Activity in the reserve for losses and loss adjustment expenses (LAE) is
summarized as follows:
<TABLE>
<CAPTION>
1994 1995
---- ----
(in thousands)
<S> <C> <C>
Reserve for losses and LAE
at beginning of year $ 93,896 $104,015
Less reinsurance recoverables 3,957 6,401
-------- --------
Net balance at beginning of
year 89,939 97,614
-------- --------
Provision for losses and LAE for
claims occurring in:
Current year 65,818 67,150
Prior years 4,982 11,045
-------- --------
70,800 78,195
-------- --------
Losses and LAE payments for
claims occurring in:
Current year 28,574 25,175
Prior years 34,551 36,916
-------- --------
63,125 62,091
-------- --------
Reserve for losses and LAE
at end of year, net 97,614 113,718
Plus reinsurance recoverables 6,401 6,004
-------- --------
Balance at end of year $104,015 $119,722
======== ========
</TABLE>
In recent years, the escalation of repair costs, medical expenses and
jury awards have necessitated significant periodic upward adjustments in
reserves by many property and casualty insurers, including the Company.
In 1994 and 1995, the Company increased its reserves for prior years by
$4,982,000, and $11,045,000, respectively. The increase in reserves for
prior years made in 1994 was primarily attributable to the $3,135,000
settlement of the AIP matter discussed in Note 3, as well as higher than
anticipated severity of liability claims on auto, commercial multi-peril
and workers' compensation policies. The increase in reserves for prior
years made in 1995 was primarily attributable to higher than anticipated
severity of liability claims on homeowners, businessowners, workers'
compensation and commercial package lines of business.
F-15
<PAGE> 68
5. Investments
-----------
Investments in fixed maturities
-------------------------------
The amortized cost and estimated fair values of fixed maturities
available for sale and held to maturity are as follows:
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
-------- ------- ------ --------
(in thousands)
<S> <C> <C> <C> <C>
December 31, 1994
-----------------
Held to maturity
----------------
U.S. Treasury
securities and
obligations of U.S.
government corpora-
tions and agencies $ 2,191 $ -- $ 63 $ 2,128
Mortgage and asset
backed securities 31,742 -- 2,007 29,735
-------- ------- ------ --------
Total $ 33,933 $ -- $2,070 $ 31,863
======== ======= ====== ========
December 31, 1994
-----------------
Available for sale
------------------
U.S. Treasury
securities and
obligations of U.S.
government corpora-
tions and agencies $ 17,999 $ -- $1,765 $ 16,234
Obligations of
states and political
subdivisions 62,641 2 2,673 59,970
Corporate securities 12,040 -- 65 11,975
Mortgage and asset
backed securities 42,354 15 2,576 39,793
-------- ------- ------ --------
Total $135,034 $ 17 $7,079 $127,972
======== ======= ====== ========
</TABLE>
F-16
<PAGE> 69
<TABLE>
<CAPTION>
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
---------- ---------- ---------- ---------
(in thousands)
<S> <C> <C> <C> <C>
December 31, 1995
- -----------------
Held to maturity
- ----------------
U.S. Treasury
securities and
obligations of U.S.
government corpora-
tions and agencies $ 2,157 $ 15 $ 37 $ 2,135
Mortgage and asset
backed securities 17,320 902 9 18,213
-------- ------ ---- --------
Total $ 19,477 $ 917 $ 46 $ 20,348
======== ====== ==== ========
December 31, 1995
- -----------------
Available for sale
- ------------------
U.S. Treasury
securities and
obligations of U.S.
government corpora-
tions and agencies $ 26,943 $ 30 $277 $ 26,696
Obligations of
states and political
subdivisions 60,423 580 166 60,837
Corporate securities 12,037 4 73 11,968
Mortgage and asset
backed securities 63,846 502 71 64,277
-------- ------ ---- --------
Total $163,249 $1,116 $587 $163,778
======== ====== ==== ========
</TABLE>
F-17
<PAGE> 70
The amortized cost and fair values of fixed maturities by expected
maturity at December 31, 1995 are shown below. Mortgage and asset backed
securities are distributed in the table based upon management's estimate
of repayment periods. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
<TABLE>
<CAPTION>
Estimated
Amortized Fair
Cost Value
-------- --------
(in thousands)
<S> <C> <C>
Held to maturity
----------------
Due in one year or less $ 5,376 $ 5,532
Due after one year through five years 8,805 9,247
Due after five years through ten years 4,381 4,607
Due after ten years 915 962
-------- --------
Total $ 19,477 $ 20,348
======== ========
Available for sale
------------------
Due in one year or less $ 18,696 $ 18,799
Due after one year through five years 105,771 106,018
Due after five years through ten years 32,411 32,586
Due after ten years 6,371 6,375
-------- --------
Total $163,249 $163,778
======== ========
</TABLE>
Discount and premium pertaining to collateralized mortgage
obligations are amortized over the securities' estimated redemption
periods using the effective interest method. Yields used to calculate
premium or discount are adjusted for prepayments annually.
Fixed maturities with a par value of $1,800,000 were on deposit at
December 31, 1995 with various state insurance departments in compliance
with applicable insurance laws.
Proceeds from sales of available for sale fixed maturity securities and
gross realized gains and losses related to such sales are as follows:
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Proceeds from sales $104,284 $12,891 $1,797
Gross realized gains 1,551 29 8
Gross realized losses 84 9 --
</TABLE>
F-18
<PAGE> 71
Net investment income
---------------------
Net investment income consists of:
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Short-term investments $ 169 $ 252 $ 238
Fixed maturities 8,814 9,872 10,078
Other 351 188 177
------ ------- -------
Total investment income 9,334 10,312 10,493
Investment expenses 179 463 125
------ ------- -------
Net investment income $9,155 $ 9,849 $10,368
====== ======= =======
</TABLE>
Investment in auction rate preference shares
--------------------------------------------
As of December 31, 1995, the Company owns $3,000,000 par value of Signet
Group PLC (Signet) cumulative auction rate preference shares. These
securities were to pay a variable dividend, the amount of which was to
be reset every 28 days through auction procedures. As a result of a
failed auction in 1991, Signet suspended dividend payments on all its
preference shares including those owned by the Company. No dividends
have been received since 1991.
This investment is carried at its fair value of $1,500,000 and is
included in other long-term investments in the accompanying Consolidated
Balance Sheet at December 31, 1995. During 1995, the Company determined
that the decline in fair value of its Signet investment was other than
temporary and recorded an $840,000 loss in its Consolidated Statement of
Income as a component of realized investment gains and losses.
Subsequent adjustments in the fair value of Signet since the recognition
of this loss, net of tax, are deemed to be temporary and are recorded
directly to stockholders' equity.
6. Reinsurance
-----------
MNH follows the customary practice of reinsuring a portion of the
exposure under its policies and as consideration pays to the reinsurer a
portion of the premium received on such policies. Insurance is ceded
principally to reduce net liability on individual risks and to protect
against catastrophic losses. Although reinsurance does not legally
discharge an insurer from its primary liability for the full amount of
coverage provided by its policies, it does make the assuming reinsurer
liable to the insurer to the extent of the reinsurance ceded. MNH cedes
premiums and losses primarily to General Reinsurance Corporation
(GenRe).
F-19
<PAGE> 72
MNH maintains a casualty excess of loss reinsurance agreement with GenRe
which provides for recovery of losses over $500,000 up to $5,000,000 per
occurrence. This coverage is supplemented by a contingent casualty layer
of reinsurance of $5,000,000 in excess of the first $5,000,000. MNH also
maintains a property excess of loss reinsurance agreement with GenRe
which provides for recovery of property losses over $500,000 up to
$2,000,000 per occurrence. Property catastrophe coverage provides for
recovery of 95% of $37,000,000 above aggregate retained losses of
$3,000,000 per each natural disaster. The limits of property catastrophe
coverage are shared by MNH and Mutual on a pro rata basis based upon the
gross reported losses of MNH and Mutual for a covered event.
The effect of reinsurance on premiums written and earned for the years
ended December 31, 1994 and 1995 is as follows:
<TABLE>
<CAPTION>
1994 1995
---- ----
Premiums Premiums Premiums Premiums
Written Earned Written Earned
-------- -------- -------- --------
(in thousands)
<S> <C> <C> <C> <C>
Direct $ 89,808 $ 90,422 $ 98,553 $ 93,502
Assumed 7,255 7,198 6,572 8,299
Ceded (6,876) (6,775) (7,548) (7,052)
-------- -------- -------- --------
Net premiums $ 90,187 $ 90,845 $ 97,577 $ 94,749
======== ======== ======== ========
</TABLE>
Reinsurance ceded transactions decreased losses and loss adjustment
expenses by $2,426,000 and $1,527,000 for the years ended December 31,
1994 and 1995, respectively.
As a result of the reinsurance agreements maintained by MNH, primarily
with GenRe, MNH is exposed to certain credit risk if GenRe were to
become financially unstable. As of December 31, 1995, MNH has recognized
amounts to be recovered from GenRe related to ceded losses and ceded
unearned premiums totalling $7,964,000. MNH generally does not require
collateral for reinsurance recoverable.
F-20
<PAGE> 73
7. Benefit Programs
----------------
Mutual maintains a capital accumulation plan which is a profit sharing
plan under Section 401(a) of the Internal Revenue Code that covers all
full-time employees who have completed one year of service. Mutual
matches at least 15% and up to 100% of employee contributions, based on
the combined net operating profits of Mutual and MNH. Additional
contributions may be made at the discretion of the Board of Directors of
Mutual. Under the terms of the management agreement, the Company's
portion of the total contribution was $316,000, $404,000 and $186,000
for the years ended December 31, 1993, 1994 and 1995, respectively.
8. Income Taxes
------------
The provision (benefit) for federal income taxes consists of:
<TABLE>
<CAPTION>
Year ended December 31,
----------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Provision (benefit) for income taxes:
Current $ 1,744 $(500) $(1,888)
Deferred (17) (395) (1,111)
------- ----- -------
Total income tax
provision (benefit) $ 1,727 $(895) $(2,999)
======= ===== =======
</TABLE>
Deferred tax liabilities (assets) are comprised of the following:
<TABLE>
<CAPTION>
December 31,
1994 1995
---- ----
(in thousands)
<S> <C> <C>
Deferred policy acquisition costs $ 3,940 $ 4,136
Other 377 462
-------- --------
Gross deferred tax liabilities 4,317 4,598
-------- --------
Discounting of reserve for losses
and loss adjustment expenses (5,147) (6,004)
Unearned premiums (2,929) (3,122)
Unrealized investment losses (3,543) (674)
Other (436) (289)
-------- --------
Gross deferred tax assets (12,055) (10,089)
Net deferred federal income
tax benefit $ (7,738) $ (5,491)
======== ========
</TABLE>
F-21
<PAGE> 74
Although realization is not assured, based upon the available evidence,
the Company believes that it is more likely than not that the net
deferred federal income tax benefit will be realized. The amount of the
deferred tax benefit considered realizable, however, could be reduced in
the near term if estimates of future taxable income are not achieved.
A reconciliation of the difference between the Company's total income
tax provision and that calculated using the federal statutory income tax
rate is as follows:
<TABLE>
<CAPTION>
Year ended December 31,
----------------------------
1993 1994 1995
---- ---- ----
(in thousands)
<S> <C> <C> <C>
Computed provision at
statutory rate $ 2,492 $ 80 $(2,318)
Adjustments:
Tax-exempt investment income (784) (980) (878)
Other items 19 5 197
------- ----- -------
Total income tax
provision (benefit) $ 1,727 $(895) $(2,999)
======= ===== =======
</TABLE>
9. Commitments and Contingencies
-----------------------------
On January 31, 1995, a New York State trial court dismissed a purported
class action lawsuit which was filed in 1993 against the Company,
Mutual, MNH and certain directors of the Company and of Mutual ("the
defendants") on behalf of the then minority shareholders of the Company.
The Court, in granting the defendants' motion, held that plaintiff's
claims, to the extent they have any merit, are derivative in nature. The
complaint, which sought equitable relief and unspecified money damages,
alleged that the defendants breached their fiduciary obligations to the
minority shareholders of the Company, and defrauded the minority
shareholders, by causing MNH to purchase from the FDIC the surplus note
issued by Mutual and simultaneously reducing the principal amount plus
accrued return on such surplus note to $1,350,000, which is the amount
MNH paid to the FDIC for the note, and by approving the public sale of
the Company's common stock sold in July 1993 at what the plaintiff
alleges was an inadequate price. On March 31, 1995, the plaintiff filed
a motion with the trial court for permission to reargue the defendants'
motion to dismiss. On September 29, 1995, the trial court denied the
plaintiff's motion to reargue. The Company and the other defendants
intend to oppose any appeal or repleading by the plaintiff.
F-22
<PAGE> 75
MNH, like many other property-casualty insurance companies, is subject
to environmental damage claims asserted by or against its insureds.
Management is of the opinion that based on various court decisions
throughout the country, such claims should not be recoverable under the
terms of MNH's insurance policies because of either specific or general
coverage exclusions contained in the policies. However, there is no
assurance that the courts will agree with MNH's position in every case,
nor can there be assurance that material claims will not be asserted
under policies which a court will find do not explicitly or implicitly
exclude claims for environmental damages. Management, however, is not
aware of any pending claim or group of claims which would result in a
liability that would have a material adverse effect on the financial
condition of MNH.
In addition to the foregoing matters, MNH is a defendant in a number of
other legal proceedings in the ordinary course of its business.
Management of the Company is of the opinion that the ultimate aggregate
liability, if any, resulting from such proceedings will not materially
affect the financial condition of MNH or the Company.
F-23
<PAGE> 1
EXHIBIT 10(e)
<PAGE> 2
MERCHANTS MUTUAL
INSURANCE COMPANY
AGREEMENT NO. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 3
AGREEMENT OF REINSURANCE
NO. 8009
between
GENERAL REINSURANCE CORPORATION
a Delaware corporation
having its principal offices at
Financial Centre
695 East Main Street P.O. Box 10350
Stamford, Connecticut 06904-2350
(herein referred to as the "Reinsurer")
and
MERCHANTS MUTUAL INSURANCE COMPANY
MERCHANTS INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
250 Main Street
Buffalo, New York 14240
(herein collectively referred to as the "Company")
- --------------------------------------------------------------------------------
In consideration of the promises set forth in this Agreement, the parties agree
as follows:
ARTICLE I - SCOPE OF AGREEMENT
As a condition precedent to the Reinsurer's obligations under this
Agreement, the Company shall cede to the Reinsurer the business described in
this Agreement, and the Reinsurer shall accept such business as reinsurance
from the Company.
This Agreement is comprised of General Articles I through XI and the
Exhibit(s) listed below and each Exhibit which may be made a part of this
Agreement. The terms of the General Articles and of the Exhibit(s) shall
determine the rights and obligations of the parties. The terms of the General
Articles shall apply to each Exhibit unless specifically amended therein. In
the event of termination of all the Exhibits made a part of this Agreement, the
General Articles shall automatically terminate when the liability of the
Reinsurer under said Exhibits ceases.
GENERAL REINSURANCE CORPORATION
<PAGE> 4
EXHIBIT A - FIRST EXCESS OF LOSS REINSURANCE
of
CASUALTY BUSINESS
EXHIBIT B - EXCESS OF LOSS REINSURANCE
of
PROPERTY BUSINESS
EXHIBIT C - SECOND EXCESS OF LOSS REINSURANCE
of
CASUALTY BUSINESS
EXHIBIT D - QUOTA SHARE AND EXCESS OF LOSS REINSURANCE
of
COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS
EXHIBIT E - QUOTA SHARE AND EXCESS OF LOSS REINSURANCE
of
PERSONAL UMBRELLA BUSINESS
ARTICLE II - PARTIES TO THE AGREEMENT
This Agreement is solely between the Company and the Reinsurer. When
more than one Company is named as a party to this Agreement, the first Company
named shall be the agent of the other companies as to all matters pertaining to
this Agreement. Performance of the obligations of each party under this
Agreement shall be rendered solely to the other party. However, if the Company
becomes insolvent, the liability of the Reinsurer shall be modified to the
extent set forth in the article entitled INSOLVENCY OF THE COMPANY. In no
instance shall any insured of the Company or any claimant against an insured of
the Company have any rights under this Agreement.
ARTICLE III - MANAGEMENT OF CLAIMS AND LOSSES
The Company shall investigate and settle or defend all claims and
losses. When requested by the Reinsurer, the Company shall permit the
Reinsurer, at the expense of the Reinsurer, to be associated with the Company
in the defense or control of any claim, loss, or
- 2 -
GENERAL REINSURANCE CORPORATION
<PAGE> 5
legal proceeding which involves or is likely to involve the Reinsurer. All
payments of claims or losses by the Company within the limits of its policies
which are within the limits set forth in the applicable Exhibit shall be
binding on the Reinsurer, subject to the terms of this Agreement.
ARTICLE IV - RECOVERIES
The Company shall pay to or credit the Reinsurer with the Reinsurer's
portion of any recovery obtained from salvage, subrogation, or other insurance.
Adjustment expenses for recoveries shall be deducted from the amount recovered
by the Company before determining the Reinsurer's portion of any recovery.
The Reinsurer shall be subrogated to the rights of the Company to the
extent of its loss payments to the Company. The Company agrees to enforce its
rights of salvage, subrogation, and its rights against insurers or to assign
these rights to the Reinsurer.
If the reinsurance under an Exhibit is on a share basis, the
recoveries shall be apportioned between the parties in the same ratio as the
amounts of their liabilities bear to the loss. If the reinsurance under an
Exhibit is on an excess basis, recoveries shall be distributed to the parties
in an order inverse to that in which their liabilities accrued.
ARTICLE V - ERRORS AND OMISSIONS
The Reinsurer shall not be relieved of liability because of an error
or accidental omission of the Company in reporting any claim or loss or any
business reinsured under this Agreement, provided that the error or omission is
rectified promptly after discovery. The Reinsurer shall be obligated only for
the return of the premium paid for business reported but not reinsured under
this Agreement.
- 3 -
GENERAL REINSURANCE CORPORATION
<PAGE> 6
ARTICLE VI - SPECIAL ACCEPTANCES
Business not within the terms of this Agreement may be submitted to
the Reinsurer for special acceptance and, if accepted by the Reinsurer, shall
be subject to all of the terms of this Agreement except as modified by the
special acceptance.
ARTICLE VII - RESERVES AND TAXES
The Reinsurer shall maintain the required reserves as to the
Reinsurer's portion of unearned premium, claims, losses, and adjustment
expense.
The Company shall be liable for all premium taxes on premium ceded to
the Reinsurer under this Agreement. If the Reinsurer is obligated to pay any
premium taxes on this premium, the Company shall reimburse the Reinsurer;
however, the Company shall not be required to reimburse the Reinsurer for any
premium taxes the Reinsurer is obligated to pay if the Company is also required
to pay premium taxes on that premium.
ARTICLE VIII - OFFSET
The Company or the Reinsurer may offset any balance, whether on
account of premium, commission, claims or losses, adjustment expense, salvage,
or otherwise, due from one party to the other under this Agreement or under any
other agreement heretofore or hereafter entered into between the Company and
the Reinsurer. In the event of the insolvency of either party to this
Agreement, then offsets shall only be allowed to the extent permitted by the
provisions of New York Insurance Law Section 7427.
ARTICLE IX - INSPECTION OF RECORDS
The Company shall allow the Reinsurer to inspect, at reasonable times,
the records of the Company relevant to the business reinsured under this
Agreement, including Company files concerning claims, losses, or legal
proceedings which involve or are likely to involve the Reinsurer.
- 4 -
GENERAL REINSURANCE CORPORATION
<PAGE> 7
ARTICLE X - ARBITRATION
Any unresolved difference of opinion between the Reinsurer and the
Company shall be submitted to arbitration by three arbitrators. One arbitrator
shall be chosen by the Reinsurer, and one shall be chosen by the Company. The
third arbitrator shall be chosen by the other two arbitrators within ten (10)
days after they have been appointed. If the two arbitrators cannot agree upon
a third arbitrator, each arbitrator shall nominate three persons of whom the
other shall reject two. The third arbitrator shall then be chosen by drawing
lots. If either party fails to choose an arbitrator within thirty (30) days
after receiving the written request of the other party to do so, the latter
shall choose both arbitrators, who shall choose the third arbitrator. The
arbitrators shall be impartial and shall be present or former officials of
property or casualty insurance or reinsurance companies.
The party requesting arbitration (the "Petitioner") shall submit its
brief to the arbitrators within thirty (30) days after notice of the selection
of the third arbitrator. Upon receipt of the Petitioner's brief, the other
party (the "Respondent") shall have thirty (30) days to file a reply brief. On
receipt of the Respondent's brief, the Petitioner shall have twenty (20) days
to file a rebuttal brief. Respondent shall have twenty (20) days from the
receipt of Petitioner's rebuttal brief to file its rebuttal brief. The
arbitrators may extend the time for filing of briefs at the request of either
party.
The arbitrators are relieved from judicial formalities and, in
addition to considering the rules of law and the customs and practices of the
insurance and reinsurance business, shall make their award with a view to
effecting the intent of this Agreement. The decision of the majority shall be
final and binding upon the parties. The costs of arbitration, including the
fees of the arbitrators, shall be shared equally unless the arbitrators decide
otherwise. The arbitration shall be held at the times and places agreed upon
by the arbitrators.
- 5 -
GENERAL REINSURANCE CORPORATION
<PAGE> 8
ARTICLE XI - INSOLVENCY OF THE COMPANY
In the event of the insolvency of the Company, the reinsurance
proceeds will be paid to the Company or the liquidator on the basis of the
amount of the claim allowed in the insolvency proceeding without diminution by
reason of the inability of the Company to pay all or part of the claim.
The Reinsurer shall be given written notice of the pendency of each
claim against the Company on the policy(ies) reinsured hereunder within a
reasonable time after such claim is filed in the insolvency proceedings. The
Reinsurer shall have the right to investigate each such claim and to interpose,
at its own expense, in the proceeding where such claim is to be adjudicated,
any defenses which it may deem available to the Company or its liquidator. The
expense thus incurred by the Reinsurer shall be chargeable, subject to court
approval, against the insolvent Company as part of the expense of liquidation
to the extent of a proportionate share of the benefit which may accrue to the
Company solely as a result of the defense undertaken by the Reinsurer.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in duplicate this 6TH day of FEBRUARY, 1996,
GENERAL REINSURANCE CORPORATION
/s/ ???
Vice President
Attest: /s/ ???
and this day of , 199 .
MERCHANTS MUTUAL INSURANCE COMPANY
MERCHANTS INSURANCE COMPANY OF
NEW HAMPSHIRE, INC.
Attest:
------------------------------ -------------------------------------
- 6 -
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 9
EXHIBIT A
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 8009
FIRST EXCESS OF LOSS REINSURANCE
of
CASUALTY BUSINESS
SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company, with respect to casualty
business of the Company, the amount of net loss each occurrence in excess of
the Company Retention but not exceeding the Limits of Liability of the
Reinsurer as set forth in the Schedule of Reinsurance.
SCHEDULE OF REINSURANCE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
Company
Class of Business Retention Limits of Liability of the Reinsurer
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
EACH EACH EACH
OCCURRENCE OCCURRENCE OCCURRENCE
FIRST SECOND
EXCESS COVER EXCESS COVER
Casualty Business $500,000 $1,500,000 $3,000,000
- ---------------------------------------------------------------------------
</TABLE>
SECTION 2 - COMBINATION COVER
If an occurrence takes place which involves the classes of business
reinsured under this Exhibit and one risk reinsured under Exhibit B to this
Agreement in combination, the Reinsurer shall pay to the Company the amount of
net loss in excess of a Company Retention of $500,000 with respect to such
occurrence, but not exceeding a Limit of Liability of the Reinsurer of
$500,000. The Limit of Liability of the Reinsurer specified in this Section
shall be in
GENERAL REINSURANCE CORPORATION
<PAGE> 10
addition to the Limits of Liability of the Reinsurer set forth in the sections
entitled LIABILITY OF THE REINSURER of this Exhibit and said Exhibit B.
SECTION 3 - ALLOCATION OF ADJUSTMENT EXPENSE
In addition to payments for its share of net loss, the Reinsurer shall
pay to the Company a share of adjustment expenses proportionate to the
Reinsurer's share of net loss.
Should the amount of a judgment be reduced by any process or should a
judgment be reversed outright, the adjustment expenses incurred in securing
such reduction or reversal shall be apportioned between the Company and the
Reinsurer in the ratio that each party benefits from such reduction or
reversal.
SECTION 4 - LOSS IN EXCESS OF POLICY LIMITS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if a third party claimant is awarded an amount in excess of
the Company's policy limit and, as a result of the Company's failure to settle
within the policy limit or of the Company's alleged or actual negligence or bad
faith in rejecting an offer of settlement or in the preparation of the defense
or in the trial of any action against its insured or in the preparation or
prosecution of an appeal consequent upon such action, an action is taken by the
insured or assignee which could impose legal liability on the Company for an
amount in excess of the Company's policy limit, the Reinsurer shall pay to the
Company 90% of only that portion of the award made to the third party claimant
which is in excess of the greater of the Company's policy limit or the Company
Retention. The liability of the Reinsurer with respect to the entire amount of
net loss, including the loss in excess of the Company's policy limit, shall not
exceed the Limit of Liability of the Reinsurer as set forth in the section
entitled LIABILITY OF THE REINSURER.
However, this Section shall not apply where the loss has been incurred
due to the fraud of a member of the Board of Directors, a corporate officer of
the Company, or any
A - 2
GENERAL REINSURANCE CORPORATION
<PAGE> 11
other employee of the Company, acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense, or settlement of any claim covered
hereunder.
Recoveries from any form of insurance or reinsurance which protects
the Company against claims which are the subject matter of this Section shall
inure to the benefit of the Reinsurer and shall be deducted to arrive at the
amount of the Company's net loss.
SECTION 5 - EXTRA CONTRACTUAL OBLIGATIONS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90%
of the extra contractual obligation shall be added to the Company's net loss
from the occurrence and the total shall be allocated in accordance with the
section entitled LIABILITY OF THE REINSURER.
For purposes of this Section, the term "extra contractual obligation"
shall mean a loss which the Company is legally liable to pay, which is not
covered under any other provision of this Exhibit and which arises from the
Company's handling of any claim on the policies reinsured hereunder which have
limits of liability greater than the Company Retention.
The date on which an extra contractual obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
occurrence.
This Section shall not apply where the extra contractual obligation
has been incurred due to the fraud or criminal conduct of a member of the Board
of Directors, a corporate officer of the Company, or any other employee of the
Company, acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
investigation, defense or settlement of any claim covered hereunder.
Any insurance or reinsurance, whether collectible or not, which
indemnifies or protects the Company against claims which are the subject matter
of this Section and any contribution, subrogation, or recovery shall inure to
the benefit of the Reinsurer and shall be deducted to arrive at the amount of
the Company's net loss.
A - 3
GENERAL REINSURANCE CORPORATION
<PAGE> 12
SECTION 6 - COMPANY POLICY AMOUNTS
For the purpose of determining the Company Retention and the Limits of
Liability of the Reinsurer, the limits of liability of the Company with respect
to any one policy shall be deemed not to exceed:
<TABLE>
<S> <C> <C> <C>
(a) Automobile Bodily Injury Liability $1,000,000 each person
$1,000,000 each occurrence
(b) Automobile Property Damage Liability $1,000,000 each occurrence
(c) Automobile Liability Combined Single Limit $1,000,000 each occurrence
(d) Uninsured Motorists Coverage $1,000,000 each person
$1,000,000 each occurrence
(e) Personal Injury Protection Coverage Statutory Limits
(f) Other Bodily Injury Liability $1,000,000 each occurrence
(g) Other Property Damage Liability $1,000,000 each occurrence
(h) Other Liability Combined Single Limit $1,000,000 each occurrence
(i) Section II Liability under Commercial
Multiple Peril $1,000,000 each occurrence
(j) Section II Liability under Businessowners $1,000,000 each occurrence
(k) Section II Liability under Homeowners
Multiple Peril $1,000,000 each occurrence
(l) Section II Liability under Farmowners $1,000,000 each occurrence
Multiple Peril
(m) Employers' Liability
(1) In All States with Statutory Limits Statutory Limits
(2) In All Other States
(i) Bodily Injury by Accident $1,000,000 each accident
(ii) Bodily Injury by Disease $1,000,000 policy limit
(iii) Bodily Injury by Disease $1,000,000 each employee
</TABLE>
A - 4
GENERAL REINSURANCE CORPORATION
<PAGE> 13
SECTION 7 - DEFINITIONS
(a) CASUALTY BUSINESS
This term shall mean insurance which is classified in the NAIC
form of annual statement as Farmowners Multiple Peril (Section
II), Homeowners Multiple Peril (Section II), Commercial Multiple
Peril (Sections II and III, including Section II of Business
Owners), Workers' Compensation, Other Liability, Automobile
Liability, and Automobile Personal Injury Protection, and
described in the manuals of the Insurance Services Office, or
the standard workers' compensation form of policy, as respects
losses occurring in the United States of America, its
territories and possessions, and Canada.
(b) COMPANY RETENTION
This term shall mean the amount the Company shall retain for its
own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated
companies under common management or common ownership.
(c) NET LOSS
This term shall mean all payments by the Company in settlement
of claims or losses, payment of benefits, or satisfaction of
judgments or awards after deduction of salvage and after
deduction of amounts due from all other reinsurance, whether
collectible or not. This term shall not include adjustment
expense. If the Company becomes insolvent, this definition
shall be modified to the extent set forth in the article
entitled INSOLVENCY OF THE COMPANY.
(d) ADJUSTMENT EXPENSE
This term shall mean expenditures by the Company, other than for
office expenses and for the salaries and expenses of employees
of the Company or of any subsidiary or related or wholly owned
company of the Company, made in connection with the disposition
of a claim, loss, or legal proceeding including investigation,
negotiation, and legal expenses, court costs; statutory
penalties; prejudgment interest or delayed damages; and interest
on any judgment or award.
A - 5
GENERAL REINSURANCE CORPORATION
<PAGE> 14
(e) PREJUDGMENT INTEREST OR DELAYED DAMAGES
This term shall mean interest or damages added to a settlement,
verdict, award, or judgment based on the amount of time prior to
the settlement, verdict, award, or judgment whether or not made
part of the settlement, verdict, award, or judgment.
(f) OCCURRENCE
This term shall mean each accident or occurrence or series of
accidents or occurrences arising out of one event regardless of
the number of policies involved, and as respects workers'
compensation and employers' liability policies, regardless of
the number of employees or employers involved, except as
modified below:
(1) As respects exposures reinsured hereunder other than
occupational and other disease or cumulative injury under
workers' compensation policies, all bodily injury or
property damage arising out of continuous or repeated
exposure to substantially the same general conditions
shall be considered as arising out of one occurrence. The
date of occurrence shall be deemed to be the following:
(i) As respects a loss involving one or more policies
written on an occurrence basis, the date on which
bodily injury or property damage occurs.
(ii) As respects a loss involving one or more policies
written on a claims-made basis, the date when
notice of claim is received and recorded by the
Company or the insured, whichever comes first, and
any related claims reported subsequent to such date
shall be included in such loss. However, if notice
of claim is received and recorded by the Company or
the insured during an Extended Reporting Period,
the date of occurrence shall be deemed to be the
last day of the policy period.
(iii) As respects a loss involving one or more policies
written on an occurrence basis and one or more
policies written on a claims-made basis, the date
on which bodily injury or property damage occurs,
and any related claims reported subsequent to such
date shall be included in such loss whether they
are covered under occurrence or claims-made
policies.
A - 6
GENERAL REINSURANCE CORPORATION
<PAGE> 15
(2) As respects an occupational or other disease or cumulative
injury under workers' compensation or employers' liability
policies for which the employer is liable:
(i) Which arises from a specific sudden and accidental
event limited in time and place, such occupational
or other disease suffered by one or more employees
of one or more employers shall be deemed to be an
occurrence within the meaning of this Exhibit and
the date of occurrence shall be deemed to be the
date of the sudden and accidental event.
(ii) Which does not arise from a specific sudden and
accidental event limited in time and place, such
occupational or other disease or cumulative injury
shall be deemed to be an occurrence within the
meaning of this Exhibit, and the date of occurrence
shall be deemed to be the date of the beginning of
the disability for which compensation is payable if
the case is compensable under the Workers'
Compensation law; or the date that disability due
to said disease actually began if the case is not
compensable under the Workers' Compensation law.
Each case of an employee contracting such
occupational or other disease or cumulative injury
for which the employer insured by the Company is
held liable shall be considered a separate
occurrence regardless of the date of loss.
SECTION 8 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other
insurers other than its affiliates;
(b) Nuclear incident per the Nuclear Incident Exclusion Clause -
Liability - Reinsurance attached hereto;
(c) Policies covering liability of any insurer or reinsurer for its
acts or omissions in the negotiation, settlement, or defense of
claims or any act or omission in dealings with its
policyholders;
(d) Any loss or liability accruing to the Company directly or
indirectly from any insurance written by or through any pool or
association including pools or associations in which membership
by the Company is required under any statutes or regulations and
including automobile assigned risk
A - 7
GENERAL REINSURANCE CORPORATION
<PAGE> 16
pools and voluntary or involuntary market assistance programs;
however, this exclusion shall not apply to individual automobile
assigned risks assigned to the Company;
(e) Any liability of the Company arising from its participation or
membership in any insolvency fund;
(f) Any loss or damage which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority;
however, this exclusion shall not apply to workers' compensation
and employers liability nor to any policy which contains a
standard war exclusion;
(g) Business written on a co-indemnity basis not controlled by the
Company;
(h) Business written to apply in excess of a deductible or self
insured amount of more than $5,000 or business written to apply
specifically in excess over underlying insurance;
(i) Automobile liability insurance relating to the ownership,
maintenance, or use of:
(1) Emergency vehicles including police and fire department
vehicles; however, this exclusion shall not apply to
renewal business;
(2) Automobiles used in organized speed contests;
(3) Automobile leasing or rental;
(4) Commercial automobiles, as defined in the manuals of the
Insurance Services Office, which customarily operate
beyond a 300 mile radius;
(5) Commercial automobiles over 80,000 lbs. gross vehicle
weight or gross combination weight as defined in the
manuals of the Insurance Services Office; however, this
exclusion shall not apply to renewal business;
(6) Motorcycles, motorized scooters, motorized bicycles, power
cycles, and any similar motorized vehicles;
(7) Public automobiles, other than school or church buses, as
defined in the manuals of the Insurance Services Office;
A - 8
GENERAL REINSURANCE CORPORATION
<PAGE> 17
(8) Motor vehicles used for transporting explosives,
munitions, corrosives, flammable and non-flammable gas,
flammable liquid, poison, radioactive materials and
hazardous waste;
(j) Liability insurance written by the aviation underwriting unit of
the Company, howsoever styled;
(k) Liability insurance issued to any state or governmental agency
or any political subdivision whatsoever; however, this exclusion
shall not apply to school districts and school boards nor to
renewal business. This exclusion shall also not apply to Owners
and Contractors Protective policies issued to any such entities;
(l) Liability insurance relating to premises or operations
involving:
(1) Aircraft or airports, as respects coverage for all
liability arising out of the ownership, maintenance, or
use of any aircraft or flight operations;
(2) Amusement parks or devices, carnivals or circuses, sports
or other entertainment events, arenas, grandstands, or
stadiums;
(3) Manufacturing, packing, handling, shipping, or storage of
explosives, ammunitions, fuses, arms, magnesium,
fireworks, nitroglycerine, celluloid, pyroxylin or
explosive substances intended for use as an explosive;
however, this exclusion shall not apply to incidental
handling and storage in connection with the sale of such
substances;
(4) Gas or public utility companies, gas or public utility
works, or gas lease operations;
(5) Production, refining, handling, shipping, or storage of
natural or artificial fuel gasses, synthetic or coal or
shale based fuel, butane, propane, gasoline, or liquefied
petroleum gas; however, this exclusion shall not apply to
gasoline service stations, convenience stores and fuel oil
dealers;
(6) Oil or gas pipelines, wells, or drilling operations;
(7) Railroad operations;
(8) Ship building, boat manufacturing, ship repair yards, dry
docks, stevedoring, or watercraft; however, this exclusion
shall not
A - 9
GENERAL REINSURANCE CORPORATION
<PAGE> 18
apply to watercraft commonly insured under homeowners
policies;
(9) Underground work, including underground mining and
quarrying, tunneling, and subway construction;
(10) Off-shore and subaqueous work;
(11) Wrecking or demolition of structures over 3 stories in
height, or marine wrecking;
(12) Chemical manufacturing;
(m) Liability insurance relating to products or completed operations
involving the manufacture or importation of:
(1) Cosmetics, hair, and skin products;
(2) Drugs, pharmaceuticals, and agricultural chemicals;
(3) Aircraft, aircraft parts, or aircraft engines, all
motorized vehicles, or mobile equipment;
(4) Heavy machinery and equipment, home power tools, or oil
drilling equipment;
(n) Insurance covering damages claimed for the withdrawal,
inspection, repair, replacement, or loss of use of the insured's
products or of any property of which such products form a part,
or if such products or property are withdrawn from the market or
from use because of any known or suspected defect or deficiency
therein;
(o) Malpractice insurance, directors and officers liability
insurance, or any other form of errors and omissions or
professional liability insurance; however, this exclusion shall
not apply to druggists operating outside the State of Florida,
funeral directors, veterinarians', beauty and barber shops',
hearing aid service specialists', cemetery operators' liability,
opticians', or printers liability business, nor to employee
benefits liability business;
(p) Insurance written for governmental bodies to afford protection
against liability arising out of riot, civil commotion, or mob
action or out of any act or omission in connection with the
prevention or suppression of any riot, civil commotion, or mob
action;
A - 10
GENERAL REINSURANCE CORPORATION
<PAGE> 19
(q) Liability insurance relating to or involving satellites,
spacecraft, and launch vehicles, including cargo and freight
carried therein, in all phases of operation (including but not
limited to manufacturing, transit, pre-launch, launch and
in-orbit);
(r) Pollution liability insurance or environmental impairment
liability, howsoever styled;
(s) Pollution under any commercial multiple peril policy, farmowners
multiple peril policy, farm liability policy or any other
commercial other liability policy written by the Company which
does not contain the pollution exclusion set forth in ISO
Commercial General Liability Form CG 00 01 (Ed. 11/88) or as
subsequently amended or under any garage liability policy
written by the Company which does not contain the pollution
exclusion set forth in ISO Garage Coverage Form CA 00 05 (Ed.
1/87) or as subsequently amended; however, this exclusion does
not apply to any risk located in a jurisdiction which has not
approved the Insurance Services Office exclusion or where other
regulatory constraints prohibit the Company from attaching such
endorsement. If the Company elects to file an endorsement
independent of ISO, such endorsement will be deemed a suitable
substitute provided the Company has submitted the wording to the
Reinsurer and received the Reinsurer's prior approval.
(t) Workers' compensation and employers' liability insurance with
respect to operations principally involving:
(1) Aircraft flight and ground operations or operations in
which the flying hazard is a major part;
(2) Amusement parks or devices, exhibitions (including
fireworks), carnivals or circuses, sports events and/or
participants;
(3) Manufacturing, packing, handling, shipping, or storage of
explosives, substances intended for use as an explosive,
ammunitions, fuses, arms, magnesium, propellant charges,
detonating devices, fireworks, nitroglycerine, celluloid,
or pyroxylin; however, this exclusion shall not apply to
the incidental packing, handling or storage of same in
connection with the sale of such substances;
(4) Gas companies, dealers, or distributors, except those in
the gasoline service station, convenience store or fuel
oil dealer business; oil or gas operators, lease operators
or contractors; oil or gas well works; oil or gas pipeline
construction or opera-
A - 11
GENERAL REINSURANCE CORPORATION
<PAGE> 20
tions; oil rig and derrick work; onshore or offshore gas
or oil drilling operations;
(5) Manufacturing, packing, handling, shipping or storage of
natural gas or artificial fuel gasses, butane, propane,
gasoline, or liquefied petroleum gas; however, this
exclusion shall not apply to the incidental packing,
handling or storage of same in connection with the sale of
such substances;
(6) Railroad operation or construction;
(7) Maritime or federal employments; steamship lines,
agencies, or stevedoring, navigation or operation of
vessels; operation of drydocks; and including all United
States Longshoremen's and Harbor Workers' exposures except
as endorsed on an if any basis;
(8) Sewer, subway, or water main construction, shaft sinking,
or tunnelling;
(9) Wrecking or demolition of buildings, structures, or
vessels;
(10) Underground mining, strip mining, or quarrying;
(11) Subaqueous work;
(12) Caisson or coffer dam work; dam, dike, lock, or revetment
construction;
(13) Chemical manufacturing;
(14) Nuclear Regulatory Commission projects or operations
conducted under license from the Nuclear Regulatory
Commission;
(15) Asbestos removal;
(16) Firefighters and police officers.
If the Company provides insurance for an insured with respect to the
ownership, maintenance, or use of items listed in exclusions (i)(l) through
(i)(7) and if such ownership maintenance, or use constitutes only a minor and
incidental part of the total ownership, maintenance, or use of such items of
the insured, such exclusion(s) shall not apply.
A - 12
GENERAL REINSURANCE CORPORATION
<PAGE> 21
If the Company provides insurance for an insured with respect to any
premises, operations, products, or completed operations listed in exclusions
(l) and (m), except exclusions (l)(3), and (l)(4), and if such premises,
operations, products, or completed operations constitute only a minor
incidental part of the total premises, operations, products, or completed
operations of the insured, such exclusion(s) shall not apply.
If the Company is bound, without the knowledge of and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
business falling within the scope of one or more of the exclusions set forth in
this Section, these exclusions, except (a) through (g), (l)(3), (l)(4), (n)
through (r), (t)(3) and (t)(4) shall be suspended with respect to such business
until 30 days after an underwriting supervisor of the Company acquires
knowledge of such business.
SECTION 9 - REINSURANCE PREMIUM AND COMMISSION
The Company shall pay to the Reinsurer:
(a) With respect to business in force at the effective time and date
of this Exhibit:
(1) For the First Excess Cover, a reinsurance premium equal to
the product of the applicable First Excess reinsurance
rate set forth in Appendix A attached hereto and the
Company's unearned premium for the classes of business
reinsured hereunder, calculated on the monthly pro rata
basis as of the effective time and date of this Exhibit;
(2) For the Second Excess Cover, a reinsurance premium equal
to the product of the applicable Second Excess reinsurance
rate set forth in Appendix A attached hereto and the
Company's unearned premium for the classes of business
reinsured hereunder, calculated on the monthly pro rata
basis as of the effective time and date of this Exhibit.
(b) With respect to business becoming effective at and after the
effective time and date of this Exhibit:
A - 13
GENERAL REINSURANCE CORPORATION
<PAGE> 22
(1) For the First Excess Cover, a reinsurance premium equal to
the product of the applicable First Excess reinsurance
rate set forth in Appendix A attached hereto and the
Company's written premium for the classes of business
reinsured hereunder;
(2) For the Second Excess Cover, a reinsurance premium equal
to the product of the applicable Second Excess reinsurance
rate set forth in Appendix A attached hereto and the
Company's written premium for the classes of business
reinsured hereunder, subject to an annual minimum and
deposit reinsurance premium of $400,000.
The reinsurance premiums for the First and Second Excess Covers and
the annual minimum and deposit reinsurance premium in (b)(2) above are subject
to a fixed commission allowance of 50%.
For the purpose of the calculation of the reinsurance premium for
business owners policies reinsured hereunder, the reinsurances rates in (a) and
(b) above shall be applied against 60% of the business owners policy premium
unearned or written, as applicable.
SECTION 10 - CONTINGENT COMMISSION
The provisions of this Section apply to the Reinsurer's combined
underwriting experience under the First Excess Cover and Combination Cover of
this Exhibit and under Exhibit B to this Agreement.
In addition to the fixed commission set forth in the sections entitled
REINSURANCE PREMIUM AND COMMISSION of this Exhibit and Exhibit B to this
Agreement, the Reinsurer shall pay to the Company a contingent commission of
50% of the amount by which the Reinsurer's Income exceeds the Reinsurer's Outgo
for each contingent period.
With respect to the contingent commission and the calculation thereof,
the following interpretations and reporting provisions shall apply:
(a) CONTINGENT PERIOD
The initial contingent period shall be from January 1, 1993,
through December 31, 1995, (the period from January 1, 1993,
through December 31, 1994, under prior Agreement No. 7299
between the Company
A - 14
GENERAL REINSURANCE CORPORATION
<PAGE> 23
and the Reinsurer and the period from January 1, 1995, through
December 31, 1995, under this Agreement) and thereafter each
contingent period shall consist of 36 months to begin
concurrently with the expiration of the previous contingent
period; however,
(1) Should the date of termination of this Exhibit coincide
with the completion of a contingent period, such
contingent period and the period from the date of
termination until expiration or termination of the
reinsurance, if any, then in effect shall be combined and
shall constitute a single contingent period.
(2) Should the Reinsurer terminate this Exhibit and the date
of termination not coincide with the completion of a
contingent period, the following periods shall be combined
and shall constitute a single contingent period:
(i) the last contingent period completed prior to the
date of termination, and
(ii) the period from the last completed contingent
period until the date of termination, and
(iii) the period from the date of termination until
expiration or termination of the reinsurance, if
any, then in effect.
(3) Should the Company terminate this Exhibit and the date of
termination not coincide with the completion of a
contingent period, the provisions of sub-paragraph (f) of
this Section shall apply.
(b) REINSURER'S INCOME
This term shall mean:
(1) The reinsurance premium written, net of fixed commission.
during the contingent period for the First Excess Cover of
this Exhibit and for Exhibit B;
(2) Plus the reinsurance premium unearned, net of fixed
commission, at the end of the preceding contingent period
for the First Excess Cover of this Exhibit and for Exhibit
B, calculated on a monthly pro rata basis;
(3) Less the reinsurance premium unearned, net of fixed
commission, at the end of the contingent period for the
First Excess
A - 15
GENERAL REINSURANCE CORPORATION
<PAGE> 24
Cover of this Exhibit and for Exhibit B, calculated on a
monthly pro rata basis.
(c) REINSURER'S OUTGO
This term shall mean:
(1) The sum of the Reinsurer's payments and reserves for
claims, losses and adjustment expense (including reserves
for claims and losses incurred but not reported, as set
forth in sub-paragraph (d) below) less the Reinsurer's
portion of salvage recovered, resulting from occurrences
taking place during the contingent period (or, as respects
the initial contingent period, resulting from occurrences
taking place during the contingent period insured under
new and renewal policies becoming effective on and after
January 1, 1993) and allocated to the First Excess Cover
or the Combination Cover of this Exhibit and to Exhibit B;
(2) Plus 20% of the Reinsurer's Income as a risk charge.
(d) RESERVES FOR CLAIMS AND LOSSES INCURRED BUT NOT REPORTED
The reserves for claims and losses incurred but not reported
(IBNR) shall be determined separately for each twelve month
period within each experience period. IBNR will be determined
by multiplying the Reinsurer's Income for each twelve month
period by the appropriate factor based on the maturity of the
period from its commencement date.
<TABLE>
<CAPTION>
MATURITY CASUALTY PROPERTY
(IN MONTHS) IBNR FACTOR IBNR FACTOR
<S> <C> <C>
12 .70 .00
24 .60 .00
36 .40 .00
48 .20 .00
60 .00 .00
</TABLE>
(e) STATEMENTS OF CONTINGENT COMMISSION
As soon as practicable after each anniversary of the
commencement of a contingent period, the Reinsurer shall render
to the Company an interim statement of contingent commission for
the period from the commencement of the contingent period until
such anniversary. The amount thereof, payable subject to the
following Schedule, shall be balanced
A - 16
GENERAL REINSURANCE CORPORATION
<PAGE> 25
against the amount previously paid the Company for the
contingent period and the difference due either party shall be
remitted promptly.
<TABLE>
<CAPTION>
THE CONTINGENT COMMISSION
AT THE COMPLETION OF PAYABLE SHALL BE
<S> <C> <C>
(1) The first year of the 33 1/3% of the amount due
contingent period
(2) the second year of the 66 2/3% of the amount due
contingent period
(3) the third year of the 100% of the amount due
contingent period
</TABLE>
As soon as practicable after the end of a contingent period, the
Reinsurer shall render to the Company a statement of contingent
commission for the entire contingent period. The amount thereof
shall be balanced against the amount previously allowed the
Company for the contingent period and the amount due either
party shall be remitted promptly. Annually thereafter, revised
statements shall be rendered to the Company reflecting changes
in the original statement until all losses which occurred during
the contingent period are fully discharged, and the amount due
either party because of such changes shall be remitted promptly.
(f) TERMINATION
<TABLE>
<CAPTION>
IF THIS EXHIBIT IS THE CONTINGENT
TERMINATED BY THE COMPANY COMMISSION PERCENTAGE
AT ANY TIME DURING SHALL BE
<S> <C> <C>
(1) the first year of any Nil
contingent period
(2) the second year of any 33 1/3% of 50%
contingent period
(3) the third year of any 66 2/3% of 50%
contingent period
</TABLE>
If this Exhibit is still in force at the end of a contingent
period, the contingent commission percentage for the entire
contingent period shall be 100% of 50%.
If this Exhibit is terminated by the Reinsurer, the contingent
commission percentage for each contingent period, or fractional
part thereof, shall be 100% of 50%.
A - 17
GENERAL REINSURANCE CORPORATION
<PAGE> 26
SECTION 11 - REPORTS AND REMITTANCES
(a) REINSURANCE PREMIUM
(1) IN FORCE PREMIUM
Within 25 days after the commencement of this Exhibit, the
Company shall render to the Reinsurer a report of the
reinsurance premium with respect to the business of the
Company in force at the effective time and date of this
Exhibit, summarizing the reinsurance premium by line of
insurance, by term, and by month and year of expiration;
and the amount due the Reinsurer shall be remitted within
60 days after the commencement of this Exhibit.
(2) FIRST EXCESS COVER
Within 25 days after the close of each month, the Company
shall render to the Reinsurer a report of the reinsurance
premium for the month with respect to business of the
Company written during the month, summarizing the
reinsurance premium by line of insurance; and the amount
due either party shall be remitted within 60 days after
the close of the month.
Within 25 days after the close of each calendar quarter,
the Company shall render to the Reinsurer a report of the
reinsurance premium unearned by line of insurance and the
contribution for the quarter to the reinsurance premium in
force by line of insurance, by term and by month and year
of expiration.
(3) SECOND EXCESS COVER
Within 25 days after the beginning of each calendar
quarter, the Company shall pay to the Reinsurer one
quarter of the annual minimum and deposit reinsurance
premium stipulated in sub-paragraph (b)(2) the section
entitled REINSURANCE PREMIUM AND COMMISSION.
Within 60 days after the close of each calendar year, the
Company shall render to the Reinsurer a report of the
premium written by the Company on the classes of business
reinsured hereunder during such calendar year. The
Company shall calculate the reinsurance premium thereon
and remit to the Reinsurer the amount of reinsurance
premium, if any, in excess of the
A - 18
GENERAL REINSURANCE CORPORATION
<PAGE> 27
annual minimum and deposit reinsurance premium previously
paid.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim or
loss for which the Company's estimated amount of net loss is 50%
or more of the amount of the Company Retention and shall also
report all cases of serious injury which, regardless of
considerations of liability or coverage, might involve this
reinsurance, including but not limited to the following:
(1) Cord injury - paraplegia, quadriplegia;
(2) Amputations - requiring a prosthesis;
(3) Brain damage affecting mentality or central nervous system
- such as permanent disorientation, behavior disorder,
personality change, seizures, motor deficit, inability to
speak (aphasia), hemiplegia or unconsciousness (comatose);
(4) Blindness;
(5) Burns - involving over 10% of body with third degree or
30% of body with second degree;
(6) Multiple fractures - involving more than one member or
non-union;
(7) Fracture of both heel bones (fractured bilateral os
calcis);
(8) Nerve damage causing paralysis and loss of sensation in
arm and hand (brachial plexus nerve damage);
(9) Massive internal injuries affecting body organs;
(10) Injury to nerves at base of spinal canal (Cauda Equina) or
any other back injury resulting in incontinence of bowel
and/or bladder;
(11) Fatalities;
(12) Any other serious injury which, in the judgment of the
Company, might involve the Reinsurer.
A - 19
GENERAL REINSURANCE CORPORATION
<PAGE> 28
The Company shall advise the Reinsurer of the estimated amount
of net loss and adjustment expense in connection with each such
claim or loss and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and
adjustment expense from the Company, the Reinsurer shall pay
promptly to the Company the Reinsurer's portion of net loss and
Reinsurer's portion of adjustment expense, if any. Any
subsequent changes shall be reported by the Company to the
Reinsurer and the amount due either party shall be remitted
promptly.
(c) GENERAL
In addition to the reports required in (a) and (b) above, the
Company shall furnish such other information as may be required
by the Reinsurer for the completion of the Reinsurer's quarterly
and annual statements and internal records.
All reports shall be rendered in forms acceptable to the Company
and the Reinsurer.
SECTION 12 - COMMENCEMENT AND TERMINATION
As respects policies written on a claims-made basis, this Exhibit
shall apply to claims received and recorded by the Company or the insured at
and after 12:01 A.M., January 1, 1995, provided that each such policy includes
a specific retroactive date and the occurrence which results in each such claim
takes place on or after such retroactive date, and provided further that such
retroactive date is on or after the inception date of the first of one or more
consecutive claims-made policies issued by the Company or another insurer(s) to
the named insured. However, this Exhibit shall not apply to claims received
and recorded by the Company or the insured during any Extended Reporting Period
in force at such time and date. As respects policies written on an occurrence
basis, this Exhibit shall apply to claims and losses resulting from occurrences
taking place at and after 12:01 A.M., January 1, 1995.
This Exhibit may be terminated by either party sending to the other,
by registered mail to its principal office, notice stating the time and date
when, not less than 90 days after the date of mailing of such notice,
termination shall be effective.
A - 20
GENERAL REINSURANCE CORPORATION
<PAGE> 29
Upon termination of this Exhibit, the Reinsurer shall continue to be
liable, with respect to policies in force at the time and date of termination,
for occurrences taking place until the expiration, cancellation, or next
anniversary date, not to exceed one year, of each such policy of the Company,
whichever occurs first, provided that with respect to policies written on a
claims-made basis, the claim is received and recorded by the Company or the
insured before such expiration, cancellation, or next anniversary date.
However, if the Company provides an Extended Reporting Period within one year
after the termination date of this Exhibit on any claims-made policy which is
in force at such termination date or if an Extended Reporting Period is in
force at the time and date of termination, the Reinsurer shall continue to be
liable for claims received and recorded by the Company or the insured during
such Extended Reporting Period, provided always that the occurrence which
results in any such claim takes place prior to the expiration or cancellation
date of the policy. The reinsurance premium for any unlimited Extended
Reporting Period provided within one year after the termination date of this
Exhibit on any claims-made policy which is in force at such termination date
shall be calculated in accordance with the provisions of the section entitled
REINSURANCE PREMIUM AND COMMISSION.
When all reinsurance is expired or terminated, the Reinsurer shall
return to the Company the reinsurance premium unearned, if any, calculated on
the monthly pro rata basis, less the commission previously allowed thereon.
A -21
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 30
APPENDIX A
Attached to and made a part of
EXHIBIT A OF AGREEMENT NO. 8009
REINSURANCE RATES
<TABLE>
<CAPTION>
CLASS OF BUSINESS GROSS REINSURANCE RATE
FIRST EXCESS SECOND EXCESS
<S> <C> <C>
Private Passenger Automobile
Liability (including PIP) 0.36% 0.18%
Commercial Automobile Liability
(including PIP) 3.20% 0.18%
Workers' Compensation and
Employers' Liability 5.40% 2.60%
Commercial Multiple Peril
(Section II) and
Business Owners (Section II) 8.24% 0.18%
Homeowners Multiple Peril
(Section II) and Farmowners
Multiple Peril (Section II) -- 0.18%
All Other Liability 4.64% 0.18%
</TABLE>
GENERAL REINSURANCE CORPORATION
<PAGE> 31
EXHIBIT B
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 8009
EXCESS OF LOSS REINSURANCE
of
PROPERTY BUSINESS
- --------------------------------------------------------------------------------
SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company, with respect to each risk of
the Company, the amount of net loss sustained by the Company in excess of the
Company Retention but not exceeding the Limit of Liability of the Reinsurer as
set forth in the Schedule of Reinsurance.
The Limit of Liability of the Reinsurer under this Exhibit shall not
exceed a total payment of $3,000,000 on all risks involved in one occurrence.
SCHEDULE OF REINSURANCE
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Company Limit of Liability
Class of Business Retention of the Reinsurer
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
All Property Business $500,000 $1,500,000
- -----------------------------------------------------------------------------------------------
</TABLE>
All insurance written under one or more policies of the Company
against the same peril on the same risk shall be combined, and Company
Retention and Liability of the Reinsurer shall be determined on the basis of
the sum of all insurance against the same peril and on the same risk which is
in force at the time of a claim or loss.
SECTION 2 - COMBINATION COVER
If an occurrence takes place which involves one risk reinsured under
this Exhibit and the classes of business reinsured under Exhibit A to this
Agreement in combination, the provisions of the section entitled COMBINATION
COVER of said Exhibit A shall apply.
GENERAL REINSURANCE CORPORATION
<PAGE> 32
SECTION 3 - ALLOCATION OF ADJUSTMENT EXPENSE
In addition to payments for its share of net loss, the Reinsurer shall
pay to the Company a share of adjustment expense proportionate to the
Reinsurer's share of net loss.
SECTION 4 - EXTRA CONTRACTUAL OBLIGATIONS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90%
of the extra contractual obligation shall be added to the Company's net loss
from the occurrence and the total shall be allocated in accordance with the
section entitled LIABILITY OF THE REINSURER.
For purposes of this Section, the term "extra contractual obligation"
shall mean a loss which the Company is legally liable to pay, which is not
covered under any other provision of this Exhibit and which arises from the
Company's handling of any claim on the policies reinsured hereunder which have
amounts of insurance greater than the Company Retention.
The date on which an extra contractual obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
occurrence.
This Section shall not apply where the extra contractual obligation
has been incurred due to the fraud or criminal conduct of a member of the Board
of Directors, a corporate officer of the Company, or any other employee of the
Company, acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
investigation, defense or settlement of any claim covered hereunder.
Any insurance or reinsurance, whether collectible or not, which
indemnifies or protects the Company against claims which are the subject matter
of this Section and any contribution, subrogation, or recovery shall inure to
the benefit of the Reinsurer and shall be deducted to arrive at the amount of
the Company's net loss.
B - 2
GENERAL REINSURANCE CORPORATION
<PAGE> 33
SECTION 5 - OTHER REINSURANCE
The obligations of the Company to reinsure business falling within the
scope of this Exhibit and of the Reinsurer to accept such reinsurance are
mandatory and no other reinsurance (either facultative or treaty) is permitted,
except as provided for below.
When the amount of insurance written by the Company on an individual
risk exceeds $2,000,000 permission is granted the Company to purchase
facultative excess of loss or share reinsurance for the amount over $2,000,000
on such risk. If the Company purchases facultative excess of loss reinsurance,
it shall advise the Reinsurer immediately, and a reinsurance rate which
compensates for the enhanced partial loss shall be agreed upon. If the Company
does not purchase either facultative excess of loss or share reinsurance for
the amount over $2,000,000 on such risk, the net loss for the purpose of
computing the Company Retention and the Limit of Liability of the Reinsurer
shall be reduced as if facultative share reinsurance had been in force at the
time of the loss for the amount over $2,000,000 on such risk.
The Company may also purchase facultative excess of loss reinsurance
or facultative share reinsurance on the liability of the Reinsurer, if, in the
underwriting judgment of the Company, the Reinsurer will be benefited thereby.
In no event, however, shall the amount required with respect to the Company
Retention be reduced.
Recoveries from catastrophe reinsurance shall be deemed not to reduce
the amount required with respect to the Company Retention.
SECTION 6 - DEFINITIONS
(a) PROPERTY BUSINESS
This term shall mean insurance which is classified in the NAIC
form of annual statement as Fire, Allied Lines, Farmowners
Multiple Peril (Section I), Homeowners Multiple Peril (Section
I), Commercial Multiple Peril (Section I, including Section 1 of
Business Owners), Inland Marine, and Automobile Physical Damage
(including collision, water damage, fleet dealers' and
garagekeepers' legal liability) except those lines specifically
excluded in the section entitled EXCLUSIONS, on risks wherever
B - 3
GENERAL REINSURANCE CORPORATION
<PAGE> 34
located in the United States of America, its territories and
possessions, and Canada.
(b) COMPANY RETENTION
This term shall mean the amount the Company shall retain for its
own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated
companies under common management or common ownership.
(c) NET LOSS
This term shall mean all payments by the Company in settlement
of claims or losses after deduction of salvage and after
deduction of amounts due from all other reinsurance, except
catastrophe reinsurance, whether collectible or not. This term
shall not include adjustment expense. If the Company becomes
insolvent, this definition shall be modified to the extent set
forth in the article entitled INSOLVENCY OF THE COMPANY.
(d) ADJUSTMENT EXPENSE
This term shall mean expenditures by the Company, other than for
office expenses and for the salaries and expenses of employees
of the Company or of any subsidiary or related or wholly owned
company of the Company, made in connection with the disposition
of a claim, loss, or legal proceeding including investigation,
negotiation, and legal expenses, court costs; statutory
penalties; prejudgment interest or delayed damages; and interest
on any judgment or award.
(e) PREJUDGMENT INTEREST OR DELAYED DAMAGES
This term shall mean interest or damages added to a settlement,
verdict, award, or judgment based on the amount of time prior to
the settlement, verdict, award, or judgment whether or not made
part of the settlement, verdict, award, or judgment.
(f) PROPERTY RISK
The Company shall establish what constitutes one risk, provided:
(1) a building and its contents, including time element
coverages, shall never be considered more than one risk;
B - 4
GENERAL REINSURANCE CORPORATION
<PAGE> 35
(2) when two or more buildings and their contents are situated
at the same general location, the Company shall identify
on its records at the time of acceptance by the Company
those individual buildings and their contents that are
considered to constitute each risk; if such identification
is not made, each building and its contents shall be
considered to be a separate risk.
(g) BUILDING
This term shall mean each structure that is considered by the
local fire insurance rating organization to be a separate
building for rate making purposes. With reference to structures
not rated specifically by the local fire insurance rating
organization, the term building shall mean each separately
roofed structure enclosed within exterior walls.
(h) AUTOMOBILE PHYSICAL DAMAGE RISK
The Company shall establish what constitutes one automobile
physical damage risk, provided:
(1) a tractor and trailer(s) or a tractor and semi-trailer(s)
shall never be considered more than one risk;
(2) with respect to fleet dealers' business and garage keepers
legal liability business, all vehicles housed in one
building shall never be considered more than one risk;
(3) with respect to fleet dealers' business and garage keepers
legal liability business, any location where all vehicles
are situated out-of-doors shall never be considered more
than one risk.
(i) OCCURRENCE
This term shall mean each occurrence or series of occurrences
arising out of one event.
SECTION 7 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Reinsurance accepted by the Company other than:
(1) Facultative reinsurance on a share basis of risks accepted
individually and not forming part of any agreement, or
B - 5
GENERAL REINSURANCE CORPORATION
<PAGE> 36
(2) Local agency reinsurance on a share basis accepted in the
normal course of business, or
(3) From its affiliates;
(b) Nuclear incident per the Nuclear Incident Exclusion -
Physical Damage - Reinsurance attached hereto;
(c) Any loss or liability accruing to the Company directly or
indirectly from any insurance written by or through any pool or
association including pools or associations in which membership
by the Company is required under any statutes or regulations;
(d) Any liability of the Company arising from its participation
or membership in any insolvency fund;
(e) Any loss or damage which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority;
however, this exclusion shall not apply to any policy which
contains a standard war exclusion;
(f) Policies written to apply in excess of underlying insurance
or policies written with a deductible or franchise of more than
$5,000; however, this exclusion shall not apply to policies
which provide a percentage deductible or franchise in connection
with windstorm;
(g) Insurance against earthquake, except when written in
conjunction with fire and otherwise eligible perils;
(h) Insurance on growing crops;
(i) Insurance against flood, surface water, waves, tidal water or
tidal wave, overflow of streams or other bodies of water or
spray from any of the foregoing, all whether driven by wind or
not, except when written in conjunction with fire and otherwise
eligible perils;
(j) Business classified as fidelity;
(k) Liability under coverage afforded for loss or damage
resulting from failure to account or pay for any goods or
merchandise sold on credit, delivered under deferred payment
agreements, consigned for sale, or delivered under any trust or
floor plan agreements, except under standard accounts receivable
policies;
B - 6
GENERAL REINSURANCE CORPORATION
<PAGE> 37
(l) Any loss or damage caused by or resulting from explosion,
rupture, or bursting of steam boilers, steam pipes, steam
turbines, steam engines, or rotating parts of machinery caused
by centrifugal force; if owned by, leased by, or actually
operated under the control of the insured. This exclusion shall
not apply to ensuing loss by fire not otherwise excluded;
(m) Mortgage impairment insurance and similar kinds of insurance,
howsoever styled, providing coverage to an insured with respect
to its mortgagee interest in property or its owner interest in
foreclosed property;
(n) Difference in conditions insurance and similar kinds of
insurance, howsoever styled;
(o) Risks which have a total insurable value of more than
$250,000,000; however, this exclusion shall not apply if the
Company writes 100% of the risk;
(p) Any collection of fine arts with an insurable value of
$5,000,000 or more;
(q) Mobile homes; however, this exclusion shall not apply to
dealers' physical damage renewal business;
(r) Inland marine business with respect to the following:
(1) All bridges and tunnels;
(2) Cargo insurance when written as such with respect to
ocean, lake, or inland waterways vessels;
(3) Commercial negative film insurance and cast insurance;
(4) Drilling rigs;
(5) Furriers' customers policies;
(6) Garment contractors policies;
(7) Insurance on livestock under so-called "mortality
policies";
(8) Jewelers' block policies and furriers' block policies;
(9) Mining equipment while underground;
B - 7
GENERAL REINSURANCE CORPORATION
<PAGE> 38
(10) Motor truck cargo insurance written for common carriers
operating beyond a radius of 300 miles;
(11) Radio and television broadcasting towers;
(12) Registered mail insurance when the limit of any one
addressee on any one day is more than $50,000;
(13) Watercraft other than watercraft insured under a standard
homeowners policy;
(s) Loss of, damage to, or failure of, or consequential loss
resulting therewith (including but not limited to earnings and
extra expense) of satellites, spacecraft, and launch vehicles,
including cargo and freight carried therein, in all phases of
operation (including but not limited to manufacturing, transit,
pre-launch, launch, and in-orbit);
(t) Coverage afforded by ISO Pollutant Clean Up and Removal
Additional Aggregate Limit of Insurance Endorsement CP 04 07
(Ed. 4/86) or as subsequently amended or by any similar
endorsement affording such coverage;
(u) Pollutant clean up or removal under any commercial property
policy or any inland marine policy written by the Company which
does not contain ISO Changes-Pollutants Endorsement CP 01 86
(Ed. 4/86) or as subsequently amended; however, this exclusion
does not apply to any risk located in a jurisdiction which has
not approved the Insurance Services Office exclusion or where
other regulatory constraints prohibit the Company from attaching
such endorsement. If the Company elects to file an endorsement
independent of ISO, such endorsement will be deemed a suitable
substitute provided the Company has submitted the wording to the
Reinsurer and received the Reinsurer's prior approval.
SECTION 8 - REINSURANCE PREMIUM AND COMMISSION
The Company shall pay to the Reinsurer:
(a) With respect to business becoming in force at the effective time
and date of this Exhibit:
(1) 0.20% of the Company's unearned premium on homeowners
multiple peril (Section I), after deducting that portion,
if any, paid for share reinsurance, calculated on the
monthly pro rata basis as of the effective time and date
of this Exhibit; and
B - 8
GENERAL REINSURANCE CORPORATION
<PAGE> 39
(2) 6.78% of the Company's unearned premium on all other
classes of business reinsured hereunder (except automobile
physical damage), after deducting that portion, if any,
paid for share reinsurance, calculated on the monthly pro
rata basis as of the effective time and date of this
Exhibit.
(b) With respect to business becoming effective at and after the
effective time and date of this Exhibit:
(1) 0.20% of the Company's written premium on homeowners
multiple peril (Section I), after deducting that portion,
if any, paid for share reinsurance; and
(2) 6.78% of the Company's written premium on all other
classes of business reinsured hereunder (except automobile
physical damage), after deducting that portion, if any,
paid for share reinsurance.
The reinsurance premiums set forth above are subject to a fixed
commission allowance of 50%.
For the purpose of the calculation of the reinsurance premium for
business owners policies reinsured hereunder, the reinsurance rate above shall
be applied against 40% of the business owners policy written premium.
SECTION 9 - CONTINGENT COMMISSION
The Reinsurer's underwriting experience under this Exhibit and under
the First Excess Cover and the Combination Cover of Exhibit A to this Agreement
shall be combined for the purposes of calculating the contingent commission in
accordance with the provisions of the section entitled CONTINGENT COMMISSION of
said Exhibit A.
SECTION 10 - MORTGAGEE REINSURANCE ENDORSEMENTS AND BLANKET
MORTGAGEE REINSURANCE CERTIFICATES
To induce a mortgagee named in a policy or policies of the Company to
accept such policy or policies, the Company and the Reinsurer may agree to name
such mortgagee as a third party beneficiary in a Mortgagee Reinsurance
Endorsement or Blanket Mortgagee Reinsurance Certificate made a part of this
Agreement. For each such Mortgagee Reinsurance Endorsement or Blanket
Mortgagee Rein-
B - 9
GENERAL REINSURANCE CORPORATION
<PAGE> 40
surance Certificate so issued, the Company shall indemnify the Reinsurer for
any and all liability, loss, cost, or expense the Reinsurer may sustain or
incur in excess of its obligations under this Agreement by reason of the
issuance of such Mortgagee Reinsurance Endorsement or such Blanket Mortgagee
Reinsurance Certificate.
If the Reinsurer becomes liable to a mortgagee under any Mortgagee
Reinsurance Endorsement or under any Blanket Mortgagee Reinsurance Certificate,
the Reinsurer shall, to the extent of its liability:
(a) Benefit pro-rata in reductions of the Company's loss by salvage,
subrogation, compromise, or otherwise.
(b) Be automatically subrogated to all of the mortgagee's rights
against the Company under the policy.
(c) Be completely discharged from its obligation to make any payment
to the Company under this Agreement and be entitled to set off
against any amount due from the Reinsurer to the Company under
this or any other agreement for any amounts for which the
Reinsurer would not be liable except for the existence of such
Mortgagee Reinsurance Endorsement or such Blanket Mortgagee
Reinsurance Certificate.
The Reinsurer shall have the right to cancel any Mortgagee Reinsurance
Endorsement or any Blanket Mortgagee Reinsurance Certificate by notice to the
mortgagee.
SECTION 11 - REPORTS AND REMITTANCES
(a) REINSURANCE PREMIUM
Within 25 days after the commencement of this Exhibit, the
Company shall render to the Reinsurer a report of the
reinsurance premium with respect to the business of the Company
in force at the effective time and date of this Exhibit,
summarizing the reinsurance premium by line of insurance, by
term, and by month and year of expiration; and the amount due
the Reinsurer shall be remitted within 60 days after the
commencement of this Exhibit.
B - 10
GENERAL REINSURANCE CORPORATION
<PAGE> 41
Within 25 days after the close of each month, the Company shall
render to the Reinsurer a report of the reinsurance premium for
the month with respect to business of the Company written during
the month, summarizing the reinsurance premium by line of
insurance; and the amount due either party shall be remitted
within 60 days after the close of the month.
Within 25 days after the close of each calendar quarter, the
Company shall render to the Reinsurer a report of the
reinsurance premium unearned by line of insurance and the
contribution for the quarter to the reinsurance premium in force
by line of insurance, by term, and by month and year of
expiration.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim or
loss which, in the Company's opinion, may involve the
reinsurance afforded by this Exhibit. The Company shall advise
the Reinsurer of the estimated amount of net loss in connection
with each such claim or loss and of any subsequent changes in
such estimates.
Upon receipt of a definitive statement of net loss from the
Company, the Reinsurer shall promptly pay to the Company the
Reinsurer's portion of net loss and the Reinsurer's portion of
adjustment expense, if any. Any subsequent changes in the
amount of net loss shall be reported by the Company to the
Reinsurer and the amount due either party shall be remitted
promptly.
(c) P.C.S. CATASTROPHE BULLETINS
The Company shall furnish to the Reinsurer, upon request, the
following information with respect to each catastrophe set forth
in the Catastrophe Bulletins published by the Property Claim
Services:
(1) The preliminary estimates of the amount recoverable from
the Reinsurer;
(2) The Reinsurer's portion of claims, losses and adjustment
expenses paid less salvage recovered during each calendar
quarter;
(3) The Reinsurer's portion of reserves for claims, losses,
and adjustment expenses at the end of each calendar
quarter.
B - 11
GENERAL REINSURANCE CORPORATION
<PAGE> 42
(d) GENERAL
In addition to the reports required in (a), (b), and (c) above,
the Company shall furnish such other information as may be
required by the Reinsurer for the completion of the Reinsurer's
quarterly and annual statements and internal records.
All reports shall be rendered in forms acceptable to the Company
and the Reinsurer.
SECTION 12 - COMMENCEMENT AND TERMINATION
This Exhibit shall apply to new and renewal policies of the Company
becoming effective at and after 12:01 A.M., January 1, 1995, and to policies of
the Company in force at 12:01 A.M., January 1, 1995, with respect to claims or
losses resulting from occurrences taking place at and after the aforesaid time
and date.
This Exhibit may be terminated by either party sending to the other,
by registered mail to its principal office, notice stating the time and date
when, not less than 90 days after the date of mailing of such notice,
termination shall be effective. Upon termination of this Exhibit, the
liability of the Reinsurer with respect to policies in force at the time and
date of termination shall continue until the expiration, cancellation, or next
anniversary date, not to exceed one year, of each such policy of the Company,
whichever occurs first.
When all reinsurance is expired or terminated, the Reinsurer shall
return to the Company the reinsurance premium unearned, if any, calculated on
the monthly pro rata basis, less the commission previously allowed thereon.
B - 12
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 43
EXHIBIT C
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 8009
SECOND EXCESS OF LOSS REINSURANCE
of
CASUALTY BUSINESS
- --------------------------------------------------------------------------------
SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company, with respect to casualty
business of the Company, the amount of net loss each occurrence in excess of
the sum of the Company Retention and Underlying Reinsurance but not exceeding
the Limit of Liability of the Reinsurer as set forth in the Schedule of
Reinsurance.
However, as respects the workers' compensation business reinsured
hereunder, for purposes of determining the amount of net loss sustained by the
Company, it is deemed that the amount of net loss for any one claimant shall
not exceed $2,500,000.
SCHEDULE OF REINSURANCE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Company Retention and Limit of Liability
Class of Business Underlying Reinsurance of the Reinsurer
- ----------------------------------------------------------------------------------------------
EACH OCCURRENCE EACH OCCURRENCE
<S> <C> <C>
Casualty Business $5,000,000 $5,000,000
- ----------------------------------------------------------------------------------------------
</TABLE>
SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE
In addition to payments for its share of net loss, the Reinsurer shall
pay to the Company a share of adjustment expenses proportionate to the
Reinsurer's share of net loss.
Should the amount of a judgment be reduced by any process or should a
judgment be reversed outright, the adjustment expenses incurred in securing
such reduction or reversal
GENERAL REINSURANCE CORPORATION
<PAGE> 44
shall be apportioned between the Company and the Reinsurer in the ratio that
each party benefits from such reduction or reversal.
SECTION 3 - LOSS IN EXCESS OF POLICY LIMITS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if a third party claimant is awarded an amount in excess of
the Company's policy limit and, as a result of the Company's failure to settle
within the policy limit or of the Company's alleged or actual negligence or bad
faith in rejecting an offer of settlement or in the preparation of the defense
or in the trial of any action against its insured or in the preparation or
prosecution of an appeal consequent upon such action, an action is taken by the
insured or assignee which could impose legal liability on the Company for an
amount in excess of the Company's policy limit, the Reinsurer shall pay to the
Company 90% of only that portion of the award made to the third party claimant
which is in excess of the greater of the Company's policy limit or the Company
Retention. The liability of the Reinsurer with respect to the entire amount of
net loss, including the loss in excess of the Company's policy limit, shall not
exceed the Limit of Liability of the Reinsurer as set forth in the section
entitled LIABILITY OF THE REINSURER.
However, this Section shall not apply where the loss has been incurred
due to the fraud of a member of the Board of Directors, a corporate officer of
the Company, or any other employee of the Company, acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense, or settlement of
any claim covered hereunder.
Recoveries from any form of insurance or reinsurance which protects
the Company against claims which are the subject matter of this Section shall
inure to the benefit of the Reinsurer and shall be deducted to arrive at the
amount of the Company's net loss.
C - 2
GENERAL REINSURANCE CORPORATION
<PAGE> 45
SECTION 4 - EXTRA CONTRACTUAL OBLIGATIONS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, 90%
of the extra contractual obligation shall be added to the Company's net loss
from the occurrence and the total shall be allocated in accordance with the
section entitled LIABILITY OF THE REINSURER.
For purposes of this Section, the term "extra contractual obligation"
shall mean a loss which the Company is legally liable to pay, which is not
covered under any other provision of this Exhibit and which arises from the
Company's handling of any claim on the policies reinsured hereunder which have
limits of liability greater than the Company Retention.
The date on which an extra contractual obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
occurrence.
This Section shall not apply where the extra contractual obligation
has been incurred due to the fraud or criminal conduct of a member of the Board
of Directors, a corporate officer of the Company, or any other employee of the
Company, acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
investigation, defense or settlement of any claim covered hereunder.
Any insurance or reinsurance, whether collectible or not, which
indemnifies or protects the Company against claims which are the subject matter
of this Section and any contribution, subrogation, or recovery shall inure to
the benefit of the Reinsurer and shall be deducted to arrive at the amount of
the Company's net loss.
SECTION 5 - COMPANY POLICY AMOUNTS
For the purpose of determining the Company Retention and the Limits of
Liability of the Reinsurer, the limits of liability of the Company with respect
to any one policy shall be deemed not to exceed:
<TABLE>
<S> <C> <C> <C>
(a) Automobile Bodily Injury Liability $1,000,000 each person
$1,000,000 each occurrence
</TABLE>
C - 3
GENERAL REINSURANCE CORPORATION
<PAGE> 46
<TABLE>
<S> <C> <C> <C>
(b) Automobile Property Damage Liability $1,000,000 each occurrence
(c) Automobile Liability Combined Single Limit $1,000,000 each occurrence
(d) Uninsured Motorists Coverage $1,000,000 each person
$1,000,000 each occurrence
(e) Personal Injury Protection Coverage Statutory Limits
(f) Other Bodily Injury Liability $1,000,000 each occurrence
(g) Other Property Damage Liability $1,000,000 each occurrence
(h) Other Liability Combined Single Limit $1,000,000 each occurrence
(i) Section II Liability under Commercial
Multiple Peril $1,000,000 each occurrence
(j) Section II Liability under Businessowners $1,000,000 each occurrence
(k) Section II Liability under Homeowners
Multiple Peril $1,000,000 each occurrence
(l) Section II Liability under Farmowners $1,000,000 each occurrence
Multiple Peril
(m) Employers' Liability
(1) In All States with Statutory Limits Statutory Limits
(2) In All Other States
(i) Bodily Injury by Accident $1,000,000 each accident
(ii) Bodily Injury by Disease $1,000,000 policy limit
(iii) Bodily Injury by Disease $1,000,000 each employee
</TABLE>
SECTION 6 - DEFINITIONS
(a) CASUALTY BUSINESS
This term shall mean insurance which is classified in the NAIC
form of annual statement as Farmowners Multiple Peril (Section
II), Homeowners Multiple Peril (Section II), Commercial Multiple
Peril (Sections II and III, including Section II of Business
Owners), Workers' Compensation, Other Liability, Automobile
Liability, and Automobile Personal
C - 4
GENERAL REINSURANCE CORPORATION
<PAGE> 47
Injury Protection, and described in the manuals of the Insurance
Services Office, or the standard workers' compensation form of
policy, as respects losses occurring in the United States of
America, its territories and possessions, and Canada.
(b) COMPANY RETENTION
This term shall mean the amount the Company shall retain for its
own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated
companies under common management or common ownership.
(c) NET LOSS
This term shall mean all payments by the Company in settlement
of claims or losses, payment of benefits, or satisfaction of
judgments or awards after deduction of salvage and after
deduction of amounts due from all other reinsurance, except
underlying excess of loss reinsurance afforded by Exhibit A to
this Agreement, whether collectible or not. This term shall not
include adjustment expense. If the Company becomes insolvent,
this definition shall be modified to the extent set forth in the
article entitled INSOLVENCY OF THE COMPANY.
(d) ADJUSTMENT EXPENSE
This term shall mean expenditures by the Company, other than for
office expenses and for the salaries and expenses of employees
of the Company or of any subsidiary or related or wholly owned
company of the Company, made in connection with the disposition
of a claim, loss, or legal proceeding including investigation,
negotiation, and legal expenses, court costs; statutory
penalties; prejudgment interest or delayed damages; and interest
on any judgment or award.
(e) PREJUDGMENT INTEREST OR DELAYED DAMAGES
This term shall mean interest or damages added to a settlement,
verdict, award, or judgment based on the amount of time prior to
the settlement, verdict, award, or judgment whether or not made
part of the settlement, verdict, award, or judgment.
(f) OCCURRENCE
This term shall mean each accident or occurrence or series of
accidents or occurrences arising out of one event regardless of
the number of policies involved, and as respects workers;
compensation and employers
C - 5
GENERAL REINSURANCE CORPORATION
<PAGE> 48
liability policies, regardless of the number of employees or
employers involved, except as modified below:
(1) As respects exposures reinsured hereunder other than
occupational and other disease or cumulative injury under
workers' compensation policies, all bodily injury or
property damage arising out of continuous or repeated
exposure to substantially the same general conditions
shall be considered as arising out of one occurrence. The
date of occurrence shall be deemed to be the following:
(i) As respects a loss involving one or more policies
written on an occurrence basis, the date on which
bodily injury or property damage occurs.
(ii) As respects a loss involving one or more policies
written on a claims-made basis, the date when
notice of claim is received and recorded by the
Company or the insured, whichever comes first, and
any related claims reported subsequent to such date
shall be included in such loss. However, if notice
of claim is received and recorded by the Company or
the insured during an Extended Reporting Period,
the date of occurrence shall be deemed to be the
last day of the policy period.
(iii) As respects a loss involving one or more policies
written on an occurrence basis and one or more
policies written on a claims-made basis, the date
on which bodily injury or property damage occurs,
and any related claims reported subsequent to such
date shall be included in such loss whether they
are covered under occurrence or claims-made
policies.
(2) As respects an occupational or other disease or cumulative
injury under workers' compensation or employers' liability
policies for which the employer is liable:
(i) Which arises from a specific sudden and accidental
event limited in time and place, such occupational
or other disease suffered by one or more employees
of one or more employers shall be deemed to be an
occurrence within the meaning of this Exhibit and
the date of occurrence shall be deemed to be the
date of the sudden and accidental event.
C - 6
GENERAL REINSURANCE CORPORATION
<PAGE> 49
(ii) Which does not arise from a specific sudden and
accidental event limited in time and place, such
occupational or other disease or cumulative injury
shall be deemed to be an occurrence within the
meaning of this Exhibit, and the date of occurrence
shall be deemed to be the date of the beginning of
the disability for which compensation is payable if
the case is compensable under the Workers'
Compensation law; or the date that disability due
to said disease actually began if the case is not
compensable under the Workers' Compensation law.
Each case of an employee contracting such
occupational or other disease or cumulative injury
for which the employer insured by the Company is
held liable shall be considered a separate
occurrence regardless of the date of loss.
SECTION 7 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other
insurers other than its affiliates;
(b) Nuclear incident per the Nuclear Incident Exclusion Clause -
Liability - Reinsurance attached hereto;
(c) Policies covering liability of any insurer or reinsurer for its
acts or omissions in the negotiation, settlement, or defense of
claims or any act or omission in dealings with its
policyholders;
(d) Any loss or liability accruing to the Company directly or
indirectly from any insurance written by or through any pool or
association including pools or associations in which membership
by the Company is required under any statutes or regulations and
including automobile assigned risk pools and voluntary or
involuntary market assistance programs; however, this exclusion
shall not apply to individual automobile assigned risks assigned
to the Company;
(e) Any liability of the Company arising from its participation or
membership in any insolvency fund;
(f) Any loss or damage which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority;
however, this exclusion shall not apply to workers'
C - 7
GENERAL REINSURANCE CORPORATION
<PAGE> 50
compensation and employers liability nor to any policy which
contains a standard war exclusion;
(g) Business written on a co-indemnity basis not controlled by the
Company;
(h) Business written to apply in excess of a deductible or self
insured amount of more than $5,000 or business written to apply
specifically in excess over underlying insurance;
(i) Automobile liability insurance relating to the ownership,
maintenance, or use of:
(1) Emergency vehicles including police and fire department
vehicles; however, this exclusion shall not apply to
renewal business;
(2) Automobiles used in organized speed contests;
(3) Automobile leasing or rental;
(4) Commercial automobiles, as defined in the manuals of the
Insurance Services Office, which customarily operate
beyond a 300 mile radius;
(5) Commercial automobiles over 80,000 lbs. gross vehicle
weight or gross combination weight as defined in the
manuals of the Insurance Services Office; however, this
exclusion shall not apply to renewal business;
(6) Motorcycles, motorized scooters, motorized bicycles, power
cycles, and any similar motorized vehicles;
(7) Public automobiles, other than school or church buses, as
defined in the manuals of the Insurance Services Office;
(8) Trucks used for transporting explosives, munitions,
corrosives, flammable and non-flammable gas, flammable
liquid, poison, radioactive materials and hazardous waste;
(j) Liability insurance written by the aviation underwriting unit of
the Company, howsoever styled;
(k) Liability insurance issued to any state or governmental agency
or any political subdivision whatsoever; however, this exclusion
shall not apply to school districts and school boards nor to
renewal business. This
C - 8
GENERAL REINSURANCE CORPORATION
<PAGE> 51
exclusion shall also not apply to Owners and Contractors
Protective policies issued to any such entities;
(l) Liability insurance relating to premises or operations
involving:
(1) Aircraft or airports, as respects coverage for all
liability arising out of the ownership, maintenance, or
use of any aircraft or flight operations;
(2) Amusement parks or devices, carnivals or circuses, sports
or other entertainment events, arenas, grandstands, or
stadiums;
(3) Manufacturing, packing, handling, shipping, or storage of
explosives, ammunitions, fuses, arms, magnesium,
fireworks, nitroglycerine, celluloid, pyroxylin or
explosive substances intended for use as an explosive;
however, this exclusion shall not apply to incidental
handling and storage in connection with the sale of such
substances;
(4) Gas or public utility companies, gas or public utility
works, or gas lease operations;
(5) Production, refining, handling, shipping, or storage of
natural or artificial fuel gasses, synthetic or coal or
shale based fuel, butane, propane, gasoline, or liquefied
petroleum gas; however, this exclusion shall not apply to
gasoline service stations, convenience stores and fuel oil
dealers;
(6) Oil or gas pipelines, wells, or drilling operations;
(7) Railroad operations;
(8) Ship building, boat manufacturing, ship repair yards, dry
docks, stevedoring, or watercraft; however, this exclusion
shall not apply to watercraft commonly insured under
homeowners policies;
(9) Underground work, including underground mining and
quarrying, tunneling, and subway construction;
(10) Off-shore and subaqueous work;
(11) Wrecking or demolition of structures over 3 stories in
height, or marine wrecking;
C - 9
GENERAL REINSURANCE CORPORATION
<PAGE> 52
(12) Chemical manufacturing;
(m) Liability insurance relating to products or completed operations
involving the manufacture or importation of:
(1) Cosmetics, hair, and skin products;
(2) Drugs, pharmaceuticals, and agricultural chemicals;
(3) Aircraft, aircraft parts, or aircraft engines, all
motorized vehicles, or mobile equipment;
(4) Heavy machinery and equipment, home power tools, or oil
drilling equipment;
(n) Insurance covering damages claimed for the withdrawal,
inspection, repair, replacement, or loss of use of the insured's
products or of any property of which such products form a part,
or if such products or property are withdrawn from the market or
from use because of any known or suspected defect or deficiency
therein;
(o) Malpractice insurance, directors and officers liability
insurance, or any other form of errors and omissions or
professional liability insurance; however, this exclusion shall
not apply to druggists operating outside the State of Florida,
funeral directors, veterinarians', beauty and barber shops',
hearing aid service specialists', cemetery operators' liability,
opticians', or printers liability business, nor to employee
benefits liability business;
(p) Insurance written for governmental bodies to afford protection
against liability arising out of riot, civil commotion, or mob
action or out of any act or omission in connection with the
prevention or suppression of any riot, civil commotion, or mob
action;
(q) Liability insurance relating to or involving satellites,
spacecraft, and launch vehicles, including cargo and freight
carried therein, in all phases of operation (including but not
limited to manufacturing, transit, pre-launch, launch and
in-orbit);
(r) Pollution liability insurance or environmental impairment
liability, howsoever styled;
(s) Pollution under any commercial multiple peril policy, farmowners
multiple peril policy, farm liability policy or any other
commercial other liability policy written by the Company which
does not contain the pollution
C - 10
GENERAL REINSURANCE CORPORATION
<PAGE> 53
exclusion set forth in ISO Commercial General Liability Form
CG 00 01 (Ed. 11/88) or as subsequently amended or under any
garage liability policy written by the Company which does not
contain the pollution exclusion set forth in ISO Garage
Coverage Form CA 00 05 (Ed. 1/87) or as subsequently amended;
however, this exclusion does not apply to any risk located in a
jurisdiction which has not approved the Insurance Services
Office exclusion or where other regulatory constraints prohibit
the Company from attaching such endorsement. If the Company
elects to file an endorsement independent of ISO, such
endorsement will be deemed a suitable substitute provided the
Company has submitted the wording to the Reinsurer and received
the Reinsurer's prior approval.
(t) Workers' compensation and employers' liability insurance with
respect to operations principally involving:
(1) Aircraft flight and ground operations or operations in
which the flying hazard is a major part;
(2) Amusement parks or devices, exhibitions (including
fireworks), carnivals or circuses, sports events and/or
participants;
(3) Manufacturing, packing, handling, shipping, or storage of
explosives, substances intended for use as an explosive,
ammunitions, fuses, arms, magnesium, propellant charges,
detonating devices, fireworks, nitroglycerine, celluloid,
or pyroxylin; however, this exclusion shall not a0ply to
the incidental packing, handling or storage of same in
connection with the sale of such substances;
(4) Gas companies, dealers, or distributors, except those in
the gasoline service station, convenience store or fuel
oil dealer business; oil or gas operators, lease operators
or contractors; oil or gas well works; oil or gas pipeline
construction or operations; oil rig and derrick work;
onshore or offshore gas or oil drilling operations;
(5) Manufacturing, packing, handling, shipping or storage of
natural gas or artificial fuel gasses, butane, propane,
gasoline, or liquefied petroleum gas; however, this
exclusion shall not apply to the incidental packing,
handling or storage of same in connection with the sale of
such substances;
(6) Railroad operation or construction;
C - 11
GENERAL REINSURANCE CORPORATION
<PAGE> 54
(7) Maritime or federal employments; steamship lines,
agencies, or stevedoring, navigation or operation of
vessels; operation of drydocks; and including all United
States Longshoremen's and Harbor Workers' exposures except
as endorsed on an if any basis;
(8) Sewer, subway, or water main construction, shaft sinking,
or tunnelling;
(9) Wrecking or demolition of buildings, structures, or
vessels;
(10) Underground mining, strip mining, or quarrying;
(11) Subaqueous work;
(12) Caisson or coffer dam work; dam, dike, lock, or revetment
construction;
(13) Chemical manufacturing;
(14) Nuclear Regulatory Commission projects or operations
conducted under license from the Nuclear Regulatory
Commission;
(15) Asbestos removal;
(16) Firefighters and police officers.
If the Company provides insurance for an insured with respect to the
ownership, maintenance, or use of items listed in exclusions (i)(l) through
(i)(7) and if such ownership maintenance, or use constitutes only a minor and
incidental part of the total ownership, maintenance, or use of such items of
the insured, such exclusion(s) shall not apply.
If the Company provides insurance for an insured with respect to any
premises, operations, products, or completed operations listed in exclusions
(l) and (m), except exclusions (l)(3), and (l)(4), and if such premises,
operations, products, or completed operations constitute only a minor
incidental part of the total premises, operations, products, or completed
operations of the insured, such exclusion(s) shall not apply.
If the Company is bound, without the knowledge of and contrary to the
instructions of the Company's supervisory underwriting personnel, on any
business falling within the scope of
C - 12
GENERAL REINSURANCE CORPORATION
<PAGE> 55
one or more of the exclusions set forth in this Section, these exclusions,
except (a) through (g), (l)(3), (l)(4), (n) through (r), (t)(3) and (t)(4)
shall be suspended with respect to such business until 30 days after an
underwriting supervisor of the Company acquires knowledge of such business.
SECTION 8 - REINSURANCE PREMIUM
The Company shall pay to the Reinsurer 0.22% of the subject premiums
earned by the Company on the business reinsured hereunder, subject to an annual
minimum reinsurance premium of $161,500 and an annual deposit reinsurance
premium of $202,000.
The term "subject premiums earned" shall mean the Company's gross
earned premium, less earned premiums on ceded reinsurance which inures to the
benefit of the Reinsurer. Such subject premiums earned shall include 15% of
the total homeowners multiple peril policies and 60% of the special multiple
peril policies and businessowners policies.
SECTION 9 - REPORTS AND REMITTANCES
(a) REINSURANCE PREMIUM
The Company shall pay to the Reinsurer one quarter of the annual
deposit reinsurance premium stipulated in the section entitled
REINSURANCE PREMIUM on the first day of each calendar quarter.
On or before March 31, 1996, and each subsequent March 31st, the
Company shall render to the Reinsurer a report of the subject
premiums earned by the Company on the business reinsured
hereunder during the prior calendar year. The Company shall
calculate the reinsurance premium thereon, shall balance such
amount against the annual deposit reinsurance premium previously
paid, and the amount due either party, subject to the annual
minimum reinsurance premium, shall be remitted promptly.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each
occurrence which in the Company's opinion may involve the
reinsurance afforded by
C - 13
GENERAL REINSURANCE CORPORATION
<PAGE> 56
this Exhibit, and shall also report all cases of serious injury
as set forth below which, regardless of considerations of
liability or coverage, might involve this reinsurance, including
but not limited to the following:
(1) Cord injury - paraplegia, quadriplegia;
(2) Amputations - requiring a prosthesis;
(3) Brain damage affecting mentality or central nervous system
- such as permanent disorientation, behavior disorder,
personality change, seizures, motor deficit, inability to
speak (aphasia), hemiplegia or unconsciousness (comatose);
(4) Blindness;
(5) Burns - involving over 10% of body with third degree or
30% of body with second degree;
(6) Multiple fractures - involving more than one member or
non-union;
(7) Fracture of both heel bones (fractured bilateral os
calcis);
(8) Nerve damage causing paralysis and loss of sensation in
arm and hand (brachial plexus nerve damage);
(9) Massive internal injuries affecting body organs;
(10) Injury to nerves at base of spinal canal (Cauda Equina) or
any other back injury resulting in incontinence of bowel
and/or bladder;
(11) Fatalities;
(12) Any other serious injury which, in the judgment of the
Company, might involve the Reinsurer.
The Company shall advise the Reinsurer of the estimated amount
of net loss and adjustment expense in connection with each such
claim or loss and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and
adjustment expense from the Company, the Reinsurer shall pay
promptly to the Company the Reinsurer's portion of net loss and
the Reinsurer's portion of adjustment expense, if any. Any
subsequent changes shall be reported by the
C - 14
GENERAL REINSURANCE CORPORATION
<PAGE> 57
Company to the Reinsurer and the amount due either party shall
be remitted promptly.
(c) GENERAL
In addition to the reports required in (a) and (b) above, the
Company shall furnish such other information as may be required
by the Reinsurer for the completion of the Reinsurer's quarterly
and annual statements and internal records.
All reports shall be rendered in forms acceptable to the Company
and the Reinsurer.
SECTION 10 - COMMENCEMENT AND TERMINATION
As respects policies written on a claims-made basis, this Exhibit
shall apply to claims received and recorded by the Company or the insured at
and after 12:01 A.M., January 1, 1995, provided that each such policy includes
a specific retroactive date and the occurrence which results in each such claim
takes place on or after such retroactive date, and provided further that such
retroactive date is on or after the inception date of the first of one or more
consecutive claims-made policies issued by the Company or another insurer(s) to
the named insured. However, this Exhibit shall not apply to claims received
and recorded by the Company or the insured during any Extended Reporting Period
in force at such time and date. As respects policies written on an occurrence
basis, this Exhibit shall apply to claims and losses resulting from occurrences
taking place at and after 12:01 A.M., January 1, 1995.
The Exhibit may be terminated by either party sending to the other, by
registered mail to its principal office, notice stating the time and date when,
not less than 90 days after the date of mailing of such notice, termination
shall be effective. As respects policies written on a claims-made basis, the
Reinsurer shall not be liable for claims received and recorded by the Company
or the insured at and after the effective time and date of termination, unless
such
C - 15
GENERAL REINSURANCE CORPORATION
<PAGE> 58
claim is received and recorded by the Company or the insured during an Extended
Reporting Period in force at the time and date of termination. As respects
policies written on an occurrence basis, the Reinsurer shall not be liable for
claims and losses resulting from occurrences taking place at and after the
effective time and date of termination.
SECTION 11 - REINSTATEMENT
The limit of liability of the Reinsurer under this Exhibit with
respect to each occurrence shall be reduced by an amount equal to the amount of
liability paid by the Reinsurer, but that part of the liability of the
Reinsurer that is so reduced shall be automatically reinstated, subject to the
maximum payment of $10,000,000 with respect to all occurrences taking place
during each calendar year that this Exhibit is in effect. In consideration of
this automatic reinstatement, the Company shall pay to the Reinsurer for each
amount reinstated an additional reinsurance premium which shall be the product
of the annual reinsurance premium set forth in the section entitled REINSURANCE
PREMIUM and the amount so reinstated divided by $5,000,000.
The reinsurance premium so developed for each amount reinstated shall
be in addition to the reinsurance premium set forth in the section entitled
REINSURANCE PREMIUM, and shall be paid by the Company immediately following
loss payment by the Reinsurer.
If at the time of loss payment, the adjusted annual reinsurance
premium is unknown, calculation of such additional reinsurance premium shall be
based upon the annual minimum and deposit reinsurance premium subject to
adjustment when the adjusted annual reinsurance premium is established.
C - 16
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 59
EXHIBIT D
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 8009
QUOTA SHARE AND EXCESS OF LOSS REINSURANCE
of
COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS
- --------------------------------------------------------------------------------
SECTION 1 - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company, with respect to each
commercial umbrella or excess liability policy of the Company, a percentage of
each net loss sustained by the Company, but not exceeding the Limit of
Liability of the Reinsurer as set forth in the Schedule of Reinsurance.
SCHEDULE OF REINSURANCE
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Limit of Liability
Policy Limit Company Retention of the Reinsurer
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
$1,000,000 each occurrence/ 5% of the Policy Limit 95% of the Policy Limit
$1,000,000 aggregate (where
applicable)
Above $1,000,000 each 5% of the first $1,000,000 95% of the first $1,000,000
occurrence/$1,000,000 each occurrence/$1,000,000 each occurrence/$1,000,000
aggregate (where applicable) aggregate (where applicable) aggregate (where applicable);
subject to the provisions and
of the section entitled
COMPANY POLICY 100% of the difference be-
AMOUNTS tween the Policy Limit and
$1,000,000 each occurrence/
$1,000,000 aggregate (where
applicable)
- ----------------------------------------------------------------------------------------------------
</TABLE>
With respect to uninsured motorists or underinsured motorists net
losses, the liability of the Reinsurer and the Company Retention shall apply to
the same extent as the policy limit is made to apply.
GENERAL REINSURANCE CORPORATION
<PAGE> 60
SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE
In addition to payments for its share of net loss, the Reinsurer shall
pay to the Company a share of adjustment expense proportionate to the
Reinsurer's share of net loss.
If there is no net loss payment, the Reinsurer shall pay to the
Company 95% of adjustment expense.
SECTION 3 - EXTRA CONTRACTUAL OBLIGATIONS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, the
Reinsurer shall afford additional reinsurance to the Company for 90% of that
portion of the extra contractual obligation which is in excess of the Company
Retention, subject to the conditions of the following paragraphs. The
liability of the Reinsurer with respect to each extra contractual obligation
shall not exceed 90% of $1,000,000.
For purposes of this Section, the term "extra contractual obligation"
shall mean a loss which the Company is legally liable to pay, including a loss
in excess of the Company's policy limit, which is not covered under any other
provision of this Exhibit and which arises from the Company's handling of any
claim on the policies reinsured hereunder, provided such claim is not covered
by underlying insurance or the applicable aggregate limit of underlying
insurance is exhausted.
The date on which an extra contractual obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
occurrence.
This Section shall not apply where the extra contractual obligation
has been incurred due to the fraud or criminal conduct of a member of the Board
of Directors, a corporate officer of the Company, or any other employee of the
Company, acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
investigation, defense or settlement of any claim covered hereunder.
D - 2
GENERAL REINSURANCE CORPORATION
<PAGE> 61
Any insurance or reinsurance, whether collectible or not, which
indemnifies or protects the Company against claims which are the subject matter
of this Section and any contribution, subrogation, or recovery shall inure to
the benefit of the Reinsurer and shall be deducted to arrive at the amount of
the Company's net loss.
SECTION 4 - COMPANY POLICY AMOUNTS
For the purpose of determining the Company Retention and Limit of
Liability of the Reinsurer, the limit of liability of the Company with respect
to any one policy shall be deemed not to exceed $5,000,000 each
occurrence/$5,000,000 aggregate (where applicable).
SECTION 5 - DEFINITIONS
(a) COMMERCIAL UMBRELLA AND EXCESS LIABILITY BUSINESS
This term shall mean insurance which is classified by the
Company as commercial umbrella or excess liability business with
respect to insureds domiciled in the United States of America,
its territories and possessions, or in Canada.
(b) COMPANY RETENTION
This term shall mean the amount the Company shall retain for its
own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated
companies under common management or common ownership.
(c) NET LOSS
This term shall mean all payments by the Company in settlement
of claims or losses, payment of benefits, or satisfaction of
judgments or awards after deduction of subrogation and other
recoveries and after deduction of amounts due from all other
reinsurance, whether collectible or not. This term shall not
include adjustment expense. If the Company becomes insolvent,
this definition shall be modified to the extent set forth in the
article entitled INSOLVENCY OF THE COMPANY.
D - 3
GENERAL REINSURANCE CORPORATION
<PAGE> 62
(d) ADJUSTMENT EXPENSE
This term shall mean expenditures by the Company in the direct
defense of claims and as allocated to an individual claim or
loss, other than for office expenses and for the salaries and
expenses of employees of the Company or of any subsidiary or
related or wholly owned company of the Company, made in
connection with the disposition of a claim, loss, or legal
proceeding including investigation, negotiation, and legal
expenses, court costs; statutory penalties; prejudgment interest
or delayed damages; and interest on any judgment or award.
(e) PREJUDGMENT INTEREST OR DELAYED DAMAGES
This term shall mean interest or damages added to a settlement,
verdict, award, or judgment based on the amount of time prior to
the settlement, verdict, award, or judgment whether or not made
part of the settlement, verdict, award, or judgment.
SECTION 6 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other
insurers other than its affiliates;
(b) Nuclear incident per the Nuclear Incident Exclusion Clause -
Liability - Reinsurance attached hereto;
(c) Any loss or liability accruing to the Company directly or
indirectly from any insurance written by or through any pool or
association including pools and associations in which membership
by the Company is required under any statutes or regulations;
(d) Any liability of the Company arising from its participation or
membership in any insolvency fund;
(e) Any loss or damage which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority;
however, this exclusion shall not apply to any policy which
contains a standard war exclusion;
(f) Business written on a co-indemnity basis not controlled by the
Company;
D - 4
GENERAL REINSURANCE CORPORATION
<PAGE> 63
(g) Liability of the Company arising out of the following coverages
and exposures:
(1) Aviation; however, this exclusion shall not apply to
liability assumed by the insured under any insured
contract for the ownership, maintenance or use of
aircraft;
(2) Environmental impairment liability;
(h) Malpractice insurance, directors and officers liability
insurance, or any other form of errors and omissions or
professional liability insurance; however, this exclusion shall
not apply to druggists operating outside the State of Florida,
funeral directors, veterinarians', beauty and barber shops',
hearing aid service specialists', cemetery operators' liability,
opticians', or printers liability business, nor to employee
benefits liability business;
(i) Automobile liability insurance relating to the ownership,
maintenance, or use of emergency vehicles including police and
fire department vehicles; however, this exclusion shall not
apply to renewal business;
(j) Liability insurance relating to premises or operations
involving:
(1) Camps, child care facilities and private schools; however,
this exclusion shall not apply if liability for child
molestation is excluded from the policy;
(2) Fumigating and exterminating;
(3) Pile driving, tunneling, shaft sinking, subway and dam
construction;
(4) Production, refining, handling, shipping, or storage of
natural or artificial fuel gasses, synthetic or coal or
shale based fuel, butane, propane, gasoline, or liquefied
petroleum gas; however, this exclusion shall not apply to
gasoline service stations;
(5) Turnkey contractors;
(6) Wrecking or demolition;
(k) Liability insurance relating to products or completed operations
involving the manufacture or importation of:
(1) Computers, including peripheral equipment;
D - 5
GENERAL REINSURANCE CORPORATION
<PAGE> 64
(2) Seed;
(l) Advertising or personal injury involving:
(1) Advertising agencies, publishers and broadcasters;
(2) Financial or investment institutions, including banks;
(m) Liability insurance, including employers' liability, relating to
premises or operations involving gunsmithing, and products or
completed operations involving the manufacturing or importation
of guns;
(n) Pollution under any commercial umbrella or excess liability
policy written by the Company which does not contain the
provisions of the pollution exclusion set forth in ISO
Commercial General Liability Form CG 00 01 (Ed. 11/88) or as
subsequently amended; however, this exclusion does not apply to
any risk located in a jurisdiction which has not approved the
Insurance Services Office exclusion or where other regulatory
constraints prohibit the Company from implementing such
exclusion. If the Company elects to implement an exclusion
different from that of ISO, such exclusion will be deemed a
suitable substitute provided the Company has submitted the
wording to the Reinsurer and received the Reinsurer's prior
approval;
(o) Bodily injury (including occupational disease) and/or property
damage liability arising from the manufacture, removal,
installation, storage, mining, handling or transportation of
asbestos if the insured's operation, at the time of policy
issuance, presents known and/or generally recognizable asbestos
exposures; however, this exclusion shall not apply to the
removal, installation, storage, handling or transportation of
asbestos if such removal, installation, storage, handling or
transportation is incidental to the insured's overall
operations.
The term "incidental", as used in this exclusion, is intended to
recognize the fact that certain insureds (such as, but not
limited to, plumbing and carpentry contractors, etc.) will
infrequently, but regularly, encounter asbestos within the scope
of their operations - even though their operations, as such, do
not involve the manufacture, removal, installation, storage,
mining, handling, or transportation of asbestos. This exclusion
does not apply to such "incidental" operations;
(p) Business excluded under the Company's Commercial Umbrella
Underwriting Guidelines.
D - 6
GENERAL REINSURANCE CORPORATION
<PAGE> 65
If the Company provides commercial umbrella or excess liability
insurance for an insured for any vehicles listed in (i) above and the
ownership, maintenance, or use of any such vehicle is only minor and
incidental, such exclusion shall not apply.
If the Company provides commercial umbrella or excess liability
insurance for an insured with respect to any premises, operations, or products
listed in (j), (k), and (n) which is a minor and incidental part of the total
premises, operations, or products of the insured, such exclusion(s) shall not
apply.
If an insured of the Company on or after the attachment date of his
umbrella or excess liability policy acquires vehicles or premises, commences
operations, or develops products which are excluded under sub-paragraphs (i),
(j), (k), and (n) above, without the knowledge of the Company, the exclusion or
exclusions affected shall be suspended with respect to each such policy until
30 days after the date when an umbrella underwriting supervisor of the Company
is so notified of the insured's activities. Upon receipt of such notice, the
Company shall promptly advise the Reinsurer of the scope of the insured's
activities and the Reinsurer shall have the right to waive such exclusion or
exclusions by a special acceptance as provided for in the article entitled
SPECIAL ACCEPTANCES.
If the Company is bound, without the knowledge of or contrary to the
instructions of the Company's umbrella supervising underwriting personnel, on
any liability business falling within the scope of exclusions (i) through (o),
this Exhibit shall apply to such business for a period not to exceed 30 days
following receipt of knowledge thereof by the Company's umbrella supervising
underwriting personnel.
SECTION 7 - REINSURANCE PREMIUM AND COMMISSION
The Company shall pay to the Reinsurer:
(a) 95% of the written premium charged by the Company for policy
limits up to and including $1,000,000 each occurrence/$1,000,000
aggregate (where applicable); and
D - 7
GENERAL REINSURANCE CORPORATION
<PAGE> 66
(b) 100% of the written premium charged by the Company for policy
limits in excess of $1,000,000 each occurrence/$1,000,000
aggregate (where applicable) up to and including $5,000,000 each
occurrence/$5,000,000 aggregate (where applicable).
The reinsurance premiums set forth above shall be subject to a fixed
commission allowance of 32.5%.
The reinsurance rates set forth above are based on the commercial
umbrella and excess liability premiums charged by the Company, which shall be a
judgment percentage of the unmodified manual general liability increased limits
premium and applicable automobile liability unit rates, as set forth in
Appendix A.
SECTION 8 - UNDERLYING LIMITS AND SELF-INSURED RETENTIONS
The minimum limits of liability of underlying policies, with respect
to commercial umbrella and excess liability policies written by the Company,
shall be as follows:
<TABLE>
<S> <C> <C> <C>
(a) General Liability under $1,000,000 General Aggregate Limit
Commercial General Liability $1,000,000 Products - Completed
Policies, Section II of Operations Aggregate Limit
Commercial Multiple Peril $ 500,000 Personal & Advertising
Policies (ISO Ed. 1986) and Injury Limit
Simplified General Liability $ 500,000 Each Occurrence Limit
Policies
(b) Businessowners (Business $1,000,000 General Aggregate Limit
Elite/Business Select) $ 500,000 Products - Completed
Business Liability $ 500,000 Each Occurrence Limit
(c) General Liability under Bodily Injury:
Comprehensive General $ 500,000 each occurrence
Liability Policies, Section II $ 500,000 aggregate
of Commercial Multiple Peril and
Policies (ISO Ed. 1973), Property Damage:
Businessowners Policies $ 250,000 each occurrence
(Merchants Ed. 1982 and $ 250,000 aggregate
1983), and Non-Simplified or
General Liability Policies Combined Single Limit:
$ 500,000 each occurrence
$ 500,000 aggregate
</TABLE>
D - 8
GENERAL REINSURANCE CORPORATION
<PAGE> 67
<TABLE>
<S> <C> <C> <C>
(d) Comprehensive Automobile Bodily Injury:
Liability including Hired $ 500,000 each person
and Non-Owned Auto Coverage $ 500,000 each occurrence
and Uninsured/Underinsured and
Motorists Coverages Property Damage:
$ 500,000 each occurrence
or
Combined Single Limit:
$ 500,000 each occurrence
(e) Employers' Liability (Part Two of
Workers' Compensation policies):
(1) Bodily Injury by Accident $ 100,000 each accident
(2) Bodily Injury by Disease $ 500,000 policy limit
(3) Bodily Injury by Disease $ 100,000 each employee
(f) Professional Liability:
(1) Employee Benefits Liability $ 500,000 each claim
$1,000,000 aggregate
(2) All Other $ 500,000 each occurrence
$1,000,000 aggregate
(g) Liquor Liability $ 500,000 each common cause
$1,000,000 aggregate
(h) Watercraft Liability Same as (a), (b) or (c) above,
as applicable
</TABLE>
The self-insured retention shall be no less than $10,000 with respect
to all exposures not contemplated in the underlying coverage.
SECTION 9 - REPORTS AND REMITTANCES
(a) BORDEREAU REPORTS AND REINSURANCE PREMIUM
Within 30 days after the close of each month, the Company shall
render to the Reinsurer a bordereau report giving details of
each policy reinsured hereunder and issued during the month and
the reinsurance premium for the month with respect to business
of the Company written during the month summarizing the
reinsurance premium; and the amount due the Reinsurer shall be
remitted within 60 days after the close of the month.
D - 9
GENERAL REINSURANCE CORPORATION
<PAGE> 68
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim or
loss which in the Company's estimate of value of injuries or
damages sought, without regard to liability, might involve the
reinsurance afforded by this Exhibit. If the Company is
providing the umbrella or excess liability policy's underlying
insurance, the Company shall also notify the Reinsurer promptly
of any claim or loss for which the Company has created a loss
reserve equal to or greater than one third of the Company's
limit of liability on the underlying policy. The Company shall
advise the Reinsurer of the estimated amount of net loss and
adjustment expense in connection with each such claim or loss
and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and
adjustment expense from the Company, the Reinsurer shall pay
promptly to the Company the Reinsurer's portion of net loss and
the Reinsurer's portion of adjustment expense, if any. Any
subsequent changes shall be reported by the Company to the
Reinsurer and the amount due either party shall be remitted
promptly.
(c) COMPANY FORMS
The Company has furnished the Reinsurer with the materials
listed below and shall inform the Reinsurer in advance before
making any material or substantial changes:
(1) Specimen copies of the Company's umbrella, excess and
underlying policies and all special endorsements used in
conjunction with them;
(2) A copy of the Company's underwriting rules and rates.
(d) GENERAL
In addition to the reports required in (a), (b), and (c) above,
the Company shall furnish such other information as may be
required by the Reinsurer for the completion of the Reinsurer's
quarterly and annual statements and internal records.
All reports shall be rendered on forms acceptable to the Company
and the Reinsurer.
D - 10
GENERAL REINSURANCE CORPORATION
<PAGE> 69
SECTION 10 - REINSURANCE OVER THIS EXHIBIT
The Company shall advise the Reinsurer of any reinsurance, other than
facultative reinsurance on risks accepted individually, of the Company which
would apply in excess of the limit of liability of the Reinsurer under this
Exhibit.
SECTION 11 - COMMENCEMENT AND TERMINATION
This Exhibit shall apply to claims and losses resulting from
occurrences insured under new and renewal policies of the Company becoming
effective at and after 12:01 A.M., January 1, 1995.
This Exhibit may be terminated by either party sending to the other,
by registered mail to its principal office, notice stating the time and date
when, not less than 90 days after the date of mailing of such notice,
termination shall be effective. Upon termination of this Exhibit, the
Reinsurer shall continue to be liable, with respect to policies in force at the
time and date of termination, for claims and losses resulting from occurrences
taking place until the expiration, cancellation, or next anniversary date, not
to exceed one year, of each such policy of the Company, whichever occurs first.
When all reinsurance is expired or terminated, the Reinsurer shall
return to the Company the reinsurance premium unearned, if any, calculated on
the monthly pro rata basis, less the commission previously allowed thereon.
D - 11
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 70
APPENDIX A
Attached to and made a part of
EXHIBIT D TO AGREEMENT NO. 8009
COMMERCIAL UMBRELLA RATING
(A) For the first $1,000,000 of Insurance:
(1) General Liability:
<TABLE>
<CAPTION>
(a) Businessowners: EXCESS OF EXCESS OF
$500,000 CSL $1,000,000 CSL
<S> <C> <C> <C>
(1) Basic GL Premium includes $350 $350
one location
(2) Each additional location $ 75 $ 50
(3) Autos to be rated in accordance with the unit rates set forth in (A)(2) below.
(b) General Liability (ISO Ed. 1986) (Factors to be applied to unmodified manual underlying premium)
</TABLE>
<TABLE>
<CAPTION>
UNDERLYING LIMITS PREMISES/OPERATIONS PRODUCTS/COMP. OPS.
(OCC/AGG) 1 2 3 A B C
<S> <C> <C> <C> <C> <C> <C>
500/1000/1000 14% 24% 36% 12% 24% 32%
1000/2000/2000 8% 14% 23% 7% 15% 20%
</TABLE>
(c) General Liability (ISO Ed. 1973) (Factors to be applied to
unmodified manual underlying premium)
<TABLE>
<CAPTION>
UNDERLYING LIMITS
(EACH OCC) M&C OL&T PRODUCTS
<S> <C> <C> <C> <C>
$ 500,000 BI 38% 19% 61%
$1,000,000 BI 23% 11% 41%
$ 250,000 PD 52% 51% 47%
$ 500,000 PD 27% 27% 29%
$1,000,000 PD 18% 14% 18%
</TABLE>
(2) Automobile Liability Unit Rates:
GENERAL REINSURANCE CORPORATION
<PAGE> 71
<TABLE>
<CAPTION>
EXCESS OF $500,000 EXCESS OF $1,000,000
TYPE A* B* C* A* B* C*
<S> <C> <C> <C> <C> <C> <C>
Private Passenger $230 $ 64 $ 61 $170 $ 49 $ 49
Light Service $225 $ 63 $ 58 $165 $ 50 $ 50
Light Commercial $325 $ 64 $ 61 $215 $ 52 $ 48
Medium Service $255 $ 93 $ 88 $190 $ 82 $ 75
Medium Commercial $390 $ 92 $ 88 $260 $ 81 $ 76
Heavy Service $625 $189 $185 $485 $132 $128
Heavy Commercial $700 $200 $195 $550 $150 $145
</TABLE>
*Territory A: The cities of New York, New York; Boston,
Massachusetts; Philadelphia, Pennsylvania; Atlantic
City, Newark, Jersey City, and Camden, New Jersey
*Territory B: The counties of Nassau, Suffolk and Westchester, New
York; The cities of Buffalo, Rochester, Albany,
Syracuse, and Utica, New York; Trenton, New Jersey
*Territory C: All other territories
(3) Professional Liability
<TABLE>
<CAPTION>
EXCESS OF EXCESS OF
$500,000 $1,000,000
<S> <C> <C>
Druggists (per employee) $100 $ 75
Barbers/Beauticians (per employee) $ 50 $ 35
Cemetery Services (per employee) $ 50 $ 35
Opticians (per employee) $ 75 $ 50
Veterinarians (per employee) $ 75 $ 50
Hearing Aid Services (per employee) $ 75 $ 50
Funeral Directors (per employee) $ 75 $ 50
Printers (per location) $100 $ 75
Employee Benefits Liability (per policy) $150 $125
</TABLE>
(4) Judgment Modification:
(a) Chief Underwriting Officer Up to 75%
(b) All other Up to 30%
These are applied to the first $1,000,000 of insurance and are subject to
the following minimum premiums.
Page 2 of 3
GENERAL REINSURANCE CORPORATION
<PAGE> 72
(5) Annual Minimum Premiums
(a) Businessowners $350
(b) All other $500
(B) For Excess $1,000,000's of Insurance:
(1) 50% of the premium for the preceding $1,000,000, subject to the following
annual minimum premiums
(2) Annual Minimum Premiums
(a) Businessowners $350 per $1,000,000 of insurance
(b) All other $500 per $1,000,000 of insurance
Page 3 of 3
Appendix A to Exhibit D
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 73
EXHIBIT E
Attached to and made a part of
AGREEMENT OF REINSURANCE NO. 8009
QUOTA SHARE AND EXCESS OF LOSS REINSURANCE
of
PERSONAL UMBRELLA BUSINESS
- --------------------------------------------------------------------------------
SECTION I - LIABILITY OF THE REINSURER
The Reinsurer shall pay to the Company, with respect to each personal
umbrella policy of the Company, a percentage of each net loss sustained by the
Company, but not exceeding the Limit of Liability of the Reinsurer as set forth
in the Schedule of Reinsurance.
SCHEDULE OF REINSURANCE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Limit of Liability
Policy Limit Company Retention of the Reinsurer
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
$1,000,000 each occurrence 5% of the Policy Limit 95% of the Policy Limit
Above $1,000,000 each 5% of the first $1,000,000 95% of the first $1,000,000
occurrence subject to the each occurrence each occurrence; and
provisions of the section
entitled COMPANY 100% of the difference
POLICY AMOUNTS between the Policy Limit
and $1,000,000 each
occurrence
- --------------------------------------------------------------------------------------------------------
</TABLE>
With respect to uninsured motorists or underinsured motorists net
losses, the liability of the Reinsurer and the Company Retention shall apply to
the same extent, as the policy limit is made to apply.
SECTION 2 - ALLOCATION OF ADJUSTMENT EXPENSE
In addition to payments for its share of net loss, the Reinsurer shall
pay to the Company a share of adjustment expense proportionate to the
Reinsurer's share of net loss.
GENERAL REINSURANCE CORPORATION
<PAGE> 74
If there is no net loss payment, the Reinsurer shall pay to the
Company 95% of adjustment expense.
SECTION 3 - EXTRA CONTRACTUAL OBLIGATIONS
Notwithstanding the provisions of the article entitled MANAGEMENT OF
CLAIMS AND LOSSES, if the Company incurs an extra contractual obligation, the
Reinsurer shall afford additional reinsurance to the Company for 90% of that
portion of the extra contractual obligation which is in excess of the Company
Retention, subject to the conditions of the following paragraphs. The
liability of the Reinsurer with respect to each extra contractual obligation
shall not exceed 90% of $1,000,000.
For purposes of this Section, the term "extra contractual obligation"
shall mean a loss which the Company is legally liable to pay, including a loss
in excess of the Company's policy limit, which is not covered under any other
provision of this Exhibit and which arises from the Company's handling of any
claim on the policies reinsured hereunder, provided such claim is not covered
by underlying insurance.
The date on which an extra contractual obligation is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
occurrence.
This Section shall not apply where the extra contractual obligation
has been incurred due to the fraud or criminal conduct of a member of the Board
of Directors, a corporate officer of the Company, or any other employee of the
Company, acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
investigation, defense or settlement of any claim covered hereunder.
Any insurance or reinsurance, whether collectible or not, which
indemnifies or protects the Company against claims which are the subject matter
of this Section and any contribution, subrogation, or recovery shall inure to
the benefit of the Reinsurer and shall be deducted to arrive at the amount of
the Company's net loss.
E - 2
GENERAL REINSURANCE CORPORATION
<PAGE> 75
SECTION 4 - COMPANY POLICY AMOUNTS
For the purpose of determining the Company Retention and Limit of
Liability of the Reinsurer, the limits of liability of the Company with respect
to any one insured shall be deemed not to exceed $2,000,000 each occurrence
unless higher limits up to and including $5,000,000 each occurrence have been
submitted to the Reinsurer for special acceptance and accepted by the
Reinsurer, as specified in the article entitled SPECIAL ACCEPTANCES.
SECTION 5 - DEFINITIONS
(a) PERSONAL UMBRELLA BUSINESS
This term shall mean insurance which is classified by the
Company as personal umbrella with respect to insureds domiciled
in the United States of America, its territories and
possessions, or in Canada.
(b) COMPANY RETENTION
This term shall mean the amount the Company shall retain for its
own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated
companies under common management or common ownership.
(c) NET LOSS
This term shall mean all payments by the Company in settlement
of claims or losses, payment of benefits, or satisfaction of
judgments or awards after deduction of subrogation and other
recoveries and after deduction of amounts due from all other
reinsurance, whether collectible or not. This term shall not
include adjustment expense. If the Company becomes insolvent,
this definition shall be modified to the extent set forth in the
article entitled INSOLVENCY OF THE COMPANY.
(d) ADJUSTMENT EXPENSE
This term shall mean expenditures by the Company in the direct
defense of claims and as allocated to an individual claim or
loss, other than for office expenses and for the salaries and
expenses of employees of the Company or of any subsidiary or
related or wholly owned company of the Company, made in
connection with the disposition of a claim, loss, or legal
proceeding including investigation, negotiation, and legal
expenses;
E - 3
GENERAL REINSURANCE CORPORATION
<PAGE> 76
court costs; statutory penalties; prejudgment interest or
delayed damages; and interest on any judgment or award.
(e) PREJUDGMENT INTEREST OR DELAYED DAMAGES
This term shall mean interest or damages added to a settlement,
verdict, award, or judgment based on the amount of time prior to
the settlement, verdict, award, or judgment whether or not made
part of the settlement, verdict, award, or judgment.
SECTION 6 - EXCLUSIONS
This Exhibit shall not apply to:
(a) Business accepted by the Company as reinsurance from other
insurers other than its affiliates;
(b) Nuclear incident per the Nuclear Incident Exclusion Clause -
Liability - Reinsurance attached hereto;
(c) Any loss or liability accruing to the Company directly or
indirectly from any insurance written by or through any pool or
association including pools and associations in which membership
by the Company is required under any statutes or regulations;
(d) Any liability of the Company arising from its participation or
membership in any insolvency fund;
(e) Any loss or damage which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority;
however, this exclusion shall not apply to any policy which
contains a standard war exclusion;
(f) Business written on a co-indemnity basis not controlled by the
Company;
(g) Directors and officers liability insurance;
(h) Malpractice insurance or any other form of errors and omissions
or professional liability insurance;
(i) Liability insurance afforded for watercraft with respect to
waterskiing or where there is any sublimit written on the
underlying policy, unless a
E - 4
GENERAL REINSURANCE CORPORATION
<PAGE> 77
"Watercraft Liability - Following Form" endorsement is attached
to the personal umbrella policy;
(j) Liability of the Company arising out of all Jones Act exposures
with respect to liability policies covering watercraft;
(k) Insurance afforded to insureds with more than four residential
units occupied by others;
(l) Pollution under any farm personal umbrella or under any personal
umbrella covering farm exposures written by the Company which
does not contain the pollution exclusion set forth in ISO Farm
Liability Coverage Form FL 00 20 (Ed. 6/90) or as subsequently
amended; however, this exclusion does not apply to any risk
located in a jurisdiction which has not approved the Insurance
Services Office exclusion or where other regulatory constraints
prohibit the Company from implementing such exclusion. If the
Company elects to implement an exclusion different from that of
ISO, such exclusion will be deemed a suitable substitute
provided the Company has submitted the wording to the Reinsurer
and received the Reinsurer's prior approval;
(m) Business excluded under the Company's Personal Umbrella
Underwriting Guidelines.
SECTION 7 - REINSURANCE PREMIUM AND COMMISSION
The Company shall pay to the Reinsurer:
(a) 95% of the written premium charged by the Company for policy
limits up to and including $1,000,000 each occurrence; and
(b) 100% of the written premium charged by the Company for policy
limits in excess of $1,000,000 each occurrence up to and
including $5,000,000 each occurrence, provided limits in excess
of $2,000,000 each occurrence have been accepted by the
Reinsurer, as specified in the article entitled SPECIAL
ACCEPTANCES.
The reinsurance premiums set forth above shall be subject to a fixed
commission allowance of 32.5%.
The reinsurance rates set forth above are based on umbrella premiums
charged by the Company as set forth in Appendix A attached.
E - 5
GENERAL REINSURANCE CORPORATION
<PAGE> 78
SECTION 8 - UNDERLYING LIMITS AND SELF-INSURED RETENTIONS
The minimum limits of liability of underlying policies, with respect
to personal umbrella policies written by the Company, shall be as follows:
<TABLE>
<S> <C> <C>
(a) Automobile Liability, Licensed
Recreational Vehicles, Uninsured/
Underinsured Motorists Coverages
(1) Treiber Agency produced Bodily Injury:
business $500,000 each person
$500,000 each occurrence
and
Property Damage:
$500,000 each occurrence
or
Combined Single Limit:
$500,000 each occurrence
(1) All other business Bodily Injury:
$250,000 each person
$500,000 each occurrence
and
Property Damage:
$100,000 each occurrence
or
Combined Single Limit:
$300,000 each occurrence
(b) Personal Liability (including
business pursuits and unlicensed
recreational vehicles)
(1) Treiber Agency produced Combined Single Limit:
business $500,000 each occurrence
(2) All other business Combined Single Limit:
business $100,000 each occurrence
(c) Employers Liability
(1) Bodily Injury by Accident $100,000 each accident
(2) Bodily Injury by Disease $500,000 policy limit
(3) Bodily Injury by Disease $100,000 each employee
</TABLE>
E - 6
GENERAL REINSURANCE CORPORATION
<PAGE> 79
<TABLE>
<S> <C> <C>
(d) Watercraft Liability
(1) Sailboats and Powerboats - Combined Single Limit:
less than 26 feet $100,000 each occurrence
and 50 horsepower
(2) All Other Combined Single Limit:
$300,000 each occurrence
</TABLE>
The self-insured retention shall be no less than $250 with respect to
all exposures not contemplated in the underlying coverage.
SECTION 9 - REPORTS AND REMITTANCES
(a) BORDEREAU REPORTS AND REINSURANCE PREMIUM
Within 30 days after the close of each month, the Company shall
render to the Reinsurer a bordereau report giving details of
each policy reinsured hereunder and issued during the month and
the reinsurance premium for the month with respect to business
of the Company written during the month summarizing the
reinsurance premium; and the amount due either party shall be
remitted within 60 days after the close of the month.
(b) CLAIMS AND LOSSES
The Company shall report promptly to the Reinsurer each claim or
loss which in the Company's estimate of value of injuries or
damages sought, without regard to liability, might involve the
reinsurance afforded by this Exhibit. If the Company is
carrying the umbrella's underlying insurance, the Company shall
also notify the Reinsurer promptly of any claim or loss for
which the Company has created a loss reserve equal to or greater
than 50% of the Company's primary retention as stated in the
schedule of underlying limits on the Company's umbrella policy.
The Company shall advise the Reinsurer of the estimated amount
of net loss and adjustment expense in connection with each such
claim or loss and of any subsequent changes in such estimates.
Upon receipt of a definitive statement of net loss and
adjustment expense from the Company, the Reinsurer shall pay
promptly to the Company the Reinsurer's portion of net loss and
the Reinsurer's portion of adjustment expense, if any. Any
subsequent changes shall be reported by the
E - 7
GENERAL REINSURANCE CORPORATION
<PAGE> 80
Company to the Reinsurer and the amount due either party shall
be remitted promptly.
(c) COMPANY FORMS
The Company has furnished the Reinsurer with the materials
listed below and shall inform the Reinsurer in advance before
making any material or substantial changes therein:
(1) Specimen copies of the Company's policies and the special
endorsements used in conjunction therewith;
(2) A copy of the Company's underwriting rules and rates.
(d) GENERAL
In addition to the reports required in (a), (b), and (c) above,
the Company shall furnish such other information as may be
required by the Reinsurer for the completion of the Reinsurer's
quarterly and annual statements and internal records.
All reports shall be rendered on forms acceptable to the Company
and the Reinsurer.
SECTION 10 - REINSURANCE OVER THIS EXHIBIT
The Company shall advise the Reinsurer of any reinsurance, other than
facultative reinsurance on risks accepted individually, of the Company that
would apply in excess of the limit of liability of the Reinsurer under this
Exhibit.
SECTION 11 - COMMENCEMENT AND TERMINATION
This Exhibit shall apply to claims and losses resulting from
occurrences insured under new and renewal policies of the Company becoming
effective at and after 12:01 A.M., January 1, 1995.
This Exhibit may be terminated by either party sending to the other by
registered mail to its principal office, notice stating the time and date when,
not less than 90 days after the date of mailing of such notice, termination
shall be effective. Upon termination of this Exhibit,
E - 8
GENERAL REINSURANCE CORPORATION
<PAGE> 81
the Reinsurer shall continue to be liable, with respect to policies in effect
at the time and date of termination, for claims and losses resulting from
occurrences taking place until the expiration, cancellation, or next
anniversary date, not to exceed one year, of each such policy of the Company,
whichever occurs first.
When all reinsurance is expired or terminated, the Reinsurer shall
return to the Company the reinsurance premium unearned, if any, calculated on
the monthly pro rata basis, less the commission previously allowed thereon.
E - 9
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 82
APPENDIX A
Attached to and made a part of
EXHIBIT E OF AGREEMENT NO. 8009
<TABLE>
<CAPTION>
I. PERSONAL UMBRELLA RATING
TERRITORY TERRITORY TERRITORY
1 2 3
<S> <C> <C> <C> <C>
(a) For the First $1,000,000 of Insurance:
(1) Basic Premium Includes: $ 50 $ 50 $ 50
(a) All owner occupied residences
(b) All sailboats under 26'
(c) Up to 4 rental dwellings
(d) One office premises
(e) SIR coverages
(2) Automobiles, Motorcycles, and Licensed $ 45 $ 45 $ 65
Recreational Vehicles (each vehicle)
(3) Underage Drivers (each) $ 40 $ 45 $ 55
(4) Uninsured/Underinsured Motorists (each $ 25 $ 35 $ 35
vehicle)
(5) Unlicensed Recreational Vehicles (not $ 20 $ 20 $ 20
motor vehicles) (each vehicle)
(6) Watercraft:
(a) 51 - 100 horsepower $ 50 $ 50 $ 50
(b) 101 - 150 horsepower $ 75 $ 75 $ 75
(c) 151 - 200 horsepower $ 100 $ 100 $ 100
(d) 201 - 250 horsepower $ 125 $ 125 $ 125
(d) Excess of 26' and 250 hp Refer to Reinsurer
(7) Minimum Premium $ 125 $ 150 $ 150
(8) Self-Insured Retention Credits
(a) New Jersey
$ 250 -- -- --
$ 500 -- -- $ 4
$ 1,000 -- -- $ 6
$ 5,000 -- -- $ 10
$ 10,000 -- -- $ 12
</TABLE>
<PAGE> 83
<TABLE>
<S> <C> <C> <C> <C>
(b) All Other States
$ 250 -- -- --
$ 500 $2 $2 $2
$ 1,000 $3 $3 $3
$ 5,000 $5 $5 $5
$ 10,000 $6 $6 $6
(b) For the Second $1,000,000 of Insurance:
(1) 60% of the premium for the first $1,000,000 of insurance.
(2) Minimum Premium $115 $125 $125
(c) For the Excess $1,000,000's of Insurance (granted only by Special Acceptance):
Minimum Premium per $1,000,000 $150 $150 $150
(d) If UM/UIM is not provided, attach an exclusion endorsement.
</TABLE>
Page 2 of 3
GENERAL REINSURANCE CORPORATION
<PAGE> 84
II. PERSONAL UMBRELLA TERRITORIES
<TABLE>
<CAPTION>
STATE TERRITORY
<S> <C> <C>
Delaware Entire State 1
Maine Entire State 1
Maryland Entire State 3
Massachusetts Counties of Essex, Middlesex, Norfolk, 3
and Suffolk
Remainder of State 1
New Hampshire Entire State 1
New Jersey Entire State 3
New York Counties of Bronx, Kings, New York, 3
Queens, and Richmond
Counties of Nassau, Suffolk, 2
and Westchester
Remainder of State 1
Ohio Counties of Cuyohoga, Lake and Loraine 3
Remainder of State 1
Pennsylvania Counties of Allegheny, Bucks, Chester 3
Delaware, Montgomery, and Philadelphia
Remainder of State 1
Rhode Island Entire State 1
Vermont Entire State 1
Virginia Counties of Arlington, and Fairfax 3
Remainder of State 1
</TABLE>
Page 3 of 3
Appendix A to Exhibit E
Agreement No. 8009
GENERAL REINSURANCE CORPORATION
<PAGE> 1
EXHIBIT 10(n)
<PAGE> 2
MERCHANTS MUTUAL INSURANCE COMPANY
INCENTIVE COMPENSATION PLAN
AS AMENDED
JANUARY 24, 1996
<PAGE> 3
MERCHANTS MUTUAL INSURANCE COMPANY
INCENTIVE COMPENSATION PLAN
TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
Section No. Title Page No.
- ----------- ----- --------
<S> <C> <C>
1 History 1
2 Purpose 1
3 Participants 2
4 Funds for Incentive Awards 2
5 Incentive Awards -- In General 3
6 Company and MGI Performance Goals 3
7 Setting Target Amounts for Awards 3
8 Individual Goals 4
9 Determination of Actual
Amounts of Awards 4
10 Over-riding Discretion of
Board of Directors 5
11 Relationship of Target Awards
to Company and MGI Performance 6
12 Termination of Employment; Less
than a Full Year of Participation 7
13 Payment; Forfeiture 7
14 Administration 8
15 No Assignment 8
16 Amendment and Termination 8
17 Definitions 9
</TABLE>
<PAGE> 4
MERCHANTS MUTUAL INSURANCE COMPANY
INCENTIVE COMPENSATION PLAN
AS AMENDED
JANUARY 24, 1996
Section 1. History
- --------------------
Merchants Mutual Insurance Company (the "Company") established
the Merchants Mutual Executive Bonus Plan, first effective for its fiscal year
ended December 31, 1984. The Company amended the Executive Bonus Plan and
renamed it the Merchants Mutual Insurance Company Incentive Compensation Plan
(the "Plan"), effective January 1, 1989. The Plan was amended on March 30,
1994 and, as further amended on January 24, 1996, is restated in this document.
Section 2. Purpose
- --------------------
The Company operates and manages its business in conjunction
with Merchants Group, Inc. ("MGI") and MGI's wholly-owned subsidiary, Merchants
Insurance Company of New Hampshire, Inc. ("MNH"), under a management agreement
which was entered into as of September 29, 1986 (the "Management Agreement").
MGI and MNH do not have any significant operating assets and have no employees.
Under the Management Agreement, the Company provides MGI and MNH with the
facilities, management and personnel required to operate their day-to-day
business.
The purpose of the Plan is to provide eligible officers of the
Company, MGI, or MNH, with cash incentive payments related to their
accomplishment of specific goals and to reward those
<PAGE> 5
officers on the basis of their performance and contribution to the Company's,
MGI's and MNH's profitability.
Section 3. Participants
- -------------------------
The participants in the Plan for any fiscal year of the
Company will be those officers of the Company, MGI or MNH who are recommended
by the President to the Compensation Committee of the Board of Directors of the
Company (the "Compensation Committee") and approved by the Board of Directors
of the Company (the "Board of Directors").
Section 4. Funds for Incentive Awards
- ---------------------------------------
The amount of funds available for incentive awards with
respect to each fiscal year will be determined by the Compensation Committee,
subject to approval by the Board of Directors, with the intent being that the
total amount of funds available will be allocated between the Company (the
"Company's Pool") and MGI ("MGI's Pool") in proportion to the Company's and
MNH's direct written premiums for the fiscal year for which awards are to be
granted.
However, if the Company's Rate of Return on Surplus is less
than 8%, then no funds will be available for awards for the year under the
Company's Pool, and if MGI's Rate of Return on Equity is less than 8%, then no
funds will be available for awards for the year under MGI's Pool.
- 2 -
<PAGE> 6
Any funds paid under the Plan by either the Company, or MGI or
MNH, shall not be deemed a shared expense under the Management Agreement. Any
funds available for awards that are not expended will revert to the Company or
MGI or MNH, as the case may be.
Section 5. Incentive Awards -- In General
- -------------------------------------------
Whether an award will be made to a participant for a year will
depend upon the extent to which the Company and MGI meet their performance
goals for the year, the extent to which the participant meets his or her
individual goals for the year, and the discretion of the President and the
Compensation Committee, subject to approval by the Board of Directors.
Section 6. Company and MGI Performance Goals
- ----------------------------------------------
At the beginning of each fiscal year, the President, with the
approval of the Compensation Committee and the Board of Directors, shall
establish the Company's and MGI's performance goals for the purposes of the
Plan for the year. One factor to be taken into account in the determination of
whether awards shall be made under this Plan for a given year is the extent to
which the Company and MGI have met their respective performance goals for the
year.
Section 7. Setting Target Amounts for Awards
- ----------------------------------------------
At the beginning of each fiscal year, the President, with the
approval of the Compensation Committee, shall set a
- 3 -
<PAGE> 7
target amount for an incentive award for each participant for the year. Target
awards expressed as a percentage of compensation will generally vary in
accordance with participants' levels of responsibility. There may be a range
of target awards set for each participant.
Section 8. Individual Goals
- -----------------------------
At the beginning of each fiscal year, the President, in
consultation with each individual participant and with the approval of the
Compensation Committee, shall establish individual goals for the participant
related to the participant's position as an officer of the Company, MGI or MNH.
Each goal shall be assigned a relative value. At the end of the year, the
President shall evaluate the participant's performance and achievement for the
year and determine, in his discretion, the extent to which the participant has
met each of his or her individual goals. The Compensation Committee shall make
this evaluation and determination with respect to the President.
Section 9. Determination of Actual Amounts of Awards
- ------------------------------------------------------
The Compensation Committee shall determine the actual amount,
if any, of a participant's award for the year, subject to approval by the Board
of Directors. As a preliminary step in the determination of the amount of
awards, the President or, in the case of the President's award, the
Compensation Committee shall determine what amount would be awarded if the
target amount of a participant's incentive award for the year were to be
awarded in
- 4 -
<PAGE> 8
proportion to the participant's achievement of his or her individual goals for
the year, taking into account the relative values assigned to such goals in
accordance with Section 8. The President will recommend to the Compensation
Committee what amount, if any, of the target award shall be awarded, and the
Compensation Committee, subject to approval by the Board of Directors, shall
determine the amount of the award, taking into account the President's
recommendation and evaluation of each participant.
If the total amount of awards that would otherwise be made
with respect to a year is limited by the size of the award fund for the year
(see Section 4), the award fund for that year may be increased with the
approval of the Board of Directors or awards shall be reduced accordingly by
the Compensation Committee in consultation with the President.
Section 10. Over-riding Discretion of Board of Directors
- ---------------------------------------------------------
Notwithstanding any other provision of this Plan, the Board of
Directors in its sole discretion may determine what transactions should be
included in the definitions of Rate of Return on Equity and Rate of Return on
Surplus, vary the amount of an award that would otherwise be made under this
Plan for a year and determine that any or all of the awards that would
otherwise be made under this Plan should be reduced or eliminated. However,
once the amount of an award is determined and communicated to participants
under this Plan, it may not be reduced or eliminated.
- 5 -
<PAGE> 9
Section 11. Relationship of Target Awards to Company and MGI
- -------------------------------------------------------------
Performance
-----------
Each participant will have a range of target awards related to
the Company's Rate of Return on Surplus and MGI's Rate of Return on Equity. In
accordance with Section 4, there will be no incentive awards under the
Company's Pool if the Company's Rate of Return on Surplus is less than 8% for
the year nor will there be incentive awards under MGI's Pool if MGI's Rate of
Return on Equity is less than 8% for the year.
The following table sets forth participants' target awards
(expressed as percentages of participants' base annual compensation at December
31st of the year for which the awards are made):
<TABLE>
<CAPTION>
Maximum Awards as Percentage
of Base Annual Compensation(a)
------------------------------
<S> <C> <C> <C> <C> <C>
The Company's Rate At least ....... 8% 10% 15% 20%
of Return on its
Surplus or MGI's
Rate of Return
on Equity but less than ... 10% 15% 20% ---
- ------------------ ------------- --- --- --- ---
President and
Chief Executive Officer 15% 25% 40% 50%
Senior Officers
and Vice Presidents 12% 20% 33% 40%
Other Officers 9% 15% 25% 30%
</TABLE>
==========================================
[FN]
(a) A participant's total base annual compensation for
the year ended December 31 of the year for which the awards are made shall be
allocated between the Company and MNH based on each company's percentage of the
combined total direct premiums for that year written by the companies, as
computed pursuant to the Management Agreement. For example, if a participant
such as the President had total base annual compensation of $100,000, and if
the Company wrote 35% and MNH wrote 65%, respectively, of the combined total
direct premiums written by the Company and MNH, and if the Company's Rate of
Return on its Surplus was 8% and MGI's Rate of Return on Equity was 10% the
participant would be eligible for a maximum target award of $5,250 from the
Company (base annual salary attributable to the Company of $35,000 x 15%
maximum award % = $5,250) and a maximum target award of $16,250 from MGI (base
annual salary attributable to MGI of $65,000 x 25% maximum award % = $16,250).
- 6 -
<PAGE> 10
Section 12. Termination of Employment; Less than a Full Year of
- ----------------------------------------------------------------
Participation
-------------
Participants who resign or are discharged during the fiscal year or
after the end of the year and before awards are made by the Company are not
eligible for awards with respect to such year, except for participants who
resign for reasons beyond their control, such as ill health, as determined by
the Compensation Committee. However, participants who retire (within the
meaning of the Merchants Mutual Capital Accumulation Plan) or die during the
fiscal year or after the end of the year and before awards are made may be
eligible for an award, as recommended by the President and determined by the
Compensation Committee, subject to the approval of the Board of Directors.
Individuals who become participants during a fiscal year may be eligible
for an award, as recommended by the President and determined by the Compensation
Committee, subject to approval by the Board of Directors.
Section 13. Payment; Forfeiture
- --------------------------------
Subject to the further provisions of this Section 13 and to approval by
the Board of Directors, payment of awards will be made in cash or its
equivalent as soon as practicable after the determination of the amount of all
awards for the previous year. Participants may elect to defer payment of
awards in accordance with the terms of the Merchants Mutual Executive Deferral
Plan.
- 7 -
<PAGE> 11
Awards payable after a participant's death will be paid to the
participant's estate unless they are subject to a deferral election, in which
event the deferral agreement will govern the payment of amounts payable after
the participant's death.
Amounts will be withheld from award payments in accordance
with federal and state withholding requirements.
Section 14. Administration
- ---------------------------
The Compensation Committee will administer the Plan, subject
to approval by the Board of Directors. Any determination of the Compensation
Committee or the Board of Directors with respect to participation, the amount
of awards, the payment of awards, or any matter involving the interpretation of
the Plan shall be conclusive and binding on all participants.
Section 15. No Assignment
- --------------------------
A participant may not assign any right to an award or payment
under this Plan, and awards and payments shall not be subject to alienation
whether by garnishment, lien, or otherwise, except as required by law.
Section 16. Amendment and Termination
- --------------------------------------
The Board of Directors of the Company may amend or terminate
this Plan at any time by resolution, provided, however, that no amendment or
termination of the Plan shall adversely effect any award previously granted to
a participant.
- 8 -
<PAGE> 12
Section 17. Definitions
- ------------------------
For the purposes of this Plan:
1. "Rate of Return on Equity" means, with respect to any
fiscal year of MGI, the percentage equivalent of the result obtained upon the
application of the following formula, where "x" equals MGI's total
shareholders' equity as of the last day of the given year, "y" equals MGI's
total shareholders' equity as of the last day of the year preceding the given
year and "z" equals dividends declared to MGI's stockholders during the given
year, each as reported in MGI's consolidated financial statements prepared in
accordance with generally accepted accounting principles:
x - y + z
---------
Rate of Return on Equity = y
2. "Rate of Return on Surplus" means, with respect to
any fiscal year of the Company, the percentage equivalent of the result
obtained upon the application of the following formula, where "x" equals the
Company's total policyholders' surplus as of the last day of the given year,
and "y" equals the Company's total policyholders' surplus as of the last day of
the year preceding the given year, each as reported in the Company's financial
statements prepared in accordance with generally accepted accounting
principles:
x - y
-----
Rate of Return on Surplus = y
- 9 -
<PAGE> 13
3. A masculine pronoun wherever used in this Plan shall
include the feminine, and the singular shall include the plural, and vice
versa, wherever the context requires.
This document has been executed on the 24th day of January,
1996, pursuant to the authorization of the Board of Directors of the Company.
MERCHANTS MUTUAL INSURANCE COMPANY
By
_________________________________
Robert M. Zak, President
- 10 -
<PAGE> 1
EXHIBIT 23
<PAGE> 2
Consent of Independent Accountants
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-47014) of Merchants Group, Inc. of our report
dated February 20, 1996 appearing on page F-1 of this Form 10-K.
Price Waterhouse LLP
Buffalo, New York
March 28, 1996
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 163,778,000
<DEBT-CARRYING-VALUE> 19,477,000
<DEBT-MARKET-VALUE> 20,348,000
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 192,218,000
<CASH> 39,000
<RECOVER-REINSURE> 7,014,000
<DEFERRED-ACQUISITION> 12,165,000
<TOTAL-ASSETS> 252,808,000
<POLICY-LOSSES> 119,722,000
<UNEARNED-PREMIUMS> 48,773,000
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
<COMMON> 32,000
0
0
<OTHER-SE> 69,938,000
<TOTAL-LIABILITY-AND-EQUITY> 252,808,000
94,749,000
<INVESTMENT-INCOME> 10,368,000
<INVESTMENT-GAINS> (832,000)
<OTHER-INCOME> 259,000
<BENEFITS> 78,195,000
<UNDERWRITING-AMORTIZATION> 25,458,000
<UNDERWRITING-OTHER> 7,709,000
<INCOME-PRETAX> (6,818,000)
<INCOME-TAX> (2,999,000)
<INCOME-CONTINUING> (3,819,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,819,000)
<EPS-PRIMARY> (1.19)
<EPS-DILUTED> (1.19)
<RESERVE-OPEN> 104,015,000
<PROVISION-CURRENT> 67,150,000
<PROVISION-PRIOR> 11,045,000
<PAYMENTS-CURRENT> 25,175,000
<PAYMENTS-PRIOR> 36,916,000
<RESERVE-CLOSE> 119,722,000
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
<PAGE> 1
EXHIBIT 28 (a)
<PAGE> 2
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |
Premiums | | | |----------------------------------
Were Earned| Direct and | Ceded | Net | (5) | (6) |
and Losses | Assumed | | (Cols. 2 - 3) | Direct and | |
Were Incur.| | | | Assumed | Ceded |
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X |........... 220 |........... 363 |
2. 1986 |........ 56,230 |........ 26,819 |........ 29,411 |........ 35,191 |......... 6,223 |
3. 1987 |........ 75,517 |........ 21,807 |........ 53,710 |........ 44,112 |......... 5,212 |
4. 1988 |........ 84,311 |........ 21,263 |........ 63,048 |........ 46,936 |......... 3,059 |
5. 1989 |........ 86,408 |........ 10,625 |........ 75,783 |........ 52,981 |......... 2,430 |
6. 1990 |........ 92,956 |......... 9,812 |........ 83,144 |........ 52,906 |......... 2,366 |
7. 1991 |........ 93,588 |......... 4,453 |........ 89,135 |........ 49,011 |........... 836 |
8. 1992 |........ 92,520 |......... 4,498 |........ 88,022 |........ 45,133 |......... 1,000 |
9. 1993 |........ 93,897 |......... 5,716 |........ 88,181 |........ 40,416 |............ 69 |
10. 1994 |........ 97,620 |......... 6,776 |........ 90,844 |........ 38,555 |........... 641 |
11. 1995 |....... 101,801 |......... 7,053 |........ 94,748 |........ 21,902 |........... 443 |
- -------------------------------------------------------------------------------------------------
12. TOTALS| X X X | X X X | X X X |....... 427,363 |........ 22,642 |
- -------------------------------------------------------------------------------------------------
<CAPTION>
=================================================================================================================
(1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) |
Years in |------------------------------------------------------------------------------------| |
Which | ALLOCATED LOSS EXPENSE PAYMENTS | (9) | (10) | (11) | Number of |
Premiums |---------------------------------| | | Total | Claims |
Were Earned| (7) | (8) | Salvage and | Unallocated | Net Paid | Reported - |
and Losses | Direct and | | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and |
Were Incur.| Assumed | Ceded | Received | Payments | + 7 - 8 + 10) | Assumed |
- ----------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |............ 72 |............. 1 |............ 30 |............ (3)|........... (75)| X X X |
2. 1986 |......... 2,110 |............. 2 |........... 210 |......... 2,123 |........ 33,199 | X X X |
3. 1987 |......... 2,447 |............. 0 |........... 562 |......... 3,030 |........ 44,377 | X X X |
4. 1988 |......... 2,777 |............. 0 |......... 4,370 |......... 3,787 |........ 50,441 | X X X |
5. 1989 |......... 3,317 |............. 2 |......... 2,619 |......... 3,653 |........ 57,519 | X X X |
6. 1990 |......... 4,069 |........... 592 |......... 2,207 |......... 3,327 |........ 57,344 | X X X |
7. 1991 |......... 3,107 |............. 6 |......... 1,991 |......... 3,289 |........ 54,565 | X X X |
8. 1992 |......... 2,560 |............ 16 |......... 1,827 |......... 3,187 |........ 49,864 | X X X |
9. 1993 |......... 2,301 |............ (5)|......... 1,486 |......... 3,010 |........ 45,663 | X X X |
10. 1994 |......... 1,794 |............. 0 |......... 1,506 |......... 3,291 |........ 42,999 | X X X |
11. 1995 |........... 847 |............. 1 |........... 551 |......... 2,760 |........ 25,065 | X X X |
- ----------------------------------------------------------------------------------------------------------------|
12. TOTALS|........ 25,401 |........... 615 |........ 17,359 |........ 31,454 |....... 460,961 | X X X |
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|--------------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|--------------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........ 1,307 |........... 798 |............ 67 |............ 0 |............ 0 |............ 0 |
2. 1986 |.......... 257 |............ 91 |............ 44 |............ 0 |............ 0 |............ 0 |
3. 1987 |.......... 321 |........... 103 |............ 79 |........... 26 |............ 0 |............ 0 |
4. 1988 |.......... 800 |........... 107 |........... 237 |........... 48 |............ 0 |............ 0 |
5. 1989 |.......... 842 |............ 72 |........... 297 |........... 69 |............ 0 |............ 0 |
6. 1990 |........ 2,240 |........... 121 |........... 422 |.......... 120 |............ 0 |............ 0 |
7. 1991 |........ 6,542 |........... 505 |......... 1,210 |.......... 261 |............ 0 |............ 0 |
8. 1992 |........ 8,651 |........... 412 |......... 1,985 |.......... 339 |............ 0 |............ 0 |
9. 1993 |....... 13,324 |........... 112 |......... 3,241 |.......... 480 |............ 0 |............ 0 |
10. 1994 |....... 16,612 |............ 89 |......... 9,539 |........ 1,032 |............ 0 |............ 0 |
11. 1995 |....... 19,138 |........... 653 |........ 19,694 |........ 1,161 |............ 0 |............ 0 |
- --------------------------------------------------------------------------------------------------------------
12. TOTALS|....... 70,034 |......... 3,063 |........ 36,815 |........ 3,536 |............ 0 |............ 0 |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
====================================================================================================
|ALLOCATED LOSS EXPENSES UNPAID| (21) | (22) | (23) | (24) |
|------------------------------| | | | |
| BULK + IBNR | Salvage & | Unallocated | Total Net | Number of |
|------------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding|
| Direct and | Ceded | | Unpaid | Unpaid |- Direct &|
| Assumed | | | | | Assumed |
- ---------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |............ 4 |........... 0 |........... 0 |........... 0 |......... 580 | X X X |
2. 1986 |........... 21 |........... 0 |........... 0 |........... 0 |......... 231 | X X X |
3. 1987 |........... 89 |........... 0 |........... 5 |........... 0 |......... 360 | X X X |
4. 1988 |.......... 129 |........... 0 |.......... 62 |........... 0 |....... 1,011 | X X X |
5. 1989 |.......... 122 |........... 0 |.......... 22 |........... 0 |....... 1,120 | X X X |
6. 1990 |.......... 311 |........... 0 |.......... 30 |........... 0 |....... 2,732 | X X X |
7. 1991 |.......... 761 |........... 0 |.......... 47 |......... 199 |....... 7,946 | X X X |
8. 1992 |........ 1,155 |........... 0 |.......... 92 |......... 318 |...... 11,358 | X X X |
9. 1993 |........ 1,737 |........... 0 |......... 187 |......... 455 |...... 18,165 | X X X |
10. 1994 |........ 2,526 |........... 0 |......... 440 |......... 544 |...... 28,100 | X X X |
11. 1995 |........ 3,950 |........... 0 |....... 1,167 |......... 944 |...... 41,912 | X X X |
- ---------------------------------------------------------------------------------------------------|
12. TOTALS|....... 10,805 |........... 0 |....... 2,052 |....... 2,460 |..... 113,515 | X X X |
- ----------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==================================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------------
<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 |........ 39,746 |......... 6,316 |......... 33,430 |.......... 70.7 |.......... 23.6 |........ 113.7 |
3. 1987 |........ 50,078 |......... 5,342 |......... 44,736 |.......... 66.3 |.......... 24.5 |......... 83.3 |
4. 1988 |........ 54,666 |......... 3,214 |......... 51,452 |.......... 64.8 |.......... 15.1 |......... 81.6 |
5. 1989 |........ 61,213 |......... 2,573 |......... 58,640 |.......... 70.8 |.......... 24.2 |......... 77.4 |
6. 1990 |........ 63,276 |......... 3,199 |......... 60,077 |.......... 68.1 |.......... 32.6 |......... 72.3 |
7. 1991 |........ 64,120 |......... 1,609 |......... 62,511 |.......... 68.5 |.......... 36.1 |......... 70.1 |
8. 1992 |........ 62,990 |......... 1,767 |......... 61,223 |.......... 68.1 |.......... 39.3 |......... 69.6 |
9. 1993 |........ 64,483 |........... 655 |......... 63,828 |.......... 68.7 |.......... 11.5 |......... 72.4 |
10. 1994 |........ 72,862 |......... 1,763 |......... 71,099 |.......... 74.6 |.......... 26.0 |......... 78.3 |
11. 1995 |........ 69,234 |......... 2,259 |......... 66,975 |.......... 68.0 |.......... 32.0 |......... 70.7 |
- ------------------------------------------------------------------------------------------------------------------
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |........... 213 |............. 0 | X X X |........... 363 |............. 4 |
2. 1986 |............. 0 |............. 0 |.......... 0.0 |........... 210 |............ 21 |
3. 1987 |............. 0 |............. 0 |.......... 0.0 |........... 271 |............ 89 |
4. 1988 |............. 0 |............. 0 |.......... 0.0 |........... 882 |........... 129 |
5. 1989 |............ 64 |............. 0 |.......... 0.0 |........... 934 |........... 122 |
6. 1990 |............. 0 |............. 0 |.......... 0.0 |......... 2,421 |........... 311 |
7. 1991 |........... 112 |............. 0 |.......... 0.0 |......... 6,874 |........... 960 |
8. 1992 |............ 15 |............. 0 |.......... 0.0 |......... 9,870 |......... 1,473 |
9. 1993 |............ 56 |............. 0 |.......... 0.0 |........ 15,917 |......... 2,192 |
10. 1994 |............. 0 |............. 0 |.......... 0.0 |........ 25,030 |......... 3,070 |
11. 1995 |............. 0 |............. 0 |.......... 0.0 |........ 37,018 |......... 4,894 |
- -----------------------------------------------------------------------------------------------|
12. TOTALS|........... 460 |............. 0 | X X X |........ 99,790 |........ 13,265 |
- ------------------------------------------------------------------------------------------------
</TABLE>
74
<PAGE> 3
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) | (8) | (9) |
Losses Were | | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 |
| | | | | | | | |
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior ....|...... 10,111 |..... 11,081 |..... 11,549 |..... 11,937 |..... 12,841 |..... 13,086 |..... 12,997 |..... 13,173 |
| | | | | | | | |
2. 1986 .....|...... 32,160 |..... 30,778 |..... 29,294 |..... 28,641 |..... 32,113 |..... 30,911 |..... 30,804 |..... 31,010 |
| | | | | | | | |
3. 1987 .....| X X X |..... 42,581 |..... 42,809 |..... 41,421 |..... 41,234 |..... 41,628 |..... 41,178 |..... 41,341 |
| | | | | | | | |
4. 1988 .....| X X X | X X X |..... 48,102 |..... 48,395 |..... 48,295 |..... 47,285 |..... 47,149 |..... 47,451 |
| | | | | | | | |
5. 1989 .....| X X X | X X X | X X X |..... 51,692 |..... 54,858 |..... 54,768 |..... 53,042 |..... 54,268 |
| | | | | | | | |
6. 1990 .....| X X X | X X X | X X X | X X X |..... 49,281 |..... 54,127 |..... 55,014 |..... 55,140 |
| | | | | | | | |
7. 1991 .....| X X X | X X X | X X X | X X X | X X X |..... 52,154 |..... 57,009 |..... 56,820 |
| | | | | | | | |
8. 1992 .....| X X X | X X X | X X X | X X X | X X X | X X X |..... 53,904 |..... 55,862 |
| | | | | | | | |
9. 1993 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X |..... 56,685 |
| | | | | | | | |
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 ....|..... 13,124 |..... 13,062 |........ (62)|........ (111)|
| | | | |
2. 1986 .....|..... 31,213 |..... 31,307 |......... 94 |......... 297 |
| | | | |
3. 1987 .....|..... 41,735 |..... 41,706 |........ (29)|......... 365 |
| | | | |
4. 1988 .....|..... 47,481 |..... 47,665 |........ 184 |......... 214 |
| | | | |
5. 1989 .....|..... 54,877 |..... 54,987 |........ 110 |......... 719 |
| | | | |
6. 1990 .....|..... 55,406 |..... 56,750 |...... 1,344 |....... 1,610 |
| | | | |
7. 1991 .....|..... 57,331 |..... 59,023 |...... 1,692 |....... 2,203 |
| | | | |
8. 1992 .....|..... 56,889 |..... 57,718 |........ 829 |....... 1,856 |
| | | | |
9. 1993 .....|..... 58,726 |..... 60,363 |...... 1,637 |....... 3,678 |
| | | | |
10. 1994 .....|..... 62,016 |..... 67,264 |...... 5,248 | X X X |
| | | | |
11. 1995 .....| X X X |..... 63,271 | X X X | X X X |
- ------------------------------------------------------------------------|
12. TOTALS |..... 11,047 |...... 10,831 |
- -------------------------------------------------------------------------
</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) |
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 |...... 4,470 |...... 7,166 |...... 8,965 |..... 10,465 |..... 11,173 |..... 11,745 |..... 12,329 |
| | | | | | | | |
2. 1986 .....|...... 16,202 |..... 23,095 |..... 24,762 |..... 25,717 |..... 28,863 |..... 29,590 |..... 29,970 |..... 30,442 |
| | | | | | | | |
3. 1987 .....| X X X |..... 18,306 |..... 29,907 |..... 31,968 |..... 36,409 |..... 39,393 |..... 39,984 |..... 40,541 |
| | | | | | | | |
4. 1988 .....| X X X | X X X |..... 20,462 |..... 32,850 |..... 37,611 |..... 41,430 |..... 43,855 |..... 45,463 |
| | | | | | | | |
5. 1989 .....| X X X | X X X | X X X |..... 21,903 |..... 37,318 |..... 43,181 |..... 46,852 |..... 50,403 |
| | | | | | | | |
6. 1990 .....| X X X | X X X | X X X | X X X |..... 22,276 |..... 37,020 |..... 42,276 |..... 48,037 |
| | | | | | | | |
7. 1991 .....| X X X | X X X | X X X | X X X | X X X |..... 22,100 |..... 36,773 |..... 42,679 |
| | | | | | | | |
8. 1992 .....| X X X | X X X | X X X | X X X | X X X | X X X |..... 20,625 |..... 35,311 |
| | | | | | | | |
9. 1993 .....| X X X | X X X | X X X | X X X | X X X | X X X | X X X |..... 20,690 |
| | | | | | | | |
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) |
|---------------------------| | |
Years in Which| (10) | (11) | Number of | Number of |
Losses Were | | | Claims | Claims Closed|
Incurred | 1994 | 1995 | Closed With | Without |
| | | Loss Payment| Loss Payment |
- ------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
1. Prior ....|..... 12,554 |..... 12,482 | X X X | X X X |
| | | | |
2. 1986 .....|..... 30,951 |..... 31,076 | X X X | X X X |
| | | | |
3. 1987 .....|..... 41,180 |..... 41,347 | X X X | X X X |
| | | | |
4. 1988 .....|..... 46,199 |..... 46,654 | X X X | X X X |
| | | | |
5. 1989 .....|..... 52,562 |..... 53,866 | X X X | X X X |
| | | | |
6. 1990 .....|..... 51,616 |..... 54,017 | X X X | X X X |
| | | | |
7. 1991 .....|..... 47,322 |..... 51,276 | X X X | X X X |
| | | | |
8. 1992 .....|..... 41,970 |..... 46,678 | X X X | X X X |
| | | | |
9. 1993 .....|..... 34,392 |..... 42,652 | X X X | X X X |
| | | | |
10. 1994 .....|..... 25,946 |..... 39,707 | X X X | X X X |
| | | | |
11. 1995 .....| X X X |..... 22,304 | 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) |
Losses Were | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior .............|......... 1,585 |.......... 912 |.......... 569 |.......... 528 |.......... 479 |.......... 282 |
| | | | | | |
2. 1986 ..............|......... 8,387 |........ 3,763 |........ 1,816 |.......... 674 |.......... 636 |.......... 375 |
| | | | | | |
3. 1987 ..............| X X X |....... 14,065 |........ 6,491 |........ 5,249 |........ 1,587 |.......... 731 |
| | | | | | |
4. 1988 ..............| X X X | X X X |....... 17,330 |........ 8,560 |........ 4,557 |........ 1,372 |
| | | | | | |
5. 1989 ..............| X X X | X X X | X X X |....... 17,346 |........ 7,294 |........ 4,371 |
| | | | | | |
6. 1990 ..............| X X X | X X X | X X X | X X X |....... 14,601 |........ 6,808 |
| | | | | | |
7. 1991 ..............| X X X | X X X | X X X | X X X | X X X |....... 15,406 |
| | | | | | |
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 .............|.......... 161 |........... 96 |........... 57 |........... 72 |
| | | | |
2. 1986 ..............|.......... 180 |........... 83 |........... 72 |........... 66 |
| | | | |
3. 1987 ..............|.......... 342 |.......... 200 |.......... 190 |.......... 142 |
| | | | |
4. 1988 ..............|.......... 532 |.......... 418 |.......... 321 |.......... 318 |
| | | | |
5. 1989 ..............|........ 1,248 |.......... 731 |.......... 408 |.......... 351 |
| | | | |
6. 1990 ..............|........ 5,080 |........ 1,605 |.......... 796 |.......... 614 |
| | | | |
7. 1991 ..............|........ 7,729 |........ 5,063 |........ 1,744 |........ 1,710 |
| | | | |
8. 1992 ..............|....... 15,726 |........ 7,761 |........ 5,296 |........ 2,801 |
| | | | |
9. 1993 ..............| X X X |....... 18,239 |........ 6,916 |........ 4,499 |
| | | | |
10. 1994 ..............| X X X | X X X |....... 16,335 |....... 11,033 |
| | | | |
11. 1995 ..............| X X X | X X X | X X X |....... 22,482 |
- -----------------------------------------------------------------------------------------
</TABLE>
75
<PAGE> 4
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |........ 4,197 |........ 2,075 |........ 2,122 |........ 2,450 |.......... 557 |........... 138 |............. 0 |
3. 1987 |........ 5,072 |........ 1,584 |........ 3,488 |........ 2,674 |.......... 461 |........... 188 |............. 0 |
4. 1988 |........ 5,941 |........ 1,613 |........ 4,328 |........ 3,320 |.......... 368 |........... 317 |............. 0 |
5. 1989 |........ 6,074 |.......... 653 |........ 5,421 |........ 3,678 |.......... 262 |........... 253 |............. 0 |
6. 1990 |........ 5,961 |.......... 531 |........ 5,430 |........ 2,827 |........... 74 |........... 195 |............. 0 |
7. 1991 |........ 6,001 |.......... 161 |........ 5,840 |........ 3,122 |........... 14 |........... 233 |............. 0 |
8. 1992 |........ 5,675 |.......... 184 |........ 5,491 |........ 2,497 |............ 0 |........... 131 |............. 0 |
9. 1993 |........ 5,755 |.......... 373 |........ 5,382 |........ 3,075 |............ 0 |........... 159 |............ (1)|
10. 1994 |........ 5,994 |.......... 449 |........ 5,545 |........ 4,249 |............ 0 |........... 198 |............ (1)|
11. 1995 |........ 6,795 |.......... 457 |........ 6,338 |........ 2,187 |............ 0 |............ 77 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |....... 30,079 |........ 1,736 |......... 1,889 |............ (2)|
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |........... 140 |........ 2,171 |........ 1,654 |
3. 1987 |............. 3 |........... 184 |........ 2,585 |........ 1,936 |
4. 1988 |........... 395 |........... 312 |........ 3,581 |........ 2,030 |
5. 1989 |............ 25 |........... 260 |........ 3,929 |........ 2,178 |
6. 1990 |............ 46 |........... 180 |........ 3,128 |........ 1,972 |
7. 1991 |............ 32 |........... 213 |........ 3,554 |........ 2,559 |
8. 1992 |............ 49 |........... 183 |........ 2,811 |........ 2,039 |
9. 1993 |............. 4 |........... 207 |........ 3,442 |........ 1,552 |
10. 1994 |............. 4 |........... 261 |........ 4,709 |........ 2,088 |
11. 1995 |............. 3 |........... 220 |........ 2,484 |........ 1,245 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|........... 561 |......... 2,160 |....... 32,394 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 1 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |.......... 34 |........... 7 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |.......... 24 |........... 2 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 9 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |......... 286 |........... 3 |........... 9 |........... 1 |........... 0 |........... 0 |
8. 1992 |......... 106 |........... 0 |.......... 65 |........... 1 |........... 0 |........... 0 |
9. 1993 |......... 665 |........... 0 |......... 122 |........... 2 |........... 0 |........... 0 |
10. 1994 |......... 424 |........... 0 |......... 268 |........... 5 |........... 0 |........... 0 |
11. 1995 |....... 1,107 |........... 0 |......... 820 |........... 5 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|....... 2,656 |.......... 12 |....... 1,284 |.......... 14 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 1 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 27 |........... 1 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 22 |........... 1 |
6. 1990 |.......... 11 |........... 0 |........... 1 |........... 0 |.......... 20 |........... 6 |
7. 1991 |.......... 12 |........... 0 |........... 1 |........... 6 |......... 309 |.......... 11 |
8. 1992 |.......... 35 |........... 0 |........... 1 |.......... 20 |......... 225 |........... 9 |
9. 1993 |.......... 73 |........... 0 |........... 3 |.......... 18 |......... 876 |.......... 19 |
10. 1994 |.......... 71 |........... 0 |........... 6 |.......... 15 |......... 773 |.......... 39 |
11. 1995 |......... 230 |........... 0 |.......... 11 |.......... 74 |....... 2,226 |......... 225 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|......... 432 |........... 0 |.......... 23 |......... 133 |....... 4,479 |......... 311 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |......... 2,728 |.......... 557 |........ 2,171 |......... 65.0 |......... 26.8 |......... 102.3 |
3. 1987 |......... 3,047 |.......... 461 |........ 2,586 |......... 60.1 |......... 29.1 |.......... 74.1 |
4. 1988 |......... 3,984 |.......... 376 |........ 3,608 |......... 67.1 |......... 23.3 |.......... 83.4 |
5. 1989 |......... 4,215 |.......... 264 |........ 3,951 |......... 69.4 |......... 40.4 |.......... 72.9 |
6. 1990 |......... 3,222 |........... 74 |........ 3,148 |......... 54.1 |......... 13.9 |.......... 58.0 |
7. 1991 |......... 3,881 |........... 18 |........ 3,863 |......... 64.7 |......... 11.2 |.......... 66.1 |
8. 1992 |......... 3,038 |............ 1 |........ 3,037 |......... 53.5 |.......... 0.5 |.......... 55.3 |
9. 1993 |......... 4,319 |............ 1 |........ 4,318 |......... 75.0 |.......... 0.3 |.......... 80.2 |
10. 1994 |......... 5,485 |............ 4 |........ 5,481 |......... 91.5 |.......... 0.9 |.......... 98.8 |
11. 1995 |......... 4,714 |............ 5 |........ 4,709 |......... 69.4 |.......... 1.1 |.......... 74.3 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 1 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............ 27 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............ 22 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 9 |............ 11 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |........... 291 |............ 18 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |........... 170 |............ 55 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |........... 785 |............ 91 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |........... 687 |............ 86 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 1,922 |........... 304 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |......... 3,914 |........... 565 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
76
<PAGE> 5
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 | | 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 |.......... (15)|........... 11 |............. 3 |............. 0 |
2. 1986 |....... 22,125 |....... 10,125 |....... 12,000 |....... 17,145 |........ 3,898 |........... 741 |............. 0 |
3. 1987 |....... 24,981 |........ 7,161 |....... 17,820 |....... 19,943 |........ 2,914 |........... 749 |............. 0 |
4. 1988 |....... 26,383 |........ 6,236 |....... 20,147 |....... 20,032 |........ 1,481 |........... 938 |............. 0 |
5. 1989 |....... 26,056 |........ 2,461 |....... 23,595 |....... 22,740 |........ 1,004 |......... 1,055 |............. 0 |
6. 1990 |....... 27,123 |........ 1,876 |....... 25,247 |....... 19,060 |.......... 370 |........... 581 |............. 0 |
7. 1991 |....... 24,519 |.......... 190 |....... 24,329 |....... 15,211 |........... 44 |........... 680 |............. 0 |
8. 1992 |....... 24,248 |.......... 306 |....... 23,942 |....... 16,035 |.......... 304 |........... 607 |............. 0 |
9. 1993 |....... 23,269 |.......... 421 |....... 22,848 |....... 13,414 |........... 30 |........... 568 |............ (1)|
10. 1994 |....... 22,727 |.......... 375 |....... 22,352 |....... 10,081 |........... 35 |........... 397 |............. 0 |
11. 1995 |....... 22,202 |.......... 385 |....... 21,817 |........ 4,566 |............ 8 |........... 192 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |...... 158,212 |....... 10,099 |......... 6,511 |............ (1)|
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 5 |............ (1)|.......... (24)| X X X |
2. 1986 |............ 17 |......... 1,158 |....... 15,146 |........ 9,145 |
3. 1987 |............ 24 |......... 1,547 |....... 19,325 |........ 9,765 |
4. 1988 |............ 34 |......... 1,472 |....... 20,961 |........ 9,410 |
5. 1989 |............ 49 |......... 1,443 |....... 24,234 |........ 8,941 |
6. 1990 |............ 75 |......... 1,308 |....... 20,579 |........ 6,933 |
7. 1991 |............ 85 |......... 1,151 |....... 16,998 |........ 5,935 |
8. 1992 |............ 87 |......... 1,144 |....... 17,482 |........ 5,703 |
9. 1993 |............ 66 |........... 948 |....... 14,901 |........ 5,192 |
10. 1994 |............ 67 |......... 1,017 |....... 11,460 |........ 4,682 |
11. 1995 |............ 17 |........... 670 |........ 5,420 |........ 3,654 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|........... 526 |........ 11,857 |...... 166,482 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |.......... 25 |.......... 41 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |......... 101 |.......... 38 |........... 6 |........... 0 |........... 0 |........... 0 |
3. 1987 |.......... 28 |.......... 38 |.......... 17 |........... 2 |........... 0 |........... 0 |
4. 1988 |......... 194 |.......... 36 |.......... 54 |........... 4 |........... 0 |........... 0 |
5. 1989 |......... 126 |.......... 13 |.......... 21 |........... 3 |........... 0 |........... 0 |
6. 1990 |......... 255 |.......... 11 |.......... 18 |........... 7 |........... 0 |........... 0 |
7. 1991 |....... 1,525 |........... 5 |......... 126 |.......... 38 |........... 0 |........... 0 |
8. 1992 |....... 2,027 |........... 0 |......... 165 |.......... 20 |........... 0 |........... 0 |
9. 1993 |....... 3,920 |.......... 22 |......... 113 |.......... 19 |........... 0 |........... 0 |
10. 1994 |....... 4,479 |.......... 12 |....... 1,191 |.......... 54 |........... 0 |........... 0 |
11. 1995 |....... 6,505 |......... 165 |....... 4,366 |.......... 37 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|...... 19,185 |......... 381 |....... 6,077 |......... 184 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| (21) | (22) | (23) | (24) |
------------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
------------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... (16)|........... 1 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 69 |........... 2 |
3. 1987 |.......... 15 |........... 0 |........... 2 |........... 0 |.......... 20 |........... 8 |
4. 1988 |.......... 16 |........... 0 |.......... 29 |........... 0 |......... 224 |.......... 18 |
5. 1989 |.......... 20 |........... 0 |........... 4 |........... 0 |......... 151 |.......... 26 |
6. 1990 |......... 165 |........... 0 |........... 3 |........... 0 |......... 420 |.......... 35 |
7. 1991 |......... 237 |........... 0 |........... 4 |.......... 48 |....... 1,893 |.......... 85 |
8. 1992 |......... 277 |........... 0 |........... 9 |.......... 56 |....... 2,505 |......... 136 |
9. 1993 |......... 447 |........... 0 |.......... 18 |......... 127 |....... 4,566 |......... 209 |
10. 1994 |......... 609 |........... 0 |.......... 37 |......... 126 |....... 6,339 |......... 393 |
11. 1995 |......... 930 |........... 0 |.......... 69 |......... 333 |...... 11,932 |....... 1,058 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|....... 2,716 |........... 0 |......... 175 |......... 690 |...... 28,103 |....... 1,971 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |........ 19,151 |........ 3,936 |....... 15,215 |......... 86.6 |......... 38.9 |......... 126.8 |
3. 1987 |........ 22,299 |........ 2,955 |....... 19,344 |......... 89.3 |......... 41.3 |......... 108.6 |
4. 1988 |........ 22,707 |........ 1,521 |....... 21,186 |......... 86.1 |......... 24.4 |......... 105.2 |
5. 1989 |........ 25,405 |........ 1,020 |....... 24,385 |......... 97.5 |......... 41.4 |......... 103.3 |
6. 1990 |........ 21,388 |.......... 388 |....... 21,000 |......... 78.9 |......... 20.7 |.......... 83.2 |
7. 1991 |........ 18,977 |........... 88 |....... 18,889 |......... 77.4 |......... 46.3 |.......... 77.6 |
8. 1992 |........ 20,309 |.......... 324 |....... 19,985 |......... 83.8 |........ 105.9 |.......... 83.5 |
9. 1993 |........ 19,536 |........... 70 |....... 19,466 |......... 84.0 |......... 16.6 |.......... 85.2 |
10. 1994 |........ 17,901 |.......... 100 |....... 17,801 |......... 78.8 |......... 26.7 |.......... 79.6 |
11. 1995 |........ 17,563 |.......... 211 |....... 17,352 |......... 79.1 |......... 54.8 |.......... 79.5 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |........... (16)|............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 69 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 5 |............ 15 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 208 |............ 16 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 131 |............ 20 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 255 |........... 165 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,608 |........... 285 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 2,172 |........... 333 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 3,992 |........... 574 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 5,604 |........... 735 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |........ 10,669 |......... 1,263 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |........ 24,697 |......... 3,406 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
77
<PAGE> 6
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |........... 23 |............ 3 |............ 21 |............. 0 |
2. 1986 |........ 2,085 |........ 1,123 |.......... 962 |........ 2,228 |.......... 137 |........... 163 |............. 0 |
3. 1987 |........ 5,446 |........ 1,322 |........ 4,124 |........ 3,464 |.......... 308 |........... 271 |............. 0 |
4. 1988 |........ 6,491 |........ 1,545 |........ 4,946 |........ 3,771 |.......... 361 |........... 210 |............. 0 |
5. 1989 |........ 7,275 |.......... 857 |........ 6,418 |........ 3,851 |.......... 277 |........... 227 |............. 0 |
6. 1990 |........ 9,082 |.......... 876 |........ 8,206 |........ 4,998 |.......... 145 |........... 312 |............. 0 |
7. 1991 |....... 10,710 |.......... 433 |....... 10,277 |........ 5,960 |........... 47 |........... 443 |............. 0 |
8. 1992 |....... 11,806 |.......... 640 |....... 11,166 |........ 5,833 |............ 0 |........... 341 |............. 0 |
9. 1993 |....... 12,330 |.......... 498 |....... 11,832 |........ 5,362 |............ 0 |........... 380 |............. 0 |
10. 1994 |....... 13,087 |.......... 429 |....... 12,658 |........ 3,045 |............ 0 |........... 274 |............. 0 |
11. 1995 |....... 13,439 |.......... 418 |....... 13,021 |........ 1,463 |............ 0 |........... 130 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |....... 39,998 |........ 1,278 |......... 2,772 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 1 |........... 42 | X X X |
2. 1986 |............. 0 |........... 161 |........ 2,415 |.......... 655 |
3. 1987 |............. 2 |........... 226 |........ 3,653 |........ 1,099 |
4. 1988 |............. 0 |........... 219 |........ 3,839 |........ 1,130 |
5. 1989 |............. 1 |........... 216 |........ 4,017 |........ 1,132 |
6. 1990 |............. 6 |........... 296 |........ 5,461 |........ 1,305 |
7. 1991 |............ 45 |........... 348 |........ 6,704 |........ 1,380 |
8. 1992 |............. 8 |........... 378 |........ 6,552 |........ 1,304 |
9. 1993 |............. 9 |........... 410 |........ 6,152 |........ 1,305 |
10. 1994 |............ 10 |........... 400 |........ 3,719 |........ 1,389 |
11. 1995 |............. 1 |........... 288 |........ 1,881 |........ 1,112 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............ 82 |......... 2,943 |....... 44,435 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 4 |........... 7 |........... 3 |........... 0 |........... 0 |........... 0 |
2. 1986 |.......... 10 |........... 0 |.......... 10 |........... 0 |........... 0 |........... 0 |
3. 1987 |.......... 13 |........... 0 |.......... 13 |........... 3 |........... 0 |........... 0 |
4. 1988 |......... 113 |........... 0 |.......... 18 |........... 5 |........... 0 |........... 0 |
5. 1989 |.......... 28 |........... 0 |.......... 38 |........... 7 |........... 0 |........... 0 |
6. 1990 |......... 211 |.......... 19 |.......... 42 |.......... 13 |........... 0 |........... 0 |
7. 1991 |......... 526 |........... 1 |......... 117 |.......... 61 |........... 0 |........... 0 |
8. 1992 |....... 1,188 |........... 0 |......... 343 |.......... 84 |........... 0 |........... 0 |
9. 1993 |....... 2,208 |........... 0 |......... 672 |.......... 56 |........... 0 |........... 0 |
10. 1994 |....... 2,463 |.......... 70 |....... 3,132 |......... 123 |........... 0 |........... 0 |
11. 1995 |....... 2,944 |........... 0 |....... 4,255 |......... 135 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|....... 9,708 |.......... 97 |....... 8,643 |......... 487 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |.......... 19 |........... 0 |........... 0 |........... 0 |.......... 39 |........... 0 |
3. 1987 |.......... 21 |........... 0 |........... 0 |........... 0 |.......... 44 |........... 0 |
4. 1988 |.......... 29 |........... 0 |........... 0 |........... 0 |......... 155 |........... 2 |
5. 1989 |.......... 48 |........... 0 |........... 2 |........... 0 |......... 107 |........... 0 |
6. 1990 |.......... 68 |........... 0 |........... 0 |........... 0 |......... 289 |........... 5 |
7. 1991 |.......... 85 |........... 0 |........... 0 |.......... 52 |......... 718 |.......... 20 |
8. 1992 |......... 182 |........... 0 |........... 1 |.......... 68 |....... 1,697 |.......... 52 |
9. 1993 |......... 246 |........... 0 |........... 1 |.......... 61 |....... 3,131 |.......... 59 |
10. 1994 |......... 437 |........... 0 |........... 2 |......... 100 |....... 5,939 |......... 123 |
11. 1995 |......... 730 |........... 0 |........... 4 |......... 192 |....... 7,986 |......... 281 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|....... 1,865 |........... 0 |.......... 10 |......... 473 |...... 20,105 |......... 542 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |......... 2,593 |.......... 137 |........ 2,456 |........ 124.4 |......... 12.2 |......... 255.3 |
3. 1987 |......... 4,008 |.......... 311 |........ 3,697 |......... 73.6 |......... 23.5 |.......... 89.6 |
4. 1988 |......... 4,361 |.......... 366 |........ 3,995 |......... 67.2 |......... 23.7 |.......... 80.8 |
5. 1989 |......... 4,409 |.......... 284 |........ 4,125 |......... 60.6 |......... 33.1 |.......... 64.3 |
6. 1990 |......... 5,927 |.......... 178 |........ 5,749 |......... 65.3 |......... 20.3 |.......... 70.1 |
7. 1991 |......... 7,531 |.......... 110 |........ 7,421 |......... 70.3 |......... 25.4 |.......... 72.2 |
8. 1992 |......... 8,332 |........... 84 |........ 8,248 |......... 70.6 |......... 13.1 |.......... 73.9 |
9. 1993 |......... 9,339 |........... 56 |........ 9,283 |......... 75.7 |......... 11.2 |.......... 78.5 |
10. 1994 |......... 9,851 |.......... 193 |........ 9,658 |......... 75.3 |......... 45.0 |.......... 76.3 |
11. 1995 |........ 10,002 |.......... 135 |........ 9,867 |......... 74.4 |......... 32.3 |.......... 75.8 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 20 |............ 19 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............ 23 |............ 21 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 126 |............ 29 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............ 59 |............ 48 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 221 |............ 68 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |........... 581 |........... 137 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 1,447 |........... 250 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 2,824 |........... 307 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 5,402 |........... 537 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 7,064 |........... 922 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |........ 17,767 |......... 2,338 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
78
<PAGE> 7
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |........... 77 |........... 48 |............. 2 |............. 0 |
2. 1986 |.......... 973 |........... 79 |.......... 894 |.......... 633 |........... 39 |............ 21 |............. 2 |
3. 1987 |........ 1,952 |........... 50 |........ 1,902 |.......... 937 |............ 0 |............ 62 |............. 0 |
4. 1988 |........ 3,755 |........... 81 |........ 3,674 |........ 1,764 |............ 0 |........... 145 |............. 0 |
5. 1989 |........ 4,196 |........... 85 |........ 4,111 |........ 3,406 |.......... 222 |........... 291 |............. 2 |
6. 1990 |........ 4,997 |........... 98 |........ 4,899 |........ 3,764 |............ 1 |........... 221 |............. 0 |
7. 1991 |........ 5,472 |.......... 179 |........ 5,293 |........ 3,032 |............ 0 |........... 184 |............. 0 |
8. 1992 |........ 6,238 |.......... 304 |........ 5,934 |........ 4,116 |.......... 601 |........... 191 |............ 16 |
9. 1993 |........ 8,386 |.......... 452 |........ 7,934 |........ 3,881 |............ 0 |........... 182 |............ (1)|
10. 1994 |....... 10,750 |.......... 789 |........ 9,961 |........ 2,623 |............ 0 |........... 137 |............. 0 |
11. 1995 |....... 12,597 |.......... 859 |....... 11,738 |........ 1,519 |............ 0 |........... 154 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |....... 25,752 |.......... 911 |......... 1,590 |............ 19 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............ 24 |............. 2 |........... 33 | X X X |
2. 1986 |............. 0 |............ 86 |.......... 699 |.......... 175 |
3. 1987 |............. 0 |........... 110 |........ 1,109 |.......... 390 |
4. 1988 |............ 20 |........... 114 |........ 2,023 |.......... 521 |
5. 1989 |............. 0 |........... 168 |........ 3,641 |.......... 516 |
6. 1990 |............. 0 |........... 178 |........ 4,162 |.......... 533 |
7. 1991 |............. 2 |........... 171 |........ 3,387 |.......... 439 |
8. 1992 |............ 57 |........... 227 |........ 3,917 |.......... 469 |
9. 1993 |............ 14 |........... 259 |........ 4,323 |.......... 579 |
10. 1994 |............ 31 |........... 289 |........ 3,049 |.......... 631 |
11. 1995 |............. 1 |........... 316 |........ 1,989 |.......... 565 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|........... 149 |......... 1,920 |....... 28,332 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |......... 860 |......... 454 |.......... 33 |........... 0 |........... 0 |........... 0 |
2. 1986 |.......... 11 |........... 0 |.......... 17 |........... 0 |........... 0 |........... 0 |
3. 1987 |.......... 86 |........... 0 |.......... 17 |........... 1 |........... 0 |........... 0 |
4. 1988 |......... 103 |........... 0 |.......... 40 |........... 2 |........... 0 |........... 0 |
5. 1989 |......... 163 |........... 0 |.......... 59 |........... 4 |........... 0 |........... 0 |
6. 1990 |......... 703 |........... 0 |.......... 89 |........... 7 |........... 0 |........... 0 |
7. 1991 |....... 1,724 |......... 339 |......... 157 |.......... 58 |........... 0 |........... 0 |
8. 1992 |....... 1,756 |......... 249 |......... 228 |.......... 68 |........... 0 |........... 0 |
9. 1993 |....... 1,802 |........... 0 |......... 334 |......... 114 |........... 0 |........... 0 |
10. 1994 |....... 3,251 |........... 0 |....... 1,808 |......... 271 |........... 0 |........... 0 |
11. 1995 |....... 3,221 |........... 0 |....... 4,386 |......... 284 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|...... 13,680 |....... 1,042 |....... 7,168 |......... 809 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... 439 |........... 1 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 28 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |......... 102 |........... 4 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |......... 141 |........... 7 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |......... 218 |.......... 12 |
6. 1990 |.......... 16 |........... 0 |........... 0 |........... 0 |......... 801 |.......... 26 |
7. 1991 |.......... 63 |........... 0 |........... 5 |........... 0 |....... 1,547 |.......... 30 |
8. 1992 |.......... 89 |........... 0 |.......... 10 |.......... 17 |....... 1,773 |.......... 54 |
9. 1993 |......... 228 |........... 0 |.......... 19 |.......... 52 |....... 2,302 |.......... 93 |
10. 1994 |......... 389 |........... 0 |.......... 40 |.......... 74 |....... 5,251 |......... 156 |
11. 1995 |......... 476 |........... 0 |.......... 74 |......... 101 |....... 7,900 |......... 248 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|....... 1,261 |........... 0 |......... 148 |......... 244 |...... 20,502 |......... 631 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |........... 769 |........... 41 |.......... 728 |......... 79.0 |......... 51.9 |.......... 81.4 |
3. 1987 |......... 1,212 |............ 1 |........ 1,211 |......... 62.1 |.......... 2.0 |.......... 63.7 |
4. 1988 |......... 2,166 |............ 2 |........ 2,164 |......... 57.7 |.......... 2.5 |.......... 58.9 |
5. 1989 |......... 4,088 |.......... 228 |........ 3,860 |......... 97.4 |........ 268.2 |.......... 93.9 |
6. 1990 |......... 4,971 |............ 8 |........ 4,963 |......... 99.5 |.......... 8.2 |......... 101.3 |
7. 1991 |......... 5,331 |.......... 397 |........ 4,934 |......... 97.4 |........ 221.8 |.......... 93.2 |
8. 1992 |......... 6,625 |.......... 934 |........ 5,691 |........ 106.2 |........ 307.2 |.......... 95.9 |
9. 1993 |......... 6,740 |.......... 114 |........ 6,626 |......... 80.4 |......... 25.2 |.......... 83.5 |
10. 1994 |......... 8,572 |.......... 271 |........ 8,301 |......... 79.7 |......... 34.3 |.......... 83.3 |
11. 1995 |........ 10,172 |.......... 284 |........ 9,888 |......... 80.7 |......... 33.1 |.......... 84.2 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |.......... 213 |............ 0 | X X X |........... 226 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 28 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |........... 102 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 141 |............. 0 |
5. 1989 |........... 64 |............ 0 |.......... 0.0 |........... 154 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 785 |............ 16 |
7. 1991 |.......... 112 |............ 0 |.......... 0.0 |......... 1,372 |............ 63 |
8. 1992 |........... 15 |............ 0 |.......... 0.0 |......... 1,652 |........... 106 |
9. 1993 |........... 56 |............ 0 |.......... 0.0 |......... 1,966 |........... 280 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 4,788 |........... 463 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 7,323 |........... 577 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|.......... 460 |............ 0 | X X X |........ 18,537 |......... 1,505 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
79
<PAGE> 8
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |........... 89 |.......... 286 |............ 35 |............. 0 |
2. 1986 |........ 5,758 |........ 3,113 |........ 2,645 |........ 2,085 |.......... 556 |........... 434 |............. 0 |
3. 1987 |....... 10,867 |........ 3,568 |........ 7,299 |........ 3,788 |.......... 840 |........... 488 |............. 0 |
4. 1988 |....... 12,286 |........ 3,903 |........ 8,383 |........ 3,331 |.......... 411 |........... 352 |............. 0 |
5. 1989 |....... 13,211 |........ 2,277 |....... 10,934 |........ 5,254 |.......... 454 |........... 631 |............. 0 |
6. 1990 |....... 15,525 |........ 2,430 |....... 13,095 |........ 8,546 |........ 1,087 |........... 933 |............ 38 |
7. 1991 |....... 17,516 |........ 1,288 |....... 16,228 |........ 9,837 |.......... 712 |........... 923 |............. 6 |
8. 1992 |....... 17,563 |........ 1,201 |....... 16,362 |........ 7,574 |........... 42 |........... 731 |............. 0 |
9. 1993 |....... 18,952 |........ 1,767 |....... 17,185 |........ 6,660 |........... 24 |........... 664 |............ (2)|
10. 1994 |....... 20,791 |........ 2,220 |....... 18,571 |....... 11,194 |.......... 562 |........... 555 |............. 2 |
11. 1995 |....... 22,405 |........ 2,365 |....... 20,040 |........ 5,197 |.......... 379 |........... 163 |............. 1 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |....... 63,555 |........ 5,353 |......... 5,909 |............ 45 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ (7)|......... (169)| X X X |
2. 1986 |............ 64 |........... 110 |........ 2,073 |.......... 832 |
3. 1987 |........... 102 |........... 229 |........ 3,665 |........ 1,132 |
4. 1988 |......... 1,545 |........... 314 |........ 3,586 |........ 1,232 |
5. 1989 |............ 79 |........... 338 |........ 5,769 |........ 1,404 |
6. 1990 |........... 136 |........... 416 |........ 8,770 |........ 1,796 |
7. 1991 |........... 148 |........... 563 |....... 10,605 |........ 2,247 |
8. 1992 |........... 144 |........... 521 |........ 8,784 |........ 2,241 |
9. 1993 |........... 206 |........... 533 |........ 7,835 |........ 2,330 |
10. 1994 |........... 199 |........... 721 |....... 11,906 |........ 2,592 |
11. 1995 |............ 77 |........... 625 |........ 5,605 |........ 1,696 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|......... 2,700 |......... 4,363 |....... 68,429 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |......... 229 |.......... 50 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |.......... 45 |.......... 13 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |......... 168 |.......... 58 |.......... 24 |.......... 13 |........... 0 |........... 0 |
4. 1988 |.......... 82 |.......... 14 |.......... 69 |.......... 21 |........... 0 |........... 0 |
5. 1989 |......... 120 |........... 5 |......... 103 |.......... 49 |........... 0 |........... 0 |
6. 1990 |......... 629 |.......... 65 |......... 109 |.......... 84 |........... 0 |........... 0 |
7. 1991 |....... 1,535 |.......... 45 |......... 262 |.......... 83 |........... 0 |........... 0 |
8. 1992 |....... 1,321 |........... 0 |......... 487 |......... 120 |........... 0 |........... 0 |
9. 1993 |....... 2,621 |........... 0 |......... 486 |......... 232 |........... 0 |........... 0 |
10. 1994 |....... 4,499 |........... 0 |......... 657 |......... 446 |........... 0 |........... 0 |
11. 1995 |....... 3,882 |......... 471 |....... 2,747 |......... 566 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|...... 15,131 |......... 721 |....... 4,944 |....... 1,614 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |......... 179 |........... 1 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 32 |.......... 12 |
3. 1987 |........... 7 |........... 0 |........... 2 |........... 0 |......... 128 |........... 7 |
4. 1988 |.......... 46 |........... 0 |.......... 29 |........... 0 |......... 162 |........... 6 |
5. 1989 |........... 2 |........... 0 |........... 7 |........... 0 |......... 171 |.......... 13 |
6. 1990 |........... 5 |........... 0 |.......... 17 |........... 0 |......... 594 |.......... 33 |
7. 1991 |.......... 29 |........... 0 |.......... 24 |........... 0 |....... 1,698 |.......... 53 |
8. 1992 |......... 188 |........... 0 |.......... 51 |.......... 25 |....... 1,901 |.......... 79 |
9. 1993 |......... 316 |........... 0 |.......... 97 |.......... 55 |....... 3,246 |......... 147 |
10. 1994 |......... 467 |........... 0 |......... 202 |.......... 29 |....... 5,206 |......... 239 |
11. 1995 |......... 965 |........... 0 |......... 379 |.......... 95 |....... 6,652 |......... 423 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|....... 2,025 |........... 0 |......... 808 |......... 204 |...... 19,969 |....... 1,013 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |......... 2,674 |.......... 570 |........ 2,104 |......... 46.4 |......... 18.3 |.......... 79.5 |
3. 1987 |......... 4,703 |.......... 912 |........ 3,791 |......... 43.3 |......... 25.6 |.......... 51.9 |
4. 1988 |......... 4,194 |.......... 446 |........ 3,748 |......... 34.1 |......... 11.4 |.......... 44.7 |
5. 1989 |......... 6,448 |.......... 509 |........ 5,939 |......... 48.8 |......... 22.4 |.......... 54.3 |
6. 1990 |........ 10,638 |........ 1,274 |........ 9,364 |......... 68.5 |......... 52.4 |.......... 71.5 |
7. 1991 |........ 13,150 |.......... 846 |....... 12,304 |......... 75.1 |......... 65.7 |.......... 75.8 |
8. 1992 |........ 10,848 |.......... 162 |....... 10,686 |......... 61.8 |......... 13.5 |.......... 65.3 |
9. 1993 |........ 11,337 |.......... 254 |....... 11,083 |......... 59.8 |......... 14.4 |.......... 64.5 |
10. 1994 |........ 18,122 |........ 1,010 |....... 17,112 |......... 87.2 |......... 45.5 |.......... 92.1 |
11. 1995 |........ 13,675 |........ 1,418 |....... 12,257 |......... 61.0 |......... 60.0 |.......... 61.2 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |........... 179 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 32 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |........... 121 |............. 7 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 116 |............ 46 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 169 |............. 2 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 589 |............. 5 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,669 |............ 29 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 1,688 |........... 213 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 2,875 |........... 371 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 4,710 |........... 496 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 5,592 |......... 1,060 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |........ 17,740 |......... 2,229 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
80
<PAGE> 9
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 |
4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 |
5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 |
6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 |
7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 |
8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 |
9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 |
10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 |
11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
81
<PAGE> 10
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 |
4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 |
5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 |
6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 |
7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 |
8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 |
9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 |
10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 |
11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
82
<PAGE> 11
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 | X X X |
3. 1987 |............. 0 |............. 0 |............ 0 | X X X |
4. 1988 |............. 0 |............. 0 |............ 0 | X X X |
5. 1989 |............. 0 |............. 0 |............ 0 | X X X |
6. 1990 |............. 0 |............. 0 |............ 0 | X X X |
7. 1991 |............. 0 |............. 0 |............ 0 | X X X |
8. 1992 |............. 0 |............. 0 |............ 0 | X X X |
9. 1993 |............. 0 |............. 0 |............ 0 | X X X |
10. 1994 |............. 0 |............. 0 |............ 0 | X X X |
11. 1995 |............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
83
<PAGE> 12
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |........... 46 |........... 16 |............ 10 |............. 0 |
2. 1986 |........ 4,509 |........ 2,797 |........ 1,712 |........ 1,384 |.......... 429 |........... 372 |............. 0 |
3. 1987 |........ 7,091 |........ 2,294 |........ 4,797 |........ 1,800 |.......... 348 |........... 280 |............. 0 |
4. 1988 |........ 8,132 |........ 2,946 |........ 5,186 |........ 2,004 |.......... 287 |........... 431 |............. 0 |
5. 1989 |........ 9,072 |........ 2,348 |........ 6,724 |........ 2,254 |.......... 174 |........... 451 |............. 0 |
6. 1990 |....... 10,341 |........ 2,556 |........ 7,785 |........ 3,554 |.......... 668 |......... 1,553 |........... 554 |
7. 1991 |....... 10,546 |........ 1,998 |........ 8,548 |........ 2,853 |........... 19 |........... 398 |............. 0 |
8. 1992 |........ 9,740 |........ 1,583 |........ 8,157 |........ 1,421 |............ 0 |........... 362 |............. 0 |
9. 1993 |........ 9,051 |........ 1,635 |........ 7,416 |........ 1,075 |............ 0 |........... 175 |............. 0 |
10. 1994 |........ 9,148 |........ 1,882 |........ 7,266 |.......... 873 |............ 0 |............ 72 |............. 0 |
11. 1995 |........ 8,729 |........ 1,981 |........ 6,748 |.......... 411 |............ 0 |............ 27 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |....... 17,675 |........ 1,941 |......... 4,131 |........... 554 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 2 |........... 42 | X X X |
2. 1986 |............. 0 |............ 78 |........ 1,405 |.......... 489 |
3. 1987 |............. 0 |........... 107 |........ 1,839 |.......... 584 |
4. 1988 |............. 0 |........... 109 |........ 2,257 |.......... 624 |
5. 1989 |............ 31 |........... 121 |........ 2,652 |.......... 927 |
6. 1990 |............. 0 |........... 125 |........ 4,010 |.......... 721 |
7. 1991 |............. 4 |........... 181 |........ 3,413 |.......... 770 |
8. 1992 |............. 4 |........... 129 |........ 1,912 |.......... 695 |
9. 1993 |............. 1 |........... 135 |........ 1,385 |.......... 569 |
10. 1994 |............. 0 |........... 115 |........ 1,060 |.......... 592 |
11. 1995 |............. 1 |............ 99 |.......... 537 |.......... 386 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............ 41 |......... 1,201 |....... 20,512 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |......... 157 |......... 246 |.......... 28 |........... 0 |........... 0 |........... 0 |
2. 1986 |.......... 90 |.......... 40 |.......... 11 |........... 0 |........... 0 |........... 0 |
3. 1987 |.......... 25 |........... 7 |........... 8 |........... 7 |........... 0 |........... 0 |
4. 1988 |......... 273 |.......... 49 |.......... 45 |.......... 15 |........... 0 |........... 0 |
5. 1989 |......... 381 |.......... 52 |.......... 70 |........... 5 |........... 0 |........... 0 |
6. 1990 |......... 427 |.......... 26 |......... 150 |........... 7 |........... 0 |........... 0 |
7. 1991 |......... 934 |......... 112 |......... 500 |.......... 17 |........... 0 |........... 0 |
8. 1992 |....... 2,241 |......... 162 |......... 589 |.......... 44 |........... 0 |........... 0 |
9. 1993 |....... 2,074 |.......... 90 |....... 1,229 |.......... 48 |........... 0 |........... 0 |
10. 1994 |....... 1,403 |........... 0 |....... 1,839 |......... 111 |........... 0 |........... 0 |
11. 1995 |......... 730 |........... 0 |....... 2,492 |......... 105 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|....... 8,735 |......... 784 |....... 6,961 |......... 359 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 2 |........... 0 |........... 0 |........... 0 |......... (59)|........... 2 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |.......... 61 |........... 2 |
3. 1987 |.......... 42 |........... 0 |........... 0 |........... 0 |.......... 61 |........... 2 |
4. 1988 |.......... 33 |........... 0 |........... 0 |........... 0 |......... 287 |.......... 13 |
5. 1989 |.......... 49 |........... 0 |........... 0 |........... 0 |......... 443 |........... 9 |
6. 1990 |.......... 42 |........... 0 |........... 0 |........... 0 |......... 586 |.......... 22 |
7. 1991 |......... 267 |........... 0 |........... 0 |.......... 49 |....... 1,621 |.......... 30 |
8. 1992 |......... 317 |........... 0 |........... 3 |.......... 60 |....... 3,001 |.......... 38 |
9. 1993 |......... 363 |........... 0 |........... 5 |.......... 41 |....... 3,569 |.......... 40 |
10. 1994 |......... 452 |........... 0 |.......... 11 |.......... 68 |....... 3,651 |.......... 47 |
11. 1995 |......... 458 |........... 0 |.......... 20 |.......... 84 |....... 3,659 |.......... 64 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|....... 2,025 |........... 0 |.......... 39 |......... 302 |...... 16,880 |......... 269 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |......... 1,936 |.......... 469 |........ 1,467 |......... 42.9 |......... 16.8 |.......... 85.7 |
3. 1987 |......... 2,262 |.......... 361 |........ 1,901 |......... 31.9 |......... 15.7 |.......... 39.6 |
4. 1988 |......... 2,896 |.......... 351 |........ 2,545 |......... 35.6 |......... 11.9 |.......... 49.1 |
5. 1989 |......... 3,326 |.......... 231 |........ 3,095 |......... 36.7 |.......... 9.8 |.......... 46.0 |
6. 1990 |......... 5,850 |........ 1,255 |........ 4,595 |......... 56.6 |......... 49.1 |.......... 59.0 |
7. 1991 |......... 5,182 |.......... 148 |........ 5,034 |......... 49.1 |.......... 7.4 |.......... 58.9 |
8. 1992 |......... 5,118 |.......... 206 |........ 4,912 |......... 52.5 |......... 13.0 |.......... 60.2 |
9. 1993 |......... 5,092 |.......... 138 |........ 4,954 |......... 56.3 |.......... 8.4 |.......... 66.8 |
10. 1994 |......... 4,822 |.......... 111 |........ 4,711 |......... 52.7 |.......... 5.9 |.......... 64.8 |
11. 1995 |......... 4,300 |.......... 105 |........ 4,195 |......... 49.3 |.......... 5.3 |.......... 62.2 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |........... (61)|............. 2 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............ 61 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............ 19 |............ 42 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |........... 254 |............ 33 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |........... 394 |............ 49 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |........... 544 |............ 42 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |......... 1,305 |........... 316 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |......... 2,624 |........... 377 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |......... 3,165 |........... 404 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |......... 3,131 |........... 520 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |......... 3,117 |........... 542 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |........ 14,553 |......... 2,327 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
84
<PAGE> 13
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 |
4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 |
5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 |
6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 |
7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 |
8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 |
9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 |
10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 |
11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
85
<PAGE> 14
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |........... 23 |............ 0 |............ 5 |........... 0 |
2. 1994 ........... 770 |.......... 136 |........... 634 |.......... 199 |............ 0 |........... 11 |........... 0 |
3. 1995 ........... 898 |........... 98 |........... 800 |.......... 172 |............ 0 |............ 5 |........... 0 |
- -----------------------------------------------------------------------------------------------------------------------------|
4. TOTALS X X X | X X X | X X X |.......... 394 |............ 0 |.......... 21 |........... 0 |
- -------------------------------------------------------------------------------------------------------------------------------
<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 |............ 1 |........... 29 | X X X |
2. 1994 | ............ (3)|........... 13 |.......... 223 | X X X |
3. 1995 | ............. 0 |........... 16 |.......... 193 | X X X |
- ------------|-----------------------------------------------------------------------|
4. TOTALS | ............ (1)|........... 30 |.......... 445 | X X X |
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================
| LOSSES UNPAID |
|------------------------------------------------------------
| CASE BASIS | BULK + IBNR |
|------------------------------------------------------------
| (13) | (14) | (15) | (16) |
| Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior |.......... 21 |........... 0 |......... 191 |.......... 18 |
2. 1994 |.......... 32 |........... 0 |......... 155 |.......... 22 |
3. 1995 |.......... 66 |........... 0 |......... 215 |.......... 29 |
- ------------------------------------------------------------------------
4. TOTALS|......... 119 |........... 0 |........ 561 |.......... 69 |
- ------------------------------------------------------------------------
<CAPTION>
=========== ========================================================================================================================
| ALLOCATED LOSS EXPENSES UNPAID | (21) | (22) | (23) | (24) |
-----------------------------------------------------------| | | | |
| CASE BASIS | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
-----------------------------------------------------------| Subrogation | Loss | Losses and | Claims |
| (17) | (18) | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | Assumed | Ceded | | | | Assumed |
- ----------- |----------------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior |.......... 0 |........... 0 |.......... 40 |........... 0 |........... 0 |........... 5 |......... 239 |........... 0 |
2. 1994 |.......... 0 |........... 0 |.......... 14 |........... 0 |........... 0 |........... 6 |......... 185 |........... 2 |
3. 1995 |.......... 0 |........... 0 |.......... 31 |........... 0 |........... 0 |........... 4 |......... 287 |.......... 12 |
- ----------- |----------------------------------------------------------------------------------------------------------------------|
4. TOTALS |.......... 0 |........... 0 |.......... 85 |........... 0 |........... 0 |.......... 15 |......... 711 |.......... 14 |
- ----------- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 |.......... 431 |........... 22 |.......... 409 |......... 56.0 |......... 16.2 |......... 64.5 |
3. 1995 |.......... 510 |........... 29 |.......... 481 |......... 56.8 |......... 29.6 |......... 60.1 |
- ------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
=================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
| ---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior | ............. 0 |............. 0 | X X X |.......... 194 |........... 45 |
2. 1994 | ............. 0 |............. 0 |..............0.0|.......... 165 |........... 20 |
3. 1995 | ............. 0 |............. 0 |..............0.0|.......... 252 |........... 35 |
- ------------------------------------------------------------------------------------------------|
4. TOTALS| ............. 0 |............. 0 | X X X |.......... 611 |.......... 100 |
- -------------------------------------------------------------------------------------------------
</TABLE>
86
<PAGE> 15
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
($000 Omitted)
<TABLE>
<CAPTION>
===============================================================================================
(1) | PREMIUMS EARNED | |
Years in |-------------------------------------------------|---------------------------------|
Which | (2) | (3) | (4) | LOSS PAYMENTS |
Premiums | | | | --------------------------------
Were Earned| Direct and | Ceded | Net | (5) | (6) |
and Losses | Assumed | | (Cols. 2 - 3) | Direct and | |
Were Incur.| | | | Assumed | Ceded |
- -------------------------------------------------------------- --------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | ......... (108)|........... 0 |
2. 1994 |........ 14,287 |.......... 496 |........ 13,791 | ......... 6,269 |........... 44 |
3. 1995 |........ 14,682 |.......... 489 |........ 14,193 | ......... 6,368 |........... 56 |
- ------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X | ........ 12,529 |.......... 100 |
- ------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================================
(1) | LOSS AND LOSS EXPENSE PAYMENTS | (12) |
Years in |-------------------------------------------------------------------------------------------------
Which |ALLOCATED LOSS EXPENSE PAYMENTS| (9) | (10) | (11) | Number of |
Premiums |-------------------------------| | | Total | Claims |
Were Earned| (7) | (8) | Salvage and | Unallocated | Net Paid | Reported - |
and Losses | Direct and | | Subrogation | Loss Expense | (Cols. 5 - 6 | Direct and |
Were Incur.| Assumed | Ceded | Received | Payments | + 7 - 8 + 10) | Assumed |
- -------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........... 20 |.............0 |.......... 140 |............ 1 |.......... (87)| X X X |
2. 1994 |.......... 150 |............ 1 |........ 1,198 |.......... 474 |........ 6,848 | .............0 |
3. 1995 |........... 98 |.............0 |.......... 451 |.......... 524 |........ 6,934 | .............0 |
- -------------------------------------------------------------------------------------------------------------|
4. TOTALS|.......... 268 |............ 1 |........ 1,789 |.......... 999 |....... 13,695 | X X X |
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================
| LOSSES UNPAID |
|------------------------------------------------------------
| CASE BASIS | BULK + IBNR |
|------------------------------------------------------------
| (13) | (14) | (15) | (16) |
| Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Prior |.......... 43 |............0 |......... 249 |............0 |
2. 1994 |.......... 60 |........... 8 |......... 481 |........... 1 |
3. 1995 |......... 682 |.......... 16 |......... 399 |........... 0 |
- ------------------------------------------------------------------------
4. TOTALS|......... 785 |.......... 24 |....... 1,129 |........... 1 |
- ------------------------------------------------------------------------
<CAPTION>
==================================================================================================================================
| ALLOCATED LOSS EXPENSES UNPAID | (21) | (22) | (23) | (24) |
|-----------------------------------------------------------| | | | |
| CASE BASIS | BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------------------------------------| Subrogation | Loss | Losses and | Claims |
| (17) | (18) | (19) | (20) | Anticipated | Expenses | Expenses |Outstanding-|
| Direct and | | Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | Assumed | Ceded | | | | Assumed |
- ---------------------------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Prior |............0 |............0 |......... 176 |............0 |.......... 98 |......... 212 |......... 680 |......... 146 |
2. 1994 |............0 |............0 |.......... 87 |............0 |......... 143 |......... 124 |......... 743 |......... 123 |
3. 1995 |............0 |............0 |......... 129 |............0 |......... 610 |.......... 59 |....... 1,253 |......... 495 |
- ---------------------------------------------------------------------------------------------------------------------------------|
4. TOTALS|............0 |............0 |......... 392 |............0 |......... 851 |......... 395 |....... 2,676 |......... 764 |
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 |........ 7,645 |........... 52 |........ 7,593 |......... 53.5 |......... 10.5 |......... 55.1 |
3. 1995 |........ 8,260 |........... 72 |........ 8,188 |......... 56.3 |......... 14.7 |......... 57.7 |
- ------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |..............0 |..............0 | X X X |.......... 292 |.......... 388 |
2. 1994 |..............0 |..............0 |.............0.0 |.......... 532 |.......... 211 |
3. 1995 |..............0.|..............0 |.............0.0 |........ 1,065 |.......... 188 |
- -----------------------------------------------------------------------------------------------|
4. TOTALS|..............0 |..............0 | X X X |........ 1,889 |.......... 787 |
- ------------------------------------------------------------------------------------------------
</TABLE>
87
<PAGE> 16
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 | Ceded |
Were Incur.| | | | Assumed | Ceded | Assumed | |
- -----------------------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X |............. 0|............. 0|............. 0|............. 0|
2. 1994 |.............. 3|............. 0|.............. 3|............. 0|............. 0|............. 0|............. 0|
3. 1995 |.............. 0|............. 0|.............. 0|............. 0|............. 0|............. 0|............. 0|
- ------------------------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X |............. 0|............. 0|............. 0|............. 0|
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0|............. 0|............. 0| X X X |
2. 1994 |............. 0|............. 0|............. 0| X X X |
3. 1995 |............. 0|............. 0|............. 0| X X X |
- -----------------------------------------------------------------------------|
4. TOTALS|............. 0|............. 0|............. 0| 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 |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0|
2. 1994 |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0|
3. 1995 |............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0|
- ----------------------------------------------------------------------------------------------------------------------------------
4. TOTALS|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|............ 0|.......... 0|
- ----------------------------------------------------------------------------------------------------------------------------------
<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 |........... 0|............ 0|............ 0|............ 0|
2. 1994 |........... 0|............ 0|............ 0|............ 0|
3. 1995 |........... 0|............ 0|............ 0|............ 0|
- ----------------------------------------------------------------------|
4. TOTALS|........... 0|............ 0|............ 0|............ 0|
- -----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
| (25) | (26) | (27) | (28) | (29) | (30) |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- -----------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 |............. 0|............. 0|............. 0|............. 0|............. 0|............. 0|
3. 1995 |............. 0|............. 0|............. 0|............. 0|............. 0|............. 0|
- -----------------------------------------------------------------------------------------------------------|
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
===============================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |.............. 0|.............. 0| X X X |............. 0|............. 0|
2. 1994 |.............. 0|.............. 0|............... 0|............. 0|............. 0|
3. 1995 |.............. 0|.............. 0|............... 0|............. 0|............. 0|
- -----------------------------------------------------------------------------------------------|
4. TOTALS|.............. 0|.............. 0| X X X |............. 0|............. 0|
- ------------------------------------------------------------------------------------------------
</TABLE>
88
<PAGE> 17
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 | Ceded |
Were Incur.| | | | Assumed | Ceded | Assumed | |
- -----------------------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X |.............0 |.............0 |.............0 |.............0 |
2. 1994 |............ 52 |.............0 |............ 52 |........... 23 |.............0 |.............0 |.............0 |
3. 1995 |............ 30 |.............0 |............ 30 |........... 18 |.............0 |.............0 |.............0 |
- -----------------------------------------------------------------------------------------------------------------------------|
4. TOTALS| X X X | X X X | X X X |........... 41 |.............0 |.............0 |.............0 |
- -----------------------------------------------------------------------------------------------------------------------------|
<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 | .............0 |.............0 |.............0 | X X X |
2. 1994 | .............0 |............ 1 |........... 24 | X X X |
3. 1995 | .............0 |............ 2 |........... 20 | X X X |
- ------------------------------------------------------------------------------|
4. TOTALS|..............0 |............ 3 |........... 44 | 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 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |
2. 1994 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |
3. 1995 |........... 1 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |
- -----------------------------------------------------------------------------------------------------------------------------------|
4. TOTALS|........... 1 |............0 |............0 |............0 |............0 |............0 |............0 |............0 |
- -----------------------------------------------------------------------------------------------------------------------------------
<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 | ............0 |............0 |............0 |........... 1 |
2. 1994 | ............0 |............0 |............0 |............0 |
3. 1995 | ............0 |............0 |........... 1 |............0 |
- ------------------------------------------------------------------------|
4. TOTALS| ............0 |............0 |........... 1 |........... 1 |
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|-----------------------------------------------------------------------------------------------|
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- -----------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 |........... 24 |.............0 |........... 24 |......... 46.2 |.............0 |......... 46.2 |
3. 1995 |........... 21 |.............0 |........... 21 |......... 70.0 |.............0 |......... 70.0 |
- -----------------------------------------------------------------------------------------------------------|
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
==================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
| ---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- --------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |.................0 |..............0 | X X X |.............0 |.............0 |
2. 1994 |.................0 |..............0 |...............0 |.............0 |.............0 |
3. 1995 |.................0 |..............0 |...............0 |............ 1 |.............0 |
- --------------------------------------------------------------------------------------------------|
4. TOTALS|.................0 |..............0 | X X X |............ 1 |.............0 |
- ---------------------------------------------------------------------------------------------------
</TABLE>
89
<PAGE> 18
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |..............0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================
(1) |AYMENTS | (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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 | X X X |
3. 1987 |............. 0 |............. 0 |............ 0 | X X X |
4. 1988 |............. 0 |............. 0 |............ 0 | X X X |
5. 1989 |............. 0 |............. 0 |............ 0 | X X X |
6. 1990 |............. 0 |............. 0 |............ 0 | X X X |
7. 1991 |............. 0 |............. 0 |............ 0 | X X X |
8. 1992 |............. 0 |............. 0 |............ 0 | X X X |
9. 1993 |............. 0 |............. 0 |............ 0 | X X X |
10. 1994 |............. 0 |............. 0 |............ 0 | X X X |
11. 1995 |............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | 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 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------------
| | | | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | |
- -----------------------------------------------------------------------|
| | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |
| | | | |
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
| -------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior | ............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ------------ ---------------------------------------------------------------------------------|
| | | | | |
12. TOTALS| ............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- -----------------------------------------------------------------------------------------------
</TABLE> 90
<PAGE> 19
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE COMPANY
OF NEW HAMPSHIRE, INC.
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 | |
Were Incur.| | | | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
| | | | | | | |
1. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |..............0 |............. 0 |
8. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================
(1) |AYMENTS | (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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1989 |............. 0 |............. 0 |............ 0 | X X X |
3. 1990 |............. 0 |............. 0 |............ 0 | X X X |
4. 1991 |............. 0 |............. 0 |............ 0 | X X X |
5. 1992 |............. 0 |............. 0 |............ 0 | X X X |
6. 1993 |............. 0 |............. 0 |............ 0 | X X X |
7. 1994 |............. 0 |............. 0 |............ 0 | X X X |
8. 1995 |............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
9. TOTALS|............. 0 |............. 0 |............ 0 | 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 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------------
| | | | | | | | |
9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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 |........... 0 |........... 0 |........... 0 | X X X |
2. 1989 |........... 0 |........... 0 |........... 0 | X X X |
3. 1990 |........... 0 |........... 0 |........... 0 | X X X |
4. 1991 |........... 0 |........... 0 |........... 0 | X X X |
5. 1992 |........... 0 |........... 0 |........... 0 | X X X |
6. 1993 |........... 0 |........... 0 |........... 0 | X X X |
7. 1994 |........... 0 |........... 0 |........... 0 | X X X |
8. 1995 |........... 0 |........... 0 |........... 0 | X X X |
| | | | |
- -----------------------------------------------------------------------|
| | | | |
9. TOTALS|........... 0 |........... 0 |........... 0 | X X X |
| | | | |
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
2. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
| -------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. 1988 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
2. 1989 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1990 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1991 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1992 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1993 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1994 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1995 | ............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ------------ ---------------------------------------------------------------------------------|
| | | | | |
9. TOTALS| ............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- -----------------------------------------------------------------------------------------------
</TABLE>
91
<PAGE> 20
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 1O - 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 | | 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 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
2. 1989 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
3. 1990 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
4. 1991 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
5. 1992 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
6. 1993 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
7. 1994 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
8. 1995 |............. 0 |............ 0 |............. 0 |............ 0 |............ 0 |............ 0 |............ 0 |
- ------------------------------------------------------------------------------------------------------------------------------
9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............ 0 |............ 0 |
- ------------------------------------------------------------------------------------------------------------------------------
<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. 1988 |............ 0 |............ 0 |............ 0 | X X X |
2. 1989 |............ 0 |............ 0 |............ 0 | X X X |
3. 1990 |............ 0 |............ 0 |............ 0 | X X X |
4. 1991 |............ 0 |............ 0 |............ 0 | X X X |
5. 1992 |............ 0 |............ 0 |............ 0 | X X X |
6. 1993 |............ 0 |............ 0 |............ 0 | X X X |
7. 1994 |............ 0 |............ 0 |............ 0 | X X X |
8. 1995 |............ 0 |............ 0 |............ 0 | X X X |
- -----------------------------------------------------------------------------|
9. TOTALS|............ 0 |............ 0 |............ 0 | X X X |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
- -----------------------------------------------------------------------------------------------------|
9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|-------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
2. 1989 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
3. 1990 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
4. 1991 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
5. 1992 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
6. 1993 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
7. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
8. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
- ------------------------------------------------------------------------------------------------------------
9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. 1988 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
2. 1989 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
3. 1990 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
4. 1991 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
5. 1992 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
6. 1993 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
7. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
8. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
- -----------------------------------------------------------------------------------------------|
9. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 |
- ------------------------------------------------------------------------------------------------
</TABLE>
92
<PAGE> 21
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
9. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
<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. 1988 |............. 0 |............. 0 |............ 0 | X X X |
2. 1989 |............. 0 |............. 0 |............ 0 | X X X |
3. 1990 |............. 0 |............. 0 |............ 0 | X X X |
4. 1991 |............. 0 |............. 0 |............ 0 | X X X |
5. 1992 |............. 0 |............. 0 |............ 0 | X X X |
6. 1993 |............. 0 |............. 0 |............ 0 | X X X |
7. 1994 |............. 0 |............. 0 |............ 0 | X X X |
8. 1995 |............. 0 |............. 0 |............ 0 | X X X |
- -----------------------------------------------------------------------------|
9. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
2. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
3. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
4. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
5. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
6. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
7. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
8. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
- -----------------------------------------------------------------------------------------------------|
9. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
2. 1989 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
3. 1990 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
4. 1991 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
5. 1992 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
6. 1993 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
7. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
8. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
- ------------------------------------------------------------------------------------------------------------
9. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |--------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. 1988 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
2. 1989 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
3. 1990 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
4. 1991 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
5. 1992 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
6. 1993 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
7. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
8. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
- -----------------------------------------------------------------------------------------------|
9. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 |
- ------------------------------------------------------------------------------------------------
</TABLE>
93
<PAGE> 22
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 4 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X |............ 4 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............ 0 |............. 0 |............ 4 | X X X |
2. 1986 |............ 0 |............. 0 |............ 0 | X X X |
3. 1987 |............ 0 |............. 0 |............ 0 | X X X |
- ----------------------------------------------------------------------------|
4. TOTALS|............ 0 |............. 0 |............ 4 | X X X |
- -----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior |.......... 30 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
4. TOTALS|.......... 30 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| EXPENSES UNPAID | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |.......... 33 | X X X |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 | X X X |
- -----------------------------------------------------------------------------------------------------|
4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |.......... 33 | X X X |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------
<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 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
3. 1987 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
- ------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |............. 0 |............. 0 | X X X |........... 33 |............ 0 |
2. 1986 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
- -----------------------------------------------------------------------------------------------|
4. TOTALS|............. 0 |............. 0 | X X X |........... 33 |............ 0 |
- ------------------------------------------------------------------------------------------------
</TABLE>
94
<PAGE> 23
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |........... 47 |........... 29 |........... 18 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |........... 69 |........... 22 |........... 47 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |........... 52 |........... 19 |........... 33 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |........... 13 |............ 3 |........... 10 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 8 |............ 2 |............ 6 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |........... 15 |............ 0 |........... 15 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 8 |............ 0 |............ 8 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 9 |............ 0 |............ 9 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |........... 11 |............ 0 |........... 11 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |........... 22 |............ 0 |........... 22 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================
(1) | LOSS AND 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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 |
4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 |
5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 |
6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 |
7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 |
8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 |
9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 |
10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 |
11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 1 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 4 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 3 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 6 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 5 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 6 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |.......... 13 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |.......... 44 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 1 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 4 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 3 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 6 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 2 |........... 7 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 2 |........... 8 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 4 |.......... 17 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 8 |.......... 52 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 1 |............ 0 |............ 1 |.......... 1.4 |.......... 0.0 |........... 2.1 |
4. 1988 |............. 4 |............ 0 |............ 4 |.......... 7.7 |.......... 0.0 |.......... 12.1 |
5. 1989 |............. 3 |............ 0 |............ 3 |......... 23.1 |.......... 0.0 |.......... 30.0 |
6. 1990 |............. 3 |............ 0 |............ 3 |......... 37.5 |.......... 0.0 |.......... 50.0 |
7. 1991 |............. 3 |............ 0 |............ 3 |......... 20.0 |.......... 0.0 |.......... 20.0 |
8. 1992 |............. 7 |............ 0 |............ 7 |......... 87.5 |.......... 0.0 |.......... 87.5 |
9. 1993 |............. 7 |............ 0 |............ 7 |......... 77.8 |.......... 0.0 |.......... 77.8 |
10. 1994 |............. 9 |............ 0 |............ 9 |......... 81.8 |.......... 0.0 |.......... 81.8 |
11. 1995 |............ 18 |............ 0 |........... 18 |......... 81.8 |.......... 0.0 |.......... 81.8 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 1 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 4 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 3 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 6 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 5 |............. 2 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 6 |............. 2 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............ 13 |............. 4 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............ 44 |............. 8 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
95
<PAGE> 24
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
| | | | | | | |
12. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
| | | | | | | |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1986 |............. 0 |............. 0 |............ 0 |............ 0 |
3. 1987 |............. 0 |............. 0 |............ 0 |............ 0 |
4. 1988 |............. 0 |............. 0 |............ 0 |............ 0 |
5. 1989 |............. 0 |............. 0 |............ 0 |............ 0 |
6. 1990 |............. 0 |............. 0 |............ 0 |............ 0 |
7. 1991 |............. 0 |............. 0 |............ 0 |............ 0 |
8. 1992 |............. 0 |............. 0 |............ 0 |............ 0 |
9. 1993 |............. 0 |............. 0 |............ 0 |............ 0 |
10. 1994 |............. 0 |............. 0 |............ 0 |............ 0 |
11. 1995 |............. 0 |............. 0 |............ 0 |............ 0 |
| | | | |
- -----------------------------------------------------------------------------|
| | | | |
12. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
| | | | |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1986 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1987 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
4. 1988 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
5. 1989 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
6. 1990 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
7. 1991 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
8. 1992 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
9. 1993 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
10. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
11. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- -----------------------------------------------------------------------------------------------------|
| | | | | | |
12. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
| | | | | | |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
| TOTAL LOSSES AND LOSS | LOSS AND LOSS EXPENSE PERCENTAGE |
| EXPENSES INCURRED | (Incurred/Premiums Earned) |
|--------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- --------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
3. 1987 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
4. 1988 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
5. 1989 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
6. 1990 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
7. 1991 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
8. 1992 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
9. 1993 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
10. 1994 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
11. 1995 |............. 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |........... 0.0 |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
| | | | | | |
12. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
| | | | | | |
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
==============================================================================================
| DISCOUNT FOR | (33) | NET BALANCE SHEET |
| TIME VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|-------------------------------| Inter-Company |---------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- ---------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | | |
1. Prior |............ 0 |............ 0 | X X X |............. 0 |............. 0 |
2. 1986 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
3. 1987 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
4. 1988 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
5. 1989 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
6. 1990 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
7. 1991 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
8. 1992 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
9. 1993 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
10. 1994 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
11. 1995 |............ 0 |............ 0 |.......... 0.0 |............. 0 |............. 0 |
| | | | | |
- ---------------------------------------------------------------------------------------------|
| | | | | |
12. TOTALS|............ 0 |............ 0 | X X X |............. 0 |............. 0 |
| | | | | |
- ----------------------------------------------------------------------------------------------
</TABLE>
96
<PAGE> 25
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 |............ 0 |............ 0 |............. 0 |............. 0 |
2. 1994 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
3. 1995 |............ 0 |............ 0 |............ 0 |............ 0 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X |............ 0 |............ 0 |............. 0 |............. 0 |
- ------------------------------------------------------------------------------------------------------------------------------
<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 |............. 0 |............. 0 |............ 0 | X X X |
2. 1994 |............. 0 |............. 0 |............ 0 | X X X |
3. 1995 |............. 0 |............. 0 |............ 0 | X X X |
- -----------------------------------------------------------------------------|
4. TOTALS|............. 0 |............. 0 |............ 0 | X X X |
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================
| LOSSES UNPAID | ALLOCATED LOSS EXPENSES UNPAID
|------------------------------------------------------------------------------------------
| CASE BASIS | BULK + IBNR | CASE BASIS |
|------------------------------------------------------------------------------------------
| (13) | (14) | (15) | (16) | (17) | (18) |
| Direct and | | Direct and | | Direct and | |
| Assumed | Ceded | Assumed | Ceded | Assumed | Ceded |
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
<CAPTION>
======================================================================================================
| | (21) | (22) | (23) | (24) |
|-----------------------------| | | | |
| BULK + IBNR | Salvage and | Unallocated | Total Net | Number of |
|-----------------------------| Subrogation | Loss | Losses and | Claims |
| (19) | (20) | Anticipated | Expenses | Expenses |Outstanding - |
| Direct and | | | Unpaid | Unpaid | Direct and |
| Assumed | Ceded | | | | Assumed |
- -----------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
2. 1994 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
3. 1995 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- -----------------------------------------------------------------------------------------------------|
4. TOTALS|........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |........... 0 |
- ------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================
| TOTAL LOSSES AND LOSS EXPENSES INCURRED | LOSS AND LOSS EXPENSE PERCENTAGE |
| | (Incurred/Premiums Earned) |
|------------------------------------------------------------------------------------------------
| (25) | (26) | (27) | (28) | (29) | (30) |
| | | | | | |
| Direct and | Ceded | Net | Direct and | Ceded | Net |
| Assumed | | | Assumed | | |
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior | X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
3. 1995 |............ 0 |............ 0 |............ 0 |.......... 0.0 |.......... 0.0 |.......... 0.0 |
- ------------------------------------------------------------------------------------------------------------
4. TOTALS| X X X | X X X | X X X | X X X | X X X | X X X |
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
================================================================================================
| DISCOUNT FOR TIME | (33) | NET BALANCE SHEET |
| VALUE OF MONEY | | RESERVES AFTER DISCOUNT |
|---------------------------------| Inter-Company |-------------------------------|
| (31) | (32) | Pooling | (34) | (35) |
| | | Participation | | |
| Loss | Loss | Percentage | Losses | Loss Expenses |
| | Expense | | Unpaid | Unpaid |
- -----------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior |............. 0 |............. 0 | X X X |............ 0 |............ 0 |
2. 1994 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
3. 1995 |............. 0 |............. 0 |............ 0.0 |............ 0 |............ 0 |
- -----------------------------------------------------------------------------------------------|
4. TOTALS|............. 0 |............. 0 | X X X |............ 0 |............ 0 |
- ------------------------------------------------------------------------------------------------
</TABLE>
97
<PAGE> 26
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
=========================================================================================================================
(1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED )
|----------------------------------------------------------------------------------------------------
Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
Losses Were | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior .........|.......... 389 |........ 467 |........ 297 |........ 858 |........ 861 |........ 849 |........ 854 |
2. 1986 ..........|........ 2,140 |...... 2,300 |...... 2,021 |...... 2,064 |...... 2,050 |...... 2,024 |...... 2,030 |
3. 1987 ..........| X X X |...... 3,206 |...... 2,370 |...... 2,414 |...... 2,470 |...... 2,362 |...... 2,366 |
4. 1988 ..........| X X X | X X X |...... 3,432 |...... 3,491 |...... 3,306 |...... 3,420 |...... 3,111 |
5. 1989 ..........| X X X | X X X | X X X |...... 3,735 |...... 3,596 |...... 3,630 |...... 3,623 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 3,056 |...... 3,034 |...... 3,148 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,519 |...... 3,694 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 3,086 |
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 .........|........ 853 |........ 853 |........ 853 |.......... 0 |.......... 0 |
2. 1986 ..........|...... 2,030 |...... 2,031 |...... 2,031 |.......... 0 |.......... 1 |
3. 1987 ..........|...... 2,372 |...... 2,400 |...... 2,402 |.......... 2 |......... 30 |
4. 1988 ..........|...... 3,148 |...... 3,146 |...... 3,296 |........ 150 |........ 148 |
5. 1989 ..........|...... 3,663 |...... 3,680 |...... 3,691 |......... 11 |......... 28 |
6. 1990 ..........|...... 3,061 |...... 2,997 |...... 2,968 |........ (29)|........ (93)|
7. 1991 ..........|...... 3,461 |...... 3,589 |...... 3,644 |......... 55 |........ 183 |
8. 1992 ..........|...... 3,134 |...... 2,838 |...... 2,834 |......... (4)|....... (300)|
9. 1993 ..........|...... 3,885 |...... 4,005 |...... 4,093 |......... 88 |........ 208 |
10. 1994 ..........| X X X |...... 4,582 |...... 5,205 |........ 623 | X X X |
11. 1995 ..........| X X X | X X X |...... 4,415 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |........ 896 |........ 205 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|........ 4,583 |...... 4,600 |...... 4,771 |...... 5,207 |...... 5,931 |...... 6,091 |...... 6,026 |
2. 1986 ..........|....... 12,861 |..... 13,097 |..... 12,517 |..... 12,417 |..... 13,718 |..... 13,706 |..... 13,686 |
3. 1987 ..........| X X X |..... 14,891 |..... 17,384 |..... 16,150 |..... 17,321 |..... 17,916 |..... 17,647 |
4. 1988 ..........| X X X | X X X |..... 17,526 |..... 17,832 |..... 19,057 |..... 19,535 |..... 19,311 |
5. 1989 ..........| X X X | X X X | X X X |..... 18,027 |..... 21,844 |..... 22,657 |..... 22,317 |
6. 1990 ..........| X X X | X X X | X X X | X X X |..... 17,233 |..... 19,391 |..... 19,766 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |..... 17,254 |..... 18,684 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |..... 17,075 |
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 .........|...... 6,024 |...... 6,030 |...... 6,062 |......... 32 |......... 38 |
2. 1986 ..........|..... 13,851 |..... 13,991 |..... 14,057 |......... 66 |........ 206 |
3. 1987 ..........|..... 17,577 |..... 17,795 |..... 17,797 |.......... 2 |........ 220 |
4. 1988 ..........|..... 19,336 |..... 19,715 |..... 19,714 |......... (1)|........ 378 |
5. 1989 ..........|..... 22,304 |..... 22,914 |..... 22,942 |......... 28 |........ 638 |
6. 1990 ..........|..... 19,205 |..... 19,723 |..... 19,692 |........ (31)|........ 487 |
7. 1991 ..........|..... 17,464 |..... 17,677 |..... 17,690 |......... 13 |........ 226 |
8. 1992 ..........|..... 18,144 |..... 18,608 |..... 18,785 |........ 177 |........ 641 |
9. 1993 ..........|..... 17,435 |..... 17,513 |..... 18,391 |........ 878 |........ 956 |
10. 1994 ..........| X X X |..... 15,960 |..... 16,658 |........ 698 | X X X |
11. 1995 ..........| X X X | X X X |..... 16,349 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |...... 1,862 |...... 3,790 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|........ 1,365 |...... 1,366 |...... 1,684 |...... 1,769 |...... 1,730 |...... 1,714 |...... 1,633 |
2. 1986 ..........|........ 2,406 |...... 2,703 |...... 2,361 |...... 1,805 |...... 2,320 |...... 2,379 |...... 2,291 |
3. 1987 ..........| X X X |...... 3,198 |...... 3,987 |...... 3,817 |...... 3,231 |...... 3,336 |...... 3,296 |
4. 1988 ..........| X X X | X X X |...... 4,635 |...... 4,373 |...... 3,781 |...... 3,438 |...... 3,644 |
5. 1989 ..........| X X X | X X X | X X X |...... 4,994 |...... 4,539 |...... 4,061 |...... 3,614 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 4,674 |...... 5,207 |...... 5,096 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 5,970 |...... 6,764 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 7,666 |
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 .........|...... 1,649 |...... 1,715 |...... 1,676 |........ (39)|......... 27 |
2. 1986 ..........|...... 2,302 |...... 2,301 |...... 2,295 |......... (6)|......... (7)|
3. 1987 ..........|...... 3,462 |...... 3,479 |...... 3,471 |......... (8)|.......... 9 |
4. 1988 ..........|...... 3,796 |...... 3,799 |...... 3,776 |........ (23)|........ (20)|
5. 1989 ..........|...... 3,949 |...... 3,970 |...... 3,909 |........ (61)|........ (40)|
6. 1990 ..........|...... 5,068 |...... 5,330 |...... 5,453 |........ 123 |........ 385 |
7. 1991 ..........|...... 7,267 |...... 6,902 |...... 7,021 |........ 119 |....... (246)|
8. 1992 ..........|...... 7,193 |...... 7,659 |...... 7,802 |........ 143 |........ 609 |
9. 1993 ..........|...... 8,091 |...... 8,733 |...... 8,812 |......... 79 |........ 721 |
10. 1994 ..........| X X X |...... 8,943 |...... 9,158 |........ 215 | X X X |
11. 1995 ..........| X X X | X X X |...... 9,387 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |........ 542 |...... 1,438 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|........ 1,597 |...... 2,035 |...... 1,832 |...... 1,750 |...... 1,968 |...... 2,124 |...... 2,108 |
2. 1986 ..........|.......... 595 |........ 509 |........ 748 |........ 747 |........ 772 |........ 673 |........ 644 |
3. 1987 ..........| X X X |...... 1,070 |...... 1,113 |...... 1,220 |...... 1,102 |...... 1,063 |...... 1,037 |
4. 1988 ..........| X X X | X X X |...... 2,149 |...... 2,415 |...... 2,278 |...... 1,767 |...... 1,993 |
5. 1989 ..........| X X X | X X X | X X X |...... 2,760 |...... 3,541 |...... 3,562 |...... 3,785 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 3,034 |...... 3,028 |...... 3,525 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,168 |...... 3,558 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 4,026 |
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 .........|...... 2,136 |...... 2,095 |...... 2,184 |......... 89 |......... 48 |
2. 1986 ..........|........ 637 |........ 622 |........ 642 |......... 20 |.......... 5 |
3. 1987 ..........|...... 1,070 |...... 1,095 |...... 1,101 |.......... 6 |......... 31 |
4. 1988 ..........|...... 2,024 |...... 2,028 |...... 2,050 |......... 22 |......... 26 |
5. 1989 ..........|...... 3,705 |...... 3,696 |...... 3,692 |......... (4)|........ (13)|
6. 1990 ..........|...... 4,373 |...... 3,842 |...... 4,785 |........ 943 |........ 412 |
7. 1991 ..........|...... 4,038 |...... 4,198 |...... 4,763 |........ 565 |........ 725 |
8. 1992 ..........|...... 4,663 |...... 4,445 |...... 5,447 |...... 1,002 |........ 784 |
9. 1993 ..........|...... 6,095 |...... 5,707 |...... 6,315 |........ 608 |........ 220 |
10. 1994 ..........| X X X |...... 7,065 |...... 7,938 |........ 873 | X X X |
11. 1995 ..........| X X X | X X X |...... 9,471 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |...... 4,124 |...... 2,238 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|........ 1,411 |...... 1,828 |...... 2,062 |...... 2,864 |...... 2,697 |...... 2,784 |...... 2,793 |
2. 1986 ..........|........ 2,490 |...... 2,066 |...... 1,605 |...... 1,755 |...... 1,894 |...... 1,878 |...... 1,943 |
3. 1987 ..........| X X X |...... 4,821 |...... 3,287 |...... 3,315 |...... 3,617 |...... 3,554 |...... 3,504 |
4. 1988 ..........| X X X | X X X |...... 4,253 |...... 3,859 |...... 3,848 |...... 3,637 |...... 3,780 |
5. 1989 ..........| X X X | X X X | X X X |...... 5,201 |...... 4,866 |...... 4,759 |...... 4,708 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 5,648 |...... 8,157 |...... 8,323 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 8,126 |...... 9,762 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 8,963 |
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 .........|...... 2,927 |...... 2,919 |...... 2,736 |....... (183)|....... (191)|
2. 1986 ..........|...... 1,979 |...... 2,005 |...... 1,994 |........ (11)|......... 15 |
3. 1987 ..........|...... 3,529 |...... 3,560 |...... 3,562 |.......... 2 |......... 33 |
4. 1988 ..........|...... 4,010 |...... 3,410 |...... 3,434 |......... 24 |....... (576)|
5. 1989 ..........|...... 5,550 |...... 5,514 |...... 5,601 |......... 87 |......... 51 |
6. 1990 ..........|...... 9,048 |...... 8,647 |...... 8,948 |........ 301 |....... (100)|
7. 1991 ..........|..... 10,165 |..... 11,090 |..... 11,741 |........ 651 |...... 1,576 |
8. 1992 ..........|...... 9,102 |...... 9,577 |..... 10,140 |........ 563 |...... 1,038 |
9. 1993 ..........|...... 8,702 |..... 10,066 |..... 10,495 |........ 429 |...... 1,793 |
10. 1994 ..........| X X X |..... 13,590 |..... 16,362 |...... 2,772 | X X X |
11. 1995 ..........| X X X | X X X |..... 11,537 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |...... 4,635 |...... 3,639 |
- -------------------------------------------------------------------------------------------
</TABLE>
98
<PAGE> 27
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2F - SECTION 2
MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</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 .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 1 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2H - SECTION 1
OTHER LIABILITY - OCCURRENCE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|.......... 650 |........ 787 |........ 956 |........ 971 |........ 858 |........ 763 |........ 820 |
2. 1986 ..........|........ 1,685 |...... 1,203 |...... 1,419 |...... 1,338 |...... 1,439 |...... 1,372 |...... 1,331 |
3. 1987 ..........| X X X |...... 3,330 |........ 373 |...... 3,540 |...... 1,938 |...... 1,856 |...... 1,810 |
4. 1988 ..........| X X X | X X X |...... 3,709 |...... 3,923 |...... 3,065 |...... 2,541 |...... 2,399 |
5. 1989 ..........| X X X | X X X | X X X |...... 4,662 |...... 3,978 |...... 3,908 |...... 2,861 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 4,587 |...... 4,428 |...... 4,576 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 4,562 |...... 4,824 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 4,660 |
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 .........|........ 846 |........ 763 |........ 785 |......... 22 |........ (61)|
2. 1986 ..........|...... 1,341 |...... 1,360 |...... 1,389 |......... 29 |......... 48 |
3. 1987 ..........|...... 1,824 |...... 1,822 |...... 1,793 |........ (29)|........ (31)|
4. 1988 ..........|...... 2,273 |...... 2,415 |...... 2,436 |......... 21 |........ 163 |
5. 1989 ..........|...... 3,018 |...... 2,922 |...... 2,973 |......... 51 |........ (45)|
6. 1990 ..........|...... 4,073 |...... 4,426 |...... 4,470 |......... 44 |........ 397 |
7. 1991 ..........|...... 5,087 |...... 4,480 |...... 4,805 |........ 325 |....... (282)|
8. 1992 ..........|...... 5,587 |...... 5,712 |...... 4,723 |....... (989)|....... (864)|
9. 1993 ..........|...... 4,771 |...... 5,140 |...... 4,778 |....... (362)|.......... 7 |
10. 1994 ..........| X X X |...... 4,752 |...... 4,528 |....... (224)| X X X |
11. 1995 ..........| X X X | X X X |...... 4,013 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |..... (1,112)|....... (668)|
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2H - SECTION 2
OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
- ------------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</TABLE>
99
<PAGE> 28
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE,
ALLIED LINES, INLAND MARINE, EARTHQUAKE,
GLASS, BURGLARY, AND THEFT)
<TABLE>
<CAPTION>
=========================================================================================================================
(1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
|----------------------------------------------------------------------------------------------------
Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
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) | | 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 .........|.......... 285 |........ 365 |........ 374 |.......... 9 |......... 89 |
2. 1994 ..........| X X X |........ 248 |........ 390 |........ 142 | X X X |
3. 1995 ..........| X X X | X X X |........ 461 | X X X | X X X |
| | | | | |
- --------------------------------------------------------------------------------------------|
4. TOTALS |........ 151 |......... 89 |
- ---------------------------------------------------------------------------------------------
</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 .........|........ 1,342 |...... 1,630 |...... 1,424 |....... (206)|......... 82 |
2. 1994 ..........| X X X |...... 6,849 |...... 6,996 |........ 147 | X X X |
3. 1995 ..........| X X X | X X X |...... 7,605 | X X X | X X X |
| | | | | |
- --------------------------------------------------------------------------------------------|
4. TOTALS |........ (59)|......... 82 |
- ---------------------------------------------------------------------------------------------
</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 .........|............ 0 |.......... 5 |.......... 5 |.......... 0 |.......... 5 |
2. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
3. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
| | | | | |
- --------------------------------------------------------------------------------------------|
4. TOTALS |.......... 0 |.......... 5 |
- ---------------------------------------------------------------------------------------------
</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 .........|............ 2 |.......... 5 |.......... 5 |.......... 0 |.......... 3 |
2. 1994 ..........| X X X |......... 21 |......... 23 |.......... 2 | X X X |
3. 1995 ..........| X X X | X X X |......... 19 | X X X | X X X |
| | | | | |
- --------------------------------------------------------------------------------------------|
4. TOTALS |.......... 2 |.......... 3 |
- ---------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2M - INTERNATIONAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================================
| | | | | | | |
1. Prior .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ..........| X X X | X X X |.......... 0 | X X X | X X X |
| | | | | |
- --------------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- ---------------------------------------------------------------------------------------------
</TABLE>
100
<PAGE> 29
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 2N - REINSURANCE A
<TABLE>
<CAPTION>
=======================================================================================================================
(1) | INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ( $000 OMITTED )
|----------------------------------------------------------------------------------------------------
Years in Which | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
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 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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) |0 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. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X |
- -----------------------------------------------------------------------------------------|
9. TOTALS |.......... 0 |.......... 0 |
- ------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2O - REINSURANCE B
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=======================================================================================================================
1. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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> <C> <C>
==========================================================================================
1. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X |
- -----------------------------------------------------------------------------------------|
9. TOTALS |.......... 0 |.......... 0 |
- ------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2P - REINSURANCE C
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=======================================================================================================================
1. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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> <C> <C>
==========================================================================================
1. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
8. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X |
- -----------------
9. TOTALS |.......... 0 |.......... 0 |
- ------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2Q - REINSURANCE D
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=======================================================================================================================
1. Prior .......|............ 0 |......... 24 |......... 25 |......... 29 |......... 46 |......... 47 |......... 51 |
2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
==========================================================================================
1. Prior .......|.......... 55 |......... 58 |......... 69 |......... 11 |......... 14 |
2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
- -----------------------------------------------------------------------------------------|
4. TOTALS |......... 11 |......... 14 |
- ------------------------------------------------------------------------------------------
</TABLE>
101
<PAGE> 30
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior .......|............ 3 |.......... 4 |.......... 4 |.......... 4 |......... 87 |......... 79 |......... 80 |
2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 1 |.......... 1 |
3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ........| X X X | X X X |......... 12 |.......... 0 |.......... 0 |.......... 1 |.......... 2 |
5. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 2 |.......... 3 |
6. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 1 |.......... 2 |
7. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 4 |.......... 1 |
8. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 3 |
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 .......|.......... 54 |......... 57 |......... 54 |......... (3)|.......... 0 |
2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ........|........... 1 |.......... 1 |.......... 1 |.......... 0 |.......... 0 |
4. 1988 ........|........... 4 |.......... 4 |.......... 4 |.......... 0 |.......... 0 |
5. 1989 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 |
6. 1990 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 |
7. 1991 ........|........... 3 |.......... 3 |.......... 3 |.......... 0 |.......... 0 |
8. 1992 ........|........... 7 |.......... 7 |.......... 7 |.......... 0 |.......... 0 |
9. 1993 ........|........... 5 |.......... 5 |.......... 5 |.......... 0 |.......... 0 |
10. 1994 ........| X X X |.......... 7 |.......... 7 |.......... 0 | X X X |
11. 1995 ........| X X X | X X X |......... 14 | X X X | X X X |
- -----------------------------------------------------------------------------------------|
12 TOTALS |......... (3)|.......... 0 |
- ------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2R - SECTION 2
PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
=======================================================================================================================
1. Prior .......|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ........|............ 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .......|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ........| X X X |.......... 0 |.......... 0 |.......... 0 | X X X |
11. 1995 ........| X X X | X X X |.......... 0 | X X X | X X X |
- -----------------------------------------------------------------------------------------|
12. TOTALS |.......... 0 |.......... 0 |
- ------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 2S
FINANCIAL GUARANTY / MORTGAGE GUARANTY
<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 ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
2. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 | X X X |
3. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- -------------------------------------------------------------------------------------------|
4. TOTALS|........... 0 |........... 0 |
- --------------------------------------------------------------------------------------------
</TABLE>
102
<PAGE> 31
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior .........| 0 0 0 |........ 100 |........ 139 |........ 801 |........ 815 |........ 820 |........ 828 |
2. 1986 ..........|....... 1,282 |...... 1,861 |...... 1,864 |...... 1,995 |...... 2,006 |...... 2,010 |...... 2,031 |
3. 1987 ..........| X X X |...... 1,290 |...... 1,971 |...... 2,057 |...... 2,196 |...... 2,347 |...... 2,332 |
4. 1988 ..........| X X X | X X X |...... 1,896 |...... 2,790 |...... 2,959 |...... 3,080 |...... 3,048 |
5. 1989 ..........| X X X | X X X | X X X |...... 2,008 |...... 2,904 |...... 3,319 |...... 3,527 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 1,833 |...... 2,644 |...... 2,707 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 2,133 |...... 2,928 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 1,580 |
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 .........|........ 853 |........ 853 |........ 853 |.......... 0 |.......... 0 |
2. 1986 ..........|...... 2,030 |...... 2,030 |...... 2,031 |...... 1,287 |........ 367 |
3. 1987 ..........|...... 2,345 |...... 2,398 |...... 2,401 |...... 1,365 |........ 571 |
4. 1988 ..........|...... 3,071 |...... 3,095 |...... 3,269 |...... 1,491 |........ 538 |
5. 1989 ..........|...... 3,543 |...... 3,654 |...... 3,669 |...... 1,507 |........ 670 |
6. 1990 ..........|...... 2,856 |...... 2,902 |...... 2,948 |...... 1,411 |........ 555 |
7. 1991 ..........|...... 3,042 |...... 3,312 |...... 3,341 |...... 1,852 |........ 696 |
8. 1992 ..........|...... 2,464 |...... 2,577 |...... 2,628 |...... 1,554 |........ 476 |
9. 1993 ..........|...... 2,408 |...... 3,051 |...... 3,234 |...... 1,152 |........ 381 |
10. 1994 ..........| X X X |...... 3,131 |...... 4,447 |...... 1,548 |........ 501 |
11. 1995 ..........| X X X | X X X |...... 2,264 |........ 754 |........ 266 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================
1. Prior .........| 0 0 0 |...... 2,281 |...... 3,513 |...... 4,300 |...... 5,425 |...... 5,703 |...... 5,888 |
2. 1986 ..........|....... 5,291 |...... 9,519 |..... 10,570 |..... 10,973 |..... 12,863 |..... 13,198 |..... 13,258 |
3. 1987 ..........| X X X |...... 5,411 |..... 11,924 |..... 13,257 |..... 15,445 |..... 16,786 |..... 17,148 |
4. 1988 ..........| X X X | X X X |...... 5,372 |..... 12,423 |..... 14,981 |..... 17,363 |..... 18,383 |
5. 1989 ..........| X X X | X X X | X X X |...... 5,963 |..... 14,604 |..... 18,650 |..... 20,459 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 6,325 |..... 13,062 |..... 16,247 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 5,318 |..... 11,765 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 5,847 |
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 .........|...... 6,067 |...... 6,100 |...... 6,077 |.......... 0 |.......... 0 |
2. 1986 ..........|..... 13,546 |..... 13,984 |..... 13,987 |...... 6,522 |...... 2,621 |
3. 1987 ..........|..... 17,287 |..... 17,653 |..... 17,778 |...... 7,011 |...... 2,748 |
4. 1988 ..........|..... 18,920 |..... 19,473 |..... 19,488 |...... 6,798 |...... 2,596 |
5. 1989 ..........|..... 21,248 |..... 22,371 |..... 22,791 |...... 6,391 |...... 2,524 |
6. 1990 ..........|..... 17,627 |..... 18,875 |..... 19,271 |...... 5,307 |...... 1,591 |
7. 1991 ..........|..... 13,609 |..... 15,319 |..... 15,846 |...... 4,612 |...... 1,238 |
8. 1992 ..........|..... 12,162 |..... 15,275 |..... 16,337 |...... 4,341 |...... 1,226 |
9. 1993 ..........|...... 5,081 |..... 10,957 |..... 13,952 |...... 3,719 |...... 1,264 |
10. 1994 ..........| X X X |...... 5,850 |..... 10,443 |...... 3,298 |........ 991 |
11. 1995 ..........| X X X | X X X |...... 4,751 |...... 1,908 |........ 688 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================
1. Prior .........| 0 0 0 |........ 770 |...... 1,044 |...... 1,516 |...... 1,499 |...... 1,581 |...... 1,602 |
2. 1986 ..........|......... 426 |...... 1,134 |...... 1,426 |...... 1,535 |...... 2,021 |...... 2,088 |...... 2,167 |
3. 1987 ..........| X X X |........ 637 |...... 1,536 |...... 1,683 |...... 2,496 |...... 2,941 |...... 3,074 |
4. 1988 ..........| X X X | X X X |........ 675 |...... 1,209 |...... 1,972 |...... 2,681 |...... 3,181 |
5. 1989 ..........| X X X | X X X | X X X |........ 837 |...... 2,032 |...... 2,430 |...... 2,810 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 1,074 |...... 2,623 |...... 3,394 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 1,503 |...... 3,633 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 1,418 |
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 .........|...... 1,629 |...... 1,636 |...... 1,677 |.......... 0 |.......... 0 |
2. 1986 ..........|...... 2,246 |...... 2,254 |...... 2,254 |........ 462 |........ 193 |
3. 1987 ..........|...... 3,365 |...... 3,419 |...... 3,427 |........ 788 |........ 311 |
4. 1988 ..........|...... 3,566 |...... 3,611 |...... 3,620 |........ 814 |........ 314 |
5. 1989 ..........|...... 3,681 |...... 3,776 |...... 3,802 |........ 855 |........ 277 |
6. 1990 ..........|...... 4,057 |...... 4,619 |...... 5,164 |...... 1,047 |........ 253 |
7. 1991 ..........|...... 5,106 |...... 5,854 |...... 6,356 |...... 1,104 |........ 256 |
8. 1992 ..........|...... 3,694 |...... 5,115 |...... 6,174 |...... 1,038 |........ 214 |
9. 1993 ..........|...... 1,653 |...... 3,940 |...... 5,743 |...... 1,010 |........ 236 |
10. 1994 ..........| X X X |...... 1,762 |...... 3,319 |........ 993 |........ 273 |
11. 1995 ..........| X X X | X X X |...... 1,594 |........ 597 |........ 234 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================
1. Prior .........| 0 0 0 |........ 559 |........ 886 |...... 1,034 |...... 1,229 |...... 1,377 |...... 1,529 |
2. 1986 ..........|......... 123 |........ 260 |........ 445 |........ 495 |........ 524 |........ 566 |........ 579 |
3. 1987 ..........| X X X |........ 235 |........ 568 |........ 733 |........ 807 |........ 853 |........ 913 |
4. 1988 ..........| X X X | X X X |........ 342 |........ 855 |...... 1,172 |...... 1,428 |...... 1,679 |
5. 1989 ..........| X X X | X X X | X X X |........ 594 |...... 1,355 |...... 1,837 |...... 2,190 |
6. 1990 ..........| X X X | X X X | X X X | X X X |........ 499 |...... 1,275 |...... 1,927 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |........ 562 |...... 1,526 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |........ 746 |
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 .........|...... 1,613 |...... 1,713 |...... 1,744 |.......... 0 |.......... 0 |
2. 1986 ..........|........ 588 |........ 590 |........ 614 |........ 157 |......... 18 |
3. 1987 ..........|........ 953 |........ 977 |........ 999 |........ 338 |......... 48 |
4. 1988 ..........|...... 1,795 |...... 1,874 |...... 1,909 |........ 467 |......... 47 |
5. 1989 ..........|...... 2,775 |...... 2,917 |...... 3,473 |........ 455 |......... 49 |
6. 1990 ..........|...... 2,526 |...... 3,109 |...... 3,985 |........ 441 |......... 66 |
7. 1991 ..........|...... 2,269 |...... 2,670 |...... 3,216 |........ 364 |......... 45 |
8. 1992 ..........|...... 1,840 |...... 2,566 |...... 3,691 |........ 346 |......... 69 |
9. 1993 ..........|...... 1,226 |...... 2,779 |...... 4,064 |........ 414 |......... 72 |
10. 1994 ..........| X X X |...... 1,162 |...... 2,760 |........ 405 |......... 70 |
11. 1995 ..........| X X X | X X X |...... 1,673 |........ 261 |......... 56 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
========================================================================================================================
1. Prior .........| 0 0 0 |........ 581 |...... 1,238 |...... 2,319 |...... 2,301 |...... 2,438 |...... 2,521 |
2. 1986 ..........|......... 764 |...... 1,181 |...... 1,330 |...... 1,506 |...... 1,641 |...... 1,765 |...... 1,892 |
3. 1987 ..........| X X X |...... 1,016 |...... 2,186 |...... 2,558 |...... 3,008 |...... 3,377 |...... 3,354 |
4. 1988 ..........| X X X | X X X |...... 1,530 |...... 2,607 |...... 2,864 |...... 3,054 |...... 3,274 |
5. 1989 ..........| X X X | X X X | X X X |...... 1,755 |...... 3,211 |...... 3,575 |...... 4,085 |
6. 1990 ..........| X X X | X X X | X X X | X X X |...... 2,382 |...... 5,658 |...... 5,990 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |...... 3,671 |...... 6,456 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |...... 3,759 |
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 .........|...... 2,694 |...... 2,718 |...... 2,557 |.......... 0 |.......... 0 |
2. 1986 ..........|...... 1,947 |...... 1,949 |...... 1,962 |........ 621 |........ 199 |
3. 1987 ..........|...... 3,418 |...... 3,428 |...... 3,435 |........ 814 |........ 311 |
4. 1988 ..........|...... 3,568 |...... 3,135 |...... 3,272 |........ 923 |........ 303 |
5. 1989 ..........|...... 4,995 |...... 5,387 |...... 5,431 |...... 1,006 |........ 385 |
6. 1990 ..........|...... 7,551 |...... 7,966 |...... 8,355 |...... 1,302 |........ 461 |
7. 1991 ..........|...... 7,666 |...... 8,405 |..... 10,043 |...... 1,608 |........ 586 |
8. 1992 ..........|...... 6,553 |...... 7,234 |...... 8,263 |...... 1,566 |........ 596 |
9. 1993 ..........|...... 3,303 |...... 5,684 |...... 7,302 |...... 1,500 |........ 683 |
10. 1994 ..........| X X X |...... 7,244 |..... 11,185 |...... 1,605 |........ 748 |
11. 1995 ..........| X X X | X X X |...... 4,980 |........ 870 |........ 403 |
- -------------------------------------------------------------------------------------------
</TABLE>
103
<PAGE> 32
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 |
11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3F - SECTION 2
MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 |
11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3G - SPECIAL LIABILITY
(OCEAN MARINE, AIRCRAFT (ALL PERILS),
BOILER AND MACHINERY)
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 ........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
4. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
5. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
6. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
7. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
8. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
9. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
10. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
11. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 1
OTHER LIABILITY - OCCURRENCE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |........ 249 |........ 441 |........ 514 |........ 558 |........ 608 |........ 728 |
2. 1986 .........|........ 197 |........ 395 |........ 518 |........ 726 |........ 927 |...... 1,091 |...... 1,174 |
3. 1987 .........| X X X |........ 304 |........ 576 |........ 750 |........ 967 |...... 1,563 |...... 1,648 |
4. 1988 .........| X X X | X X X |........ 318 |........ 543 |........ 768 |........ 954 |...... 1,431 |
5. 1989 .........| X X X | X X X | X X X |........ 467 |........ 828 |...... 1,274 |...... 1,723 |
6. 1990 .........| X X X | X X X | X X X | X X X |........ 384 |...... 1,296 |...... 1,715 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........ 454 |...... 1,192 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |........ 352 |
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 ........|........ 769 |........ 804 |........ 843 |........... 0 |........... 0 |
2. 1986 .........|...... 1,220 |...... 1,244 |...... 1,328 |......... 372 |......... 115 |
3. 1987 .........|...... 1,667 |...... 1,727 |...... 1,732 |......... 415 |......... 167 |
4. 1988 .........|...... 1,688 |...... 2,058 |...... 2,149 |......... 447 |......... 164 |
5. 1989 .........|...... 2,093 |...... 2,286 |...... 2,530 |......... 681 |......... 237 |
6. 1990 .........|...... 3,136 |...... 3,731 |...... 3,884 |......... 518 |......... 181 |
7. 1991 .........|...... 1,808 |...... 2,509 |...... 3,233 |......... 536 |......... 204 |
8. 1992 .........|........ 871 |...... 1,389 |...... 1,783 |......... 470 |......... 187 |
9. 1993 .........|........ 440 |........ 856 |...... 1,250 |......... 353 |......... 176 |
10. 1994 .........| X X X |........ 549 |........ 945 |......... 354 |......... 191 |
11. 1995 .........| X X X | X X X |........ 438 |......... 222 |......... 100 |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3H - SECTION 2
OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 ........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
4. 1988 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
5. 1989 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
6. 1990 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
7. 1991 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
8. 1992 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
9. 1993 .........|.......... 0 |.......... 0 |.......... 0 |........... 0 |........... 0 |
10. 1994 .........| X X X |.......... 0 |.......... 0 |........... 0 |........... 0 |
11. 1995 .........| X X X | X X X |.......... 0 |........... 0 |........... 0 |
- --------------------------------------------------------------------------------------------
</TABLE>
104
<PAGE> 33
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
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) | | (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 ........| 0 0 0 |........ 111 |........ 140 | X X X | X X X |
2. 1994 .........| X X X |........ 119 |........ 211 | X X X | X X X |
3. 1995 .........| X X X | X X X |........ 177 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3J - 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 ........| 0 0 0 |...... 1,044 |........ 957 |........... 0 |........... 0 |
2. 1994 .........| X X X |...... 6,117 |...... 6,376 |....... 4,876 |......... 897 |
3. 1995 .........| X X X | X X X |...... 6,410 |....... 3,667 |......... 567 |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3K - 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 ........| 0 0 0 |.......... 5 |.......... 5 | X X X | X X X |
2. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
3. 1995 .........| X X X | X X X |.......... 0 | 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>
======================================================================================================================
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 ........| 0 0 0 |.......... 5 |.......... 5 | X X X | X X X |
2. 1994 .........| X X X |......... 14 |......... 23 | X X X | X X X |
3. 1995 .........| X X X | X X X |......... 18 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3M - INTERNATIONAL
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 ........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
4. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
5. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
6. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
7. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
8. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
9. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
10. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
11. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
105
<PAGE> 34
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
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 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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) | | (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. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
2. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
3. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
4. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
5. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
6. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
7. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3O - REINSURANCE B
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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> <C> <C>
============================================================================================
1. 1988 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
2. 1989 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
3. 1990 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
4. 1991 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
5. 1992 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
6. 1993 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
7. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3P - REINSURANCE C
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. 1988 .........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1989 .........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
5. 1992 .........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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> <C> <C>
============================================================================================
1. 1988 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
2. 1989 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
3. 1990 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
4. 1991 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
5. 1992 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
6. 1993 .........|........... 0 |......... 0 |.......... 0 | X X X | X X X |
7. 1994 .........| X X X |......... 0 |.......... 0 | X X X | X X X |
8. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3Q - REINSURANCE D
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
======================================================================================================================
1. Prior ........| 0 0 0 |.......... 0 |.......... 3 |.......... 9 |......... 12 |......... 14 |......... 19 |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 .........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
============================================================================================
1. Prior ........|......... 26 |......... 32 |......... 32 | X X X | X X X |
2. 1986 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
3. 1987 .........|.......... 0 |.......... 0 |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
106
<PAGE> 35
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 |
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1. Prior .........| 0 0 0 |.......... 1 |.......... 1 |.......... 1 |.......... 1 |.......... 2 |.......... 2 |
2. 1986 ..........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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) | OMITTED ) | (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 .........|......... 54 |......... 54 |......... 54 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
11. 1995 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</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 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|........... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........| X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........| X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........| X X X | X X X | X X X | X X X | X X X |.......... 0 |.......... 0 |
8. 1992 ..........| X X X | X X X | X X X | X X X | X X X | X X X |.......... 0 |
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 .........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
2. 1986 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
3. 1987 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
4. 1988 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
5. 1989 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
6. 1990 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
7. 1991 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
8. 1992 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
9. 1993 ..........|.......... 0 |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
10. 1994 ..........| X X X |.......... 0 |.......... 0 |.......... 0 |.......... 0 |
11. 1995 ..........| X X X | X X X |.......... 0 |.......... 0 |.......... 0 |
- -------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 3S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<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 ........| 0 0 0 |.......... 0 |.......... 0 | X X X | X X X |
2. 1994 .........| X X X |.......... 0 |.......... 0 | X X X | X X X |
3. 1995 .........| X X X | X X X |.......... 0 | X X X | X X X |
- --------------------------------------------------------------------------------------------
</TABLE>
107
<PAGE> 36
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
<TABLE>
<CAPTION>
============================================================================================================================
(1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
|--------------------------------------------------------------------------------------------------------
Years in Which | (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)|............ 85 |............ 47 |............ 20 |............ 27 |............ 10 |
2. 1986 .........|........... 369 |........... 370 |............ 84 |............ 44 |............ 32 |............. 3 |
3. 1987 .........| X X X |........... 876 |........... 217 |........... 230 |............ 49 |............. 8 |
4. 1988 .........| X X X | X X X |........... 508 |........... 399 |............ 90 |............ 16 |
5. 1989 .........| X X X | X X X | X X X |........... 709 |........... 130 |............ 53 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 362 |............ 87 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 467 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=========================================================================================
(1) | BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED|
| EXPENSES AT YEAR END ( $000 OMITTED ) |
|--------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Losses Were | | | | |
Incurred | 1992 | 1993 | 1994 | 1995 |
- ----------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
1. Prior ........|.............. 8 |............ 0 |............. 0 |............. 0 |
2. 1986 .........|.............. 0 |............ 0 |............. 0 |............. 0 |
3. 1987 .........| ............. 6 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 40 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ........... 239 |........... 101 |............ 27 |............ 11 |
7. 1991 .........| ........... 315 |........... 110 |............ 41 |............ 19 |
8. 1992 .........| ........... 467 |........... 504 |........... 123 |........... 100 |
9. 1993 .........| X X X |........... 757 |........... 169 |........... 194 |
10. 1994 .........| X X X | X X X |........... 212 |........... 334 |
11. 1995 .........| X X X | X X X | X X X |......... 1,045 |
- -----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4B
PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|........... 310 |............ 48 |............ 55 |............ 53 |............ 85 |........... 106 |
2. 1986 .........|......... 2,666 |........... 625 |........... 196 |........... 177 |............ 99 |............ 82 |
3. 1987 .........| X X X |......... 3,575 |........... 952 |........... 365 |........... 316 |........... 368 |
4. 1988 .........| X X X | X X X |......... 6,376 |......... 1,030 |........... 812 |........... 522 |
5. 1989 .........| X X X | X X X | X X X |......... 5,161 |......... 1,407 |......... 1,124 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 4,925 |......... 1,717 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 5,696 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|........... 46 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|........... 55 |............. 4 |............. 5 |............. 6 |
3. 1987 .........|.......... 114 |............ 31 |............ 32 |............ 30 |
4. 1988 .........|.......... 120 |............ 66 |............ 38 |............ 67 |
5. 1989 .........|.......... 190 |............ 89 |............ 56 |............ 38 |
6. 1990 .........|........ 1,254 |........... 341 |........... 298 |........... 177 |
7. 1991 .........|........ 2,162 |........... 697 |........... 439 |........... 324 |
8. 1992 .........|........ 3,509 |......... 1,210 |........... 785 |........... 422 |
9. 1993 .........| X X X |......... 4,436 |........... 865 |........... 541 |
10. 1994 .........| X X X | X X X |......... 3,327 |......... 1,747 |
11. 1995 .........| X X X | X X X | X X X |......... 5,258 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4C
COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|........... 559 |............ 65 |............ 35 |............ 63 |............ 24 |............ 10 |
2. 1986 .........|......... 1,413 |......... 1,245 |........... 696 |............ 65 |........... 111 |........... 127 |
3. 1987 .........| X X X |......... 1,879 |......... 1,956 |......... 1,620 |........... 317 |........... 162 |
4. 1988 .........| X X X | X X X |......... 3,292 |......... 2,108 |........... 832 |........... 112 |
5. 1989 .........| X X X | X X X | X X X |......... 2,681 |......... 1,436 |........... 757 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 2,370 |......... 1,220 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,755 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............ 2 |............. 2 |............. 3 |............. 3 |
2. 1986 .........|........... 38 |............ 37 |............ 38 |............ 30 |
3. 1987 .........|........... 75 |............ 37 |............ 43 |............ 32 |
4. 1988 .........|........... 91 |............ 74 |............ 56 |............ 42 |
5. 1989 .........|.......... 239 |........... 106 |............ 97 |............ 80 |
6. 1990 .........|.......... 833 |........... 255 |........... 137 |............ 97 |
7. 1991 .........|........ 1,084 |........... 697 |........... 148 |........... 141 |
8. 1992 .........|........ 3,866 |......... 1,375 |........... 808 |........... 441 |
9. 1993 .........| X X X |......... 3,562 |........... 984 |........... 861 |
10. 1994 .........| X X X | X X X |......... 4,989 |......... 3,447 |
11. 1995 .........| X X X | X X X | X X X |......... 4,850 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|........... 410 |........... 585 |........... 209 |............ 97 |............ 89 |............ 88 |
2. 1986 .........|........... 359 |........... 145 |........... 129 |............ 75 |............ 98 |............ 83 |
3. 1987 .........| X X X |........... 569 |........... 286 |........... 329 |........... 162 |........... 114 |
4. 1988 .........| X X X | X X X |......... 1,360 |......... 1,303 |........... 830 |........... 128 |
5. 1989 .........| X X X | X X X | X X X |......... 1,494 |......... 1,000 |........... 217 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,775 |........... 423 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,316 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|........... 64 |............ 70 |............ 35 |............ 33 |
2. 1986 .........|........... 47 |............ 31 |............ 15 |............ 17 |
3. 1987 .........|........... 61 |............ 42 |............ 18 |............ 16 |
4. 1988 .........|........... 90 |............ 59 |............ 33 |............ 38 |
5. 1989 .........|.......... 133 |........... 122 |............ 74 |............ 56 |
6. 1990 .........|.......... 305 |........... 512 |........... 118 |............ 98 |
7. 1991 .........|........ 1,047 |........... 892 |........... 183 |........... 162 |
8. 1992 .........|........ 1,515 |......... 1,142 |........... 410 |........... 249 |
9. 1993 .........| X X X |......... 2,666 |........... 828 |........... 448 |
10. 1994 .........| X X X | X X X |......... 3,173 |......... 1,927 |
11. 1995 .........| X X X | X X X | X X X |......... 4,578 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............ 94 |............ 93 |............ 92 |............ 47 |............ 34 |............. 0 |
2. 1986 .........|......... 1,187 |........... 661 |........... 106 |............ 61 |............ 34 |............. 0 |
3. 1987 .........| X X X |......... 2,661 |........... 504 |........... 258 |........... 111 |........... (27)|
4. 1988 .........| X X X | X X X |......... 1,592 |........... 761 |........... 428 |........... 127 |
5. 1989 .........| X X X | X X X | X X X |......... 2,132 |........... 731 |........... 313 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,040 |........... 649 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,512 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 2 |............ 19 |............ 23 |............ 18 |
4. 1988 .........|........... 45 |........... 103 |........... 108 |............ 94 |
5. 1989 .........|.......... 110 |........... 167 |............ 22 |............ 55 |
6. 1990 .........|.......... 166 |........... 187 |............ 49 |............ 29 |
7. 1991 .........|.......... 466 |........... 319 |........... 134 |........... 208 |
8. 1992 .........|........ 2,159 |........... 508 |........... 389 |........... 556 |
9. 1993 .........| X X X |......... 2,485 |........... 752 |........... 570 |
10. 1994 .........| X X X | X X X |........... 705 |........... 677 |
11. 1995 .........| X X X | X X X | X X X |......... 3,146 |
- ---------------------------------------------------------------------------------------
</TABLE>
108
<PAGE> 37
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED|
|EXPENSES AT YEAR END ($000 OMITTED) |
|--------------------------------------------------------------------
Years in Which | (8) | (9) | (10) | (11) |
Losses Were | | | | |
Incurred | 1992 | 1993 | 1994 | 1995 |
- ---------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4F - SECTION 2
MEDICAL MALPRACTICE - CLAIMS-MADE
<TABLE>
<CAPTION>
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4G - SPECIAL LIABILITY
(OCEAN MARINE, AIRCRAFT (ALL PERILS),
BOILER AND MACHINERY)
<TABLE>
<CAPTION>
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4H - SECTION 1
OTHER LIABILITY - OCCURRENCE
<TABLE>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|........... 214 |............ 36 |........... 125 |........... 263 |........... 122 |............ 33 |
2. 1986 .........|......... 1,233 |........... 599 |........... 592 |........... 242 |........... 223 |............ 73 |
3. 1987 .........| X X X |......... 2,671 |......... 2,471 |......... 2,416 |........... 578 |............ 98 |
4. 1988 .........| X X X | X X X |......... 3,026 |......... 2,913 |......... 1,507 |........... 406 |
5. 1989 .........| X X X | X X X | X X X |......... 3,914 |......... 2,533 |......... 1,829 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 3,620 |......... 2,343 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 330 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|........... 12 |............ 12 |............ 11 |............ 31 |
2. 1986 .........|........... 31 |............. 8 |............ 10 |............ 11 |
3. 1987 .........|........... 77 |............ 66 |............ 70 |............ 43 |
4. 1988 .........|.......... 137 |........... 107 |............ 72 |............ 64 |
5. 1989 .........|.......... 474 |........... 238 |........... 149 |........... 114 |
6. 1990 .........|........ 2,014 |........... 195 |........... 149 |........... 184 |
7. 1991 .........|........ 2,253 |......... 2,202 |........... 660 |........... 751 |
8. 1992 .........|........ 3,354 |......... 2,760 |......... 2,564 |........... 862 |
9. 1993 .........| X X X |......... 3,665 |......... 2,935 |......... 1,544 |
10. 1994 .........| X X X | X X X |......... 3,481 |......... 2,179 |
11. 1995 .........| X X X | X X X | X X X |......... 2,845 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4H - SECTION 2
OTHER LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
109
<PAGE> 38
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
- ---------------------------------------------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X |
3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X |
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED|
|EXPENSES AT YEAR END ($000 OMITTED) |
|----------------------------------------------------------------- |
Years in Which | (8) | (9) | (10) | (11) |
Losses Were | | | | |
Incurred | 1992 | 1993 | 1994 | 1995 |
- ------------------------------------------------------------------------------------- |
<S> <C> <C> <C> <C>
1. Prior ........| X X X |........... 194 |........... 221 |........... 213 |
2. 1994 .........| X X X | X X X |............ 95 |........... 147 |
3. 1995 .........| X X X | X X X | X X X |........... 218 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
<TABLE>
<CAPTION>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X |
3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........| X X X |........... 898 |........... 546 |........... 424 |
2. 1994 .........| X X X | X X X |........... 347 |........... 568 |
3. 1995 .........| X X X | X X X | X X X |........... 528 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4K - FIDELITY / SURETY
<TABLE>
<CAPTION>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X |
3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........| X X X |............ 0 |............. 0 |............. 0 |
2. 1994 .........| X X X | X X X |............. 0 |............. 0 |
3. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4L - OTHER
(INCLUDING CREDIT, ACCIDENT AND HEALTH)
<TABLE>
<CAPTION>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 .........| X X X | X X X | X X X | X X X | 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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........| X X X |............. 0 |............. 0 |............. 0 |
2. 1994 .........| X X X | X X X |............. 0 |............. 0 |
3. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4M - INTERNATIONAL
<TABLE>
<CAPTION>
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
110
<PAGE> 39
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Losses Were | | | | | | |
Incurred | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 |
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 |
7. 1994 .........| 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 |
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED|
|EXPENSES AT YEAR END ( $000 OMITTED ) |
|-------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Losses Were | | | | |
Incurred | 1992 | 1993 | 1994 | 1995 |
- ---------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 |
7. 1994 .........| X X X | X X X |............. 0 |................ 0 |
8. 1995 .........| X X X | X X X | X X X |................ 0 |
- -------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4O - REINSURANCE B
<TABLE>
<CAPTION>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 |
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 |
7. 1994 .........| 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 |
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 |
7. 1994 .........| X X X | X X X |............. 0 |................ 0 |
8. 1995 .........| X X X | X X X | X X X |................ 0 |
- -------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4P - REINSURANCE C
<TABLE>
<CAPTION>
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |................ 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |................ 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |................ 0 |
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 |
7. 1994 .........| 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 |
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. 1988 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
2. 1989 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
3. 1990 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
4. 1991 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
5. 1992 .........|.......... 0 |............. 0 |............. 0 |................ 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |................ 0 |
7. 1994 .........| X X X | X X X |............. 0 |................ 0 |
8. 1995 .........| X X X | X X X | X X X |................ 0 |
- -------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4Q - REINSURANCE D
<TABLE>
<CAPTION>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 14 |............ 13 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............ 13 |............. 8 |............. 3 |............. 3 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............. 0 |............. 0 |............. 0 |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
111
<PAGE> 40
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
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 ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 10 |............. 2 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 1 |
3. 1987 .........| X X X |............. 0 |............. 2 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 1 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 2 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 1 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 4 |
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 |
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) |BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED|
|EXPENSES AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------ |
Years in Which | (8) | (9) | (10) | (11) |
Losses Were | | | | |
Incurred | 1992 | 1993 | 1994 | 1995 |
- -------------------------------------------------------------------------------------- |
<S> <C> <C> <C> <C>
1. Prior ........|............ 3 |............. 0 |............. 3 |............. 0 |
2. 1986 .........|............ 1 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 1 |............. 1 |............. 1 |
4. 1988 .........|............ 2 |............. 4 |............. 4 |............. 4 |
5. 1989 .........|............ 3 |............. 3 |............. 3 |............. 3 |
6. 1990 .........|............ 2 |............. 3 |............. 3 |............. 3 |
7. 1991 .........|............ 1 |............. 3 |............. 3 |............. 3 |
8. 1992 .........|............ 3 |............. 7 |............. 6 |............. 7 |
9. 1993 .........| X X X |............. 5 |............. 5 |............. 5 |
10. 1994 .........| X X X | X X X |............. 7 |............. 7 |
11. 1995 .........| X X X | X X X | X X X |............ 14 |
- ---------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4R - SECTION 2
PRODUCTS LIABILITY - CLAIMS-MADE
<TABLE>
<CAPTION>
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |.............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |.............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |.............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |.............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |.............. 0 |
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 |
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
<S> <C> <C> <C> <C>
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</TABLE>
SCHEDULE P - PART 4S - FINANCIAL GUARANTY / MORTGAGE GUARANTY
<TABLE>
<CAPTION>
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Prior ........| X X X | X X X | X X X | X X X | X X X | X X X |
2. 1994 .........| X X X | X X X | X X X | X X X | X X X | X X X |
3. 1995 .........| X X X | X X X | X X X | X X X | X X X | X X X |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
<S> <C> <C> <C> <C>
1. Prior ........| X X X |............. 0 |............. 0 |............. 0 |
2. 1994 .........| X X X | X X X |............. 0 |............. 0 |
3. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
112
<PAGE> 41
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 2 |............. 3 |............. 2 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 1,286 |......... 1,286 |......... 1,286 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,350 |......... 1,356 |......... 1,363 |
4. 1988 .........| X X X | X X X |............. 0 |......... 1,443 |......... 1,467 |......... 1,476 |
5. 1989 .........| X X X | X X X | X X X |......... 1,081 |......... 1,460 |......... 1,483 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,071 |......... 1,372 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,514 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 1 |............. 1 |............. 0 |............. 0 |
2. 1986 .........|........ 1,287 |......... 1,287 |......... 1,287 |......... 1,287 |
3. 1987 .........|........ 1,364 |......... 1,364 |......... 1,365 |......... 1,365 |
4. 1988 .........|........ 1,485 |......... 1,485 |......... 1,490 |......... 1,491 |
5. 1989 .........|........ 1,500 |......... 1,503 |......... 1,506 |......... 1,507 |
6. 1990 .........|........ 1,392 |......... 1,402 |......... 1,408 |......... 1,411 |
7. 1991 .........|........ 1,831 |......... 1,842 |......... 1,849 |......... 1,852 |
8. 1992 .........|.......... 968 |......... 1,533 |......... 1,551 |......... 1,554 |
9. 1993 .........| X X X |........... 934 |......... 1,141 |......... 1,152 |
10. 1994 .........| X X X | X X X |......... 1,270 |......... 1,548 |
11. 1995 .........| X X X | X X X | X X X |........... 754 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 6 |............. 4 |............. 1 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 5 |............. 2 |............. 2 |
3. 1987 .........| X X X |............. 0 |............. 0 |............ 19 |............ 13 |............. 4 |
4. 1988 .........| X X X | X X X |............. 0 |............ 30 |............ 22 |............ 15 |
5. 1989 .........| X X X | X X X | X X X |........... 345 |............ 47 |............ 23 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 293 |............ 46 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 338 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 1 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 3 |............. 2 |............. 0 |............. 0 |
4. 1988 .........|............ 7 |............. 7 |............. 2 |............. 1 |
5. 1989 .........|............ 7 |............. 6 |............. 2 |............. 1 |
6. 1990 .........|........... 23 |............ 14 |............. 9 |............. 6 |
7. 1991 .........|........... 35 |............ 18 |............ 13 |............ 11 |
8. 1992 .........|.......... 466 |............ 34 |............ 14 |............. 9 |
9. 1993 .........| X X X |........... 207 |............ 29 |............ 19 |
10. 1994 .........| X X X | X X X |........... 232 |............ 39 |
11. 1995 .........| X X X | X X X | X X X |........... 225 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |......... 1,654 |......... 1,654 |......... 1,654 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,934 |......... 1,936 |......... 1,936 |
4. 1988 .........| X X X | X X X |............. 0 |......... 2,012 |......... 2,024 |......... 2,027 |
5. 1989 .........| X X X | X X X | X X X |......... 1,950 |......... 2,168 |......... 2,172 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,833 |......... 1,963 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,420 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|-------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|........ 1,654 |......... 1,654 |......... 1,654 |......... 1,654 |
3. 1987 .........|........ 1,936 |......... 1,936 |......... 1,936 |......... 1,936 |
4. 1988 .........|........ 2,028 |......... 2,029 |......... 2,030 |......... 2,030 |
5. 1989 .........|........ 2,174 |......... 2,177 |......... 2,178 |......... 2,178 |
6. 1990 .........|........ 1,967 |......... 1,971 |......... 1,972 |......... 1,972 |
7. 1991 .........|........ 2,550 |......... 2,555 |......... 2,559 |......... 2,559 |
8. 1992 .........|........ 1,792 |......... 2,037 |......... 2,039 |......... 2,039 |
9. 1993 .........| X X X |......... 1,458 |......... 1,547 |......... 1,552 |
10. 1994 .........| X X X | X X X |......... 1,946 |......... 2,088 |
11. 1995..........| X X X | X X X | X X X |......... 1,245 |
- ---------------------------------------------------------------------------------------
</TABLE>
113
<PAGE> 42
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 60 |............ 32 |............ 17 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |......... 6,376 |......... 6,455 |......... 6,389 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 6,683 |......... 6,857 |......... 6,938 |
4. 1988 .........| X X X | X X X |............. 0 |......... 6,048 |......... 6,446 |......... 6,628 |
5. 1989 .........| X X X | X X X | X X X |......... 3,382 |......... 5,558 |......... 6,054 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 2,645 |......... 4,732 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 2,576 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|........... 12 |............ 10 |............. 2 |............. 2 |
2. 1986 .........|........ 6,507 |......... 6,514 |......... 6,521 |......... 6,522 |
3. 1987 .........|........ 6,973 |......... 6,999 |......... 7,002 |......... 7,011 |
4. 1988 .........|........ 6,718 |......... 6,751 |......... 6,792 |......... 6,798 |
5. 1989 .........|........ 6,235 |......... 6,312 |......... 6,375 |......... 6,391 |
6. 1990 .........|........ 5,073 |......... 5,196 |......... 5,283 |......... 5,307 |
7. 1991 .........|........ 4,160 |......... 4,447 |......... 4,576 |......... 4,612 |
8. 1992 .........|........ 2,370 |......... 3,897 |......... 4,230 |......... 4,341 |
9. 1993 .........| X X X |......... 2,179 |......... 3,496 |......... 3,719 |
10. 1994 .........| X X X | X X X |......... 2,237 |......... 3,298 |
11. 1995 .........| X X X | X X X | X X X |......... 1,908 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 87 |............ 50 |............ 35 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 150 |............ 65 |............ 44 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 298 |........... 178 |............ 84 |
4. 1988 .........| X X X | X X X |............. 0 |........... 583 |........... 296 |........... 150 |
5. 1989 .........| X X X | X X X | X X X |......... 2,358 |........... 669 |........... 315 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,543 |........... 477 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,532 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|........... 18 |............. 9 |............. 4 |............. 3 |
2. 1986 .........|........... 15 |............ 10 |............. 2 |............. 2 |
3. 1987 .........|........... 47 |............ 22 |............ 15 |............. 8 |
4. 1988 .........|........... 76 |............ 38 |............ 23 |............ 18 |
5. 1989 .........|.......... 176 |............ 89 |............ 47 |............ 26 |
6. 1990 .........|.......... 215 |........... 116 |............ 60 |............ 35 |
7. 1991 .........|.......... 474 |........... 225 |........... 116 |............ 85 |
8. 1992 .........|........ 1,517 |........... 502 |........... 214 |........... 136 |
9. 1993 .........| X X X |......... 1,458 |........... 381 |........... 209 |
10. 1994 .........| X X X | X X X |......... 1,169 |........... 393 |
11. 1995 .........| X X X | X X X | X X X |......... 1,058 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |......... 9,126 |......... 9,137 |......... 9,142 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 9,670 |......... 9,759 |......... 9,758 |
4. 1988 .........| X X X | X X X |............. 0 |......... 9,089 |......... 9,269 |......... 9,338 |
5. 1989 .........| X X X | X X X | X X X |......... 7,490 |......... 8,632 |......... 8,824 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 5,181 |......... 6,740 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 4,871 |
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....... 0 | X X X | X X X | X X X | X X X | X X X | X X X |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|-------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|......... 9,144 |......... 9,145 |......... 9,145 |......... 9,145 |
3. 1987 .........| ........ 9,762 |......... 9,768 |......... 9,763 |......... 9,765 |
4. 1988 .........| ........ 9,371 |......... 9,375 |......... 9,408 |......... 9,410 |
5. 1989 .........| ........ 8,890 |......... 8,896 |......... 8,941 |......... 8,941 |
6. 1990 .........| ........ 6,837 |......... 6,881 |......... 6,928 |......... 6,933 |
7. 1991 .........| ........ 5,778 |......... 5,868 |......... 5,920 |......... 5,935 |
8. 1992 .........| ........ 4,721 |......... 5,554 |......... 5,666 |......... 5,703 |
9. 1993 .........| X X X |......... 4,497 |......... 5,104 |......... 5,192 |
10. 1994 .........| X X X | X X X |......... 4,119 |......... 4,682 |
11. 1995....... 0 | X X X | X X X | X X X |......... 3,654 |
- ----------------------------------------------------------------------------------------
</TABLE>
114
<PAGE> 43
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............ 23 |............. 4 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 447 |........... 455 |........... 459 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 730 |........... 761 |........... 774 |
4. 1988 .........| X X X | X X X |............. 0 |........... 692 |........... 754 |........... 787 |
5. 1989 .........| X X X | X X X | X X X |........... 522 |........... 768 |........... 814 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 610 |........... 944 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 634 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT |
| DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 |............. 2 |............. 1 |............. 2 |
2. 1986 .........|.......... 461 |........... 462 |........... 462 |........... 462 |
3. 1987 .........|.......... 780 |........... 701 |........... 788 |........... 788 |
4. 1988 .........|.......... 799 |........... 807 |........... 813 |........... 814 |
5. 1989 .........|.......... 831 |........... 847 |........... 853 |........... 855 |
6. 1990 .........|.......... 998 |......... 1,019 |......... 1,038 |......... 1,047 |
7. 1991 .........|.......... 986 |......... 1,053 |......... 1,088 |......... 1,104 |
8. 1992 .........|.......... 647 |........... 924 |......... 1,005 |......... 1,038 |
9. 1993 .........| X X X |........... 618 |........... 940 |......... 1,010 |
10. 1994 .........| X X X | X X X |........... 739 |........... 993 |
11. 1995 .........| X X X | X X X | X X X |........... 597 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 19 |............ 14 |............ 10 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 14 |............. 9 |............. 5 |
3. 1987 .........| X X X |............. 0 |............. 0 |............ 43 |............ 26 |............ 16 |
4. 1988 .........| X X X | X X X |............. 0 |............ 85 |............ 44 |............ 24 |
5. 1989 .........| X X X | X X X | X X X |........... 251 |............ 73 |............ 37 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 286 |............ 86 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 320 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 7 |............. 5 |............. 2 |............. 1 |
2. 1986 .........|............ 2 |............. 1 |............. 0 |............. 0 |
3. 1987 .........|............ 9 |............. 4 |............. 5 |............. 0 |
4. 1988 .........|........... 12 |............. 7 |............. 3 |............. 2 |
5. 1989 .........|........... 21 |............. 7 |............. 2 |............. 0 |
6. 1990 .........|........... 43 |............ 27 |............ 15 |............. 5 |
7. 1991 .........|.......... 107 |............ 63 |............ 39 |............ 20 |
8. 1992 .........|.......... 268 |........... 120 |............ 78 |............ 52 |
9. 1993 .........| X X X |........... 290 |........... 107 |............ 59 |
10. 1994 .........| X X X | X X X |........... 260 |........... 123 |
11. 1995 .........| X X X | X X X | X X X |........... 281 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |........... 652 |........... 655 |........... 655 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,071 |......... 1,089 |......... 1,099 |
4. 1988 .........| X X X | X X X |............. 0 |......... 1,076 |......... 1,104 |......... 1,118 |
5. 1989 .........| X X X | X X X | X X X |........... 942 |......... 1,098 |......... 1,118 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,072 |......... 1,276 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,122 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|-------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|........... 655 |........... 655 |........... 655 |........... 655 |
3. 1987 .........| ........ 1,098 |........... 974 |......... 1,102 |......... 1,099 |
4. 1988 .........| ........ 1,121 |......... 1,041 |......... 1,130 |......... 1,130 |
5. 1989 .........| ........ 1,128 |......... 1,128 |......... 1,131 |......... 1,132 |
6. 1990 .........| ........ 1,288 |......... 1,298 |......... 1,305 |......... 1,305 |
7. 1991 .........| ........ 1,332 |......... 1,369 |......... 1,379 |......... 1,380 |
8. 1992 .........| ........ 1,073 |......... 1,259 |......... 1,295 |......... 1,304 |
9. 1993 .........| X X X |......... 1,071 |......... 1,278 |......... 1,305 |
10. 1994 .........| X X X | X X X |......... 1,213 |......... 1,389 |
11. 1995..........| X X X | X X X | X X X |......... 1,112 |
- ----------------------------------------------------------------------------------------
</TABLE>
115
<PAGE> 44
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
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 ........|............. 0 |............. 0 |............. 0 |............. 8 |............. 3 |............. 2 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 152 |........... 154 |........... 155 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 312 |........... 330 |........... 332 |
4. 1988 .........| X X X | X X X |............. 0 |........... 411 |........... 438 |........... 444 |
5. 1989 .........| X X X | X X X | X X X |........... 225 |........... 392 |........... 415 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 193 |........... 354 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 146 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
==========================================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
|------------------------------------------------------------------|
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 |............. 2 |............. 1 |............. 0 |
2. 1986 .........|.......... 156 |........... 155 |........... 155 |........... 157 |
3. 1987 .........|.......... 337 |........... 339 |........... 338 |........... 338 |
4. 1988 .........|.......... 458 |........... 463 |........... 465 |........... 467 |
5. 1989 .........|.......... 427 |........... 451 |........... 453 |........... 455 |
6. 1990 .........|.......... 412 |........... 431 |........... 439 |........... 441 |
7. 1991 .........|.......... 296 |........... 341 |........... 360 |........... 364 |
8. 1992 .........|.......... 126 |........... 284 |........... 331 |........... 346 |
9. 1993 .........| X X X |........... 156 |........... 369 |........... 414 |
10. 1994 .........| X X X | X X X |........... 272 |........... 405 |
11. 1995 .........| X X X | X X X | X X X |........... 261 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 21 |............ 17 |............ 15 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 6 |............. 3 |............. 2 |
3. 1987 .........| X X X |............. 0 |............. 0 |............ 31 |............ 13 |............ 11 |
4. 1988 .........| X X X | X X X |............. 0 |............ 48 |............ 29 |............ 26 |
5. 1989 .........| X X X | X X X | X X X |........... 186 |............ 68 |............ 50 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 206 |........... 109 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 197 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
|------------------------------------------------------------------|
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 ........|........... 13 |............ 11 |............. 6 |............ 10 |
2. 1986 .........|............ 1 |............. 2 |............. 1 |............. 0 |
3. 1987 .........|............ 5 |............. 3 |............. 4 |............. 4 |
4. 1988 .........|........... 15 |............ 10 |............. 8 |............. 7 |
5. 1989 .........|........... 40 |............ 16 |............ 12 |............ 12 |
6. 1990 .........|........... 47 |............ 30 |............ 27 |............ 26 |
7. 1991 .........|........... 94 |............ 53 |............ 35 |............ 30 |
8. 1992 .........|.......... 177 |........... 108 |............ 63 |............ 54 |
9. 1993 .........| X X X |........... 273 |........... 131 |............ 93 |
10. 1994 .........| X X X | X X X |........... 210 |........... 156 |
11. 1995 .........| X X X | X X X | X X X |........... 248 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |........... 175 |........... 175 |........... 175 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 386 |........... 389 |........... 389 |
4. 1988 .........| X X X | X X X |............. 0 |........... 500 |........... 511 |........... 516 |
5. 1989 .........| X X X | X X X | X X X |........... 434 |........... 506 |........... 512 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 425 |........... 514 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 361 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|--------------------------------------------------------------------
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|........... 175 |........... 175 |........... 173 |........... 175 |
3. 1987 .........| .......... 390 |........... 390 |........... 390 |........... 390 |
4. 1988 .........| .......... 520 |........... 520 |........... 520 |........... 521 |
5. 1989 .........| .......... 514 |........... 515 |........... 514 |........... 516 |
6. 1990 .........| .......... 523 |........... 527 |........... 530 |........... 533 |
7. 1991 .........| .......... 429 |........... 437 |........... 439 |........... 439 |
8. 1992 .........| .......... 338 |........... 454 |........... 461 |........... 469 |
9. 1993 .........| X X X |........... 476 |........... 570 |........... 579 |
10. 1994 .........| X X X | X X X |........... 542 |........... 631 |
11. 1995..........| X X X | X X X | X X X |........... 565 |
- ----------------------------------------------------------------------------------------
</TABLE>
116
<PAGE> 45
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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 ........|............. 0 |............. 0 |............. 0 |............ 14 |............. 8 |............. 7 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 531 |........... 538 |........... 543 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 741 |........... 770 |........... 800 |
4. 1988 .........| X X X | X X X |............. 0 |........... 824 |........... 870 |........... 888 |
5. 1989 .........| X X X | X X X | X X X |........... 542 |........... 889 |........... 943 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 809 |......... 1,201 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,082 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 4 |............. 3 |............. 1 |............. 1 |
2. 1986 .........|.......... 549 |........... 567 |........... 603 |........... 621 |
3. 1987 .........|.......... 810 |........... 814 |........... 814 |........... 814 |
4. 1988 .........|.......... 909 |........... 923 |........... 923 |........... 923 |
5. 1989 .........|.......... 975 |........... 995 |......... 1,004 |......... 1,006 |
6. 1990 .........|........ 1,250 |......... 1,273 |......... 1,290 |......... 1,302 |
7. 1991 .........|........ 1,488 |......... 1,542 |......... 1,586 |......... 1,608 |
8. 1992 .........|.......... 960 |......... 1,480 |......... 1,529 |......... 1,566 |
9. 1993 .........| X X X |......... 1,037 |......... 1,429 |......... 1,500 |
10. 1994 .........| X X X | X X X |......... 1,240 |......... 1,605 |
11. 1995 .........| X X X | X X X | X X X |........... 870 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 36 |............ 25 |............ 19 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 43 |............ 33 |............ 25 |
3. 1987 .........| X X X |............. 0 |............. 0 |............ 81 |............ 59 |............ 27 |
4. 1988 .........| X X X | X X X |............. 0 |............ 94 |............ 63 |............ 49 |
5. 1989 .........| X X X | X X X | X X X |........... 290 |........... 110 |............ 67 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 332 |........... 109 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 436 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|........... 14 |............ 12 |............. 7 |............. 7 |
2. 1986 .........|........... 19 |............ 13 |............. 9 |............ 12 |
3. 1987 .........|........... 11 |............. 7 |............. 7 |............. 7 |
4. 1988 .........|........... 31 |............ 18 |............. 7 |............. 6 |
5. 1989 .........|........... 42 |............ 22 |............ 13 |............ 13 |
6. 1990 .........|........... 78 |............ 64 |............ 44 |............ 33 |
7. 1991 .........|.......... 155 |........... 115 |............ 81 |............ 53 |
8. 1992 .........|.......... 447 |........... 159 |........... 111 |............ 79 |
9. 1993 .........| X X X |........... 446 |........... 195 |........... 147 |
10. 1994 .........| X X X | X X X |........... 414 |........... 239 |
11. 1995 .........| X X X | X X X | X X X |........... 423 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |........... 766 |........... 778 |........... 779 |
3. 1987 .........| X X X |............. 0 |............. 0 |......... 1,111 |......... 1,125 |......... 1,130 |
4. 1988 .........| X X X | X X X |............. 0 |......... 1,180 |......... 1,207 |......... 1,220 |
5. 1989 .........| X X X | X X X | X X X |......... 1,054 |......... 1,351 |......... 1,377 |
6. 1990 .........| X X X | X X X | X X X | X X X |......... 1,424 |......... 1,726 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |......... 1,874 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|----------------------------------------------------------------- |
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|.......... 781 |........... 793 |........... 811 |........... 832 |
3. 1987 .........|........ 1,130 |......... 1,132 |......... 1,132 |......... 1,132 |
4. 1988 .........|........ 1,230 |......... 1,232 |......... 1,232 |......... 1,232 |
5. 1989 .........|........ 1,392 |......... 1,396 |......... 1,400 |......... 1,404 |
6. 1990 .........|........ 1,761 |......... 1,786 |......... 1,792 |......... 1,796 |
7. 1991 .........|........ 2,163 |......... 2,204 |......... 2,240 |......... 2,247 |
8. 1992 .........|........ 1,797 |......... 2,191 |......... 2,228 |......... 2,241 |
9. 1993 .........| X X X |......... 1,929 |......... 2,272 |......... 2,330 |
10. 1994 .........| X X X | X X X |......... 2,230 |......... 2,592 |
11. 1995 .........| X X X | X X X | X X X |......... 1,696 |
- ---------------------------------------------------------------------------------------
</TABLE>
117
<PAGE> 46
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------------------------------------------
Years 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 ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Premiums Were | | | | |
Earned and | 1992 | 1993 | 1994 | 1995 |
Losses Were | | | | |
Incurred | | | | |
- --------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C> <C>
| | | | |
1. Prior ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) |NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
========================================================================================
(1) |CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END|
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
118
<PAGE> 47
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT |
| AND ASSUMED AT YEAR END |
|-------------------------------------------------------------------|
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 ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............. 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............. 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............. 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............. 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|-------------------------------------------------------------------|
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 ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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....... 0 | X X X | X X X | X X X | X X X | X X X | X X X |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED |
| AT YEAR END |
|-----------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|........... 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|........... 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|........... 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|........... 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|........... 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|........... 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|........... 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995....... 0 | X X X | X X X | X X X |............. 0 |
- --------------------------------------------------------------------------------------
</TABLE>
119
<PAGE> 48
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 7 |............. 2 |............. 3 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |........... 342 |........... 355 |........... 365 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 374 |........... 389 |........... 403 |
4. 1988 .........| X X X | X X X |............. 0 |........... 365 |........... 398 |........... 413 |
5. 1989 .........| X X X | X X X | X X X |........... 475 |........... 596 |........... 630 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 299 |........... 461 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 349 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 |............. 1 |............. 0 |............. 0 |
2. 1986 .........|.......... 369 |........... 371 |........... 371 |........... 372 |
3. 1987 .........|.......... 410 |........... 411 |........... 415 |........... 415 |
4. 1988 .........|.......... 429 |........... 436 |........... 445 |........... 447 |
5. 1989 .........|.......... 651 |........... 664 |........... 670 |........... 681 |
6. 1990 .........|.......... 483 |........... 498 |........... 512 |........... 518 |
7. 1991 .........|.......... 471 |........... 504 |........... 521 |........... 536 |
8. 1992 .........|.......... 302 |........... 421 |........... 451 |........... 470 |
9. 1993 .........| X X X |........... 235 |........... 327 |........... 353 |
10. 1994 .........| X X X | X X X |........... 265 |........... 354 |
11. 1995 .........| X X X | X X X | X X X |........... 222 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............ 12 |............ 10 |............. 7 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............ 37 |............ 16 |............. 8 |
3. 1987 .........| X X X |............. 0 |............. 0 |............ 38 |............ 25 |............ 17 |
4. 1988 .........| X X X | X X X |............. 0 |............ 57 |............ 44 |............ 44 |
5. 1989 .........| X X X | X X X | X X X |............ 96 |............ 49 |............ 41 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 130 |............ 46 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 129 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|-------------------------------------------------------------------
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 ........|............ 6 |............. 4 |............. 5 |............. 4 |
2. 1986 .........|............ 6 |............. 3 |............. 3 |............. 2 |
3. 1987 .........|............ 8 |............. 8 |............. 3 |............. 2 |
4. 1988 .........|........... 27 |............ 24 |............ 15 |............ 13 |
5. 1989 .........|........... 33 |............ 28 |............ 18 |............. 9 |
6. 1990 .........|........... 41 |............ 40 |............ 27 |............ 22 |
7. 1991 .........|........... 57 |............ 55 |............ 49 |............ 30 |
8. 1992 .........|.......... 116 |............ 72 |............ 49 |............ 38 |
9. 1993 .........| X X X |............ 87 |............ 42 |............ 40 |
10. 1994 .........| X X X | X X X |............ 76 |............ 47 |
11. 1995 .........| X X X | X X X | X X X |............ 64 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |........... 479 |........... 484 |........... 485 |
3. 1987 .........| X X X |............. 0 |............. 0 |........... 567 |........... 575 |........... 582 |
4. 1988 .........| X X X | X X X |............. 0 |........... 556 |........... 586 |........... 611 |
5. 1989 .........| X X X | X X X | X X X |........... 703 |........... 856 |........... 896 |
6. 1990 .........| X X X | X X X | X X X | X X X |........... 505 |........... 651 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |........... 574 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|.......... 489 |........... 489 |........... 489 |........... 489 |
3. 1987 .........|.......... 583 |........... 584 |........... 584 |........... 584 |
4. 1988 .........|.......... 617 |........... 621 |........... 624 |........... 624 |
5. 1989 .........|.......... 911 |........... 921 |........... 925 |........... 927 |
6. 1990 .........|.......... 686 |........... 706 |........... 716 |........... 721 |
7. 1991 .........|.......... 698 |........... 736 |........... 759 |........... 770 |
8. 1992 .........|.......... 524 |........... 651 |........... 677 |........... 695 |
9. 1993 .........| X X X |........... 424 |........... 532 |........... 569 |
10. 1994 .........| X X X | X X X |........... 465 |........... 592 |
11. 1995 .........| X X X | X X X | X X X |........... 386 |
- ---------------------------------------------------------------------------------------
</TABLE>
120
<PAGE> 49
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT |
| AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|-------------------------------------------------------------------|
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 ........|............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........| ............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ----------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND |
| ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
121
<PAGE> 50
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P - PART 5R - PRODUCTS 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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 3 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT |
| AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 1 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED |
| AT YEAR END |
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
122
<PAGE> 51
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT |
| AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
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 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED |
| AT YEAR END |
|------------------------------------------------------------------|
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 ........| X X X | X X X | X X X | X X X |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
123
<PAGE> 52
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ($000 OMITTED) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 2,085 |......... 2,085 |......... 2,085 |
3. 1987 .........|............ 0 |......... 5,446 |......... 5,446 |......... 5,446 |
4. 1988 .........|............ 0 |......... 5,491 |......... 6,491 |......... 6,491 |
5. 1989 .........|............ 0 |......... 7,275 |......... 7,275 |......... 7,275 |
6. 1990 .........|............ 0 |......... 9,082 |......... 9,082 |......... 9,082 |
7. 1991 .........|............ 0 |........ 10,710 |........ 10,710 |........ 10,710 |
8. 1992 .........|............ 0 |........ 11,806 |........ 11,806 |........ 11,806 |
9. 1993 .........| X X X |........ 12,330 |........ 12,330 |........ 12,330 |
10. 1994 .........| X X X | X X X |........ 13,087 |........ 13,087 |
11. 1995 .........| X X X | X X X | X X X |........ 13,439 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 1,123 |......... 1,123 |......... 1,123 |
3. 1987 .........|............ 0 |......... 1,322 |......... 1,322 |......... 1,322 |
4. 1988 .........|............ 0 |......... 1,545 |......... 1,545 |......... 1,545 |
5. 1989 .........|............ 0 |........... 857 |........... 857 |........... 857 |
6. 1990 .........|............ 0 |........... 876 |........... 876 |........... 876 |
7. 1991 .........|............ 0 |........... 433 |........... 433 |........... 433 |
8. 1992 .........|............ 0 |........... 640 |........... 640 |........... 640 |
9. 1993 .........| X X X |........... 498 |........... 498 |........... 498 |
10. 1994 .........| X X X | X X X |........... 429 |........... 429 |
11. 1995 .........| X X X | X X X | X X X |........... 418 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ($000 OMITTED) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |........... 973 |........... 973 |........... 973 |
3. 1987 .........|............ 0 |......... 1,952 |......... 1,952 |......... 1,952 |
4. 1988 .........|............ 0 |......... 3,755 |......... 3,755 |......... 3,755 |
5. 1989 .........|............ 0 |......... 4,196 |......... 4,196 |......... 4,196 |
6. 1990 .........|............ 0 |......... 4,997 |......... 4,997 |......... 4,997 |
7. 1991 .........|............ 0 |......... 5,472 |......... 5,472 |......... 5,472 |
8. 1992 .........|............ 0 |......... 6,238 |......... 6,238 |......... 6,238 |
9. 1993 .........| X X X |......... 8,386 |......... 8,386 |......... 8,386 |
10. 1994 .........| X X X | X X X |........ 10,750 |........ 10,750 |
11. 1995..........| X X X | X X X | X X X |........ 12,597 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............ 79 |............ 79 |............ 79 |
3. 1987 .........|............ 0 |............ 50 |............ 50 |............ 50 |
4. 1988 .........|............ 0 |............ 81 |............ 81 |............ 81 |
5. 1989 .........|............ 0 |............ 85 |............ 85 |............ 85 |
6. 1990 .........|............ 0 |............ 98 |............ 98 |............ 98 |
7. 1991 .........|............ 0 |........... 179 |........... 179 |........... 179 |
8. 1992 .........|............ 0 |........... 304 |........... 304 |........... 304 |
9. 1993 .........| X X X |........... 452 |........... 452 |........... 452 |
10. 1994 .........| X X X | X X X |........... 789 |........... 789 |
11. 1995..........| X X X | X X X | X X X |........... 859 |
- ---------------------------------------------------------------------------------------
</TABLE>
124
<PAGE> 53
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 5,758 |......... 5,758 |......... 5,758 |
3. 1987 .........|............ 0 |........ 10,867 |........ 10,867 |........ 10,867 |
4. 1988 .........|............ 0 |........ 12,286 |........ 12,286 |........ 12,286 |
5. 1989 .........|............ 0 |........ 13,211 |........ 13,211 |........ 13,211 |
6. 1990 .........|............ 0 |........ 15,525 |........ 15,525 |........ 15,525 |
7. 1991 .........|............ 0 |........ 17,516 |........ 17,516 |........ 17,516 |
8. 1992 .........|............ 0 |........ 17,563 |........ 17,563 |........ 17,563 |
9. 1993 .........| X X X |........ 18,952 |........ 18,952 |........ 18,952 |
10. 1994 .........| X X X | X X X |........ 20,791 |........ 20,791 |
11. 1995 .........| X X X | X X X | X X X |........ 22,405 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 3,113 |......... 3,113 |......... 3,113 |
3. 1987 .........|............ 0 |......... 3,568 |......... 3,568 |......... 3,568 |
4. 1988 .........|............ 0 |......... 3,903 |......... 3,903 |......... 3,903 |
5. 1989 .........|............ 0 |......... 2,277 |......... 2,277 |......... 2,277 |
6. 1990 .........|............ 0 |......... 2,430 |......... 2,430 |......... 2,430 |
7. 1991 .........|............ 0 |......... 1,288 |......... 1,288 |......... 1,288 |
8. 1992 .........|............ 0 |......... 1,201 |......... 1,201 |......... 1,201 |
9. 1993 .........| X X X |......... 1,767 |......... 1,767 |......... 1,767 |
10. 1994 .........| X X X | X X X |......... 2,220 |......... 2,220 |
11. 1995 .........| X X X | X X X | X X X |......... 2,365 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 4,509 |......... 4,509 |......... 4,509 |
3. 1987 .........|............ 0 |......... 7,091 |......... 7,091 |......... 7,091 |
4. 1988 .........|............ 0 |......... 8,132 |......... 8,132 |......... 8,132 |
5. 1989 .........|............ 0 |......... 9,072 |......... 9,072 |......... 9,072 |
6. 1990 .........|............ 0 |........ 10,341 |........ 10,341 |........ 10,341 |
7. 1991 .........|............ 0 |........ 10,546 |........ 10,546 |........ 10,546 |
8. 1992 .........|............ 0 |......... 9,740 |......... 9,740 |......... 9,740 |
9. 1993 .........| X X X |......... 9,051 |......... 9,051 |......... 9,051 |
10. 1994 .........| X X X | X X X |......... 9,148 |......... 9,148 |
11. 1995..........| X X X | X X X | X X X |......... 8,729 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |......... 2,797 |......... 2,797 |......... 2,797 |
3. 1987 .........|............ 0 |......... 2,294 |......... 2,294 |......... 2,294 |
4. 1988 .........|............ 0 |......... 2,946 |......... 2,946 |......... 2,946 |
5. 1989 .........|............ 0 |......... 2,348 |......... 2,348 |......... 2,348 |
6. 1990 .........|............ 0 |......... 2,556 |......... 2,556 |......... 2,556 |
7. 1991 .........|............ 0 |......... 1,998 |......... 1,998 |......... 1,998 |
8. 1992 .........|............ 0 |......... 1,583 |......... 1,583 |......... 1,583 |
9. 1993 .........| X X X |......... 1,635 |......... 1,635 |......... 1,635 |
10. 1994 .........| X X X | X X X |......... 1,882 |......... 1,882 |
11. 1995..........| X X X | X X X | X X X |......... 1,981 |
- ---------------------------------------------------------------------------------------
</TABLE>
125
<PAGE> 54
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
126
<PAGE> 55
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
7. 1994 .........| 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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Premiums Were | | | | |
Earned and | 1992 | 1993 | 1994 | 1995 |
Losses Were | | | | |
Incurred | | | | |
- --------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
| | | | |
1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
7. 1994 .........| X X X | X X X |............. 0 |............. 0 |
8. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
7. 1994 .........| 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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Premiums Were | | | | |
Earned and | 1992 | 1993 | 1994 | 1995 |
Losses Were | | | | |
Incurred | | | | |
- --------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
| | | | |
1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
7. 1994 .........| X X X | X X X |............. 0 |............. 0 |
8. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
7. 1994 .........| 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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Premiums Were | | | | |
Earned and | 1992 | 1993 | 1994 | 1995 |
Losses Were | | | | |
Incurred | | | | |
- --------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
| | | | |
1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
7. 1994 .........| X X X | X X X |............. 0 |............. 0 |
8. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
3. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
4. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
7. 1994 .........| 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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
Years in Which | (8) | (9) | (10) | (11) |
Premiums Were | | | | |
Earned and | 1992 | 1993 | 1994 | 1995 |
Losses Were | | | | |
Incurred | | | | |
- --------------------------------------------------------------------------------------|
<S> <C> <C> <C> <C>
| | | | |
1. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
7. 1994 .........| X X X | X X X |............. 0 |............. 0 |
8. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
127
<PAGE> 56
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............ 47 |............ 47 |............ 47 |
3. 1987 .........|............ 0 |............ 69 |............ 69 |............ 69 |
4. 1988 .........|............ 0 |............ 52 |............ 52 |............ 52 |
5. 1989 .........|............ 0 |............ 13 |............ 13 |............ 13 |
6. 1990 .........|............ 0 |............. 8 |............. 8 |............. 8 |
7. 1991 .........|............ 0 |............ 15 |............ 15 |............ 15 |
8. 1992 .........|............ 0 |............. 8 |............. 8 |............. 8 |
9. 1993 .........| X X X |............. 9 |............. 9 |............. 9 |
10. 1994 .........| X X X | X X X |............ 11 |............ 11 |
11. 1995 .........| X X X | X X X | X X X |............ 22 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2A
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............ 29 |............ 29 |............ 29 |
3. 1987 .........|............ 0 |............ 22 |............ 22 |............ 22 |
4. 1988 .........|............ 0 |............ 19 |............ 19 |............ 19 |
5. 1989 .........|............ 0 |............. 3 |............. 3 |............. 3 |
6. 1990 .........|............ 0 |............. 2 |............. 2 |............. 2 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995 .........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</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) |
Premiums Were | | | | | | |
Earned and | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 |
Losses Were | | | | | | |
Incurred | | | | | | |
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
| | | | | | |
1. Prior ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
=======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END |
| ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
SECTION 2B
<TABLE>
<CAPTION>
==========================================================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------------------------------------------
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 ........| 0 0 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........| X X X |............. 0 |............. 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........| X X X | X X X |............. 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........| X X X | X X X | X X X |............. 0 |............. 0 |............. 0 |
6. 1990 .........| X X X | X X X | X X X | X X X |............. 0 |............. 0 |
7. 1991 .........| X X X | X X X | X X X | X X X | X X X |............. 0 |
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 |
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
(1) | CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ( $000 OMITTED ) |
|------------------------------------------------------------------|
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 ........|............ 0 |............. 0 |............. 0 |............. 0 |
2. 1986 .........|............ 0 |............. 0 |............. 0 |............. 0 |
3. 1987 .........|............ 0 |............. 0 |............. 0 |............. 0 |
4. 1988 .........|............ 0 |............. 0 |............. 0 |............. 0 |
5. 1989 .........|............ 0 |............. 0 |............. 0 |............. 0 |
6. 1990 .........|............ 0 |............. 0 |............. 0 |............. 0 |
7. 1991 .........|............ 0 |............. 0 |............. 0 |............. 0 |
8. 1992 .........|............ 0 |............. 0 |............. 0 |............. 0 |
9. 1993 .........| X X X |............. 0 |............. 0 |............. 0 |
10. 1994 .........| X X X | X X X |............. 0 |............. 0 |
11. 1995..........| X X X | X X X | X X X |............. 0 |
- ---------------------------------------------------------------------------------------
</TABLE>
128
<PAGE> 57
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS INSURANCE
COMPANY OF NEW HAMPSHIRE, INC.
PAGE 129
Schedule P - Part 7A - Section 1
NONE
Schedule P - Part 7A - Section 2
NONE
Schedule P - Part 7A - Section 3
NONE
PAGE 130
Schedule P - Part 7A - Section 4
NONE
Schedule P - Part 7A - Section 5
NONE
PAGE 131
Schedule P - Part 7B - Section 1
NONE
Schedule P - Part 7B - Section 2
NONE
Schedule P - Part 7B - Section 3
NONE
PAGE 132
Schedule P - Part 7B - Section 4
NONE
Schedule P - Part 7B - Section 5
NONE
Schedule P - Part 7B - Section 6
NONE
Schedule P - Part 7B - Section 7
NONE
<PAGE> 58
Form 2
ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCHANTS
INSURANCE COMPANY OF NEW HAMPSHIRE, INC.
SCHEDULE P INTERROGATORIES
1. Computation of excess statutory reserves over statement reserves.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
a. Auto Liability (private passenger and commercial)
1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0
b. Other Liability and Products Liability
1995 $ 0 ( 0.0% ) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0
c. Medical Malpractice
1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0
d. Workers' Compensation
1995 $ 0 ( 0.0 %) 1994 $ 0 ( 0.0 %) 1993 $ 0 ( 0.0 %) Total $ 0
e. Credit Total $ 0
f. All Lines Total (Report here and Page 3) Total $ 0
</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) |
| earned and losses were incurred | Medical Malpractice | Other Liability |
|----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
| | | |
| a. 1987 ..........................|............................... 0 |............................... 0 |
| b. 1988 ..........................|............................... 0 |............................... 0 |
| c. 1989 ..........................|............................... 0 |............................... 0 |
| d. 1990 ..........................|............................... 0 |............................... 0 |
| e. 1991 ..........................|............................... 0 |............................... 0 |
| f. 1992 ..........................|............................... 0 |............................... 0 |
| g. 1993 ..........................|............................... 0 |............................... 0 |
| h. 1994 ..........................|............................... 0 |............................... 0 |
| i. 1995 ..........................|............................... 0 |............................... 0 |
| | | |
| j. TOTALS |............................... 0 |............................... 0 |
-----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
| Years in which premiums were | (3) |
| earned and losses were incurred | Products Liability |
|-----------------------------------------------------------------------------|
<S> <C>
| | |
| a. 1987 ..........................|................................. 0 |
| b. 1988 ..........................|................................. 0 |
| c. 1989 ..........................|................................. 0 |
| d. 1990 ..........................|................................. 0 |
| e. 1991 ..........................|................................. 0 |
| f. 1992 ..........................|................................. 0 |
| g. 1993 ..........................|................................. 0 |
| h. 1994 ..........................|................................. 0 |
| i. 1995 ..........................|................................. 0 |
| | |
| j. TOTALS |................................. 0 |
-------------------------------------------------------------------------------
</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 (X) 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 (X) 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 (X) 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.
<TABLE>
<S> <C> <C>
6. What were the net premiums in force at the end of the year for: (in thousands of dollars)
a. Fidelity $ 0
b. Surety $ 0
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.
</TABLE>
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
