SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended Commission File
December 31, 1995 No. 1-11453
AMERICAN FINANCIAL GROUP, INC.
Incorporated under IRS Employer I.D.
the Laws of Ohio No. 31-1422526
One East Fourth Street, Cincinnati, Ohio 45202
(513) 579-2121
Securities Registered Pursuant to Section 12(b) of the Act:
Name of Each Exchange
Title of Each Class on which Registered
Common Stock New York Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and need not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
As of February 29, 1996, there were 60,362,061 shares of the
Registrant's Common Stock outstanding, excluding 18,666,614
shares owned by subsidiaries. The aggregate market value of the
Common Stock held by non-affiliates at that date, was
approximately $1.1 billion (based upon non-affiliate holdings of
34,486,536 shares and a market price of $31.875 per share.)
_____________
Documents Incorporated by Reference:
Proxy Statement for the 1996 Annual Meeting of Shareholders
(portions of which are incorporated by reference into Part III
hereof).
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
INDEX TO ANNUAL REPORT
ON FORM 10-K
Part I Page
Item 1 - Business:
Introduction 1
Property and Casualty Operations 2
Annuity Operations 14
Other Companies 17
Investment Portfolio 17
Regulation 20
Item 2 - Properties 22
Item 3 - Legal Proceedings 22
Item 4 - Submission of Matters to a Vote of Security
Holders *
Part II
Item 5 - Market for Registrant's Common Equity and Related
Stockholder Matters 24
Item 6 - Selected Financial Data 25
Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations 26
Item 8 - Financial Statements and Supplementary Data 34
Item 9 - Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure 34
Part III
Item 10 - Directors and Executive Officers of the Registrant 35
Item 11 - Executive Compensation 35
Item 12 - Security Ownership of Certain Beneficial Owners
and Management 35
Item 13 - Certain Relationships and Related Transactions 35
Part IV
Item 14 - Exhibits, Financial Statement Schedules and
Reports on Form 8-K S-1
* The response to this Item is "none".
<PAGE>
PART I
ITEM 1
Business
Introduction
American Financial Group, Inc. ("AFG") was incorporated as an
Ohio corporation in 1994. Its address is One East Fourth Street,
Cincinnati, Ohio 45202; its phone number is (513) 579-2121. AFG
is a holding company which, through its subsidiaries, is engaged
primarily in specialty and multi-line property and casualty
insurance businesses and in the sale of tax-deferred annuities.
AFG's property and casualty operations originated in 1872 and are
the fifteenth largest property and casualty group in the United
States based on 1994 statutory net premiums written of $3.1
billion. AFG was formed for the purpose of acquiring American
Financial Corporation ("AFC") and American Premier Underwriters,
Inc. ("APU" or "American Premier") in merger transactions
completed on April 3, 1995 (the "Mergers").
At December 31, 1995, Carl H. Lindner, members of his
immediate family and trusts for their benefit (collectively the
"Lindner Family") beneficially owned approximately 44% of AFG's
outstanding voting common stock.
The Mergers
At the date of the Mergers, AFC held 18.7 million shares of
APU (44% of the then-outstanding shares). In the Mergers, AFG
issued 71.4 million shares of its Common Stock in exchange for
all of the outstanding common stock of AFC and APU. The 18.7
million shares of Common Stock held by AFC and its subsidiaries
are accounted for by AFG as retired.
For financial reporting purposes, because the former
shareholders of AFC owned more than 50% of AFG following the
Mergers, the financial statements of AFG for periods prior to the
Mergers are those of AFC. The operations of APU are included in
AFG's financial statements from the effective date of the
Mergers.
<PAGE>
General
Generally, companies have been included in AFG's
consolidated financial statements when the ownership of voting
securities has exceeded 50%; for investments below that level but
above 20%, companies have been accounted for as investees. (See
Note F to AFG's financial statements.) The following table shows
AFG's percentage ownership of voting securities of its
significant affiliates over the past several years:
Ownership at December 31,
1995 1994 1993 1992 1991
American Financial Corporation 79% n/a n/a n/a n/a
American Premier Underwriters 100% 42% 41% 51% 50%
Great American Insurance Group 100% 100% 100% 100% 100%
American Annuity Group 81% 80% 80% 82% 39%
Great American Life Insurance Company (a) (a) (a) (a) 100%
American Financial Enterprises 83% 83% 83% 83% 82%
Chiquita Brands International 44% 46% 46% 46% 48%
Citicasters 38% 37% 20% 40% 40%
General Cable - (b) 45% 45% -
(a) Sold to American Annuity Group in December 1992.
(b) Sold in June 1994. 100%-owned by American Premier prior to
spin-off in July 1992. Ownership percentage excludes shares
held by American Premier for future distribution aggregating 12%.
1
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The following summarizes the more significant changes in
ownership percentages shown in the above table.
American Financial Corporation For financial reporting
purposes, AFC is the predecessor to AFG. In April 1995, AFC
became a subsidiary of AFG as a result of the Mergers. Holders
of AFC Series F and G Preferred Stock were granted voting rights
equal to approximately 21% of the total voting power of AFC
shareholders immediately prior to the Mergers.
American Premier Underwriters In 1993, American Financial
Enterprises, Inc. ("AFEI") sold 4.5 million shares of American
Premier common stock in a secondary public offering. In April
1995, APU became a subsidiary of AFG as a result of the Mergers.
American Annuity Group On December 31, 1992, American
Annuity purchased Great American Life Insurance Company ("GALIC")
from Great American Insurance Company ("GAI"). In connection
with the acquisition, GAI purchased 5.1 million shares of
American Annuity's common stock pursuant to a cash tender offer
and 17.1 million additional shares directly from American
Annuity.
Citicasters In December 1993, Great American Communications
Company ("GACC") completed a prepackaged plan of reorganization.
In the restructuring, AFC's previous holdings of GACC stock and
debt were exchanged for 20% of the new common stock. GACC
changed its name to Citicasters to reflect the nature of its
business. In June 1994, AFEI purchased approximately 10% of
Citicasters common stock. In the second half of 1994,
Citicasters repurchased and retired approximately 21% of its
common stock.
In February 1996, Citicasters entered into a merger agreement
with Jacor Communications, Inc. Under the agreement, each
Citicasters shareholder, including AFG and its subsidiaries, will
receive cash and warrants to purchase Jacor common stock.
Consummation of the transaction is subject to regulatory
approvals, and certain adjustments to the price will be made if
the transaction does not close by September 30, 1996.
General Cable In 1992, American Premier distributed to its
shareholders approximately 88% of the stock of General Cable,
which was formed to own certain of American Premier's
manufacturing businesses. AFC and its subsidiaries received
approximately 45% of General Cable in the spin-off. In 1994, an
unaffiliated company acquired all of the common stock of General
Cable including AFC's and the 12% which had been retained by
American Premier.
<PAGE>
Property and Casualty Insurance Operations
AFG manages and operates its property and casualty business
in three major business segments: Nonstandard Automobile
Insurance, Specialty Lines and Commercial and Personal Lines.
Each segment is comprised of multiple business units which
operate autonomously but with strong central financial controls
and full accountability. Decentralized control allows each unit
the autonomy necessary to respond to local and specialty market
conditions while capitalizing on the efficiencies of centralized
investment, actuarial, financial and legal support functions.
AFG's property and casualty insurance operations employ
approximately 7,600 persons.
Unless indicated otherwise, the financial information
presented for the property and casualty insurance operations is
presented based on generally accepted accounting principles
("GAAP") and includes the insurance operations of American
Premier for all periods.
2
<PAGE>
The following table presents AFG's major property & casualty
insurance subsidiaries showing their size (in millions), segment
and A.M. Best rating.
1995 Net Written Premiums
Commercial NSA A.M. Best
and Personal Specialty Group Rating
Great American $717 $ 672 $ - A
Republic Indemnity - 288 - A
Mid-Continent - 84 - A
American Empire Surplus Lines - 34 - A+
Atlanta Casualty - - 514 A
Windsor - - 352 A
Infinity - - 232 A
Leader National - - 84 A-
Transport - - 74 A
Other - 19 21
$717 $1,097 $1,277
The primary objective of the property and casualty insurance
operations is to achieve underwriting profitability.
Underwriting profitability is measured by the combined ratio
which is a sum of the ratios of underwriting expenses, losses,
and loss adjustment expenses to premiums. When the combined
ratio is under 100%, underwriting results are generally
considered profitable; when the ratio is over 100%, underwriting
results are generally considered unprofitable. The combined
ratio does not reflect investment income, other income or federal
income taxes.
Management's focus on underwriting performance has resulted
in a statutory combined ratio averaging 100.9% for the period
1991 to 1995, as compared to 109.3% for the property and casualty
industry over the same period (Source: "Best's Review -
Property/Casualty" - January 1996 Edition). Management's
philosophy is to refrain from writing business that is not
expected to produce an underwriting profit even if it is
necessary to limit premium growth to do so.
For 1995, net written premiums were nearly $3.1 billion,
approximately the same level as in 1994. Premium growth in most
of the insurance lines has been offset by a decline in California
workers' compensation writings. Aside from the California
workers' compensation business, net written premiums grew 6% in
1995.
<PAGE>
The following table shows (in millions) the performance of
AFG's property and casualty insurance operations in various
categories. While financial data is reported on a statutory
basis for insurance regulatory purposes, it is reported in
accordance with GAAP for shareholder and other investment
purposes. In general, statutory accounting results in lower
capital surplus and net earnings than result from application of
GAAP. Major differences include charging policy acquisition
costs to expense as incurred rather than spreading the costs over
the periods covered by the policies; netting of reinsurance
recoverables and prepaid reinsurance premiums against the
corresponding liability; requiring additional loss reserves; and
charging to surplus certain assets, such as furniture and
fixtures and agents' balances over 90 days old.
1995 1994 1993
Statutory Basis
Premiums Earned $3,006 $2,915 $2,516
Admitted Assets 6,753 6,398 5,808
Unearned Premiums 1,160 1,093 912
Loss and Loss Adjustment
Expense ("LAE") Reserves 3,394 3,275 3,061
Capital and Surplus 1,595 1,586 1,454
3
<PAGE>
1995 1994 1993
GAAP Basis
Premiums Earned $3,031 $2,945 $2,517
Total Assets 9,002 8,617 7,869
Unearned Premiums 1,294 1,213 1,012
Loss and LAE Reserves 4,097 4,021 3,679
Shareholder's Equity 2,893 2,615 2,431
The following table presents certain information with
respect to AFG's property and casualty insurance operations
(dollars in millions):
1995 1994 1993
Net written premiums $3,092 $3,124 $2,667
Net earned premiums $3,031 $2,945 $2,517
Loss and LAE 2,265 2,077 1,734
Underwriting expenses 792 770 683
Policyholder dividends 8 84 95
Underwriting profit (loss) ($ 34) $ 14 $ 5
GAAP ratios:
Loss and LAE ratio 74.8% 70.5% 68.9%
Underwriting expense ratio 26.1 26.1 27.1
Policyholder dividend ratio .3 2.8 3.8
Combined ratio 101.2% 99.4% 99.8%
Statutory ratios:
Loss and LAE ratio 74.8% 71.0% 69.3%
Underwriting expense ratio 25.9 26.3 26.9
Policyholder dividend ratio 1.7 3.6 2.5
Combined ratio 102.4% 100.9% 98.7%
Industry statutory combined
ratio(a) 107.2% 108.5% 106.9%
(a) Ratios are derived from "Best's Review - Property/Casualty"
(January 1996 Edition).
Nonstandard Automobile Insurance
General. The Nonstandard Automobile Insurance segment
("NSA Group") underwrites private passenger automobile physical
damage and liability insurance policies for "nonstandard risks."
Nonstandard insureds are those individuals who are unable to
obtain insurance through standard market carriers due to factors
such as age, record of prior accidents, driving violations,
particular occupation or type of vehicle. Premium rates for
nonstandard risks are generally higher than for standard risks.
<PAGE>
Total private passenger automobile insurance premiums written by
insurance carriers in the United States in 1995 have been
estimated by A.M. Best to be approximately $103 billion. Because
it can be viewed as a residual market, the size of the
nonstandard private passenger automobile insurance market changes
with the insurance environment and grows when standard coverage
becomes more restrictive. When this occurs, the criteria which
differentiate standard from nonstandard insurance risks change.
The size of the voluntary nonstandard market is also affected by
rate levels adopted by state administered involuntary plans.
Although these factors make it difficult to estimate the size of
the nonstandard market, management believes that the voluntary
nonstandard market has accounted for approximately 15% of total
private passenger automobile insurance premiums written in recent
years.
The NSA Group attributes its premium growth in recent years
primarily to entry into additional states, increased market
penetration in its existing states, overall growth in the
nonstandard market, premium rate increases and its purchase of
Leader National. Management believes the nonstandard market has
experienced growth in recent years as standard insurers have
become more restrictive in the types of risks they write.
4
<PAGE>
The NSA Group writes business in 42 states and holds
licenses to write policies in 48 states and the District of
Columbia. The U.S. geographic distribution of the NSA Group's
statutory direct written premiums in 1995 compared to 1991, was
as follows:
State 1995 1991 State 1995 1991
Texas 12.2% * Alabama 2.9% 4.5%
Florida 11.2 19.3% Washington 2.7 *
Georgia 9.2 17.5 Missouri 2.6 2.1
Pennsylvania 8.0 * Kentucky 2.2 *
California 7.5 10.3 Virginia * 5.6
Connecticut 5.0 4.8 Ohio * 2.9
Arizona 4.1 2.3 Arkansas * 2.6
Tennessee 3.8 4.8 Oregon * 2.5
Oklahoma 3.5 * Other 18.7 13.4
Indiana 3.3 3.7 100.0% 100.0%
Mississippi 3.1 3.7
_____________
* less than 2%
In addition, AFG writes approximately $50 million (4%) of
its net premiums annually in the United Kingdom.
Management believes that the NSA Group's underwriting
success as compared to the automobile insurance industry as a
whole has been due, in part, to the refinement of various risk
profiles, thereby dividing the consumer market into more defined
segments which can be underwritten or priced properly. The NSA
Group also generally writes policies of short duration which
allow more frequent rating evaluations of individual risks,
providing management greater flexibility in the ongoing
assessment of the business. In addition, the NSA Group has
implemented cost control measures both in the underwriting and
claims handling areas.
<PAGE>
The following table presents certain information with
respect to AFG's NSA Group insurance operations (dollars in
millions):
1995 1994 1993
Net written premiums $1,277 $1,186 $ 916
Net earned premiums $1,246 $1,097 $ 812
Loss and LAE 1,036 833 581
Underwriting expenses 273 265 208
Underwriting profit (loss) ($ 63) ($ 1) $ 23
GAAP ratios:
Loss and LAE ratio 83.2% 75.9% 71.6%
Underwriting expense ratio 22.0 24.1 25.6
Combined ratio 105.2% 100.0% 97.2%
Statutory ratios:
Loss and LAE ratio 83.1% 76.0% 72.5%
Underwriting expense ratio 21.6 23.9 24.5
Combined ratio 104.7% 99.9% 97.0%
Industry statutory combined
ratio(a) 102.3% 101.3% 101.7%
(a) This information refers to the private passenger
automobile industry statutory combined ratio derived from
"Best's Review - Property/Casualty" (January 1996 Edition).
Although AFG believes that there is no reliable regularly
published combined ratio data for the nonstandard automobile
insurance industry, AFG believes that such a combined ratio
would be lower than the private passenger automobile industry
average shown above.
5
<PAGE>
Marketing. Each of the principal units in the NSA Group is
responsible for its own marketing, sales, underwriting and claims
processing. Sales efforts are primarily directed toward
independent agents to convince them to select an NSA Group
insurance company for their customers. These units each write
policies through several thousand independent agents.
Of the approximately one million NSA Group policies in force
at December 31, 1995, approximately 90% had policy limits of $50,000
or less per occurrence. Most NSA Group policies are written for
policy periods of six months or less, with some as short as one
month.
Competition. A large number of national, regional and
local insurers write nonstandard private passenger automobile
insurance coverage. Insurers in this market generally compete on
the basis of price (including differentiation on liability
limits, variety of coverages offered and deductibles), geographic
availability and ease of enrollment and, to a lesser extent,
reputation for claims handling, financial stability and customer
service. NSA Group management believes that sophisticated data
analysis for refinement of risk profiles has helped the NSA Group
to compete successfully. The NSA Group attempts to provide
selected pricing for a wider spectrum of risks and with a greater
variety of payment options, deductibles and limits of liability
than are offered by many of its competitors.
Specialty Lines
General. The Specialty Lines segment emphasizes the
writing of specialized insurance coverage where AFG personnel are
experts in particular lines of business or customer groups
including California workers' compensation, executive liability,
ocean and inland marine, agricultural-related coverages (allied
lines), non-profit liability, umbrella and excess and surplus
lines. The Specialty Lines workers' compensation operations
write coverage for statutory prescribed benefits payable to
employees (principally in California) who are injured on the job.
The executive and professional liability divisions market
liability coverage for lawyers and corporate directors and
officers. Ocean and inland marine businesses provide such
coverage as marine cargo, boat dealers, marina operators/dealers,
excursion vessels, builder's risk, contractor's equipment, excess
property and transportation cargo. The agricultural-related
businesses provide multi-peril crop insurance covering all
weather and disease perils as well as coverage for full-time
operating farms/ranches and agribusiness operations on a
nationwide basis through independent agents who specialize in the
rural market. The non-profit liability business provides
property, general/professional liability, automobile, trustee
liability, umbrella and crime coverage for a wide range of
non-profit organizations. These operations also provide excess
and surplus commercial property and casualty insurance in a
variety of industries.
<PAGE>
Specialization is the key element to the underwriting
success of these business units. Each unit has independent
management with significant operating autonomy to oversee the
important operational functions of its business such as
underwriting, pricing, marketing, policy processing and claims
service. These specialty lines are opportunistic and their
premium volume will vary based on current market conditions. AFG
continually evaluates new specialty markets.
The U.S. geographic distribution of the Specialty Lines
statutory direct written premiums in 1995 compared to 1991, was
as follows:
State 1995 1991 State 1995 1991
California 32.6% 45.2% Florida 3.1% *
Texas 8.4 4.1 New Jersey 2.8 2.4%
New York 5.4 5.4 Pennsylvania 2.3 2.8
Massachusetts 4.5 2.2 Ohio 2.1 2.3
Illinois 3.6 3.3 Michigan 2.1 2.2
Oklahoma 3.5 8.2 Other 29.6 21.9
100.0% 100.0%
_____________
* less than 2%
6
<PAGE>
The following table sets forth a distribution of statutory
net written premiums for AFG's Specialty Lines by NAIC annual
statement line for 1995 compared to 1991:
1995 1991
Workers' compensation 29.8% 47.7%
Other liability 20.4 15.5
Commercial multi-peril 8.5 3.1
Allied lines 8.4 4.4
Inland marine 7.9 6.0
Auto liability 7.6 9.4
Ocean marine 4.5 3.2
Surety 2.9 2.8
Fire 2.5 1.5
Auto physical damage 2.1 2.9
Other 5.4 3.5
100.0% 100.0%
The following table presents certain information with
respect to AFG's Specialty Lines insurance operations (dollars in
millions):
1995 1994 1993
Net written premiums $1,097 $1,250 $1,079
Net earned premiums $1,085 $1,185 $1,035
Loss and LAE 730 785 667
Underwriting expenses 302 291 235
Policyholder dividends (3) 76 93
Underwriting profit $ 56 $ 33 $ 40
GAAP ratios:
Loss and LAE ratio 67.2% 66.2% 64.4%
Underwriting expense ratio 27.9 24.6 22.7
Policyholder dividend ratio (.3) 6.4 9.0
Combined ratio 94.8% 97.2% 96.1%
Statutory ratios:
Loss and LAE ratio 67.5% 66.7% 64.8%
Underwriting expense ratio 28.1 25.2 23.3
Policyholder dividend ratio 4.2 8.5 6.0
Combined ratio 99.8% 100.4% 94.1%
Industry statutory combined
ratio(a) 107.2% 108.5% 106.9%
(a) Ratios are derived from "Best's Review - Property/Casualty"
(January 1996 Edition).
<PAGE>
Marketing. The Specialty Lines operations direct their
sales efforts primarily toward independent property and casualty
insurance agents and brokers. These businesses write insurance
through more than 5,000 agents and have more than 250,000
policies in force.
Competition. These businesses compete with other insurers
as well as the California State Fund in the California workers'
compensation insurance market. Because of the specialty nature
of these coverages, competition is based primarily on service to
policyholders and agents, specific characteristics of products
offered and reputation for claims handling. Price, commissions
and profit sharing terms are also important factors. Competitors
include individual insurers and insurance groups of varying
sizes, some of which are mutual insurance companies possessing
competitive advantages in that all their profits inure to their
policyholders. Management believes that sophisticated data
analysis for refinement of risk profiles, extensive specialized
knowledge and loss prevention service have helped these
businesses compete successfully.
7
<PAGE>
Commercial and Personal Lines
General. Major commercial lines of business are workers'
compensation, commercial multi-peril, umbrella (including primary
and excess layers) and general liability insurance. The workers'
compensation business has experienced solid growth and
profitability due to improved rate structures and favorable
trends in medical care costs and the success of its Drug-Free
Workplace program.
AFG's Drug-Free Workplace program for workers' compensation
customers assists insureds in setting up drug testing programs
(as permitted by law), drug and alcohol education programs and
work safety programs. At December 31, 1995, there were more than
650 insureds in 16 states with such programs producing
approximately $55 million in annual net written premiums.
Commercial business is written in 25 states where management
believes adequate rates can be obtained and where assigned risk
costs are not excessive. AFG's approach focuses on specific
customer groups, such as fine restaurants, light manufacturers,
high rise living units, hotels/motels and insureds with large
umbrella coverages. The approach also emphasizes site visits at
prospective customers to ensure underwriter familiarity with risk
factors relating to each insured and to avoid those risks which
have unacceptable frequency or severity exposures.
Personal lines of business consist primarily of standard
private passenger auto and homeowners' insurance and are written
in 38 states. AFG's approach is to develop tailored rates for
its personal automobile customers based on a wide variety of
factors, including make and model of the insured automobile and
the driving record of the insureds. The approach to homeowners
business is to limit writings in locations with catastrophic
exposures such as windstorms, earthquakes and hurricanes.
The U.S. geographic distribution of the Commercial and Personal
Lines statutory direct written premiums in 1995 compared to 1991,
was as follows:
State 1995 1991 State 1995 1991
Connecticut 14.1% 12.0% Florida 3.2% 2.8%
New York 11.9 7.7 California 2.3 9.1
North Carolina 10.6 11.7 Massachusetts 2.2 2.6
New Jersey 9.7 7.6 Illinois 2.2 3.2
Pennsylvania 6.5 2.5 Washington * 2.7
Texas 5.0 * Oregon * 2.5
Michigan 4.0 3.5 Virginia * 2.3
Maryland 3.8 3.5 Minnesota * 2.1
Ohio 3.8 4.5 Other 20.7 19.7
100.0% 100.0%
_____________
* less than 2%
<PAGE>
The following table sets forth a distribution of statutory
net written premiums for AFG's Commercial and Personal Lines by
NAIC annual statement line for 1995 compared to 1991:
1995 1991
Auto liability 28.8% 23.9%
Workers' compensation 18.0 13.3
Commercial multi-peril 17.2 24.7
Auto physical damage 12.3 12.0
Homeowners 11.1 12.1
Other liability 7.3 9.1
Inland marine 1.7 1.8
Other 3.6 3.1
100.0% 100.0%
8
<PAGE>
The following table presents certain information with
respect to AFG's Commercial and Personal Lines insurance
operations (dollars in millions):
1995 1994 1993
Net written premiums $ 717 $ 683 $666
Net earned premiums $ 698 $ 656 $664
Loss and LAE 468 430 430
Underwriting expenses 214 211 238
Policyholder dividends 11 8 2
Underwriting profit (loss) $ 5 $ 7 ($ 6)
GAAP ratios:
Loss and LAE ratio 66.9% 65.5% 64.8%
Underwriting expense ratio 30.6 32.2 35.9
Policyholder dividend ratio 1.6 1.2 .3
Combined ratio 99.1% 98.9% 101.0%
Statutory ratios:
Loss and LAE ratio 67.2% 67.0% 65.0%
Underwriting expense ratio 29.9 32.4 36.0
Policyholder dividend ratio .6 1.0 -
Combined ratio 97.7% 100.4% 101.0%
Industry statutory combined
ratio(a) 107.2% 108.5% 106.9%
(a) Ratios are derived from "Best's Review - Property/Casualty"
(January 1996 Edition).
Marketing. The Commercial and Personal Lines business
units direct their sales efforts primarily toward independent
agents and brokers. These businesses write insurance through
more than 4,000 agents and have more than 515,000 policies in
force.
Competition. These businesses compete with other insurers,
primarily on the basis of price (including differentiation on
policy limits, coverages offered and deductibles), agent
commissions and profit sharing terms. Customer service, loss
prevention and reputation for claims handling are also important
factors. Competitors include individual insurers and insurance
groups of varying sizes, some of which are mutual insurance companies
possessing competitive advantages in that all their profits inure
to their policyholders. Management believes that sophisticated
data analysis for refinement of risk profiles, disciplined
underwriting practices and aggressive loss prevention procedures
have enabled these businesses to compete successfully on the
basis of price without negatively affecting underwriting
profitability.
<PAGE>
Reinsurance
Consistent with standard practice of most insurance
companies, AFG reinsures a portion of its business with other
reinsurance companies and assumes a relatively small amount of
business from other insurers. Ceding reinsurance permits
diversification of risks and limits the maximum loss arising from
large or unusually hazardous risks or catastrophic events. AFG's
insurance companies enter into separate reinsurance programs due
to their differing exposures. The availability and cost of
reinsurance are subject to prevailing market conditions which may
affect the volume and profitability of business that is written.
AFG is subject to credit risk with respect to its reinsurers, as
the ceding of risk to reinsurers does not relieve AFG of its
liability to its insureds.
Due in part to the limited exposure on individual policies,
none of the insurance companies in the NSA Group is involved to a
material degree in reinsuring risks with third party insurance
companies.
9
<PAGE>
Republic Indemnity reinsures a portion of its exposure with
other insurance companies to limit its maximum loss arising out
of any one occurrence. Republic Indemnity retains the first $1.5
million of each loss, the next $1.5 million of each loss is
reinsured with a major reinsurance company, the next $2 million
of each loss is shared equally by Republic Indemnity and the
reinsurance company and the remaining $145 million of each loss
is covered by reinsurance treaties provided by a group of more
than 50 reinsurance companies. Republic Indemnity does not
assume reinsurance, except as an accommodation to policyholders
who have a small percentage of their employees outside the state
of California.
Great American currently has treaty reinsurance programs
which generally provide reinsurance coverage above specified
retention maximums. For workers' compensation policies, the
retention maximum is $1 million per loss occurrence with
reinsurance coverage for the next $49 million. For all other
casualty policies, the retention maximum is $5 million per loss
occurrence with reinsurance coverage for the next $15 million.
For property coverages, a property per risk excess of loss treaty
is maintained with a retention maximum of $5 million per risk and
reinsurance coverage for the next $25 million. For catastrophe
coverage on property risks, the retention is $20 million with
reinsurance covering 95% of the next $130 million in losses with
an additional layer of reinsurance providing coverage for 76% of
the next $50 million for the peril of wind only. In addition,
GAI purchases facultative reinsurance providing coverage on a
risk by risk basis, both pro rata and excess of loss, depending
on the risk and available reinsurance markets.
Included in "recoverables from reinsurers and prepaid
reinsurance premiums" were $84 million on paid losses and LAE and
$704 million on unpaid losses and LAE at December 31, 1995. The
collectibility of a reinsurance balance is based upon the
financial condition of a reinsurer as well as individual claim
considerations. Market conditions over the past few years have
forced many reinsurers into financial difficulties or liquidation
proceedings. At December 31, 1995, AFG's insurance subsidiaries
had an allowance of approximately $81 million for doubtful
collection of reinsurance recoverables. AFG regularly monitors
the financial strength of its reinsurers. This process
periodically results in the transfer of risks to more financially
secure reinsurers. AFG's major reinsurers include American Re-
Insurance Company, Employers Reinsurance Corporation, NAC
Reinsurance Corporation, Mitsui Marine and Fire Insurance
Company, Ltd. and Taisho Marine & Fire Insurance Company.
Management believes that this present group of reinsurers is
financially sound.
<PAGE>
Premiums written for reinsurance ceded and assumed are
presented in the following table (in millions):
1995 1994 1993
Reinsurance ceded $482 $422 $342
Reinsurance assumed - including
involuntary pools and associations 98 119 135
Loss and Loss Adjustment Expense Reserves
The consolidated financial statements include the estimated
liability for unpaid losses and LAE of AFG's insurance
subsidiaries. This liability represents estimates of the
ultimate net cost of all unpaid losses and LAE and is determined
by using case-basis evaluations and actuarial projections. These
estimates are subject to the effects of changes in claim amounts
and frequency and are periodically reviewed and adjusted as
additional information becomes known. In accordance with
industry practices, such adjustments are reflected in current
year operations.
Future costs of claims are projected based on historical
trends adjusted for changes in underwriting standards, policy
provisions, the anticipated effect of inflation and general
economic trends. These anticipated trends are monitored based on
actual development and are reflected in estimates of ultimate
claim costs.
10
<PAGE>
Generally, reserves for reinsurance and involuntary pools
and associations are reflected in AFG's results at the amounts
reported by those entities.
Unless otherwise indicated, the following discussion of
insurance reserves includes the reserves of American Premier's
subsidiaries for only those periods following the Mergers.
See Note P to the Financial Statements for an analysis of
changes in AFG's estimated liability for losses and LAE, net of
reinsurance (and grossed up), over the past three years on a GAAP
basis.
The following table presents the development of AFG's
liability for losses and LAE, net of reinsurance, on a GAAP basis
for the last ten years, excluding reserves of American Premier
subsidiaries prior to the Mergers. The top line of the table
shows the estimated liability (in millions) for unpaid losses and
LAE recorded at the balance sheet date for the indicated years.
The second line shows the re-estimated liability as of December
31, 1995. The remainder of the table presents development as
percentages of the estimated liability. The development results
from additional information and experience in subsequent years.
The middle line shows a cumulative deficiency (redundancy) which
represents the aggregate percentage increase (decrease) in the
liability initially estimated. The lower portion of the table
indicates the cumulative amounts paid as of successive periods as
a percentage of the original loss reserve liability.
<PAGE>
<TABLE>
<CAPTION>
1985 1986 1987 1988 1989 1990
<S> <C> <C> <C> <C> <C> <C>
Liability for unpaid losses
and loss adjustment expenses:
As originally estimated $1,605 $1,843 $2,024 $2,209 $2,246 $2,137
As re-estimated at
December 31, 1995 2,385 2,258 2,222 2,275 2,271 2,103
Liability re-estimated as of:
One year later 109.2% 102.7% 102.5% 99.8% 100.4% 98.6%
Two years later 116.7% 107.3% 103.6% 100.0% 99.3% 97.7%
Three years later 123.4% 109.7% 103.1% 99.7% 98.4% 97.4%
Four years later 129.9% 110.8% 102.5% 98.7% 98.2% 99.2%
Five years later 132.3% 111.8% 102.6% 99.1% 101.1% 98.4%
Six years later 134.8% 112.7% 103.5% 103.0% 101.1%
Seven years later 136.6% 115.3% 109.4% 103.0%
Eight years later 140.7% 122.1% 109.8%
Nine years later 148.2% 122.5%
Ten years later 148.6%
Cumulative deficiency
(redundancy) 48.6% 22.5% 9.8% 3.0% 1.1% (1.6%)
Cumulative paid as of:
One year later 45.5% 33.0% 29.2% 29.4% 32.3% 26.1%
Two years later 69.0% 52.5% 49.0% 48.6% 48.2% 43.2%
Three years later 84.6% 67.7% 63.5% 59.8% 59.2% 55.3%
Four years later 96.6% 79.3% 72.2% 67.9% 67.6% 64.8%
Five years later 106.4% 86.4% 78.5% 74.0% 74.3% 70.4%
Six years later 112.4% 91.9% 83.6% 79.5% 78.1%
Seven years later 117.3% 96.1% 87.7% 82.4%
Eight years later 121.3% 100.0% 90.3%
Nine years later 125.2% 102.7%
Ten years later 128.0%
1991 1992 1993 1994 1995
Liability for unpaid losses
and loss adjustment expenses:
As originally estimated $2,129 $2,123 $2,113 $2,187 $3,393
As re-estimated at
December 31, 1995 2,040 1,985 1,959 2,080 N/A
Liability re-estimated as of:
One year later 99.3% 99.9% 98.1% 95.1%
Two years later 98.7% 98.2% 92.7%
Three years later 97.4% 98.0% 93.5%
Four years later 99.2% 95.8%
Five years later 98.4%
Cumulative deficiency
(redundancy) (4.2%) (6.5%) (7.3%) (4.9%) N/A
Cumulative paid as of:
One year later 26.1% 26.4% 26.7% 25.2% 26.5%
Two years later 43.2% 43.0% 43.7% 40.1%
Three years later 55.3% 55.4% 53.6%
Four years later 64.8% 62.6%
Five years later 70.4%
</TABLE>
<PAGE>
The following table presents the development of the
liability (in millions) for losses and LAE, net of reinsurance,
including the reserves of American Premier's subsidiaries for
periods prior to the Mergers.
<TABLE>
<CAPTION>
1985 1986 1987 1988 1989 1990
<S> <C> <C> <C> <C> <C> <C>
Liability for unpaid losses
and loss adjustment expenses:
As originally estimated $1,605 $1,843 $2,024 $2,209 $2,616 $2,739
As re-estimated at
December 31, 1995 2,385 2,258 2,222 2,275 2,579 2,640
Cumulative deficiency
(redundancy) 48.6% 22.5% 9.8% 3.0% (1.4%) (3.6%)
1991 1992 1993 1994 1995
Liability for unpaid losses
and loss adjustment expenses:
As originally estimated $2,793 $2,886 $3,029 $3,267 $3,393
As re-estimated at
December 31, 1995 2,648 2,655 2,790 3,110 N/A
Cumulative deficiency
(redundancy) (5.2%) (8.0%) (7.9%) (4.8%) N/A
</TABLE>
These tables do not present accident or policy year
development data. Furthermore, in evaluating the re-estimated
liability and cumulative deficiency (redundancy), it should be
noted that each percentage includes the effects of changes in
amounts for prior periods. For example, a deficiency
11
<PAGE>
(redundancy) related to losses settled in 1995, but incurred in
1985, would be included in the re-estimated liability and
cumulative deficiency (redundancy) percentage for each of the
years 1985 through 1994. Conditions and trends that have
affected development of the liability in the past may not
necessarily exist in the future. Accordingly, it may not be
appropriate to extrapolate future redundancies or deficiencies
based on this table.
The adverse development in earlier years in the tables above
was caused partially by the effect of higher than projected
inflation on medical, hospitalization, material, repair and
replacement costs. Additionally, changes in the legal
environment have influenced the development patterns over the
past ten years. Two significant changes in the early to
mid-1980s were the trend towards an adverse litigious climate and
the change from contributory to comparative negligence.
The adverse litigious climate is evidenced by an increase in
lawsuits and damage awards, changes in judicial interpretation of
legal liability and of the scope of policy coverage, and a
lengthening of time it takes to settle cases. In addition, a
trend has developed in the manner and timeliness of first claim
notices. Historically, the first notification of claim came
directly from the claimant; in recent years, however, there has
been a gradual increase in the number of notifications in the
form of direct legal action. Not only has this notification been
less timely, it has been more adversarial in nature.
The change in rules of negligence governing tort claims has
also influenced the loss development trend. During the early to
mid-1980s, most states changed from contributory to comparative
negligence rules. Under contributory negligence rules, a
plaintiff seeking damages is barred from recovering damages for a
loss if it can be demonstrated that the plaintiff's own
negligence contributed in any way to the cause of the injury.
Under comparative negligence rules, a plaintiff's negligence is
no longer a bar to recovery. Instead, the degree of plaintiff's
negligence is compared to the negligence of any other party.
Generally, if the plaintiff's negligence is 50% or less of the
cause of the injury, the plaintiff can recover damages, but in an
amount reduced by the portion of damage attributable to the
plaintiff's own negligence. Many claims which would have been
successfully defended under contributory negligence rules now
result in an award of damages or a settlement during suit under
the comparative negligence rules.
<PAGE>
The differences between the liability for losses and LAE
reported in the annual statements filed with the state insurance
departments in accordance with statutory accounting principles
("SAP") and that reported in the accompanying consolidated
financial statements in accordance with GAAP at December 31,
1995, are as follows (in millions):
Liability reported on a SAP basis $3,394
Additional discounting of GAAP reserves in excess
of the statutory limitation for SAP reserves (21)
Reserves of foreign operations 20
Reinsurance recoverables 704
Liability reported on a GAAP basis $4,097
Asbestos and Environmental Reserves. The insurance industry
typically includes only claims relating to polluted waste sites
and asbestos in defining environmental exposures. AFG extends
this definition to include claims relating to breast implants,
repetitive stress on keyboards, DES (a drug used in pregnancies
years ago alleged to cause cancer and birth defects) and other
latent injuries ("A&E").
Establishing reserves for A&E claims is subject to
uncertainties that are greater than those presented by other
types of claims. Factors contributing to those uncertainties
include a lack of sufficiently detailed historical data, long
reporting delays, uncertainty as to the number and identity of
insureds with potential exposure, unresolved legal issues
12
<PAGE>
regarding policy coverage, and the extent and timing of any such
contractual liability. Courts have reached different and
sometimes inconsistent conclusions as to when a loss is deemed to
have occurred, what policies provide coverage, what claims are
covered, whether there is an insured obligation to defend, how
policy limits are determined and other policy provisions.
Management believes these issues are not likely to be resolved in
the near future.
Prior to the fourth quarter of 1994, AFG maintained reserves
only on its reported A&E claims; reserves for claims incurred but
not reported ("IBNR") were not allocated to A&E claims.
Following completion of a detailed analysis in the fourth
quarter, AFG allocated a specific portion of its IBNR reserves to
A&E claims. Based on known facts, current law, and current
industry practices, management believes that its reserves for
such claims are appropriate.
The following table (in millions) is a progression of
reserves for A&E exposures for which AFG has been held liable
under general liability policies written years ago where
environmental coverage was not intended and, in many cases, was
specifically excluded.
1995 1994 1993
Reserves at beginning of year $226.8 $141.5 $142.6
Incurred losses and LAE (a) 25.6 118.3 36.4
Paid losses and LAE (32.1) (33.0) (37.5)
Reserves at end of year, net of
reinsurance recoverable 220.3 226.8 141.5
Reinsurance recoverable 163.5 155.0 106.9
Gross reserves at end of year $383.8 $381.8 $248.4
(a) Amounts in 1994 reflect an allocation of a specific portion
of IBNR reserves to A&E claims as described above.
Since the mid-1980's, AFG has also written certain
environmental coverages (asbestos abatement and underground
storage tank liability) in which the premium charged is intended
to provide coverage for the specific environmental exposures
inherent in these policies. The business has been profitable
since its inception. To date, approximately $174 million of
premiums has been written and reserves for unpaid losses and LAE
aggregated $48 million at December 31, 1995 (not included in the
above table).
13
<PAGE>
Annuity Operations
General. American Annuity Group ("AAG") is a holding
company whose primary asset is the capital stock of GALIC which
it acquired from GAI on December 31, 1992. GALIC sells annuities
primarily to employees of qualified not-for-profit organizations.
GALIC is currently rated "A" (Excellent) by A.M. Best. AAG and
its subsidiaries employ approximately 850 persons.
The following table (in millions) presents information
concerning GALIC.
1995 1994 1993
Statutory Accounting Principles Basis
Total Assets $5,414 $5,057 $4,758
Insurance Reserves:
Annuities $4,974 $4,655 $4,299
Life 22 21 22
Accident and Health - 1 1
$4,996 $4,677 $4,322
Capital and Surplus $ 273 $ 256 $ 251
Asset Valuation Reserve (a) 90 80 70
Interest Maintenance Reserve (a) 32 28 36
Annuity Receipts:
Flexible Premium:
First Year $ 42 $ 39 $ 47
Renewal 196 208 223
238 247 270
Single Premium 219 196 130
Total Annuity Receipts $ 457 $ 443 $ 400
Generally Accepted Accounting Principles Basis
Total Assets $5,631 $5,044 $4,883
Annuity Benefits Accumulated 4,917 4,596 4,257
Stockholder's Equity 645 449 520
(a) Allocation of surplus.
Annuity Products. Annuities are long-term retirement
savings plans that benefit from interest accruing on a
tax-deferred basis. Employees of qualified not-for-profit
organizations are eligible to save for retirement through
contributions made on a before tax basis. Contributions are made
at the discretion of the participants through payroll deductions
or through tax-free "rollovers" of funds. Federal income taxes
are not payable on contributions or earnings until amounts are
withdrawn.
<PAGE>
GALIC's principal products are FPDAs and SPDAs. FPDAs are
characterized by premium payments that are flexible in amount and
timing as determined by the policyholder. SPDAs are issued in
exchange for a one-time lump-sum premium payment. Over the last
five years, approximately three-fourths of GALIC's SPDA receipts
have resulted from rollovers of tax-deferred funds previously
maintained by policyholders with other insurers.
All annuity products issued by GALIC itself have been fixed
rate annuities. With a fixed rate annuity, an interest crediting
rate is initially set by the issuer, and thereafter changed from
time to time by the issuer based on market conditions, subject to
any guaranteed interest crediting rates in the policy. At
December 31, 1995, approximately 95% of GALIC's annuity
policyholder benefit reserves consisted of fixed rate annuities
which offered a minimum interest rate guarantee of 4%. The
balance of the liabilities had a minimum guaranteed rate of 3%.
In determining the frequency and extent of changes in the
crediting rate, GALIC takes into account the profitability of its
annuity business and the relative competitive position of its
products.
14
<PAGE>
A GALIC subsidiary began marketing variable annuities in the
fourth quarter of 1995. With a variable annuity, the earnings
credited to the policy varies based on the investment results of
the underlying investment options chosen by the policyholder.
Policyholders may also choose to direct all or a portion of their
premiums to various fixed rate options. For these annuity
products, all premiums directed to the variable options are
placed in funds managed by third party investment advisers.
GALIC seeks to maintain a desired spread between the yield
on its investment portfolio and the rate it credits to its
policies. GALIC accomplishes this by (i) offering crediting
rates which it has the option to change, (ii) designing annuity
products that encourage persistency and (iii) maintaining an
appropriate matching of assets and liabilities. GALIC imposes
certain surrender charges and front-end fees during the first
five to ten years of a policy to discourage customers from
surrendering or withdrawing funds in those early years. Partly
due to these features, annuity surrender payments have averaged
approximately 8% of related statutory reserves over the past five
years. At December 31, 1995, GALIC had over 250,000 annuity
policies in force, nearly all of which were individual contracts.
Marketing. GALIC markets its tax-deferred annuities
principally to employees of educational institutions in the
kindergarten through high school segment. GALIC's management
believes that this market segment is attractive because of its
size and growth potential, and the persistency rate it has
demonstrated. In 1995, written premiums from this market segment
represented approximately three-fourths of GALIC's total
tax-qualified premiums.
GALIC distributes its annuity products through over 80
managing general agents ("MGAs") who, in turn, direct
approximately 1,000 actively producing independent agents. GALIC
has developed its business on the basis of its relationships with
MGAs and independent agents primarily through a consistent
marketing approach and responsive service.
GALIC is licensed to sell its products in all states (except
New York) and in the District of Columbia. The following table
reflects the geographical distribution of GALIC's annuity
premiums in 1995 compared to 1991.
State 1995 1991 State 1995 1991
California 19.4% 20.1% New Jersey 4.1% 6.3%
Florida 7.8 9.8 Minnesota 3.8 *
Massachusetts 6.5 9.1 Connecticut 3.4 6.2
Ohio 6.4 5.1 Illinois 2.9 3.3
Michigan 6.2 9.4 Iowa 2.1 *
Washington 5.4 * Rhode Island * 2.8
North Carolina 4.8 2.9 Other 22.6 20.0
Texas 4.6 5.0 100.0% 100.0%
_____________
* less than 2%
<PAGE>
Sales of annuities are affected by many factors, including:
(i) competitive rates and products; (ii) the general level of
interest rates; (iii) the favorable tax treatment of annuities;
(iv) commissions paid to agents; (v) services offered; (vi)
ratings from independent insurance rating agencies; (vii)
alternative investment products; and (viii) general economic
conditions.
Acquisition of Laurentian In November 1995, AAG completed
the acquisition of Laurentian Capital Corporation, a life
insurance holding company, for $151 million. Laurentian's
principal insurance subsidiaries are Loyal American Life
Insurance Company and Prairie States Life Insurance Company.
15
<PAGE>
Loyal offers a variety of life and supplemental health
insurance products through payroll deduction plans and credit
unions. Loyal's products are marketed with the endorsement or
consent of the employer or the credit union management. In 1995
and 1994, Loyal collected $41 million and $43 million,
respectively, in life and accident and health premiums. At
December 31, 1995, Loyal had total statutory assets of
approximately $252 million, reserves for future policy benefits
of approximately $201 million, and capital and surplus of
approximately $35 million.
Prairie offers a variety of life insurance and annuity
products to finance pre-arranged funerals. Prairie markets its
products with the sponsorship of state associations of funeral
directors as well as individual funeral directors. At year-end
1995, Prairie had relationships with more than 2,000 funeral
homes nationwide. In 1995 and 1994, Prairie collected $80
million and $53 million, respectively, in life and annuity
premiums. At December 31, 1995, Prairie had total statutory
assets of approximately $359 million, reserves for future policy
benefits of approximately $320 million and capital and surplus of
approximately $24 million. In March 1996, AAG changed Prairie's
name to American Memorial Life Insurance Company.
Competition AAG's insurance companies operate in
highly competitive markets. They compete with other insurers
and financial institutions based on many factors, including
(i) ratings, (ii) financial strength, (iii) reputation, (iv)
service to policyholders, (v) product design (including
interest rates credited), (vi) commissions and (vii) service
to agents. Since policies are marketed and distributed
primarily through independent agents, the insurance companies
must also compete for agents. Management believes that
consistently targeting the same market and emphasizing service
to agents and policyholders provides a competitive advantage.
More than 100 insurance companies offer tax-deferred
annuities. No single insurer dominates the marketplace.
Competitors include (i) individual insurers and insurance
groups, (ii) mutual funds and (iii) other financial
institutions of varying sizes. Some of these are mutual
insurance companies possessing competitive advantages in that
all of their profits inure to their policyholders, and many of
which possess financial resources substantially in excess of
those available to AAG's insurance companies. In a broader
sense, AAG's insurance companies compete for retirement
savings with a variety of financial institutions offering a
full range of financial services. Financial institutions have
demonstrated a growing interest in marketing investment and
savings products other than traditional deposit accounts. In
addition, recent judicial and regulatory decisions have
expanded powers of financial institutions in this regard. It
is too early to predict what impact, if any, these
developments will have on AAG's insurance companies.
16
<PAGE>
Other Companies
AFEI is a holding company with assets consisting
primarily of investments in the common stock of AFG, American
Annuity and Citicasters.
Through subsidiaries, AFC is engaged in a variety of
other businesses, including The Golf Center at Kings Island
(golf and tennis facility) and Provident Travel Agency, both
in the Greater Cincinnati area; commercial real estate
operations in Cincinnati (office buildings and The
Cincinnatian Hotel), Louisiana (Le Pavillon Hotel),
Massachusetts (Chatham Bars Inn), Texas (Driskill Hotel) and
apartments in Florida, Kentucky, Louisiana, Minnesota,
Oklahoma, Pennsylvania, Texas and Wisconsin. These operations
employ approximately 700 full-time employees.
In March 1996, American Premier sold its interest in an
independent pipeline common carrier of refined petroleum
products for approximately $63 million.
In June 1994, AFC sold its investment in General Cable
common stock to an unaffiliated company for $27.6 million in
cash. General Cable was formed in 1992 to hold American
Premier's wire and cable and heavy equipment manufacturing
businesses.
AFC was engaged in the distribution and production of
filmed entertainment programming through Spelling
Entertainment Group. In 1993, AFC sold its common stock
investment in Spelling to Blockbuster Entertainment in
exchange for $151 million in Blockbuster securities.
In 1993, AFC sold its insurance brokerage operation,
American Business Insurance, Inc., to Acordia, Inc., an
Indianapolis-based insurance broker for $82 million in cash
and Acordia securities.
<PAGE>
Investment Portfolio
General. A breakdown of AFG's December 31, 1995,
investment portfolio by business segment follows (excluding
investment in equity securities of investee corporations) (in
millions).
<TABLE>
<CAPTION>
Total
Carrying Value Market
P&C Annuity Other Total Value
<S> <C> <C> <C> <C> <C>
Cash and short-term investments $ 230 $ 169 $145 $ 544 $ 544
Bonds and redeemable preferred
stocks 4,261 5,272 5 9,538 9,679
Other stocks, options and
warrants 219 33 - 252 252
Loans receivable 148 464 19 631 631(a)
Real estate and other investments 140 40 40 220 220(a)
$4,998 $5,978 $209 $11,185 $11,326
</TABLE>
(a) Carrying value used since market values are not readily
available.
17
<PAGE>
The following tables present the percentage distribution and
yields of AFG's investment portfolio (excluding investment in equity
securities of investee corporations) as reflected in its financial
statements.
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Cash and Short-term Investments 4.9% 2.2% 2.3% 9.3% 15.3%
Bonds and Redeemable Preferred Stocks:
U.S. Government and Agencies 3.7 4.0 2.8 5.7 5.3
State and Municipal .7 .8 .8 .6 .6
Public Utilities 9.7 9.1 9.3 8.5 10.7
Mortgage-Backed Securities 20.7 21.8 24.7 22.9 20.8
Corporate and Other 46.8 48.6 42.0 33.9 31.8
Redeemable Preferred Stocks 1.0 1.4 1.3 .8 .3
82.6 85.7 80.9 72.4 69.5
Net Unrealized Gains (Losses) on Bonds
and Redeemable Preferred Stocks held
Available for Sale 2.7 (1.0) 1.8 .8 -
85.3 84.7 82.7 73.2 69.5
Other Stocks, Options and Warrants 2.3 2.7 4.6 2.6 3.2
Loans Receivable 5.6 8.4 8.5 12.9 9.9
Real Estate and Other Investments 1.9 2.0 1.9 2.0 2.1
100.0% 100.0% 100.0% 100.0% 100.0%
Yield on Fixed Income Securities:
Excluding realized gains and losses 7.9% 8.1% 8.0% 8.8% 9.5%
Including realized gains and losses 8.8% 8.1% 8.7% 9.8% 9.0%
Yield on Stocks:
Excluding realized gains and losses 3.9% 5.1% 4.4% 6.4% 2.2%
Including realized gains and losses 8.4% 35.4% 16.9% 15.5% 29.7%
Yield on Investments (A):
Excluding realized gains and losses 7.9% 8.1% 7.9% 8.7% 9.2%
Including realized gains and losses 8.8% 8.8% 9.0% 10.0% 10.0%
</TABLE>
(A) Excludes "Real Estate and Other Investments".
<PAGE>
Fixed Maturity Investments. Unlike most insurance groups
which have portfolios that are invested heavily in tax-exempt
bonds, AFG's bond portfolio is invested primarily in taxable
bonds. The NAIC assigns quality ratings which range from Class 1
(highest quality) to Class 6 (lowest quality). The following
table shows AFG's bonds and mandatory redeemable preferred
stocks, by NAIC designation (and comparable Standard & Poor's
Corporation rating) as of December 31, 1995 (dollars in
millions):
NAIC Amortized Market Value
Rating Comparable S&P Rating Cost Amount %
1 AAA, AA, A $6,137 $6,428 66%
2 BBB 2,556 2,682 28
Total investment grade 8,693 9,110 94
3 BB 326 338 4
4 B 218 223 2
5 CCC, CC, C - 2 *
6 D - 6 *
Total non-investment grade 544 569 6
Total $9,237 $9,679 100%
_______________
(*)Less than 1%
Risks inherent in connection with fixed income securities
include loss upon default and market price volatility. Factors
which can affect the market price of securities include:
creditworthiness, changes in interest rates, the number of market
makers and investors, defaults by major issuers of securities and
public concern about concentrations in certain types of
securities by institutions.
18
<PAGE>
AFG's primary investment objective for bonds and mandatory
redeemable preferred stocks is to receive interest and dividend
income rather than to realize capital gains. AFG invests in
bonds and mandatory redeemable preferred stocks that have
primarily short-term and intermediate-term maturities. This
practice allows flexibility in reacting to fluctuations of
interest rates.
Equity Investments. AFG's equity investment practice
permits concentration of attention on a relatively limited number
of companies. Some of the equity investments, because of their
size, may not be as readily marketable as the typical small
investment position. Alternatively, a large equity position may
be attractive to persons seeking to control or influence the
policies of a company and AFG's concentration in a relatively
small number of companies may permit it to identify investments
with above average potential to increase in value.
The December 31, 1995, carrying values and market values of
AFG's investment in Chiquita and Citicasters, as well as its
ownership percentages in these investee corporations, were as
follows (dollars in millions):
AFG's
Ownership Carrying Market
Percentage Value Value
Chiquita 44% $232.4 $330.0
Citicasters 38% 74.1 178.8
$306.5 $508.8
Chiquita Chiquita is a leading international marketer,
producer and distributor of bananas and other quality fresh and
processed food products. In addition to bananas, these products
include tropical fruit and other fresh produce; fruit and
vegetable juices and beverages; processed fruits and vegetables;
salads; and edible oil-based consumer products. Sales of bananas
accounted for approximately 60% of Chiquita's net sales in each
of the last three years. In 1995, Chiquita sold approximately
one-half of its total banana volumes in Europe and over 40% of
its banana volumes in North America. Chiquita has generally been
able to obtain a premium price for its bananas due to its
reputation for quality and its innovative marketing techniques.
Banana marketing is highly competitive. Selling prices
which importers receive for bananas depend on the available
supplies of bananas and other fresh fruit in each market and on
the relative quality and wholesaler and retailer acceptance of
bananas offered by competing importers. Excess supplies may
result in increased price competition. Although production of
bananas tends to be relatively stable throughout the year,
competition comes not only from bananas sold by others, but also
from other fresh fruit which may be seasonal in nature. The
resulting seasonal variations in demand cause banana pricing to
be seasonal. As a result, quarterly results of Chiquita, and
<PAGE>
therefore AFG's equity in Chiquita's earnings, are subject to
significant seasonal variations with stronger quarterly results
occurring in the first six months of the calendar year.
A significant portion of Chiquita's operations are conducted
in foreign countries, and are subject to risks that are inherent
in operating in such foreign countries, including government
regulation, fluctuations in exchange rates, currency restrictions
and other restraints, risks of expropriation and burdensome
taxes.
In 1993, the European Union ("EU") implemented a new quota
restricting the volume of Latin American bananas imported into
the EU, which had the effect of decreasing Chiquita's volume and
market share in Europe. The quota grants preferred status to
producers and importers within the EU and its former colonies,
while imposing quotas and tariffs on bananas imported from other
sources, including Latin America, which is Chiquita's primary
source of fruit. In March 1994, four of the countries which had
previously filed actions against the EU banana policy (Costa Rica,
Colombia, Nicaragua and Venezuela) reached a settlement with the
EU by signing a "Framework
19
<PAGE>
Agreement." The Framework Agreement authorizes the imposition of
additional restrictive and discriminatory quotas and export
licenses on U.S. banana marketing firms, while leaving EU
firms exempt. Costa Rica and Colombia implemented this agreement
in 1995, significantly increasing Chiquita's cost to export
bananas from these sources.
In September 1995, based on a finding by the Office of the
U.S. Trade Representative ("USTR") that the EU regime unfairly
discriminates against U.S. banana marketing firms, the United
States, joined by Guatemala, Honduras and Mexico (and, in
February 1996, by Ecuador), commenced an international trade
challenge against the EU regime using the procedures of the World
Trade Organization. In January 1996, the USTR announced that it
had found the Framework Agreement export policies of Costa Rica
and Colombia to be unfair and further announced that it was not
imposing sanctions at that time, pending further consultations
with those countries to eliminate harm to U.S. commerce. There
can be no assurance as to the outcome of these proceedings or
their impact, if any, on the EU quota regime or the Framework
Agreement.
Citicasters Citicasters owns and operates two
network-affiliated television stations, 14 FM radio stations and
five AM radio stations. Substantially all of Citicasters'
broadcast revenues come from the sale of advertising time to
local and national advertisers. Local advertisements are sold by
each stations' sales personnel and national spots are sold by
independent national sales representatives.
Citicasters' AM radio stations offer their listeners a
wide range of programs including news, music, discussion,
commentary and sports. Citicasters' FM radio stations offer
programming more focused on music. Citicasters' television
stations receive a significant portion of their programming
from their respective networks; the networks sell commercial
advertising time within such programming. The competitive
position of the stations is directly affected by viewer
acceptance of network programs. Citicasters currently has one
CBS affiliated television station and one ABC affiliated
station. The ABC affiliate is scheduled to switch its
affiliation to CBS in June 1996. The non-network programs
broadcast by the stations are either produced by the stations
or acquired from other sources. Locally originated programs
include a wide range of show types such as news,
entertainment, sports, public affairs and religious programs.
In February 1996, AFG announced that it had entered into
an agreement to sell its common stock investment in
Citicasters to Jacor Communications, Inc. for $220 million in
cash plus warrants to purchase Jacor common stock.
<PAGE>
Regulation
AFG's insurance company subsidiaries are subject to
regulation in the jurisdictions where they do business. In
general, the insurance laws of the various states establish
regulatory agencies with broad administrative powers
governing, among other things, premium rates, solvency
standards, licensing of insurers, agents and brokers, trade
practices, forms of policies, maintenance of specified
reserves and capital for the protection of policyholders,
deposits of securities for the benefit of policyholders,
investment activities and relationships between insurance
subsidiaries and their parents and affiliates. Material
transactions between insurance subsidiaries and their parents
and affiliates generally must be disclosed and prior approval
of the applicable insurance regulatory authorities generally
is required for any such transaction which may be deemed to be
material or extraordinary. In addition, while differing from
state to state, these regulations typically restrict the
maximum amount of dividends that may be paid by an insurer to
its shareholders in any twelve-month period without advance
regulatory approval. Such limitations are generally based on
earnings or statutory surplus. Under applicable restrictions,
the maximum amount of dividends that may be paid by AFG's
insurance subsidiaries during 1996 without seeking regulatory
clearance is approximately $210 million.
20
<PAGE>
Changes in state insurance laws and regulations have the
potential to materially affect the revenues and expenses of the
insurance operations. The Company is unable to predict whether
or when laws or regulations may be adopted or enacted in such
states or what the impact of such developments would be on the
future operations and revenues of its insurance businesses in
such states.
In 1994, the California Supreme Court upheld Proposition
103, an insurance reform measure passed by California voters in
1988. In addition to increasing rate regulation, Proposition 103
gives the California Insurance Commissioner power to mandate rate
rollbacks for most lines of property and casualty insurance. By
its terms, Proposition 103 does not affect workers' compensation
insurance. During 1995, GAI finalized a settlement agreement
setting its refund obligation at $19 million.
Prior to 1995, minimum premium rates for California workers'
compensation insurance were determined by the California
Commissioner based in part upon recommendations of the Workers'
Compensation Insurance Rating Bureau of California. In July
1993, California enacted legislation (the "Reform Legislation")
effecting an immediate overall 7% reduction in workers'
compensation insurance premium rates and replaced the workers'
compensation insurance minimum rate law, effective January 1,
1995, with a procedure permitting insurers to use any rate within
30 days after its filing with the California Commissioner unless
the rate is disapproved by the California Commissioner. Between
December 1, 1993 and January 1, 1995, when the "open rating"
policy went into effect, the California Commissioner ordered
additional rate decreases totalling more than 25%.
Most states have created insurance guarantee associations to
provide for the payment of claims of insurance companies that
become insolvent. Annual assessments for AFG's insurance
companies have not been material. In addition, many states have
created "assigned risk" plans or similar arrangements to provide
state mandated minimum levels of automobile liability coverage to
drivers whose driving records or other relevant characteristics
make it difficult for them to obtain insurance otherwise.
Automobile insurers in those states are required to provide such
coverage to a proportionate number of those drivers applying as
assigned risks. Premium rates for assigned risk business are
established by the regulators of the particular state plan and
are frequently inadequate in relation to the risks insured,
resulting in underwriting losses. Assigned risks accounted for
approximately one half of one percent of AFG's net written
premiums in 1995.
The NAIC is an organization which is comprised of the chief
insurance regulator for each of the 50 states and the District of
Columbia. In 1990, the NAIC began an accreditation program to
ensure that states have adequate procedures in place for
effective insurance regulation, especially with respect to
financial solvency. The accreditation program requires that a
<PAGE>
state meet specific minimum standards in over 15 regulatory areas
to be considered for accreditation. The accreditation program is
an ongoing process and once accredited, a state must enact any
new or modified standards approved by the NAIC within two years
following adoption. As of December 31, 1995, the District of
Columbia and 46 states were accredited including states which
regulate AFG's largest insurance subsidiaries.
The NAIC model law for Risk Based Capital applies to both
life and property and casualty companies. The risk-based capital
formulas determine the amount of capital that an insurance
company needs to ensure that it has an acceptably low expectation
of becoming financially impaired. The model law provides for
increasing levels of regulatory intervention as the ratio of an
insurer's total adjusted capital and surplus decreases relative
to its risk-based capital, culminating with mandatory control of
the operations of the insurer by the domiciliary insurance department
at the so-called "mandatory control level". The risk-based capital
formulas became effective in 1993 for life companies and in 1995 for
property and casualty companies. Based on the 1995 results of
AFG's insurance companies, all such companies are adequately
capitalized.
21
<PAGE>
The NAIC has been considering the adoption of a model
investment law for several years. The current projection for
a new model investment law is 1996, at the earliest. It is
not yet determined whether the model investment law would be
added to the NAIC accreditation standards so that adoption of
the model would be required for the achievement or
continuation of any state's accreditation. It is not possible
to predict the impact of these activities on AFG's insurance
subsidiaries.
ITEM 2
Properties
Subsidiaries of AFG own several buildings in downtown
Cincinnati. AFG and its affiliates occupy about three-fifths
of the aggregate 580,000 square feet of commercial and office
space.
AFG's insurance subsidiaries lease the majority of their
office and storage facilities in numerous cities throughout
the United States, including GAI's and AAG's home offices in
Cincinnati. Two of AAG's subsidiaries own home office
buildings in Mobile, Alabama and Rapid City, South Dakota.
These companies occupy approximately two-thirds of the 133,000
square feet and lease the remaining space to unaffiliated
tenants.
ITEM 3
Legal Proceedings
AFG and its subsidiaries are involved in various
litigation, most of which arose in the ordinary course of
business. Except for the following, management believes that
none of the litigation meets the threshold for disclosure
under this Item.
<PAGE>
In May 1994, lawsuits were filed against American Premier
by USX Corporation ("USX") and its former subsidiary, Bessemer
and Lake Erie Railroad Company ("B&LE"), seeking contribution
by American Premier, as the successor to the railroad business
conducted by Penn Central Transportation Company ("PCTC")
prior to 1976, for all or a portion of the approximately $600
million that USX paid in satisfaction of a judgment against
B&LE for its participation in an unlawful antitrust conspiracy
among certain railroads commencing in the 1950's and
continuing through the 1970's. The lawsuits argue that USX's
liability for that payment was attributable to PCTC's alleged
activities in furtherance of the conspiracy. On October 13,
1994, the U.S. District Court for the Eastern district of
Pennsylvania enjoined USX and B&LE from continuing their
lawsuits against American Premier, ruling that their claims
are barred by the 1978 Consummation Order issued by that Court
in PCTC's bankruptcy reorganization proceedings. USX and B&LE
appealed the District Court's ruling to the U.S. Court of
Appeals for the Third Circuit. On December 13, 1995, the Court
of Appeals reversed the U.S. District Court decision. In its
opinion, the Court of Appeals only addressed American
Premier's procedural argument that the claims of USX could not
proceed because they are barred by the Consummation Order.
The Third Circuit expressly recognized in its opinion that it
was not deciding any of American Premier's defenses on the
merits.
On January 8, 1996, American Premier filed a petition for
rehearing en banc, requesting all of the judges of the Third
Circuit to review the three-judge panel's decision. That
petition was denied on February 16, 1996. As a result,
American Premier will petition the U.S. Supreme Court to
review the bankruptcy bar issue. In the event that subsequent
reviews do not reinstate the District Court's injunction and
USX's lawsuits are eventually permitted to go forward,
American Premier and its outside counsel believe that American
Premier has substantial defenses to these lawsuits and should
not suffer a material loss as a result of this litigation.
22
<PAGE>
American Premier is a party or named as a potentially
responsible party in a number of proceedings and claims by
regulatory agencies and private parties under various
environmental protection laws, including the Comprehensive
Environmental Response, Compensation and Liability Act
("CERCLA"), seeking to impose responsibility on American
Premier for hazardous waste remediation costs at certain
railroad sites formerly owned by PCTC and at certain other
sites where hazardous waste allegedly generated by PCTC's
railroad operations is present. It is difficult to estimate
American Premier's liability for remediation costs at these
sites for a number of reasons, including the number and
financial resources of other potentially responsible parties
involved at a given site, the varying availability of evidence
by which to allocate responsibility among such parties, the
wide range of costs for possible remediation alternatives,
changing technology and the period of time over which these
matters develop. Nevertheless, American Premier believes that
its previously established loss accruals for potential pre-
reorganization environmental liabilities at such sites are
adequate to cover the probable amount of such liabilities,
based on American Premier's estimates of remediation costs and
related expenses at such sites and its estimates of the
portions of such costs that will be borne by other parties.
Such estimates are based on information currently available to
American Premier and are subject to future change as
additional information becomes available. Such estimates do
not assume any recovery from American Premier's insurance
carriers, although American Premier does intend to seek
reimbursement from certain insurers for such remediation costs
as American Premier incurs.
In terms of potential liability to American Premier, the
company believes that the most significant such site is the
railyard at Paoli, Pennsylvania ("Paoli Yard") which PCTC
transferred to Consolidated Rail Corporation ("Conrail") in
1976. A Record of Decision issued by the U.S. Environmental
Protection Agency in 1992 presented a final selected remedial
action for clean-up of polychlorinated biphenyls ("PCB's") at
Paoli Yard having an estimated cost of approximately $28
million. American Premier has accrued its portion of such
estimated clean-up costs in its financial statements (in
addition to related expenses) but has not accrued the entire
amount because it believes it is probable that other parties,
including Conrail, will be responsible for substantial
percentages of the clean-up costs by virtue of their operation
of electrified railroad cars at Paoli Yard that discharged
PCB's at higher levels than discharged by cars operated by
PCTC.
In management's opinion, the outcome of the foregoing
environmental claims and contingencies will not, individually
or in the aggregate, have a material adverse effect on the
financial condition of American Premier. In making this
assessment, management has taken into account previously
established loss accruals in its financial statements and
probable recoveries from third parties.
23
<PAGE>
PART II
ITEM 5
Market for Registrant's Common Equity and Related Stockholder Matters
AFG Common Stock is listed and traded on the New York Stock
Exchange ("NYSE") under the symbol AFG. The information
presented in the table below represents the high and low sales
prices per share reported on the NYSE Composite Tape. For
periods prior to the Second Quarter of 1995, the data listed
represents data of American Premier, known prior to March 1994 as
The Penn Central Corporation.
Price Per Share of
Common Stock Dividends
High Low Paid
1994
First Quarter $33 1/4 $23 3/8 $0.22
Second Quarter 30 23 3/4 0.22
Third Quarter 27 5/8 23 3/4 0.22
Fourth Quarter 27 21 5/8 0.22
1995
First Quarter 26 1/8 22 7/8 0.25
Second Quarter 26 1/4 23 1/4 0.25
Third Quarter 32 1/8 25 1/4 0.25
Fourth Quarter 30 5/8 27 3/4 0.25
There were approximately 19,000 shareholders of record of
AFG Common Stock at March 1, 1996. AFG's policy is to pay
quarterly dividends on its Common Stock, in amounts determined by
its Board of Directors. The Board has declared its intention
that AFG pay a dividend of $0.25 per share per quarter. The
ability of AFG to pay dividends will be dependent upon, among
other things, the availability of dividends and payments under
intercompany tax allocation agreements from its insurance company
subsidiaries.
24
<PAGE>
ITEM 6
Selected Financial Data
The following table sets forth certain data for the
periods indicated (dollars in millions, except per share
data).
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Operations Statement Data:
Total Revenues $3,630 $2,103 $2,721 $3,929 $5,219
Earnings (Loss) From
Continuing Operations
Before Income Taxes 247 44 262 (145) 119
Earnings (Loss) From:
Continuing Operations 190 19 225 (162) 56
Discontinued Operations - - - - 16
Extraordinary Items 1 (17) (5) - -
Cumulative Effect of
Accounting Change - - - 85 -
Net Earnings (Loss) 191 2 220 (77) 72
Earnings (Loss) Per Common Share (A):
Continuing Operations $3.87 ($.24) $7.01 ($6.66) $1.12
Discontinued Operations - - - - .56
Extraordinary Items .01 (.59) (.16) - -
Cumulative Effect of
Accounting Change - - - 3.02 -
Net Earnings (Loss) 3.88 (.83) 6.85 (3.64) 1.68
Cash Dividends Paid Per
Share of Common Stock $.75 (B) (B) (B) (B)
Ratio of Earnings to
Fixed Charges (C) 2.60 1.69 2.62 2.15 1.54
Balance Sheet Data:
Total Assets $14,954 $10,593 $10,077 $12,389 $12,057
Long-term Debt:
American Financial
Corporation (parent only) 311 490 572 557 559
American Premier
Underwriters (parent only) 337 - - 650 650
Great American Holding Corp. - 359 199 299 448
Other Subsidiaries 234 258 283 503 451
Capital Subject to
Mandatory Redemption - 3 49 28 82
Other Capital 1,440 396 537 280 262
</TABLE>
(A) The weighted average number of shares used for periods
prior to April 1995, is based upon the 28.3 million shares
issued in exchange for AFC shares in the Mergers discussed
in Note A.
<PAGE>
(B) Prior to the Mergers, AFC's common stock was privately
held by members of the Lindner family. American Premier
declared and paid cash dividends per share of $.25 prior
to the Mergers in 1995; it also declared cash dividends of
$.91 in 1994, $.85 in 1993, $.81 in 1992 and $.71 in 1991.
AFG declared two quarterly $.25 per share dividends
subsequent to the Mergers in 1995.
(C) Fixed charges are computed on a "total enterprise" basis.
For purposes of calculating the ratios, "earnings" have
been computed by adding to pretax earnings (excluding
discontinued operations) the fixed charges and the
minority interest in earnings of subsidiaries having fixed
charges and deducting (adding) the undistributed equity in
earnings (losses) of investees. Fixed charges include
interest (excluding interest on annuity benefits),
amortization of debt discount and expense, preferred
dividend requirements of subsidiaries and a portion of
rental expense deemed to be representative of the interest
factor.
25
<PAGE>
ITEM 7
Management's Discussion and Analysis
of Financial Condition and Results of Operations
GENERAL
Following is a discussion and analysis of the financial
statements and other statistical data that management believes
will enhance the understanding of AFG's financial condition
and results of operations. This discussion should be read in
conjunction with the financial statements beginning on page
F-1.
As discussed in Note A to the Financial Statements, the
Mergers of AFC and American Premier in April 1995 were
accounted for as a reverse acquisition whereby AFC was deemed
to have acquired American Premier. Financial statements for
periods prior to the Mergers are those of AFC. The operations
of American Premier are included in AFG's financial statements
from the date of acquisition.
LIQUIDITY AND CAPITAL RESOURCES
Ratios Since the Mergers to the end of the year, nearly $850
million of AFC and American Premier debt was retired or replaced
with lower cost debt, resulting in a net reduction of aggregate
debt by approximately half. Consequently, AFG's debt to total
capital ratio at the holding company level improved from nearly
60% at the date of the Mergers to approximately 30% at December
31, 1995. These debt reductions and replacements will also
reduce AFG's interest expense by approximately $75 million
annually.
AFG's ratio of earnings to fixed charges on a total
enterprise basis was 2.60, 1.69 and 2.62 for the years ended
December 31, 1995, 1994 and 1993, respectively. Assuming the
Mergers and related transactions occurred at the beginning of
each of these periods, these ratios would have been 2.93, 2.07
and 3.09, respectively.
The National Association of Insurance Commissioners' model
law for risk based capital ("RBC") applies to both life and
property and casualty companies. RBC formulas determine the
amount of capital that an insurance company needs to ensure
that it has an acceptable expectation of not becoming
financially impaired. At December 31, 1995, the capital
ratios of all AFG insurance companies substantially exceeded
the RBC requirements.
Sources of Funds AFG and its subsidiaries, AFC and American
Premier, are organized as holding companies with almost all of
their operations being conducted by subsidiaries. These
parent corporations, however, have continuing cash needs for
administrative expenses, the payment of principal and interest
on borrowings, and shareholder dividends. AFG, AFC and
American Premier rely primarily on dividends and tax payments
from their subsidiaries for funds to meet their obligations.
<PAGE>
Management believes AFG has sufficient resources to meet
the liquidity requirements of AFG, AFC and American Premier
through operations in the short-term and long-term future. If
funds generated from operations, including dividends from
subsidiaries, are insufficient to meet fixed charges in any
period, these companies would be required to generate cash
through borrowings, sales of securities or other assets, or
similar transactions.
Prior to the Mergers, American Premier had substantial
cash and short-term investments at the parent company level.
Subsequent to the Mergers, AFC entered into a credit agreement
with American Premier. At December 31, 1995, AFC had borrowed
$623 million under this agreement which it used for debt
retirements, capital contributions to subsidiaries, and other
26
<PAGE>
corporate purposes. In addition, AFG and American Premier
entered into a reciprocal credit agreement under which these
companies will make funds available to each other for general
corporate purposes.
Bank credit lines at several subsidiary holding companies
provide ample liquidity which can be used to obtain funds for
the operating subsidiaries or, if necessary, for the parent
companies, AFC, American Premier and ultimately AFG.
Agreements with the banks generally run for three to seven
years and are renewed before maturity. While it is highly
unlikely that all such amounts would ever be borrowed at one
time, up to $470 million is available under these bank
facilities.
In the past, funds have been borrowed under certain of
these bank facilities and used for working capital, capital
infusions into subsidiaries, and to retire other issues of
short-term or high-rate debt. Also, while little was drawn on
the bank lines at December 31, 1995, AFG believes it may be
prudent and advisable to borrow up to $200 million of bank
debt in the normal course and use the proceeds to retire
additional amounts of public or privately held fixed rate debt
over the next year or two.
Dividend payments from subsidiaries have been very
important to the liquidity and cash flow of the individual
holding companies in the past. However, the combination of
(i) strong capital at AFG's insurance subsidiaries (and the
related decreased likelihood of a need for investment in those
companies), (ii) the reductions of debt at the holding
companies (and the related decrease in ongoing cash needs for
interest and principal payments), (iii) AFG's ability to
obtain financing in capital markets, as well as (iv) the sales
of Buckeye and Citicasters, should lessen the reliance on such
dividend payments in the future.
For statutory accounting purposes, equity securities are
generally carried at market value. At December 31, 1995,
AFG's insurance companies owned publicly traded equity
securities with a market value of $1.3 billion, including
equity securities of AFG affiliates (including subsidiaries)
of $1.0 billion. Since significant amounts of these are
concentrated in a relatively small number of companies,
decreases in the market prices could adversely affect the
insurance group's capital, potentially impacting the amount of
dividends available or necessitating a capital contribution.
Conversely, increases in the market prices could have a
favorable impact on the group's dividend-paying capability.
<PAGE>
Following the Mergers, AFC and American Premier will each
continue to file separate consolidated tax returns. Under tax
allocation agreements with AFC, its 80%-owned U.S.
subsidiaries generally compute tax provisions as if filing
separate returns based on book taxable income computed in
accordance with generally accepted accounting principles.
American Premier has tax allocation agreements with its U.S.
insurance subsidiaries whereby such subsidiaries compute tax
provisions based on taxable income in accordance with
statutory accounting principles. In each case, the resulting
provision (or credit) is currently payable to (or receivable
from) AFC or American Premier. American Premier's federal
income tax loss carryforward is available to offset taxable
income and, as a result, American Premier's requirement to pay
federal income tax for 1996 is substantially eliminated.
Uncertainties Two lawsuits were filed in 1994 against
American Premier by USX Corporation ("USX") and a former USX
subsidiary. The lawsuits seek contribution from American
Premier for all or a portion of a $600 million final antitrust
judgment entered against a USX subsidiary in 1994. The
lawsuits argue that USX's liability for that judgment is
attributable to the alleged activities of American Premier's
predecessor in an unlawful antitrust conspiracy among certain
railroad companies. American Premier and its outside counsel
believe that American Premier has substantial defenses and
should not suffer a material loss as a result of this
litigation.
27
<PAGE>
Great American's liability for unpaid losses and loss
adjustment expenses includes amounts for various liability
coverages related to environmental and hazardous product
claims. The insurance industry typically includes only claims
relating to polluted waste sites and asbestos in defining
environmental exposures, whereas Great American extends this
definition to include claims relating to breast implants,
repetitive stress on keyboards, DES (a drug used in
pregnancies years ago alleged to cause cancer and birth
defects), and other latent injuries. At December 31, 1995,
Great American had recorded $220 million (net of
reinsurance recoverables of $164 million) for environmental
pollution and hazardous products claims on policies written
many years ago where, in most cases, coverage was never
intended. Due to inconsistent court decisions on many
coverage issues and the difficulty in determining standards
acceptable for cleaning up pollution sites, significant
uncertainties exist which are not likely to be resolved in the
near future.
AFG's subsidiaries are parties in a number of proceedings
relating to former operations. See Note L to the financial
statements.
While the results of all such uncertainties cannot be
predicted, based upon its knowledge of the facts,
circumstances and applicable laws, management believes that
sufficient reserves have been provided.
Investments Approximately two-thirds of AFG's consolidated
assets are invested in marketable securities. A diverse
portfolio of bonds and redeemable preferred stocks accounts
for 95% of these securities. AFG attempts to optimize
investment income while building the value of its portfolio,
placing emphasis upon long-term performance. AFG's goal is to
maximize return on an ongoing basis rather than focusing on
short-term performance.
Fixed income investment funds are generally invested in
securities with short-term and intermediate-term maturities
with an objective of optimizing total return while allowing
flexibility to react to changes in market conditions. At
December 31, 1995, the average life of AFG's bonds and
redeemable preferred stocks was approximately 6 years.
Approximately 94% of the bonds and redeemable preferred
stocks held by AFG were rated "investment grade" (credit
rating of AAA to BBB) by nationally recognized rating agencies
at December 31, 1995. Investment grade securities generally
bear lower yields and lower degrees of risk than those that
are unrated and non-investment grade. Management believes
that the high quality investment portfolio should generate a
stable and predictable investment return.
<PAGE>
Investments in mortgage-backed securities ("MBSs"),
represented approximately one-fourth of AFG's bonds and
redeemable preferred stocks at December 31, 1995. AFG invests
primarily in MBSs which have a reduced risk of prepayment.
Interest only (I/Os), principal only (P/Os) and other "high
risk" MBSs represented less than two percent of AFG's total
mortgage-backed securities portfolio. In addition, the
majority of MBSs held by AFG were purchased at a discount.
Management believes that the structure and discounted nature
of the MBSs will minimize the effect of prepayments on
earnings over the anticipated life of the MBS portfolio. More
than 90% of AFG's MBSs are rated "AAA" with substantially all
being of investment grade quality. The majority are
collateralized by GNMA, FNMA and FHLMC single-family
residential pass-through certificates. The market in which
these securities trade is highly liquid. Aside from interest
rate risk, AFG does not believe a material risk (relative to
earnings or liquidity) is inherent in holding such
investments.
Because most income of the property and casualty insurance
subsidiaries is currently sheltered from income taxes, non-
taxable municipal bonds represent only a small portion (less
than 1%) of the portfolio.
AFG's equity securities are concentrated in a relatively
limited number of major positions. This approach allows
management to more closely monitor the companies and
industries in which they operate.
28
<PAGE>
The realization of capital gains, primarily through sales
of equity securities, was an integral part of AFG's investment
program. Individual securities are sold creating gains or
losses as market opportunities exist. Pretax capital gains
recognized upon disposition of securities, including
investees, during the past five years have been: 1995 -
$84 million; 1994 - $50 million; 1993 - $165 million; 1992 -
$104 million and 1991 - $38 million. At December 31, 1995,
the net unrealized gain on AFG's bonds and redeemable
preferred stocks was $442 million; the net unrealized gain on
equity securities was $115 million.
RESULTS OF OPERATIONS - THREE YEARS ENDED DECEMBER 31, 1995
General As previously noted, financial statements for periods
prior to the April 1995, Mergers are those of AFC. The
operations of American Premier are included in AFG's financial
statements from the date of acquisition. AFC had accounted
for American Premier as a subsidiary in 1992 and the first
quarter of 1993 and as an investee from the second quarter of
1993 through the first quarter of 1995. Accordingly, current
year income statement components are not comparable to prior
years and are not indicative of future periods.
Pretax earnings were $247 million in 1995 compared to
$44 million in 1994 and $262 million in 1993.
In addition to the earnings contribution from the Mergers,
results for 1995 include $84 million in pretax gains on
the sale of securities.
Results for 1994 include AFC's share ($28 million) of
American Premier's loss on the sale of General Cable
securities, Great American's $19 million charge relating
to a rate rollback liability in California and a
$35 million charge related to payments under AFC's Book
Value Incentive Plan. These items were partially offset
by a $42 million decrease in interest expense.
Results for 1993 include (i) $155 million in gains from
the sales of AFC's insurance agency operations, Spelling
Entertainment Group and 4.5 million shares of American
Premier and additional proceeds received on the 1990 sale
of the NSA Group to American Premier, and (ii) AFC's share
($52 million) of a tax benefit recorded by American
Premier in the second, third and fourth quarters of 1993.
These items were partially offset by a write-off of debt
discount and expenses of $24 million.
<PAGE>
Property and Casualty Insurance - Underwriting AFG manages
and operates its property and casualty business as three major
sectors. The nonstandard automobile insurance companies (the
"NSA Group") insure risks not typically accepted for standard
automobile coverage because of the applicant's driving record,
type of vehicle, age or other criteria. The specialty lines
are a diversified group of over twenty-five business lines
that offer a wide variety of specialty insurance products.
Some of the more significant areas are California workers'
compensation, executive liability, inland and ocean marine,
U.S.-based operations of Japanese companies, agricultural-
related coverages, excess and surplus lines and fidelity and
surety bonds. The commercial and personal lines provide
coverages in commercial multi-peril, workers' compensation,
umbrella and commercial automobile, standard private passenger
automobile and homeowners insurance.
To understand the overall profitability of particular
lines, timing of claims payments and the related impact of
investment income must be considered. Certain "short-tail"
lines of business (primarily property coverages) have quick
loss payouts which reduce the time funds are held, thereby
limiting investment income earned thereon. On the other hand,
"long-tail" lines of business (primarily liability coverages
and workers' compensation) have payouts that are either
structured over many years or take many years to settle,
thereby significantly increasing investment income earned on
related premiums received.
29
<PAGE>
Underwriting profitability is measured by the combined
ratio which is a sum of the ratio of underwriting expenses,
losses, and loss adjustment expenses to premiums. When the
combined ratio is under 100%, underwriting results are
generally considered profitable; when the ratio is over 100%,
underwriting results are generally considered unprofitable.
The combined ratio does not reflect investment income, other
income or federal income taxes.
While AFG desires and seeks to earn an underwriting profit
on all of its business, it is not always possible to do so.
As a result, the company attempts to expand in the most
profitable areas and control growth or even reduce its
involvement in the least profitable ones.
Comparisons made in the following discussion of AFG's
insurance operations include American Premier's insurance
operations even though they were not consolidated in the
financial statements throughout the periods prior to the
Mergers.
Results for AFG's property and casualty insurance
subsidiaries are as follows (dollars in millions):
1995 1994 1993
Net Written Premiums (GAAP)
NSA Group $1,277 $1,186 $ 916
Specialty Operations 1,097 1,250 1,079
Commercial and Personal Operations 717 683 666
Other Lines 1 5 6
Aggregate $3,092 $3,124 $2,667
Combined Ratios (GAAP)
NSA Group 105.2% 100.0% 97.2%
Specialty Operations 94.8 97.2 96.1
Commercial and Personal Operations 99.1 98.9 101.0
Aggregate 101.2 99.4 99.8
In 1995, underwriting results of AFG's insurance
operations significantly outperformed the industry average for
the tenth consecutive year. AFG's insurance operations have
been able to exceed the industry's results by focusing on
highly specialized niche products, supplemented by commercial
lines coverages and personal automobile products.
<PAGE>
NSA Group The NSA Group attributes its premium growth in
recent years primarily to entry into additional states,
increased market penetration in its existing states, overall
growth in the nonstandard market, premium rate increases and
the purchase of Leader National. The increase in the combined
ratio for 1995 compared with 1994 was due primarily to
inadequate rate levels in certain markets and weather-related
losses principally from hailstorms in Texas. These factors
were partially offset by a reduction in the underwriting
expense ratio due largely to cost control measures.
Underwriting conditions in the private passenger
automobile insurance marketplace in 1994 were affected by
competitive conditions and the pricing policies of insurers.
Improving economic conditions contributed to increased driving
activity resulting in an increase in the frequency of
accidents and severity of claims. These trends caused a
deterioration in the NSA Group's underwriting profit margins
during 1994. These factors were partially offset by
underwriting profit from the NSA Group's entry into certain
markets, as well as improved underwriting margins in several
markets where the book of business matured and a greater
portion of new premium was derived from renewal policies.
Premium rate increases were implemented in several states
during 1994 and 1995. Rate increases implemented in various
states during 1995 averaged approximately 10% across the NSA
Group's entire book of business. The higher rate levels and
competitive pressures in the nonstandard automobile insurance
industry adversely impacted premium growth during 1995.
30
<PAGE>
Specialty Operations Net written premiums for the
specialty operations declined 12% during 1995 due primarily to
a decrease in the California workers' compensation writings,
partially offset by increases in other specialty niche lines
(primarily crop hail, excess and surplus and executive
liability). The decline in California workers' compensation
premiums reflects (i) extremely competitive pricing in the
marketplace as a result of the repeal of the California workers'
compensation minimum rate law effective January 1, 1995 and
(ii) the impact of mandatory premium rate reductions which took
effect a year earlier. The combined ratio of the specialty
operations in 1995 reflects improved results experienced in the
crop hail and farm lines as well as coverages of U.S. operations of
Japanese companies. The 1995 combined ratio also includes
losses resulting from participation in a voluntary pool from
which AFG withdrew in 1995.
Commercial and Personal Operations Net written premiums
for the commercial and personal operations increased 5% in 1995 due
primarily to increased writing of workers' compensation and
commercial umbrella insurance. The profitability of both of
these lines improved in 1995. Workers' compensation improved
due to favorable rate action by rating bureaus, health care
cost containment programs, marketing emphasis on profitable
states and implementation of a Drug-Free Workplace program.
Commercial umbrella results improved due to a focus on low
hazard risks and more favorable pricing in the higher umbrella
layers. In addition, cost control measures reduced the
underwriting expense ratio. These improved results were
offset by an increase in the combined ratio of the personal
lines operations due primarily to weather-related losses,
start-up costs from its direct-to-consumer operation and
deteriorating automobile loss experience for accident years
1994 and 1995.
Investment Income Changes in investment income reflect
fluctuations in market rates and changes in average invested
assets.
1995 compared to 1994 AFC's investment income increased
$50 million (9%) from 1994 due to an increase in the average
amount of investments held. For the period following the
Mergers, investment income includes $117 million attributable
to American Premier.
1994 compared to 1993 Excluding American Premier, which
was included as a subsidiary for the first three months of
1993, investment income increased $20 million (4%) due to an
increase in average investments held.
Investee Corporations Equity in net earnings of investee
corporations (companies in which AFG owns a significant
portion of the voting stock) represents AFG's proportionate
share of the investees' earnings and losses.
<PAGE>
1995 compared to 1994 AFG's equity in net earnings of
investee corporations increased $32 million in 1995. Chiquita
reported a $105 million improvement in operating income
primarily due to net gains from the sale of non-core assets,
cost reductions in its core business and higher banana prices
outside the European Union.
1994 compared to 1993 AFG's equity in net earnings
(losses) of investee corporations in 1994 includes AFC's share
($28 million) of American Premier's loss on the sale of
General Cable securities and its share ($52 million) of
American Premier's tax benefit in 1993. Chiquita's loss
before extraordinary items was comparable in 1994 and 1993 as
improvements in Meat Division operations and banana pricing
were offset by charges and losses relating to farm closings
and banana cultivation write-downs in Honduras and a
substantial reduction of Chiquita's Japanese banana trading
operations.
31
<PAGE>
Gains on Sales of Investees The gain on sale of investees in
1994 represents a pretax gain on the sale of General Cable
common stock.
The gains on sales of investees in 1993 include (i) a
pretax gain of $52 million on the sale of Spelling
Entertainment and (ii) a pretax gain of $28 million on the
public sale by AFEI of 4.5 million shares of American Premier
common stock.
Gains on Sales of Subsidiaries The gains on sales of
subsidiaries in 1993 include pretax gains of (i) $44 million
from the sale of American Business Insurance, Inc. and (ii)
$31 million representing an adjustment on AFC's 1990 sale of
the nonstandard automobile insurance group to American
Premier.
Sales of Other Products and Services Sales of other products
and services represents American Premier's revenues from
systems and software engineering services and the manufacture
and supply of industrial products and services during the first
quarter of 1993.
Annuity Benefits For GAAP financial reporting purposes,
annuity receipts are generally accounted for as interest-
bearing deposits ("annuity benefits accumulated") rather than
as revenues. Under these contracts, policyholders' funds are
credited with interest on a tax-deferred basis until withdrawn
by the policyholder. Annuity benefits represent primarily
interest related to annuity policyholders' funds held. The
rate at which GALIC credits interest on annuity policyholders'
funds is subject to change based on management's judgment of
market conditions.
Annuity receipts totaled approximately $460 million in
1995, $440 million in 1994 and $400 million in 1993. Annuity
receipts have increased in 1995, 1994 and 1993 due to sales of
newly introduced single premium products and, in 1995, the
development of new distribution channels. Annuity surrender
payments have averaged approximately 8% of statutory reserves
over the past three years.
Annuity benefits increased $13 million (5%) in 1995 and
$13 million (6%) in 1994 primarily due to an increase in
average annuity benefits accumulated.
Interest on Borrowed Money Changes in interest expense result
from fluctuations in market rates as well as changes in
borrowings. AFG has generally financed its borrowings on a
long-term basis which has resulted in higher current costs.
1995 compared to 1994 Excluding $29 million attributable
to American Premier, interest expense decreased by $22 million
(19%) due primarily to the repayments of borrowings by AFC and
certain subsidiaries and the AFC debt exchange in 1994.
<PAGE>
1994 compared to 1993 Excluding $17 million attributable
to American Premier in 1993, AFG's interest expense decreased
$25 million (18%) in 1994 due to (i) the issuance of $204
million of 9-3/4% debentures in exchange for higher rate debt,
(ii) the repurchase of $79 million principal amount of
debentures and (iii) repayments of bank borrowings in 1993.
Other Operating and General Expenses Operating and general
expenses included the following charges (in millions):
1995 1994 1993
Minority interest $33 $ 9 $35
Allowance for bad debts - 18 10
Proposition 103 - 19 -
Writeoff of debt discount
and issue costs - - 24
Relocation expenses - - 8
32
<PAGE>
Allowance for bad debts includes charges for possible
losses on agents' balances, reinsurance recoverables and other
receivables. Beginning in April 1995, minority interest
includes AFC's quarterly preferred dividend requirement of $6.3
million. Relocation expenses represent the estimated costs of
moving GALIC's operations from Los Angeles to Cincinnati.
Income Taxes See Note J to the Financial Statements for an
analysis of other items affecting AFG's effective tax rate.
33
<PAGE>
ITEM 8
Financial Statements and Supplementary Data
Page
Reports of Independent Auditors F-1
Consolidated Balance Sheet:
December 31, 1995 and 1994 F-4
Consolidated Statement of Earnings:
Years ended December 31, 1995, 1994 and 1993 F-5
Consolidated Statement of Cash Flows:
Years ended December 31, 1995, 1994 and 1993 F-6
Notes to Consolidated Financial Statements F-7
"Selected Quarterly Financial Data" has been included in Note
O to the Consolidated Financial Statements.
ITEM 9
Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
AFG filed a report on Form 8-K on August 29, 1995, reporting
a change in its independent accountants. The report is
incorporated herein by reference.
34
<PAGE>
PART III
The information required by the following Items will be
included in AFG's definitive Proxy Statement for the 1996
Annual Meeting of Shareholders which will be filed with the
Securities and Exchange Commission within 120 days after the
end of Registrant's fiscal year and is incorporated herin by
reference.
ITEM 10 Directors and Executive Officers of the
Registrant
ITEM 11 Executive Compensation
ITEM 12 Security Ownership of Certain Beneficial
Owners and Management
ITEM 13 Certain Relationships and Related Transactions
35
<PAGE>
REPORTS OF INDEPENDENT AUDITORS
Board of Directors
American Financial Group, Inc.
We have audited the accompanying consolidated balance sheets of
American Financial Group, Inc. and subsidiaries as of December 31,
1995 and 1994, and the related consolidated statements of earnings and
cash flows for each of the three years in the period ended
December 31, 1995. Our audits also included the financial statement
schedules listed in the Index at Item 14(a). These financial
statements and schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements and schedules based on our audits. The financial
statements of American Premier Underwriters, Inc. (1994 and 1993) and
General Cable Corporation (1993) have been audited by other auditors
whose reports have been furnished to us; insofar as our opinion on the
consolidated financial statements and schedules relates to data
included for those corporations, it is based solely on the reports of
other auditors.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We
believe that our audits and the reports of other auditors provide a
reasonable basis for our opinion.
In our opinion, based on our audits and the reports of other auditors,
the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position
of American Financial Group, Inc. and subsidiaries at December 31,
1995 and 1994, and the consolidated 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. Also, in our opinion, the related financial statement
schedules, when considered in relation to the basic financial
statements taken as a whole, present fairly in all material respects
the information set forth therein.
ERNST & YOUNG LLP
Cincinnati, Ohio
March 15, 1996
F-1
<PAGE>
REPORT OF AMERICAN PREMIER'S INDEPENDENT AUDITORS
American Premier Underwriters, Inc.
We have audited the financial statements and the financial
statement schedules of American Premier Underwriters, Inc.
and Consolidated Subsidiaries listed in the Index to
Financial Statements and Financial Statement Schedules of
American Premier Underwriters, Inc.'s Form 10-K for the year
ended December 31, 1994 (not presented separately herein).
These financial statements and the financial statement
schedules are the responsibility of the Company's
management. Our responsibility is to express an opinion on
the financial statements and financial statement schedules
based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in
all material respects, the financial position of American
Premier Underwriters, Inc. and Consolidated Subsidiaries at
December 31, 1994 and the results of its operations and its
cash flows for each of the two years in the period ended
December 31, 1994 in conformity with generally accepted
accounting principles. Also, in our opinion, such financial
statement schedules, when considered in relation to the
basic financial statements taken as a whole, present fairly
in all material respects the information shown therein.
DELOITTE & TOUCHE LLP
Cincinnati, Ohio
February 15, 1995
(March 23, 1995 with respect to the
acquisition of American Financial
Corporation as discussed in Note B to
American Premier's financial statements)
F-2
<PAGE>
REPORT OF GENERAL CABLE'S INDEPENDENT AUDITORS
General Cable Corporation:
We have audited the consolidated financial statements and
related schedules of General Cable Corporation and
subsidiaries listed in Item 14(a) of the Annual Report on
Form 10-K of General Cable Corporation for the year ended
December 31, 1993 (not presented separately herein). These
consolidated financial statements and related schedules are
the responsibility of the Company's management. Our
responsibility is to express an opinion on these
consolidated financial statements and related schedules
based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such consolidated financial statements
present fairly, in all material respects, the financial
position of General Cable Corporation and subsidiaries at
December 31, 1993 and the results of their operations and
their cash flows for the year then ended in conformity with
generally accepted accounting principles. Also, in our
opinion, such consolidated financial statement schedules,
when considered in relation to the basic consolidated
financial statements taken as a whole, present fairly in all
material respects the information shown therein.
DELOITTE & TOUCHE
Cincinnati, Ohio
February 18, 1994
F-3
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Dollars In Thousands)
<TABLE>
<CAPTION>
December 31,
1995 1994
<S> <C> <C>
Assets
Cash and short-term investments $ 544,408 $ 171,335
Investments:
Bonds and redeemable preferred stocks:
Held to maturity - at amortized cost
(market - $3,729,300 and $4,336,700) 3,588,943 4,629,633
Available for sale - at market
(amortized cost - $5,648,060 and $1,938,853) 5,949,260 1,862,653
Other stocks - principally at market
(cost - $136,944 and $137,106) 252,244 208,706
Investment in investee corporations 306,545 832,637
Loans receivable 631,408 641,964
Real estate and other investments 220,135 154,262
10,948,535 8,329,855
Recoverables from reinsurers and prepaid
reinsurance premiums 923,080 902,063
Agents' balances and premiums receivable 703,274 363,156
Deferred acquisition costs 419,919 231,343
Other receivables 270,263 197,119
Deferred tax asset 200,392 42,600
Assets held in separate accounts 238,524 -
Prepaid expenses, deferred charges and other assets 391,339 179,314
Cost in excess of net assets acquired 314,136 175,866
$14,953,870 $10,592,651
<PAGE>
Liabilities and Capital
Unpaid losses and loss adjustment expenses $ 4,096,703 $ 2,916,985
Unearned premiums 1,294,054 824,691
Annuity benefits accumulated 5,051,959 4,618,108
Life, accident and health benefit reserves 538,274 19,879
Long-term debt:
Direct obligations of AFG Parent Company - -
Obligations of AFG subsidiaries:
American Financial Corporation (parent only) 311,202 490,065
American Premier Underwriters (parent only) 337,334 -
Great American Holding Corporation - 359,185
American Annuity Group 167,734 183,242
Other subsidiaries 65,793 74,255
Liabilities related to separate accounts 238,524 -
Accounts payable, accrued expenses and other
liabilities 1,097,766 601,872
Minority interest 314,390 105,506
13,513,733 10,193,788
AFC Mandatory Redeemable Preferred Stock (at
redemption value) - 2,880
Other AFC Preferred Stock (redemption
value - $278,719) - 168,484
AFC Common Stock without par value - 904
Common Stock, $1 par value
- 200,000,000 shares authorized
- 60,139,303 shares outstanding 60,139 -
Capital surplus 741,355 -
Retained earnings 387,143 223,095
Net unrealized gain on marketable securities,
net of deferred income taxes 251,500 3,500
$14,953,870 $10,592,651
</TABLE>
See notes to consolidated financial statements.
F-4
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Year ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Income:
Property and casualty insurance premiums $2,648,703 $1,378,628 $1,494,796
Investment income 750,640 582,931 601,900
Realized gains on sales of securities 84,028 48,342 82,265
Equity in net earnings (losses) of
investee corporations 15,237 (16,573) 69,862
Gains on sales of investee corporations 335 1,694 83,211
Gains on sales of subsidiaries - - 75,309
Sales of other products and services - - 152,100
Other income 130,666 107,758 161,260
3,629,609 2,102,780 2,720,703
Costs and Expenses:
Property and casualty insurance:
Losses and loss adjustment expenses 1,977,395 986,996 1,064,108
Commissions and other underwriting
expenses 707,340 428,590 467,293
Annuity benefits 254,650 241,811 228,609
Interest charges on borrowed money 122,568 115,162 157,219
Cost of sales - - 134,900
Book Value Incentive Plan - 34,740 991
Other operating and general expenses 320,737 251,913 405,598
3,382,690 2,059,212 2,458,718
Earnings before income taxes and
extraordinary items 246,919 43,568 261,985
Provision for income taxes 56,489 24,650 37,296
Earnings before extraordinary items 190,430 18,918 224,689
Extraordinary items, net of income taxes 817 (16,818) (4,559)
Net Earnings $ 191,247 $ 2,100 $ 220,130
Preferred dividend requirement of predecessor
company 6,349 25,709 26,122
Net earnings (loss) available to Common Shares $ 184,898 $ (23,609) $ 194,008
Earnings (loss) per Common Share:
Before extraordinary items $3.87 ($.24) $7.01
Extraordinary items .01 (.59) (.16)
Net earnings (loss) $3.88 ($.83) $6.85
Average number of Common Shares 47,620 28,324 28,324
</TABLE>
See notes to consolidated financial statements.
F-5
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands)
<TABLE>
<CAPTION>
Year ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Operating Activities:
Net earnings $ 191,247 $ 2,100 $ 220,130
Adjustments:
Extraordinary (gains) losses from retirement
of debt (817) 16,818 4,559
Depreciation and amortization 47,760 30,729 52,117
Annuity benefits 254,650 241,811 228,609
Equity in net (earnings) losses of investees (15,237) 16,573 (69,862)
Changes in reserves on assets 2,302 17,094 11,440
Realized gains on investing activities (84,995) (59,609) (242,529)
Writeoff of debt discount and issue costs - - 30,054
Decrease (increase) in reinsurance and other
receivables 23,192 (223,113) (238,166)
Increase in other assets (11,503) (96,596) (90,022)
Increase in insurance claims and reserves 137,180 345,542 241,704
Increase (decrease) in other liabilities (247,938) 67,799 50,479
Increase in minority interest 7,877 6,773 37,057
Dividends from investees 9,568 21,567 25,575
Other, net (673) (1,488) (37,062)
312,613 386,000 224,083
Investing Activities:
Purchases of and additional investments in:
Fixed maturity investments (2,378,427) (1,726,318) (3,062,435)
Equity securities (1,034) (7,315) (20,224)
Investees and subsidiaries (68,591) (29,306) (27,578)
Real estate, property and equipment (42,579) (27,185) (41,762)
Maturities and redemptions of fixed maturity
investments 309,581 420,945 757,473
Sales of:
Fixed maturity investments 2,310,837 694,947 1,498,432
Equity securities 17,379 127,181 221,467
Investees and subsidiaries - 27,621 255,517
Real estate, property and equipment 27,759 6,151 65,782
Cash and short-term investments of acquired
(former) subsidiaries 392,100 - (310,225)
Decrease (increase) in other investments (11,466) (5,571) 1,435
555,559 (518,850) (662,118)
<PAGE>
Financing Activities:
Annuity receipts 457,525 442,703 400,141
Annuity payments (412,854) (321,038) (337,878)
Additional long-term borrowings 337,076 244,311 338,010
Reductions of long-term debt (1,061,187) (193,481) (601,040)
Issuances of common stock 211,557 - -
Repurchases of preferred stock (17) (6,738) (2,643)
Cash dividends paid (27,199) (29,522) (28,034)
(495,099) 136,235 (231,444)
Net Increase (Decrease) in Cash and Short-term
Investments 373,073 3,385 (669,479)
Cash and short-term investments at beginning of
period 171,335 167,950 837,429
Cash and short-term investments at end of period $ 544,408 $ 171,335 $ 167,950
</TABLE>
See notes to consolidated financial statements.
F-6
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
INDEX TO NOTES
A. Mergers I. Capital Stock
B. Accounting Policies J. Income Taxes
C. Acquisitions and Sales of Subsidiaries K. Extraordinary Items
and Investees L. Commitments and Contingencies
D. Segments of Operations M. Benefit Plans
E. Investments N. Transactions with Affiliates
F. Investment in Investee Corporations O. Quarterly Operating Results
G. Cost in Excess of Net Assets Acquired P. Insurance
H. Long-Term Debt Q. Additional Information
R. Subsequent Event
A. Mergers
American Premier Group, Inc. was formed in December 1994 for the
purpose of acquiring American Financial Corporation ("AFC") and
American Premier Underwriters, Inc. ("American Premier"). In
Mergers completed on April 3, 1995, American Premier Group issued
71.4 million shares of its Common Stock in exchange for all of the
outstanding common stock of AFC and American Premier. The 18.7
million shares held by AFC and its subsidiaries are accounted for
herein as retired. In June 1995, American Premier Group, Inc.
changed its name to American Financial Group, Inc. ("AFG"), to
better reflect its core property and casualty insurance and
annuity businesses.
For financial reporting purposes, because the former shareholders
of AFC owned more than 50% of AFG following the Mergers, the
Mergers were accounted for as a reverse acquisition whereby AFC
was deemed to have acquired American Premier. Financial
statements for periods prior to the Mergers are those of AFC. The
operations of American Premier are included in AFG's financial
statements from the date of the Mergers.
The valuation of American Premier's net assets was determined
based on the fair market value of the AFG shares issued to
shareholders other than AFC and was allocated to American
Premier's assets and liabilities based on their fair values at the
date of acquisition. The following unaudited pro forma data is
presented as if the Mergers occurred on January 1 of each year (in
millions, except per share data).
1995 1994
Revenues $4,049 $3,832
Earnings before Extraordinary Items 216 59
Extraordinary Items 1 (17)
Net Earnings 217 42
Earnings Per Share $ 4.04 $ .79
F-7
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
B. Accounting Policies
Basis of Presentation The consolidated financial statements
include the accounts of AFG and its subsidiaries. Mergers and
changes in ownership levels of subsidiaries and investees have
resulted in certain differences in the financial statements and
have affected comparability between years. Certain
reclassifications have been made to prior years to conform to the
current year's presentation. All significant intercompany
balances and transactions have been eliminated. All acquisitions
have been treated as purchases. The results of operations of
companies since their formation or acquisition are included in the
consolidated financial statements.
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in
the financial statements and accompanying notes. Changes in
circumstances could cause actual results to differ materially from
those estimates.
AFG's ownership of subsidiaries and significant investees with
publicly traded common shares at December 31, was as follows:
1995 1994 1993
American Annuity Group, Inc. ("AAG") 81% 80% 80%
American Financial Enterprises, Inc. ("AFEI") 83% 83% 83%
American Premier Underwriters, Inc. (a) 42% 41%
Chiquita Brands International, Inc. 44% 46% 46%
Citicasters Inc. (formerly GACC) 38% 37% 20%
General Cable Corporation - (b) 45%
(a) Became a 100%-owned subsidiary on April 3, 1995.
(b) Sold in June 1994.
<PAGE>
Investments Debt securities are classified as "held to maturity"
and reported at amortized cost if AFG has the positive intent and
ability to hold them to maturity. Debt and equity securities are
classified as "available for sale" and reported at fair value with
unrealized gains and losses reported as a separate component of
shareholders' equity if the debt or equity securities are not
classified as held to maturity or bought and held principally for
selling in the near term. Only in certain limited circumstances,
such as significant issuer credit deterioration or if required by
insurance or other regulators, may a company change its intent to
hold a certain security to maturity without calling into question
its intent to hold other debt securities to maturity in the
future.
In accordance with guidance issued by the Financial Accounting
Standards Board in November 1995, AFG reassessed the
classifications of its investments and transferred fixed maturity
securities with an amortized cost of approximately $2.8 billion to
"available for sale." This "one-time" reclassification resulted
in an increase of $167 million in carrying value of fixed maturity
investments and an increase of $109 million in shareholders'
equity. The transfer had no effect on net earnings.
Premiums and discounts on mortgage-backed securities are amortized
over their expected average lives using the interest method.
Gains or losses on sales of securities are recognized at the time
of disposition with the amount of gain or loss determined on the
specific identification basis. When a decline in the value of a
specific investment is considered to be other than temporary, a
provision for impairment is charged to earnings and the carrying
value of that investment is reduced.
Short-term investments are carried at cost; loans receivable are
stated primarily at the aggregate unpaid balance.
F-8
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Investment in Investee Corporations Investments in securities of
20%- to 50%-owned companies are carried at cost, adjusted for
AFG's proportionate share of their undistributed earnings or
losses. Investments in less than 20%-owned companies are
accounted for by the equity method when, in the opinion of
management, AFG can exercise significant influence over operating
and financial policies of the investee.
Cost in Excess of Net Assets Acquired The excess of cost of
subsidiaries and investees over AFG's equity in the underlying net
assets ("goodwill") is being amortized over 40 years. The excess
of AFG's equity in the net assets of other subsidiaries and
investees over its cost of acquiring these companies ("negative
goodwill") is allocated to AFG's basis in these companies' fixed
assets, goodwill and other long-term assets and is amortized on a
10- to 40-year basis.
Insurance As discussed under "Reinsurance" below, unpaid losses
and loss adjustment expenses and unearned premiums have not been
reduced for reinsurance recoverable.
Reinsurance In the normal course of business, AFG's insurance
subsidiaries cede reinsurance to other companies to diversify risk
and limit maximum loss arising from large claims. To the extent
that any reinsuring companies are unable to meet obligations under
the agreements covering reinsurance ceded, AFG's insurance
subsidiaries would remain liable. Amounts recoverable from
reinsurers are estimated in a manner consistent with the claim
liability associated with the reinsurance policies. AFG's
insurance subsidiaries report as assets (a) the estimated
reinsurance recoverable on unpaid losses, including an estimate
for losses incurred but not reported, and (b) amounts paid to
reinsurers applicable to the unexpired terms of policies in force.
AFG's insurance subsidiaries also assume reinsurance from other
companies. Income on reinsurance assumed is recognized based on
reports received from ceding reinsurers.
Deferred Acquisition Costs Policy acquisition costs (principally
commissions, premium taxes and other underwriting expenses)
related to the production of new business are deferred ("DPAC").
For the property and casualty companies, the deferral of
acquisition costs is limited based upon their recoverability
without any consideration for anticipated investment income. DPAC
is charged against income ratably over the terms of the related
policies. For the annuity companies, DPAC is amortized, with
interest, in relation to the present value of expected gross
profits on the policies.
<PAGE>
Unpaid Losses and Loss Adjustment Expenses The net liabilities
stated for unpaid claims and for expenses of investigation and
adjustment of unpaid claims are based upon (a) the accumulation of
case estimates for losses reported prior to the close of the
accounting period on the direct business written; (b) estimates
received from ceding reinsurers and insurance pools and
associations; (c) estimates of unreported losses based on past
experience; (d) estimates based on experience of expenses for
investigating and adjusting claims and (e) the current state of
the law and coverage litigation. These liabilities are
subject to the impact of changes in claim amounts and frequency
and other factors. In spite of the variability inherent in such
estimates, management believes that the liabilities for unpaid
losses and loss adjustment expenses are adequate. Changes in
estimates of the liabilities for losses and loss adjustment
expenses are reflected in the Statement of Earnings in the period
in which determined.
F-9
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Premium Recognition Premiums are earned over the terms of the
policies on a pro rata basis. Unearned premiums represent that
portion of premiums written which is applicable to the unexpired
terms of policies in force. On reinsurance assumed from other
insurance companies or written through various underwriting
organizations, unearned premiums are based on reports received
from such companies and organizations.
Policyholder Dividends Dividends payable to policyholders are
included in "Accounts payable, accrued expenses and other
liabilities" and represent estimates of amounts payable on
participating policies which share in favorable underwriting
results. The estimate is accrued during the period in which the
related premium is earned. Changes in estimates are included in
income in the period determined. Policyholder dividends do not
become legal liabilities unless and until declared by the boards
of directors of the insurance companies.
Annuity Benefits Accumulated Annuity receipts and benefit
payments are generally recorded as increases or decreases in
"annuity benefits accumulated" rather than as revenue and expense.
Increases in this liability for interest credited are charged to
expense and decreases for surrender charges are credited to other
income.
Life, Accident and Health Benefits Reserves Liabilities for
future policy benefits under traditional ordinary life, accident
and health policies are computed using a net level premium method.
Computations are based on anticipated investment yields (primarily
7%), mortality, morbidity and surrenders and include provisions
for unfavorable deviations. Reserves are modified as necessary to
reflect actual experience and developing trends.
Assets Held In and Liabilities Related to Separate Accounts
Investment annuity deposits and related liabilities represent
deposits maintained by several banks under a previously offered
tax deferred annuity program. AAG receives an annual fee from
each bank for sponsoring the program; depositors can elect to
purchase an annuity from AAG with funds in their account.
Income Taxes AFC and American Premier file consolidated federal
income tax returns which include all 80%-owned U.S. subsidiaries,
except for certain life insurance subsidiaries. Because voting
rights aggregating 21% were extended to holders of AFC Series F
and G Preferred Stock in connection with the Mergers, AFC
continues to file a separate consolidated return. AFG (parent) is
included in American Premier's consolidated return. Deferred
income taxes are calculated using the liability method. Under
this method, deferred income tax assets and liabilities are
determined based on differences between financial reporting and
tax bases and are measured using enacted tax rates. Deferred tax
assets are recognized if it is more likely than not that a benefit
will be realized.
<PAGE>
Benefit Plans AFG provides retirement benefits, through
contributory and noncontributory defined contribution plans, to
qualified employees of participating companies. Contributions to
benefit plans are charged against earnings in the year for which
they are declared. Both AFC and American Premier have Employee
Stock Ownership Retirement Plans ("ESORP") which are
noncontributory, qualified plans invested in securities of AFG and
affiliates for the benefit of their employees.
F-10
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
AFG and many of its subsidiaries provide health care and life
insurance benefits to eligible retirees. AFG also provides
postemployment benefits to former or inactive employees (primarily
those on disability) who were not deemed retired under other company
plans. The projected future cost of providing these benefits is
expensed over the period the employees qualify for such benefits.
Under AFG's stock option plan, options are granted to officers,
directors and key employees at exercise prices equal to the fair
value of the shares at the dates of grant. No compensation
expense is recognized for stock option grants.
In connection with the Mergers, full vesting was granted to
holders of units under AFC's Book Value Incentive Plan and the
plan was terminated. Cash payments, which were made in April
to holders of the units, were accrued at December 31, 1994.
Debt Discount and Premium Debt discount, premium and expenses are
amortized over the lives of respective borrowings, generally on
the interest method.
Minority Interest For balance sheet purposes, minority interest
represents the interests of noncontrolling shareholders in AFG
subsidiaries and includes AFC preferred stock for periods
subsequent to the Mergers. For income statement purposes,
minority interest (included in "Other operating and general
expenses") represents those shareholders' interest in the earnings
of AFG subsidiaries and includes AFC preferred dividends following
the Mergers.
Earnings Per Share Earnings per share are calculated on the
basis of the weighted average number of shares of common stock
outstanding during the period and the dilutive effect, if
material, of assumed conversion of common stock equivalents (stock
options and convertible preferred stock). The weighted average
number of shares used for periods prior to April 1995, is based
upon the 28.3 million shares issued in exchange for AFC shares in
the Mergers discussed in Note A.
Statement of Cash Flows For cash flow purposes, "investing
activities" are defined as making and collecting loans and
acquiring and disposing of debt or equity instruments and property
and equipment. "Financing activities" include obtaining resources
from owners and providing them with a return on their investments,
borrowing money and repaying amounts borrowed. Annuity receipts,
benefits and withdrawals are also reflected as financing
activities. All other activities are considered "operating".
Short-term investments having original maturities of three months
or less when purchased are considered to be cash equivalents for
purposes of the financial statements.
Fair Value of Financial Instruments Methods and assumptions used
in estimating fair values are described in Note Q to the financial
statements. These fair values represent point-in-time estimates
of value that might not be particularly relevant in predicting
AFG's future earnings or cash flows.
<PAGE>
C. Acquisitions and Sales of Subsidiaries and Investees
General Cable In June 1994, AFC sold its investment in General
Cable common stock to an unaffiliated company for $27.6 million in
cash. AFC realized a $1.7 million pretax gain on the sale
(excluding its share of American Premier's loss on its sale of
General Cable securities).
F-11
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
American Business Insurance In 1993, AFC sold its insurance
brokerage operation, American Business Insurance, Inc., to
Acordia, Inc., an Indianapolis-based insurance broker, for cash
and Acordia common stock and warrants. AFC recognized a pretax
gain of approximately $44 million on the sale.
American Premier In 1993, AFEI, whose assets consisted primarily
of investments in American Premier, General Cable and AAG, sold
4.5 million shares of American Premier common stock in a secondary
public offering. AFC recognized a pretax gain of $28.3 million,
before minority interest, on the sale, including recognition of a
portion of previously deferred gains related to sales of assets to
American Premier from AFC subsidiaries. In anticipation of the
reduction of AFC's ownership of American Premier below 50%, AFC
ceased accounting for it as a subsidiary and began accounting for
it as an investee in April 1993.
In 1993, American Premier paid AFC $52.8 million (including
$12.8 million in interest) representing an adjustment on the 1990
sale of AFC's nonstandard automobile group to American Premier.
AFC recorded an additional pretax gain of $31.4 million on this
transaction after deferring $21.4 million based on its then
current ownership of American Premier.
Citicasters In December 1993, GACC completed a plan of
reorganization under which AFC received approximately 20% of new
common stock in exchange for its previous holdings of GACC stock
and debt. In connection with the plan, AFC also invested an
additional $7.5 million in GACC common stock and debt securities.
In June 1994, AFEI purchased approximately 10% of Citicasters
common stock from a third party for $23.9 million in cash.
In February 1996, Citicasters entered into a merger agreement with
Jacor Communications, Inc. providing for the acquisition of
Citicasters by Jacor. Under the agreement, AFG and its
subsidiaries would receive approximately
$220 million in cash plus warrants to buy approximately 1.5
million shares of Jacor common stock at $28 per share. AFG
expects to realize a pretax gain of approximately $150 million on
the sale. Consummation of the transaction is subject to
regulatory approvals, and certain adjustments to the price will be
made if the transaction does not close by September 30, 1996.
Spelling In 1993, AFC sold its common stock investment in
Spelling to Blockbuster Entertainment in exchange for Blockbuster
common stock and warrants. AFC realized a $52 million pretax gain
on the sale.
<PAGE>
D. Segments of Operations AFG operates its property and casualty
insurance business in three major segments: nonstandard
automobile, specialty lines and commercial and personal lines.
AFG's annuity business sells tax-deferred annuities principally to
employees of primary and secondary educational institutions and
hospitals. These insurance businesses operate throughout the
United States. AFG also owns significant portions of the voting
equity securities of certain companies (investee corporations -
see Note F).
F-12
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The following tables (in thousands) show AFG's assets, revenues
and operating profit (loss) by significant business segment.
Capital expenditures, depreciation and amortization are not
significant. Operating profit (loss) represents total revenues
less operating expenses. Goodwill and its amortization have been
allocated to the various segments to which they apply. General
corporate assets and expenses have not been identified or
allocated by segment.
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Assets
Property and casualty insurance (a) $ 7,443,115 $ 4,576,591 $ 4,192,908
Annuities 6,600,377 5,078,928 4,898,419
Other 603,833 104,495 86,361
14,647,325 9,760,014 9,177,688
Investment in investee corporations 306,545 832,637 899,800
$14,953,870 $10,592,651 $10,077,488
Revenues (b)
Property and casualty insurance:
Premiums earned:
Nonstandard automobile $ 954,210 $ 24,974 $ 175,046
Specialty lines 995,528 698,365 651,836
Commercial and personal lines 697,512 648,222 661,910
Other lines (c) 1,453 7,067 6,004
2,648,703 1,378,628 1,494,796
Investment and other income 465,998 314,731 481,548
3,114,701 1,693,359 1,976,344
Annuities (d) 444,082 378,010 395,871
Other 55,589 47,984 278,626
3,614,372 2,119,353 2,650,841
Equity in net earnings (losses)
of investee corporations 15,237 (16,573) 69,862
$ 3,629,609 $ 2,102,780 $ 2,720,703
<PAGE>
Operating Profit (Loss)
Property and casualty insurance:
Underwriting:
Nonstandard automobile ($ 60,316) ($ 3,080) $ 4,498
Specialty lines 50,690 (12,598) 18,994
Commercial and personal lines 5,315 7,087 (6,493)
Other lines (c) (31,721) (24,914) (51,100)
(36,032) (33,505) (34,101)
Investment and other income 370,579 199,292 321,701
334,547 165,787 287,600
Annuities 79,579 58,748 63,388
Other (e) (182,444) (164,394) (158,865)
231,682 60,141 192,123
Equity in net earnings (losses) of
investee corporations 15,237 (16,573) 69,862
$ 246,919 $ 43,568 $ 261,985
</TABLE>
(a) Not allocable to segments.
(b) Revenues include sales of products and services as well as
other income earned by the respective segments.
(c) Includes discontinued insurance lines.
(d) Represents primarily investment income and realized
gains.
(e) Includes holding company expenses.
F-13
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
E. Investments Bonds, redeemable preferred stocks and other stocks at
December 31, consisted of the following (in millions):
<TABLE>
<CAPTION>
1995
Held to Maturity
Amortized Market Gross Unrealized
Cost Value Gains Losses
<S> <C> <C> <C> <C>
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ - $ - $ - $ -
States, municipalities and
political subdivisions 55.0 56.6 1.7 (.1)
Foreign government 13.1 12.8 1.0 (1.3)
Public utilities 528.8 545.3 17.7 (1.2)
Mortgage-backed securities 945.7 980.3 35.3 (.7)
All other corporate 2,042.1 2,129.8 87.8 (.1)
Redeemable preferred stocks 4.2 4.5 .3 -
$3,588.9 $3,729.3 $143.8 $ (3.4)
1995
Available for Sale
Amortized Market Gross Unrealized
Cost Value Gains Losses
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ 413.9 $ 431.3 $ 17.5 ($ .1)
States, municipalities and
political subdivisions 20.6 20.3 .3 (.6)
Foreign government 87.5 89.9 2.4 -
Public utilities 561.3 591.0 32.3 (2.6)
Mortgage-backed securities 1,373.2 1,407.8 40.7 (6.1)
All other corporate 3,087.1 3,304.3 219.8 (2.6)
Redeemable preferred stocks 104.5 104.7 1.9 (1.7)
$5,648.1 $5,949.3 $314.9 ($13.7)
Other stocks $ 136.9 $ 252.2 $115.9 ($ .6)
<PAGE>
1994
Held to Maturity
Amortized Market Gross Unrealized
Cost Value Gains Losses
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ - $ - $ - $ -
States, municipalities and
political subdivisions 23.4 23.2 .7 ( .9)
Foreign government 16.0 14.0 - (2.0)
Public utilities 614.9 566.4 .8 (49.3)
Mortgage-backed securities 952.7 872.3 .1 (80.5)
All other corporate 2,917.7 2,761.6 5.7 (161.8)
Redeemable preferred stocks 104.9 99.2 .4 (6.1)
$4,629.6 $4,336.7 $ 7.7 ($300.6)
1994
Available for Sale
Amortized Market Gross Unrealized
Cost Value Gains Losses
Bonds and redeemable
preferred stocks:
United States Government
and government agencies
and authorities $ 306.9 $ 293.0 $ .4 ($14.3)
States, municipalities and
political subdivisions 36.8 36.3 1.4 (1.9)
Foreign government 44.0 42.4 .1 (1.7)
Public utilities 84.1 79.3 .2 (5.0)
Mortgage-backed securities 721.4 671.5 .6 (50.5)
All other corporate 745.7 740.2 2.9 (8.4)
Redeemable preferred stocks - - - -
$1,938.9 $1,862.7 $ 5.6 ($81.8)
Other stocks $ 137.1 $ 208.7 $ 72.0 ($ .4)
</TABLE>
<PAGE>
The table below sets forth the scheduled maturities of bonds and
redeemable preferred stocks based on carrying value as of
December 31, 1995. Data based on market value is generally the
same. Mortgage-backed securities had an average life of
approximately 7 years at December 31, 1995.
Held to Available
Maturity Maturity for Sale
One year or less 2% 1%
After one year through five years 30 19
After five years through ten years 38 42
After ten years 4 14
74 76
Mortgage-backed securities 26 24
100% 100%
F-14
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Certain risks are inherent in connection with fixed maturity
securities, including loss upon default, price volatility in
reaction to changes in interest rates and general market factors
and risks associated with reinvestment of proceeds due to
prepayments or redemptions in a period of declining interest
rates.
Realized gains (losses) and changes in unrealized appreciation
(depreciation) on fixed maturity and equity security investments
are summarized as follows (in thousands):
Fixed Equity Tax
Maturities Securities Effects Total
1995
Realized $ 77,963 $ 6,065 ($ 13,915) $ 70,113
Change in Unrealized 810,690 43,400 (287,896) 566,194
1994
Realized (1,107) 49,449 30 48,372
Change in Unrealized (673,001) (60,500) 256,725 (476,776)
1993
Realized 52,915 29,350 (12,348) 69,917
Change in Unrealized 125,112 83,700 (73,084) 135,728
Transactions in fixed maturity investments included in the
Statement of Cash Flows consisted of the following (in millions):
1995
Held to Available
Maturity for Sale Total
Purchases $774.8 $1,603.6 $2,378.4
Maturities and redemptions 176.3 133.3 309.6
Sales 12.9 2,297.9 2,310.8
Gross Gains 1.9 88.0 89.9
Gross Losses (2.3) (9.6) (11.9)
1994
Held to Available
Maturity for Sale Total
Purchases $1,090.0 $636.3 $1,726.3
Maturities and redemptions 216.0 204.9 420.9
Sales 8.0 686.9 694.9
Gross Gains 3.3 9.4 12.7
Gross Losses (2.5) (11.3) (13.8)
<PAGE>
Securities classified as "held to maturity" having an amortized
cost of $14.7 million and $8.7 million were sold for a loss of $1.8
million and $712,000 in 1995 and 1994, respectively, due to
significant deterioration in the issuers' creditworthiness.
Gross gains of $69.4 million and gross losses of $16.5 were
realized on sales of fixed maturity investments during 1993.
F-15
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
F. Investment in Investee Corporations Investment in investee
corporations represents AFG's ownership of securities of certain
companies. All of the companies named in the following table are
subject to the rules and regulations of the SEC. Market value of
the investments was approximately $509 million and $890 million at
December 31, 1995 and 1994, respectively.
AFG's investment (and common stock ownership percentage) and
equity in net earnings and losses of investees are stated below
(dollars in thousands):
<TABLE>
<CAPTION>
Investment (Ownership %) Equity in Net Earnings (Losses)
12/31/95 12/31/94 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Chiquita (a) $232,466 (44%) $237,015(46%) $ 3,628 ($26,670) ($24,038)
Citicasters (b) 74,079 (38%) 69,695(37%) 4,702 8,950 -
American Premier(c) - 525,927(42%) 6,907 1,147 91,700
Other - - - - 2,200
$306,545 $832,637 $15,237 ($16,573) $69,862
</TABLE>
(a) Excludes AFG's share of Chiquita's extraordinary losses on
prepayment of debt in 1995 and 1994.
(b) AFC resumed equity accounting for its investment in GACC
following GACC's reorganization at the end of 1993. See
Note C concerning agreement to sell Citicasters.
(c) Accounted for as an investee beginning April 1, 1993; became a
100%-owned subsidiary on April 3, 1995.
Chiquita is a leading international marketer, processor and
producer of quality food products. Citicasters owns and operates
radio and television stations in major markets throughout the
country.
Included in AFG's consolidated retained earnings at December 31,
1995, was approximately $35 million applicable to equity in
undistributed net earnings of investees.
F-16
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Summarized financial information for AFG's investees at
December 31, 1995, is shown below (in millions). See "Investee
Corporations" in Management's Discussion and Analysis.
Chiquita Brands International, Inc. (*)
1995 1994 1993
Current Assets $ 877 $ 804
Non-current Assets 1,747 1,970
Current Liabilities 510 574
Non-current Liabilities 1,442 1,555
Shareholders' Equity 672 645
Net Sales of Continuing Operations $2,566 $2,506 $2,533
Operating Income 176 71 104
Income (Loss) from Continuing Operations 28 (84) (51)
Discontinued Operations (11) 35 -
Extraordinary Item (8) (23) -
Net Income (Loss) 9 (72) (51)
(*) Amounts for 1994 and 1993 were reclassified by Chiquita in
1995 to reflect discontinued operations.
<TABLE>
<CAPTION>
Citicasters Inc.
1995 1994 1993
<S> <C> <C> <C>
Contracts, Broadcasting Licenses
and Other Intangibles $313 $275
Other Assets 103 128
Long-term Debt 132 122
Shareholders' Equity 160 151
Net Revenues $136 $197 $205
Operating Income 37 52 40
Earnings (Loss) before Extraordinary Items 14 63 (67)
Extraordinary Items - - 408(**)
Net Earnings 14 63 341
</TABLE>
(**) Extraordinary items include a $414 million gain on debt
discharged in the reorganization of Citicasters' predecessor.
F-17
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
G. Cost in Excess of Net Assets Acquired At December 31, 1995 and
1994, accumulated amortization of the excess of cost over net
assets of purchased subsidiaries amounted to approximately
$110 million and $100 million, respectively. Amortization
expense was $9.2 million in 1995, $6.1 million in 1994 and
$15.0 million in 1993.
H. Long-Term Debt Long-term debt consisted of the following at
December 31, (in thousands):
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
American Financial Corporation (Parent Company):
9-3/4% Debentures due April 2004, less discount
of $1,249 and $0 (imputed rate - 9.8%) $302,510 $203,759
12% Debentures due September 1999 - 120,463
10% Debentures due October 1999 - 89,620
12-1/4% Debentures due September 2003 - 51,556
Other, less discount of $0 and $456 8,692 24,667
$311,202 $490,065
American Premier Underwriters, Inc. (Parent Company):
9-3/4% Subordinated Notes due August 1999,
including premium of $4,403 (imputed rate - 8.8%) $161,531
10-5/8% Subordinated Notes due April 2000,
including premium of $7,210 (imputed rate - 8.8%) 120,222
10-7/8% Subordinated Notes due May 2011,
including premium of $5,082 (imputed rate - 9.6%) 55,581
Notes payable to banks by Pennsylvania Company -
$337,334
Great American Holding Corporation:
Notes payable to banks $ - $160,000
11% Notes due 1998, less discount of $737 - 149,263
Floating Rate Notes due 1995, less discount of $78 - 49,922
$ - $359,185
American Annuity Group, Inc.:
11-1/8% Senior Subordinated Notes due February 2003 $101,443 $103,868
9-1/2% Senior Notes due August 2001 41,490 43,990
Notes payable to banks due September 1999 20,500 30,000
Other 4,301 5,384
$167,734 $183,242
Other Subsidiaries:
Notes payable secured by real estate $ 53,066 $ 45,354
Notes payable to banks due December 1997 - 16,000
Other 12,727 12,901
$ 65,793 $ 74,255
</TABLE>
F-18
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
At December 31, 1995, sinking fund and other scheduled
principal payments on debt for the subsequent five years were
as follows (in thousands):
American
AFC Premier
(Parent) (Parent) Other Total
1996 $ - $ - $ 2,538 $ 2,538
1997 5,910 - 2,498 8,408
1998 - - 2,761 2,761
1999 - 157,128 22,848 179,976
2000 - 113,012 8,608 121,620
Debentures purchased in excess of scheduled payments may be
applied to satisfy any sinking fund requirement. The
scheduled principal payments shown above assume that
debentures purchased are applied to the earliest scheduled
retirements.
Great American Holding Corporation ("GAHC"), a wholly-owned
subsidiary of AFC, and Pennsylvania Company ("Pennco"), a
wholly-owned subsidiary of American Premier, have revolving
loan agreements with groups of banks under which they can
borrow up to $300 million and $75 million, respectively.
Borrowings bear interest at floating rates based on prime or
LIBOR and are collateralized by certain stock of operating
subsidiaries. Each facility is guaranteed by the respective
immediate parent company.
AAG and AFEI have revolving credit agreements with banks
under which they can borrow up to $75 million and $20
million, respectively. Borrowings bear interest at floating
rates based on prime or LIBOR and are collateralized.
<PAGE>
Following the Mergers, American Premier agreed to lend up to
$675 million to AFC under a line of credit, and subsequently
advanced funds which, along with other funds available, were
used by AFC to redeem $279 million of its various debentures,
repay $187 million of GAHC's bank debt, and redeem $200
million of GAHC's Notes. Also during 1995, AFC sold an
aggregate of $100 million of its 9-3/4% debentures due in
2004 for cash.
In a 1994 exchange offer, AFC issued $204 million of its 9-
3/4% debentures for a like amount of its various other
debenture issues. The related unamortized original issue
discount and debt issue costs ($24.3 million) were written
off in 1993. In connection with the offer, all of AFC's
13-1/2% debentures not tendered for exchange were redeemed
for $63.2 million in cash.
As the result of the Mergers and a subsequent ratings
downgrade, holders of American Premier's Notes had the right
to "Put" their Notes to American Premier at face amount.
Approximately $44 million of the Notes were tendered under
the Put Right. In addition, American Premier repurchased
$136 million of the Notes for $142.7 million in cash.
In connection with its acquisition of GALIC in 1992, AAG
borrowed $230 million from several banks. In 1993, AAG sold
$225 million of Notes to the public and repaid the bank loans.
During 1994, AAG repurchased $77.1 million of the Notes in
exchange for $69 million in cash plus 810,000 shares of its
common stock. During 1995, AAG repurchased
$4.9 million of the Notes for $5.0 million in cash.
F-19
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
In the first two months of 1996, AFC repurchased $48.3 million
of its debentures for $52.4 million; American Premier
repurchased $28.7 million of its Notes for $31.1 million; and
AAG repurchased $22.1 million of its Notes for $24.1 million.
Cash interest payments of $137 million, $115 million and
$133 million were made on long-term debt in 1995, 1994 and
1993, respectively.
I. Capital Stock In connection with the Mergers discussed in Note
A, AFG issued 51.3 million shares (net of 18.7 million shares
held by AFC and its subsidiaries, which are shown herein as
retired) of Common Stock on April 3, 1995. During 1995, AFG sold
7.4 million newly issued shares of its Common Stock for an aggregate
of $202.8 million cash in connection with (i) exercises of Stock
Options, (ii) issuances under AFG's new Dividend Reinvestment Plan
and its Employee Stock Purchase Plan, and (iii) sales to the AFC ESORP
and in a public offering.
At December 31, 1995, there were 60,139,303 shares of AFG
Common Stock outstanding or issuable, including 1,373,081
shares held by American Premier for issuance to certain
creditors and other claimants pursuant to a plan of
reorganization relating to American Premier's predecessor.
AFG is authorized to issue 12.5 million shares of Voting
Preferred Stock and 12.5 million shares of Nonvoting Preferred
Stock, each without par value. At December 31, 1995, AFG had
212,698 shares of convertible preferred stock outstanding with
a stated value of $469,000 (included in Capital Surplus, net
of related notes receivable). At that date, there were
446,799 shares of AFG Common Stock reserved for issuance upon
conversion of the Preferred Stock. See Note R - Subsequent
Event.
F-20
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
At December 31, 1995, there were 6.0 million shares of AFG
Common Stock reserved for issuance upon exercise of stock
options. Options become exercisable at the rate of 20% per
year commencing one year after grant; those granted to non-
employee directors of AFG are generally fully exercisable upon
grant. All options expire ten years after the date of grant.
Stock option data for AFG is as follows:
Option Price
Shares per share
Outstanding at April 3, 1995 2,931,948 $17.24 to $31.38
Granted 2,142,681 23.97 to 30.06
Exercised (883,974) 17.24 to 28.19
Terminated (250,669) 19.20 to 28.19
Outstanding at December 31, 1995 3,939,986 17.24 to 31.38
Exercisable at December 31, 1995 1,395,175
Available for grant at December 31, 1995 2,107,988
A progression of AFG's Shareholders' Equity is as follows
(dollars in thousands):
<TABLE>
<CAPTION>
Common Stock
Common and Capital Retained
Shares(*) Surplus Earnings Unrealized
<S> <C> <C> <C> <C>
Balance at December 31, 1992 18,971,217 $ 904 $ 42,402 $ 68,100
Net earnings - - 220,130 -
Dividends on:
Preferred Stock - - (26,137) -
Common Stock - - (1,897) -
Increase in capital subject
to put option - - (23,652) -
Change in unrealized - - - 88,800
Balance at December 31, 1993 18,971,217 904 210,846 156,900
<PAGE>
Net earnings - - 2,100 -
Purchase of Preferred Stock - - (56) -
Dividends on:
Preferred Stock - - (25,728) -
Common Stock - - (3,794) -
Decrease in capital subject
to put option - - 7,225 -
Transfer from capital subject
to put option - - 32,502 -
Change in unrealized - - - (153,400)
Balance at December 31, 1994 18,971,217 904 223,095 3,500
Dividends on AFC Preferred Stock - - (191) -
Exercise of AFC stock options 762,500 8,721 - -
Restatement of AFC equity in
terms of AFG Common Stock 8,590,159 - - -
Shares issued in Mergers to
holders of APU Common Stock 24,376,667 588,492 - -
Net earnings - - 191,247 -
Change in unrealized - - - 248,000
Dividends on Common Stock - - (27,008) -
Shares issued:
Exercise of stock options 883,974 18,875 - -
Dividend reinvestment plan 200,381 5,859 - -
Employee stock purchase plan 32,972 918 - -
Public offering 4,600,000 127,180 - -
Sale to AFC ESORP 1,703,000 50,004 - -
Employee gift shares 19,050 494 - -
Shares repurchased (617) (17) - -
Change in foreign currency
translation - 64 - -
Balance at December 31, 1995 60,139,303 $801,494 $387,143 $251,500
</TABLE>
(*) Prior to the Mergers, Carl H. Lindner and certain members of the
Lindner family owned all of the outstanding common stock of AFC.
F-21
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Under a 1983 agreement, certain members of the Lindner family
(the "Group") had the right to "put" to AFC their shares of AFC
common stock or options at a defined value. In anticipation of
the extinguishment of the Group's rights due to the Mergers, the
allocation of capital equal to that value
($32.5 million) was reclassified to Retained Earnings at
December 31, 1994.
AFC Mandatory Redeemable Preferred Stock At December 31, 1994,
there were 274,242 shares of $10.50 par value Series E Preferred
Stock outstanding. These shares were retired, at par, in
December 1995. During 1994, AFC redeemed all 150,212
outstanding shares of Series I Preferred Stock and 230,469
shares of Series E Preferred Stock for approximately $6.6
million. During 1993, AFC purchased 75,106 shares of Series I
Preferred Stock for approximately $2.1 million.
Other AFC Preferred Stock Subsequent to the Mergers, AFC's
Preferred Stock is included in "Minority interest." At December
31, 1995, AFC's Preferred Stock was voting, cumulative, and
consisted of the following:
Series F, $1 par value; annual dividends per share
$1.80; 10% may be retired at AFC's option at $20 per share
in 1996; 13,744,754 shares (stated value - $167.9 million)
outstanding at December 31, 1995 and 1994.
Series G, $1 par value; annual dividends per share $1.05;
may be retired at AFC's option at $10.50 per share;
364,158 shares (stated value - $600,000) outstanding at
December 31, 1995 and 1994.
In 1994, AFC purchased 8,500 shares of Series F Preferred Stock
from a subsidiary's profit sharing plan for $159,000.
F-22
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
J. Income Taxes The following is a reconciliation of income taxes
at the statutory rate of 35% and income taxes as shown in the
Statement of Earnings (in thousands):
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Earnings before income taxes
and extraordinary items $246,919 $43,568 $261,985
Extraordinary items before income taxes 536 (17,192) (4,559)
Adjusted earnings before income taxes $247,455 $26,376 $257,426
Income taxes at statutory rate $ 86,609 $ 9,232 $ 90,099
Effect of:
Losses (utilized) not utilized (40,292) 19,267 (59,141)
Dividends received deduction (7,823) (8,528) (8,336)
Minority interest 11,673 2,998 12,082
Amortization of intangibles 3,015 1,987 2,658
Tax exempt interest (897) (689) (659)
Foreign income taxes 359 6 76
State income taxes 81 149 820
Other 3,483 (146) (303)
Total provision 56,208 24,276 37,296
Amounts applicable to extraordinary items 281 374 -
Provision for income taxes as shown
on the Statement of Earnings $ 56,489 $24,650 $ 37,296
Adjusted earnings (loss) before income taxes consisted of the
following (in thousands):
1995 1994 1993
Subject to tax in:
United States $250,423 $28,422 $255,682
Foreign jurisdictions (2,968) (2,046) 1,744
$247,455 $26,376 $257,426
The total income tax provision consists of (in thousands):
1995 1994 1993
Current taxes (credits):
Federal $38,512 $21,028 $43,592
Foreign (1,213) - 503
State 124 226 1,843
Deferred taxes (credits):
Federal 18,233 3,012 (8,256)
Foreign 552 10 (386)
$56,208 $24,276 $37,296
</TABLE>
F-23
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
For income tax purposes, certain members of the AFC and American
Premier consolidated tax groups had the following carryforwards
available at December 31, 1995 (in millions):
AFC Tax Group Expiring Amount
{ 1996 - 2001 $ 22
Operating Loss { 2002 - 2006 143
{ 2007 - 2010 103
American Premier Tax Group
Operating Loss 1996 $476
Capital Loss 1997 - 1999 311
Other - Tax Credits 23
Deferred income taxes reflect the impact of temporary
differences between the carrying amounts of assets and
liabilities recognized for financial reporting purposes and the
amounts recognized for tax purposes. The significant components
of deferred tax assets and liabilities for AFG's tax groups
included in the Balance Sheet at December 31, were as follows
(in millions):
<TABLE>
<CAPTION>
1995
American
AFC Premier
Tax Group Tax Group 1994
<S> <C> <C> <C>
Deferred tax assets:
Net operating loss carryforwards $ 93.8 $166.5 $ 80.0
Capital loss carryforwards - 108.7 -
Insurance claims and reserves 195.9 102.9 202.1
Other, net 41.2 91.3 53.5
330.9 469.4 335.6
Valuation allowance for deferred
tax assets (91.9) (214.0) (111.1)
239.0 255.4 224.5
Deferred tax liabilities:
Deferred acquisition costs (89.8) (31.2) (78.3)
Investment securities (210.8) (23.8) (103.6)
(300.6) (55.0) (181.9)
Net deferred tax asset (liability) ($ 61.6) $200.4 $ 42.6
</TABLE>
The gross deferred tax asset has been reduced by a valuation
allowance based on an analysis of the likelihood of realization.
Factors considered in assessing the need for a valuation
allowance include: (i) recent tax returns, which show neither a
history of large amounts of taxable income nor cumulative losses
in recent years, (ii) opportunities to generate taxable income
from sales of appreciated assets, and (iii) the likelihood of
generating larger amounts of taxable income in the future. The
likelihood of realizing this asset will be reviewed
periodically; any adjustments required to the valuation
allowance will be made in the period in which the developments
on which they are based become known.
<PAGE>
Cash payments for income taxes, net of refunds, were
$14.8 million, $30.0 million and $49.6 million for 1995, 1994
and 1993, respectively.
F-24
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
K. Extraordinary Items Extraordinary items represent AFG's
proportionate share of gains (losses) recorded by the following
companies from their debt retirements. Amounts shown are net of
minority interest and income tax benefits (in thousands):
1995 1994 1993
Subsidiaries:
AFC (parent) ($1,713) ($ 6,454) $ -
APU (parent) 6,137 - -
GAHC (611) - -
AAG (201) (1,328) (4,559)
Investee:
Chiquita (2,795) (9,036) _-
$ 817 ($16,818) ($4,559)
L. Commitments and Contingencies Loss accruals have been recorded
for various environmental and occupational injury and disease
claims and other contingencies arising out of the railroad
operations disposed of by American Premier's predecessor, Penn
Central Transportation Company ("PCTC"), prior to its bankruptcy
reorganization in 1978. Any ultimate liability arising
therefrom in excess of previously established loss accruals
would normally be attributable to pre-reorganization events and
circumstances and accounted for as a reduction in capital
surplus. However, under purchase accounting in connection with
the Mergers, any such excess liability will be charged to
earnings in AFG's financial statements.
American Premier's liability for environmental claims ($64.3
million at December 31, 1995, before claims for recovery of $9.5
million) consists of a number of proceedings and claims seeking
to impose responsibility for hazardous waste remediation costs
at certain railroad sites formerly owned by PCTC and certain
other sites where hazardous waste was allegedly generated by
PCTC's railroad operation. It is difficult to estimate
remediation costs for a number of reasons, including the number
and financial resources of other potentially responsible
parties, the range of costs for remediation alternatives,
changing technology and the time period over which these matters
develop. American Premier's liability is based on information
currently available and is subject to change as additional
information becomes available.
American Premier's liability for occupational injury and disease
claims ($80.6 million at December 31, 1995, before claims for
recovery of
$62.1 million) includes pending and expected claims by former
employees of PCTC for injury or disease allegedly caused by
exposure to excessive noise, asbestos or other substances in the
railroad workplace. Recorded amounts are based on the
accumulation of estimates of reported and unreported claims and
related expenses and estimates of probable recoveries from
insurance carriers.
<PAGE>
In exchange for $5 million, AFC has agreed to indemnify a former
subsidiary for up to $35 million in excess of a threshold amount
of $25 million of the costs it may incur in the 12 years
beginning April 1, 1993 to resolve environmental matters,
bankruptcy claims and certain other matters. In connection with
the 1994 sale of securities of a former subsidiary, American
Premier assumed responsibility for certain environmental and
other liabilities in consideration for an indemnity payment of
$19.2 million. Additionally, another subsidiary has accrued
$10.3 million at December 31, 1995, for environmental costs
associated with the sales of former manufacturing properties.
F-25
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
In management's opinion, the outcome of the items discussed
under "Uncertainties" in Management's Discussion and Analysis,
beginning on page 26 of this Form 10-K, and the above claims and
contingencies will not, individually or in the aggregate, have a
material adverse effect on AFG's financial condition or results
of operations.
M. Benefit Plans AFG expensed ESORP contributions of $14.5 million
in 1995, $6.2 million in 1994 and $9.4 million in 1993. AFG
expensed postretirement benefits of $3.4 million in 1995, $2.4
million in 1994 and $3.1 million in 1993.
N. Transactions With Affiliates In 1993, AFC sold stock of an
affiliate to certain of its officers and employees for $1.8
million in cash and $270,000 in 5.25% unsecured notes due in
five equal annual installments beginning in 1996. At Decemb
er 31, 1993, an AFC real estate subsidiary owed $452,000 to The
Provident Bank under a loan purchased by Provident in 1991 from
an unrelated bank. The loan was repaid in 1994. Members of the
Lindner family are majority owners of Provident's parent. In
1995, a subsidiary of AFC sold a house to its Chairman for $1.8
million. All of the above transactions have taken place at
approximate market rates or values and, in the opinion of
management, all amounts receivable are fully collectible.
F-26
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
O. Quarterly Operating Results (Unaudited) The operations of certain
of AFG's business segments are seasonal in nature. While
insurance premiums are recognized on a relatively level basis,
claim losses related to adverse weather (snow, hail, hurricanes,
tornados, etc.) may be seasonal. Quarterly results necessarily
rely heavily on estimates. These estimates and certain other
factors, such as the nature of investees' operations and
discretionary sales of assets, cause the quarterly results not to
be necessarily indicative of results for longer periods of time.
See Notes A and C for changes in ownership of companies whose
revenues are included in the consolidated operating results and
for the effects of gains on sales of subsidiaries and investees in
individual quarters. The following are quarterly results of
consolidated operations for the two years ended December 31, 1995
(in millions, except per share amounts).
<TABLE>
<CAPTION>
1st 2nd 3rd 4th Total
Quarter Quarter Quarter Quarter Year
<S> <C> <C> <C> <C> <C>
1995
Revenues $553.2 $1,005.9 $1,002.5 $1,068.0 $3,629.6
Earnings before
extraordinary items 29.8 33.0 51.0 76.6 190.4
Extraordinary items - .5 2.0 (1.7) .8
Net earnings 29.8 33.5 53.0 74.9 191.2
Earnings per common share:
Before extraordinary
items $.83 $.63 $.95 $1.36 $3.87
Extraordinary items - .01 .04 (.03) .01
Net earnings .83 .64 .99 1.33 3.88
Average number of Common
Shares 28.3 52.7 53.4 56.1 47.6
<PAGE>
1994
Revenues $523.6 $508.0 $537.5 $533.7 $2,102.8
Earnings (loss) before
extraordinary items 26.7 23.2 7.5 (38.5) 18.9
Extraordinary items (15.7) (.7) (.5) .1 (16.8)
Net earnings (loss) 11.0 22.5 7.0 (38.4) 2.1
Earnings (loss) per
common share:
Before extraordinary
items $.70 $.60 $.04 ($1.58) ($.24)
Extraordinary items (.54) (.03) (.02) - (.59)
Net earnings (loss) .16 .57 .02 (1.58) (.83)
Average number of Common
Shares 28.3 28.3 28.3 28.3 28.3
</TABLE>
Quarterly earnings per share do not add to year-to-date amounts
due to changes in shares outstanding during 1995. Results for
1994 included credits of $3.9 million and $5.3 million in the
second and third quarters and a fourth quarter charge of
$43.9 million for units outstanding under AFC's Book Value
Incentive Plan.
Realized gains on sales of securities amounted to (in millions):
<TABLE>
<CAPTION>
1st 2nd 3rd 4th Total
Quarter Quarter Quarter Quarter Year
<S> <C> <C> <C> <C> <C>
1995 $ 3.5 $7.9 $23.6 $49.0 $84.0
1994 14.9 8.2 20.0 5.2 48.3
</TABLE>
F-27
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
P. Insurance Securities owned by insurance subsidiaries having a
carrying value of approximately $1.6 billion at December 31,
1995, were on deposit as required by regulatory authorities.
Other income includes life, accident and health premiums of
$15.7 million in 1995, $2.2 million in 1994 and $2.4 million in
1993.
During the third quarter of 1994, the California Supreme Court
upheld Proposition 103, an insurance reform measure passed by
California voters in 1988. In addition to increasing rate
regulation, Proposition 103 gives the California insurance
commissioner power to mandate rate rollbacks for most lines of
property and casualty insurance. GAI recorded a charge of
$26 million (included in "Other operating and general expenses")
in the third quarter of 1994 in response to the California court
decision. This charge was revised at December 31, 1994 to
reflect a settlement agreement signed in March 1995 setting
GAI's refund obligation at $19 million. The agreement was
finalized in 1995 following a required waiting period.
Several proposals have been made in recent years to change the
federal income tax system. Some proposals included changes in
the method of treating investment income and tax deferred
income. To the extent a new tax law reduces or eliminates the
tax deferred status of AFG's annuity products, that segment
could be materially affected.
Insurance Reserves The liability for losses and loss adjustment
expenses for certain long-term scheduled payments under workers'
compensation, auto liability and other liability insurance has
been discounted at rates ranging from 4% to 8%. As a result,
the total liability for losses and loss adjustment expenses at
December 31, 1995, has been reduced by $67 million.
<PAGE>
The following table provides an analysis of changes in the
liability for losses and loss adjustment expenses, net of
reinsurance (and grossed up), over the past three years on a
GAAP basis (in millions):
1995 1994 1993
Balance at beginning of period $2,187 $2,113 $2,886
Reserves of American Premier:
At date of deconsolidation - - (785)
At date of the Mergers 1,090 - -
Provision for losses and loss
adjustment expenses occurring in
the current year 2,116 1,027 1,103
Net decrease in provision for claims
occurring in prior years (139) (40) (39)
1,977 987 1,064
Payments for losses and loss adjustment
expenses occurring during:
Current year (987) (381) (363)
Prior years (874) (532) (689)
(1,861) (913) (1,052)
Balance at end of period $3,393 $2,187 $2,113
Add back reinsurance recoverables 704 730 611
Unpaid losses and loss adjustment
expenses included in Balance Sheet,
gross of reinsurance $4,097 $2,917 $2,724
F-28
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Net Investment Income The following table shows (in millions)
investment income earned and investment expenses incurred by
AFG's insurance companies.
1995 1994 1993
Insurance group investment income:
Fixed maturities $727.3 $560.6 $566.2
Equity securities 5.3 8.3 9.9
Other 7.9 6.7 4.7
740.5 575.6 580.8
Insurance group investment expenses(*) (33.8) (32.0) (38.9)
$706.7 $543.6 $541.9
(*) Included primarily in "Other operating and general expenses" in the
Statement of Earnings.
Statutory Information AFG's insurance subsidiaries are required
to file financial statements with state insurance regulatory
authorities prepared on an accounting basis prescribed or
permitted by such authorities (statutory basis). Net earnings
and policyholders' surplus on a statutory basis for the
insurance subsidiaries were as follows (in millions):
Policyholders'
Net Earnings Surplus
1995 1994 1993 1995 1994
Property and casualty
companies $200 $63 $179 $1,595 $943
Life insurance companies 76 54 44 273 256
Reinsurance In the normal course of business, AFG's insurance
subsidiaries assume and cede reinsurance with other insurance
companies. The following table shows (in millions) (i) amounts
deducted from property and casualty premium income accounts in
connection with reinsurance ceded, (ii) amounts included in
income for reinsurance assumed and (iii) reinsurance recoveries
deducted from losses and loss adjustment expenses.
1995 1994 1993
Reinsurance ceded to:
Non-affiliates $476 $402 $333
Affiliates 33 161 89
Reinsurance assumed - including
non-voluntary pools and associations 93 83 61
Reinsurance recoveries 304 429 343
<PAGE>
Q. Additional Information Total rental expense for various leases
of railroad rolling stock, office space and data processing
equipment was $35 million, $22 million and $24 million for 1995,
1994 and 1993, respectively. Sublease rental income related to
these leases totaled $6.2 million in 1995, $6.4 million in 1994
and $6.6 million in 1993.
Future minimum rentals, related principally to office space and
railroad rolling stock, required under operating leases having
initial or remaining noncancelable lease terms in excess of one
year at December 31, 1995, were as follows: 1996 - $43 million,
1997 - $37 million, 1998 - $27 million, 1999 - $19 million; 2000
- $10 million and $18 million thereafter. At December 31, 1995,
minimum sublease rentals to be received through the expiration
of the leases aggregated $27 million.
F-29
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Other operating and general expenses included charges for
possible losses on agents' balances, reinsurance recoverables
and other receivables in the following amounts: 1995 - $0,
1994 - $18 million and 1993 - $10 million. The aggregate
allowance for such losses amounted to approximately $144 million
and $109 million at December 31, 1995 and 1994, respectively.
Fair Value of Financial Instruments The following table
presents (in millions) the carrying value and estimated fair
value of AFG's financial instruments at December 31.
1995 1994
Carrying Fair Carrying Fair
Value Value Value Value
Assets:
Bonds and redeemable
preferred stocks $9,538 $9,679 $6,492 $6,199
Other stocks 252 252 209 209
Liabilities:
Annuity benefits
accumulated $5,052 $4,887 $4,618 $4,510
Long-term debt:
AFC (parent company) 311 325 490 473
APU (parent company) 337 344 - -
Other subsidiaries 234 243 617 618
When available, fair values are based on prices quoted in the
most active market for each security. If quoted prices are not
available, fair value is estimated based on present values,
discounted cash flows, fair value of comparable securities, or
similar methods. The fair value of the liability for annuities
in the payout phase is assumed to be the present value of the
anticipated cash flows, discounted at current interest rates.
Fair value of annuities in the accumulation phase is assumed to
be the policyholders' cash surrender amount.
Financial Instruments with Off-Balance-Sheet Risk On occasion,
AFG and its subsidiaries have entered into financial instrument
transactions which may present off-balance-sheet risks of both
credit and market risk nature. These transactions include
commitments to fund loans, loan guarantees and commitments to
purchase and sell securities or loans. At December 31, 1995,
AFG and its subsidiaries had commitments to fund credit
facilities and contribute limited partnership capital totaling
$17 million.
<PAGE>
Restrictions on Transfer of Funds and Assets of Subsidiaries
Payments of dividends, loans and advances by AFG's subsidiaries
are subject to various state laws, federal regulations and debt
covenants which limit the amount of dividends, loans and
advances that can be paid. The maximum amount of dividends
payable (without prior approval from state insurance regulators)
in 1996 from AFG's insurance subsidiaries is approximately
$210 million. Total "restrictions" on intercompany transfers
from AFG's subsidiaries cannot be quantified due to the
discretionary nature of the restrictions.
R. Subsequent Event (Unaudited) In January 1996, AFG announced
that it has agreed to sell its subsidiary, Buckeye Management
Company, to Buckeye management (including an AFG director who
resigned in March 1996) and employees for $63 million in cash.
In connection with the sale, the AFG director has converted his
AFG convertible preferred stock into 446,799 shares of AFG
Common Stock and sold such shares in the open market. The sale
of Buckeye is expected to close in late March 1996.
F-30
<PAGE>
PART IV
ITEM 14
Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) Documents filed as part of this Report:
1. Financial Statements are included in Part II, Item 8.
2. Financial Statement Schedules:
A. Selected Quarterly Financial Data is included in Note O to the
Consolidated Financial Statements.
B. Schedules filed herewith for 1995, 1994 and 1993:
Page
I - Condensed Financial Information of Registrant S-2
V - Supplemental Information Concerning
Property-Casualty Insurance Operations S-4
All other schedules for which provisions are made in the
applicable regulation of the Securities and Exchange Commission
have been omitted as they are not applicable, not required, or
the information required thereby is set forth in the
Financial Statements or the notes thereto.
3. Exhibits - see Exhibit Index on page E-1.
(b) Reports on Form 8-K:
Date of Reports Items Reported
December 13, 1995 Court of Appeals Ruling - USX
Litigation
February 14, 1996 Agreement to sell Citicasters
Common Stock
S-1
<PAGE>
AMERICAN FINANCIAL GROUP, INC. - PARENT ONLY (*)
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(In Thousands)
Condensed Balance Sheet
December 31,
Assets: 1995 1994
Cash and short-term investments $ 96,207 $ 4,896
Investment in securities - 1,786
Receivables from affiliates 85,055 288,271
Investment in subsidiaries 1,260,690 976,151
Investment in investee corporations - 233,908
Other assets 6,204 49,747
$1,448,156 $1,554,759
Liabilities and Capital:
Accounts payable, accrued expenses and other
liabilities $ 8,019 $ 83,783
Payables to affiliates - 582,048
Long-term debt - 490,065
Capital subject to mandatory redemption - 2,880
Other capital 1,440,137 395,983
$1,448,156 $1,554,759
<PAGE>
Condensed Statement of Earnings
Year Ended December 31,
Income: 1995 1994 1993
Dividends from:
Subsidiaries $ 37,044 $ 25,571 $248,168
Investees 879 3,514 4,035
37,923 29,085 252,203
Equity in undistributed earnings of
subsidiaries and investees 224,921 113,631 65,435
Realized gains (losses) on sales of:
Securities - 7,477 (1,743)
Investees - (5,555) 59,182
Investment and other income 9,131 26,546 21,370
271,975 171,184 396,447
Costs and Expenses:
Interest charges on borrowed money 13,997 60,439 74,793
Book Value Incentive Plan - 44,166 596
Other operating and general expenses 11,059 23,011 59,073
25,056 127,616 134,462
Earnings before income taxes and
extraordinary items 246,919 43,568 261,985
Provision for income taxes 56,489 24,650 37,296
Earnings before extraordinary items 190,430 18,918 224,689
Extraordinary items, net of income
taxes 817 (16,818) (4,559)
Net Earnings $191,247 $ 2,100 $220,130
(*) Financial statements for periods prior to the Mergers are those of
AFC. Results for 1995 include the earnings of AFC (parent only) for
the period prior to the Mergers.
S-2
<PAGE>
AMERICAN FINANCIAL GROUP, INC. - PARENT ONLY (*)
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CONTINUED
(In Thousands)
Condensed Statement of Cash Flows
<TABLE>
<CAPTION>
Year Ended December 31,
1995 1994 1993
<S>
Operating Activities: <C> <C> <C>
Net earnings $191,247 $ 2,100 $220,130
Adjustments:
Extraordinary losses from retirement of debt (817) 16,818 4,559
Equity in earnings of subsidiaries (193,206) (88,060) (172,803)
Equity in net earnings of investees (4,462) (2,872) (1,963)
Depreciation and amortization 123 612 3,778
Realized gains on sales of subsidiaries
and investments - (1,929) (57,421)
Writeoff of debt discount and issue costs - - 24,814
Change in receivables from and payables to
affiliates (100,225) 125,427 (196,338)
Increase (decrease) in payables (10,861) 37,051 (13,146)
Dividends from subsidiaries and investees 36,649 20,504 131,914
Other 7,414 (2,194) (16,943)
(74,138) 107,457 (73,419)
Investing Activities:
Purchases of subsidiaries and other
investments (30) - (29,501)
Sales of subsidiaries and other investments - 20,975 126,196
Other, net 255 (788) 344
225 20,187 97,039
Financing Activities:
Additional long-term borrowings 70 732 9,984
Reductions of long-term debt (325) (89,901) (9,062)
Issuances of common stock 211,557 - -
Repurchases of common and preferred stock (17) (6,738) (2,643)
Cash dividends paid (36,532) (29,522) (28,034)
Cash of predecessor company at date of merger (9,529) - -
165,224 (125,429) (29,755)
Net Increase (Decrease) in Cash and
Short-term Investments 91,311 2,215 (6,135)
Cash and short-term investments at beginning
of period 4,896 2,681 8,816
Cash and short-term investments at end
of period $ 96,207 $ 4,896 $ 2,681
</TABLE>
(*) Financial statements for periods prior to the Mergers are those of AFC.
Results for 1995 include the cash flows of AFC (parent only) for the period
prior to the Mergers.
S-3
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
SCHEDULE V - SUPPLEMENTAL INFORMATION CONCERNING
PROPERTY-CASUALTY INSURANCE OPERATIONS
THREE YEARS ENDED DECEMBER 31, 1995
(IN MILLIONS)
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
<S> <C> <C> <C> <C> <C>
(a)
AFFILIA- RESERVES (b)
TION WITH DEFERRED FOR UNPAID DISCOUNT (c)
WITH POLICY CLAIMS AND DEDUCTED UNEARNED EARNED
REGISTRANT ACQUISITION CLAIMS AD- COLUMN C PREMIUMS PREMIUMS
COSTS JUSTMENT
EXPENSES
CONSOLIDATED PROPERTY-CASUALTY ENTITIES
1995 (d) $270 $4,097 $67 $1,294 $2,649
1994 $166 $2,917 $71 $ 825 $1,379
1993 (d) $1,495
COLUMN G COLUMN H COLUMN I COLUMN J COLUMN K
AMORTIZATION PAID NET
INVESTMENT ADJUSTMENT EXPENSES POLICY AND CLAIM WRITTEN
INCOME INCURRED RELATED TO ACQUISITION ADJUSTMENT
COSTS EXPENSES
CURRENT PRIOR
YEAR YEAR
CONSOLIDATED PROPERTY-CASUALTY ENTITIES
1995 (d) $303 $2,116 ($139) $577 $1,861 $2,688
1994 $177 $1,027 ($ 40) $329 $ 913 $1,481
1993 (d) $206 $1,103 ($ 39) $345 $1,052 $1,587
</TABLE>
(a) Grossed up for reinsurance recoverables of $704 and $730 at
December 31, 1995 and 1994, respectively.
(b) Discounted at rates ranging from 4% to 8%.
(c) Grossed up for prepaid reinsurance premiums of $143 and $172 at
December 31, 1995 and 1994, respectively.
(d) Includes American Premier's Insurance Group through March 31, 1993,
and after April 1, 1995.
S-4
<PAGE>
INDEX TO EXHIBITS
AMERICAN FINANCIAL GROUP, INC.
Number Exhibit Description
2 Agreement and Plan of Acquisition
and Reorganization filed as
Exhibit 2 to AFG's Registration
Statement on Form S-4 effective
February 17, 1995. (*)
3(a) Amended and Restated Articles of
Incorporation. _____
3(b) Amended Code of Regulations. _____
4 Instruments defining the The rights of holders of
rights of security holders. Registrant's Preferred Stock are
defined in the Articles of Incor-
poration. Registrant has no out-
standing debt issues.
Management Contracts:
10(a) Stock Option Plan filed as (*)
Exhibit (10)(iii)(a)(i) to AFG's
Registration Statement on Form 8-B
filed on April 17, 1995.
10(b) Form of certain stock option agreement. _____
10(c) Stock Option Loan Program. _____
10(d) Bonus Plan for 1996. _____
10(e) Retirement program for outside directors. _____
10(f) Directors' Compensation Plan. _____
10(g) Severance Agreement between American
Premier and an AFG executive officer. _____
10(h) Agreement relating to the sale of
Buckeye Management Company. _____
11 Computation of earnings per share. _____
12 Computation of ratios of earnings
to fixed charges. _____
16 Letter from Deloitte & Touche LLP included
in AFG's Form 8-K filed on August 29, 1995. (*)
21 Subsidiaries of the Registrant. _____
23 Consents of independent auditors. _____
27 Financial data schedule. (**)
28 Information from reports furnished to
state insurance regulatory authorities. _____
<PAGE>
(*) Incorporated herein by reference.
(**) Copy included in Report filed electronically with the Securities
and Exchange Commission.
E-1
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE
FOR THE YEAR ENDED DECEMBER 31, 1995
(In Thousands, Except Per Share Amounts)
Earnings before extraordinary items $190,430
Preferred dividend requirement of predecessor company (6,349)
Net earnings before extraordinary items
available to common shareholders 184,081
Extraordinary items 817
Net earnings available to common shareholders $184,898
Computation of primary earnings per common share
Shares used in calculation of per share data:
Weighted average common shares outstanding 47,620
Dilutive effect of assumed exercise of certain stock options 503
Weighted average common shares used to calculate
primary earnings per share 48,123
Primary earnings per common share Dilution less than 3%
Computation of fully diluted earnings per common share
Shares used in calculation of per share data:
Weighted average common shares outstanding 47,620
Dilutive effect of assumed exercise of certain stock options 608
Weighted average common shares used to calculate
fully diluted earnings per share 48,228
Fully diluted earnings per common share Dilution less than 3%
Reported earnings per share based on
weighted average common shares outstanding
Before extraordinary items $3.87
Extraordinary items .01
Net earnings $3.88
E-2
<PAGE>
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
EXHIBIT 12 - COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
<TABLE>
<CAPTION>
Year Ended December 31,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Pretax income (loss) excluding
discontinued operations $247,455 $ 26,376 $257,426 ($144,854) $118,710
Minority interest in subsidiaries
having fixed charges(*) 33,190 8,565 34,800 37,685 44,369
Less undistributed equity in (earnings)
losses of investees (1,559) 49,010 (25,067) 376,020 5,817
Fixed charges:
Interest expense 124,633 114,803 153,836 212,150 245,757
Debt discount (premium) and expense (1,023) 1,240 5,273 4,698 6,961
One-third of rentals 9,471 5,119 5,801 16,341 45,286
EARNINGS $412,167 $205,113 $432,069 $502,040 $466,900
Fixed charges:
Interest expense $124,633 $114,803 $153,836 $212,150 $245,757
Debt discount (premium) and expense (1,023) 1,240 5,273 4,698 6,961
One-third of rentals 9,471 5,119 5,801 16,341 45,286
Pretax preferred dividend requirements
of subsidiaries 25,376 - - - 598
Capitalized interest - - - - 5,495
FIXED CHARGES $158,457 $121,162 $164,910 $233,189 $304,097
Ratio of Earnings to Fixed Charges 2.60 1.69 2.62 2.15 1.54
Earnings in excess of Fixed Charges $253,710 $ 83,951 $267,159 $268,851 $162,803
</TABLE>
(*) Amounts include preferred dividends of subsidiaries.
E-3
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
EXHIBIT 21 - SUBSIDIARIES OF THE REGISTRANT
The following is a list of subsidiaries of AFG at December 31, 1995.
All corporations are subsidiaries of AFG and, if indented,
subsidiaries of the company under which they are listed.
Percentage of
State of Common Equity
Name of Company Incorporation Ownership
American Financial Corporation Ohio 100
Great American Holding Corporation Ohio 100
Great American Insurance Company Ohio 100
American Annuity Group, Inc. Delaware 81
Great American Life Insurance Company Ohio 100
American Empire Surplus Lines Insurance
Company Delaware 100
American National Fire Insurance Company New York 100
Great American Management Services, Inc. Ohio 100
Mid-Continent Casualty Company Oklahoma 100
Stonewall Insurance Company Alabama 100
Transport Insurance Company Ohio 100
American Financial Enterprises, Inc. Connecticut 83
American Premier Underwriters, Inc. Pennsylvania 100
Pennsylvania Company Delaware 100
Atlanta Casualty Company Illinois 100
Infinity Insurance Company Florida 100
Leader National Insurance Company Ohio 100
Republic Indemnity Company of America California 100
Republic Indemnity Company of California California 100
Windsor Insurance Company Indiana 100
The names of certain subsidiaries are omitted, as such subsidiaries
in the aggregate would not constitute a significant subsidiary.
See Part I, Item 1 of this Report for a description of certain
companies in which AFG owns a significant portion and accounts for
under the equity method.
E-4
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
EXHIBIT 28 - INFORMATION FROM REPORTS FURNISHED
TO STATE INSURANCE REGULATORY AUTHORITIES
Schedule P of Annual Statements
A. CONSOLIDATED PROPERTY AND CASUALTY ENTITIES - See Attached
Schedules
Schedule P (prepared in accordance with the rules prescribed by
the National Association of Insurance Commissioners) includes
the reserves of AFG's consolidated property and casualty
subsidiaries. The following is a summary of Schedule P reserves
(in millions):
Schedule P - Part 1 Summary - col. 33 $2,815
- col. 34 579
Statutory Loss and Loss Adjustment Expense Reserves $3,394
B. UNCONSOLIDATED SUBSIDIARIES None
C. 50% OR LESS OWNED PROPERTY AND CASUALTY INVESTEES None
E-5
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
EXHIBIT 23 - CONSENTS OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Registration
Statement No. 33-58825 on Form S-8, Registration Statement No. 33-58827 on Form
S-8, and Registration Statement No. 33-59989 on Form S-3 of our report
dated March 15, 1996, with respect to the consolidated financial
statements and schedules of American Financial Group, Inc. included in
the Annual Report on Form 10-K for the year ended December 31, 1995.
ERNST & YOUNG LLP
Cincinnati, Ohio
March 27, 1996
_________________________________________________________________
We consent to the incorporation by reference in Registration
Statement No. 33-58825 on Form S-8, Registration Statement No. 33-58827 on Form
S-8, and Registration Statement No. 33-59989 on Form S-3 of our report
dated February 15, 1995 (March 23, 1995 with respect to the
acquisition of American Financial Corporation as discussed in Note B
to the financial statements), appearing in the Annual Report on Form
10-K of American Financial Group, Inc. for the year ended December 31,
1995.
DELOITTE & TOUCHE LLP
Cincinnati, Ohio
March 27, 1996
E-6
<PAGE>
Signatures
Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, American Financial Group, Inc. has duly caused
this Report to be signed on its behalf by the undersigned, duly
authorized.
American Financial Group, Inc.
Signed: March 27, 1996 BY:s/CARL H. LINDNER
Carl H. Lindner
Chairman of the Board and
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934,
this Report has been signed below by the following persons on behalf
of the Registrant and in the capacities and on the dates indicated:
Signature Capacity Date
s/CARL H. LINDNER Chairman of the Board March 27, 1996
Carl H. Lindner of Directors
s/THEODORE H. EMMERICH Director* March 27, 1996
Theodore H. Emmerich
s/JAMES E. EVANS Director March 27, 1996
James E. Evans
s/CARL H. LINDNER III Director March 27, 1996
Carl H. Lindner III
s/WILLIAM R. MARTIN Director* March 27, 1996
William R. Martin
s/FRED J. RUNK Senior Vice President and March 27, 1996
Fred J. Runk Treasurer (principal
financial and accounting
officer)
* Member of the Audit Committee
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from American
Financial Group, Inc. 10-K for December 31, 1995 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 544,408
<SECURITIES> 10,096,992<F1>
<RECEIVABLES> 703,274
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,953,870
<CURRENT-LIABILITIES> 0
<BONDS> 882,063
<COMMON> 60,139
0
0
<OTHER-SE> 1,379,998
<TOTAL-LIABILITY-AND-EQUITY> 14,953,870
<SALES> 0
<TOTAL-REVENUES> 3,629,609
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 320,737
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 122,568
<INCOME-PRETAX> 246,919
<INCOME-TAX> 56,489
<INCOME-CONTINUING> 190,430
<DISCONTINUED> 0
<EXTRAORDINARY> 817
<CHANGES> 0
<NET-INCOME> 191,247
<EPS-PRIMARY> 3.88
<EPS-DILUTED> 3.88
<FN>
<F1>(1) Includes an investment in affiliates of $307 million.
</FN>
</TABLE>
<PAGE>
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
AMERICAN FINANCIAL GROUP, INC.
FIRST. The name of the corporation is AMERICAN FINANCIAL
GROUP, INC. (the "Corporation").
SECOND. The place in the State of Ohio where the
Corporation's principal office is to be located is the City of
Cincinnati in Hamilton County, Ohio.
THIRD. The purpose for which the Corporation is organized
shall be to engage in any lawful act or activity for which
corporations may be formed under the Ohio General Corporation
Law, Ohio Revised Code 1701.01 et seq..
FOURTH. The aggregate number of shares of stock which the
Corporation shall have authority to issue is Two Hundred Twenty
Five Million (225,000,000) shares, which shall be divided into
two classes, consisting of:
(a) Twenty Five Million (25,000,000) shares of preferred
stock ("Preferred Stock") without par value; and,
(b) Two Hundred Million (200,000,000) shares of common
stock ("Common Stock") with a par value of $1.00 per share.
PART ONE: PREFERRED STOCK
(a) Except as otherwise provided by this Article Fourth or
by the amendment or amendments adopted by the Board of Directors
providing for the issue of any series of Preferred Stock, the
Preferred Stock may be issued at any time or from time to time in
any amount, not exceeding in the aggregate, including all shares
of any and all series thereof theretofore issued, the Twenty Five
Million (25,000,000) shares of Preferred Stock hereinabove
authorized, as Preferred Stock of one or more series, as
hereinafter provided, and for such lawful consideration as shall
be fixed from time to time by the Board of Directors.
Twelve Million Five Hundred Thousand (12,500,000)
shares of Preferred Stock shall have voting rights as provided in
clause (b) of this Part One of Article Fourth (collectively,
"Voting Preferred Stock").
<PAGE>
Twelve Million Five Hundred Thousand (12,500,000)
shares of Preferred Stock shall have no voting power whatsoever,
except as may be otherwise provided by law or except as may arise
upon a default, failure or other contingency (collectively, "Non-
Voting Preferred Stock"). The Career Shares Series created by
Part Two of this Article Fourth are shares of Non-Voting
Preferred Stock.
All shares of any one series of Preferred Stock shall
be alike in every particular, each series thereof shall be
distinctively designated by letter or descriptive words, and all
series of Preferred Stock shall rank equally and be identical in
all respects except as provided above with respect to Voting
Preferred Stock and Non-Voting Preferred Stock or as permitted by
the provisions of Clause (b) of this Part One of Article Fourth.
(b) Authority is hereby expressly granted to the Board of
Directors from time to time to adopt amendments to these Articles
of Incorporation providing for the issue in one or more series of
any unissued or treasury shares of the Preferred Stock, and
providing, to the fullest extent now or hereafter permitted by
the laws of the State of Ohio and notwithstanding the provisions
of any other Article of these Articles of Incorporation of the
Corporation, in respect of the matters set forth in the following
subdivisions (i) to (x), inclusive, as well as any other rights
or matters pertaining to such series:
(i) The designation and number of shares of such series;
(ii) With respect to the Voting Preferred Stock only,
voting rights (to the fullest extent now or hereafter permitted
by the laws of the State of Ohio);
(iii) With respect to the Non-Voting Preferred
Stock only, voting rights upon a default, failure or other
contingency;
(iv) The dividend rate or rates of such series (which
may be a variable rate and which may be cumulative);
(v) The dividend payment date or dates of such series;
(vi) The price or prices at which shares of such series
may be redeemed;
(vii) The amount of the sinking fund, if any, to be
applied to the purchase or redemption of shares of such series
and the manner of its application;
-2-
<PAGE>
(viii) The liquidation price or prices of such
series;
(ix) Whether or not the shares of such series shall be
made convertible into, or exchangeable for, shares of any other
class or classes or of any other series of the same class of
stock of the Corporation or any other property, and if made so
convertible or exchangeable, the conversion price or prices, or
the rates of exchange at which such conversion or exchange may be
made and the adjustments thereto, if any; and,
(x) Whether or not the issue of any additional shares
of such series or any future series in addition to such series
shall be subject to any restrictions and, if so, the nature of
such restrictions.
Any of the voting rights (with respect to the Voting Preferred
Stock only), voting rights upon a default, failure or other
contingency (with respect to the Non-Voting Preferred Stock
only), dividend rate or rates, dividend payment date or dates,
redemption rights and price or prices, sinking fund requirements,
liquidation price or prices, conversion or exchange rights and
restrictions on issuance of shares of any such series of
Preferred Stock may, to the fullest extent now or hereafter
permitted by the laws of the State of Ohio, be made dependent
upon facts ascertainable outside these Articles of Incorporation
or outside the amendment or amendments providing for the issue of
such Preferred Stock adopted by the Board of Directors pursuant
to authority expressly vested in it by this Article Fourth. If
the then-applicable laws of the State of Ohio do not permit the
Board of Directors to fix, by the amendment creating a series of
Voting Preferred Stock, the voting rights of shares of such
series, each holder of a share of such series of Voting Preferred
Stock shall, except as may be otherwise provided by law, be
entitled to one (1) vote for each share of Voting Preferred Stock
of such series held by such holder.
PART TWO: CAREER SHARES
(a) Two series of such Preferred Stock shall be as follows:
SECTION 1. Designation.
(A) Forty Nine Thousand Eight Hundred Eighty Eight (49,888)
shares designated as the "$3.76 Convertible Preferred Stock,
First Series", the shares of which shall be entitled to
cumulative cash dividends at the annual rate of $3.76 per share
and which shall be convertible into Common Stock at the initial
rate of 2.0110 shares of Common Stock for each share of such
Preferred Stock; and,
-3-
<PAGE>
(B) One Hundred Sixty Two Thousand Eight Hundred Ten
(162,810) shares designated as the "$4.20 Convertible Preferred
Stock, Second Series", the shares of which shall be entitled to
cumulative cash dividends at the annual rate of $4.20 per share
and which shall be convertible into Common Stock at the initial
rate of 2.1281 shares of Common Stock for each share of such
Preferred Stock.
SECTION 2. General Terms. (A) The series of Preferred
Stock designated in Section 1 will be referred to hereinafter
collectively as Career Share Series and any shares of any thereof
as Career Shares. Except as to designation, annual dividend rate
and initial conversion rate, the terms of the shares of any
Career Share Series shall be identical to the terms of the shares
of each other Career Share Series. The terms on which Career
Shares may be converted into Common Stock and the payment of
dividends at the rate specified in Section 1 shall be subject to,
and terms of the Career Shares generally shall be as set forth
in, the remaining Sections of this paragraph (a) of this Part Two
of Article Fourth.
(B) Nothing herein shall be deemed to constitute a
limitation on the authority of the Board of Directors to
designate by amendment or amendments adopted by the Board of
Directors, out of the authorized Preferred Stock, series of
Preferred Stock not governed by the terms of this paragraph (a)
of this Part Two of Article Fourth.
SECTION 3. Dividend Rights. Holders of record of shares
of Career Share Series shall be entitled to receive, as and if
declared by the Board of Directors, out of assets legally
available therefor, cumulative cash dividends at the annual rate
set forth in Section 1. Dividends on such Career Shares will
accrue from the respective dates of original issuance of such
shares and, with respect to each such share, will be payable
quarterly on February 15, May 15, August 15 and November 15 in
each year commencing on the first of such dates occurring more
than 30 days after the date of issuance of such share. In the
event that full cumulative dividends on outstanding shares of any
Career Share Series have not been paid when scheduled, no
dividends shall be declared or paid on, and no such amounts shall
be set aside or applied to the redemption or purchase of, any
shares of Common Stock of the Corporation or any other shares of
capital stock of the Corporation ranking subordinate to such
Career Share Series with respect to the payment of dividends
(other than a dividend in capital stock ranking subordinate to
Career Share Series as to dividends), and, in such event, all
dividends declared on the Career Shares and any other series of
capital stock of the Corporation ranking on a parity as to
dividends with such Career Share Series shall be declared pro
rata among each such series.
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SECTION 4. Subordination. The rights of any Career
Share Series with respect to dividends shall be subordinate to
any shares of capital stock of the Corporation which are by their
terms superior to the rights of such Career Shares Series with
respect to dividends. The rights of the Common Stock of the
Corporation shall be subordinate to Career Shares with respect to
the dividend rights set forth in Section 3.
SECTION 5. Conversion Privilege and Price. Career
Shares shall be convertible into shares of Common Stock at any
time and from time to time, at the option of the holder thereof,
provided, however, that such conversion privilege shall be
subject to any contractual agreements between the Corporation and
the holder thereof regarding such privilege for so long as such
holder continues to hold shares of such Career Share Series. The
rate at which shares of Common Stock shall be delivered upon
conversion shall initially be as set forth in Section 1.
All conversions of Career Shares into shares of Common Stock
shall be subject to the following terms and conditions:
(A) The Corporation shall make no payment or adjustment on
account of any dividends declared but unpaid on the Common Stock
issuable upon conversion.
(B) The number of shares of Common Stock into which Career
Shares are convertible shall be subject to adjustment from time
to time as follows except that no adjustment need be made unless,
by reason of the happening of any one or more of the events
specified in this Section 5(B), the conversion rate then in
effect shall be changed by 1% or more, but any adjustment of less
than 1% that would otherwise be required then to be made shall be
carried forward and shall be made at the time of and together
with any subsequent adjustment which, together with any
adjustment or adjustments so carried forward, amounts to 1% or
more, provided that such adjustment shall be made in all events
(regardless of whether or not the amount thereof or the
cumulative amount thereof amounts to 1% or more) after a period
of three years from the date of happening of an event requiring
adjustment as specified in this Section 5(B):
(i) In case the Corporation shall issue rights or
warrants to holders of shares of Common Stock entitling them (for
a period expiring within 90 days after the record date mentioned
below) to subscribe for or purchase shares of Common Stock at a
price less than the current market price per share of Common
Stock (as determined pursuant to Subsection 5(B)(vi) on the
record date mentioned below), the conversion rate (such rate
being initially as set forth in Section 1) shall be adjusted so
that the conversion rate shall equal the rate determined by
multiplying the conversion rate in effect immediately
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prior to the date of issuance of such rights or
warrants by a fraction whose numerator shall be the number of
shares of Common Stock outstanding on the date of issuance of
such rights or warrants plus the number of shares which the
aggregate exercise price of the shares of Common Stock called for
by all rights or warrants issued would purchase at such current
market price, and whose denominator shall be the number of shares
of Common Stock outstanding on the date of issuance of such
rights or warrants plus the number of additional shares of Common
Stock called for by such rights or warrants. Such adjustment
shall be made whenever such rights or warrants are issued and
shall be retroactively effective as of immediately after the
record date for the determination of holders of Common Stock
entitled to receive such rights or warrants.
(ii) In case the Corporation shall at any time or times
(1) pay a dividend on the Common Stock in shares of capital
stock, (2) subdivide its outstanding shares of Common Stock into
a greater number of shares, (3) combine its outstanding shares of
Common Stock into a smaller number of shares or (4) issue by
reclassification of its shares of Common Stock, or any
recapitalization or reorganization of the Corporation, any shares
of capital stock of the Corporation (other than a change from par
value to no par value), then, in each such case, the conversion
rate (such rate being initially as set forth in Section 1) in
effect immediately prior thereto shall be adjusted so that the
holder of any Career Shares thereafter surrendered for conversion
shall be entitled to receive the number and kinds of shares of
capital stock which he would have owned or would have been
entitled to receive immediately after the happening of any of the
events described above had such Career Shares been converted
immediately prior to the happening of such event. An adjustment
made pursuant to this Subsection 5(B)(ii) shall become effective
as of immediately after the record date in those cases specified
in clause (1) of this Subsection 5(B)(ii) and shall become
effective as of immediately after the effective date in those
cases specified in clauses (2), (3) and (4) of this Subsection
5(B)(ii).
(iii) In case the Corporation shall distribute to
holders of its Common Stock evidence of its indebtedness or
assets or rights to subscribe for or warrants to purchase
(excluding those referred to in Subsection 5(B)(i)) shares of
Common Stock or any other security, or shall make a capital
distribution on its shares of Common Stock, then in each such
case the conversion rate shall be adjusted so that the conversion
rate (such rate being initially as set forth in Section 1) shall
equal the rate determined by multiplying the conversion rate in
effect immediately prior to the date of such distribution by a
fraction whose numerator shall be the current market price per
share of Common Stock (determined as provided in Subsection
5(B)(vi)) on the effective date of distribution minus the then
fair market value (as determined by the Board of Directors, whose
determination shall be
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<PAGE>
conclusive and evidenced by a Board resolution) of the portion of
the assets or evidences of indebtedness so distributed or of such
subscription rights or warrants, or of the capital distribution,
applicable to one share of Common Stock and whose denominator
shall be such current market price per share of the Common Stock.
Such adjustment shall be made whenever any such distribution is
made and shall be retroactively effective as of immediately after
the record date for the determination of holders of Common Stock
entitled to receive such distribution.
(iv) In case the Corporation shall issue to holders of
shares of Common Stock shares of Common Stock pursuant to any
dividend reinvestment plan at a price less than the current
market price per share of Common Stock (determined as provided in
Subsection 5(B)(vi) below) on the date of issuance of such shares
pursuant to such dividend reinvestment plan, then in each such
case, the conversion rate (such rate being initially as set forth
in Section 1) shall equal the rate determined by multiplying the
conversion rate in effect immediately prior to the date of
issuance of such shares by a fraction whose numerator shall be
the number of shares of Common Stock outstanding on the date of
issuance of such shares plus the number of shares of Common Stock
which the aggregate purchase price for shares being purchased on
such date of issuance pursuant to any such dividend reinvestment
plan would purchase at such current market price, and whose
denominator shall be the number of shares of Common Stock
outstanding on such date of issuance plus the number of
additional shares of Common Stock issued pursuant to any such
dividend reinvestment plan. Such adjustment shall be
retroactively effective as of immediately after such date of
issuance.
(v) If any capital reorganization or reclassification
of the capital stock of the Corporation, or consolidation or
merger of the Corporation with another corporation, or the sale
of all or substantially all of its assets to another corporation,
shall be effected in such a way that holders of shares of Common
Stock shall be entitled to receive stock, securities or assets
with respect to or in exchange for shares of Common Stock, then,
as a condition of such reorganization, reclassification,
consolidation, merger or sale, the Corporation or such successor
or purchasing corporation, as the case may be, shall make
provision that the holder of each Career Share shall have the
right thereafter to convert such share into the kind and amount
of stock, securities or assets receivable upon such
reorganization, reclassification, consolidation, merger or sale
by a holder of the number of shares of Common Stock into which
such share might have been converted immediately prior to such
reorganization, reclassification, consolidation, merger or sale,
subject to adjustments which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Section
5(B).
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(vi) For the purpose of any computation of current
market price per share of Common Stock under this Section 5(B),
the current market price per share of Common Stock on any date
shall be deemed to be the average of the daily closing prices for
the 10 consecutive business days commencing 15 business days
before the day in question. The closing price for each day shall
be the last reported sales price regular way or, in case no such
reported sale takes place on such day, the average of the
reported closing bid and asked prices regular way, in either case
on the New York Stock Exchange, or, if the Common Stock is not
listed or admitted to trading on such Exchange, on the principal
national securities exchange on which the Common Stock is listed
or admitted to trading, or, if not listed or admitted to trading
on any national securities exchange, the average of the closing
bid and asked prices in the over-the-counter market, as furnished
by any New York Stock Exchange firm selected from time to time by
the Corporation for that purpose. For purposes of this Subsection
5(B)(vi), the term business day shall not include any day on
which securities are not traded on such exchange or in such
market.
(vii) The Corporation shall not be required to
issue fractional shares of Common Stock upon conversion of Career
Shares. If more than one share of any Career Shares Series shall
be surrendered for conversion at one time by the same holder, the
number of full shares of Common Stock issuable upon conversion
thereof shall be computed on the basis of the aggregate number of
shares so surrendered. If any fractional interest in a share of
Common Stock would be deliverable upon the conversion of any
Career Shares, the Corporation, in lieu of delivering the
fractional share therefor, shall make an adjustment therefor in
cash at the market value thereof. For the purpose of making a
cash adjustment in lieu of delivering fractional shares, the
market value of a share of Common Stock shall be the last
reported sales price regular way or, in case no such reported
sale takes place on such day, the average of the reported closing
bid and asked prices regular way, in either case on the New York
Stock Exchange on the last business day prior to the conversion
date, or, if the Common Stock is not then listed or admitted to
trading on such Exchange, on the principal national securities
exchange on which the Common Stock is listed or admitted to
trading, or, if not listed or admitted to trading on any national
securities exchange, the average of the closing bid and asked
prices in the over-the-counter market as furnished by any New
York Stock Exchange firm selected from time to time by the
Corporation for that purpose. For purposes of this Subsection
5(B)(vii), the term business day shall not include any day on
which securities are not traded on such exchange or in such
market.
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<PAGE>
(viii) Whenever any event occurs which would cause
an adjustment of the securities or other assets into which any
Career Shares would be converted, as herein provided, the
Corporation shall promptly file with the transfer agent or agents
for such Career Share Series (and with any conversion agent other
than the transfer agent or agents) a report prepared by the
Corporation accompanied by an opinion of a firm of independent
public accountants selected by the Board of Directors (who may be
the accountants regularly employed by the Corporation) setting
forth the conversion rate applicable after such adjustment and
setting forth a brief statement of the facts requiring such
adjustment. Such report and opinion shall be conclusive evidence
of the correctness of such adjustment and neither the transfer
agent or agents nor any conversion agent shall be under any duty
or responsibility with respect to any such report or opinion
except to exhibit the same from time to time to any holder of any
Career Share desiring an inspection thereof. Promptly after
filing such report and opinion, the Corporation shall cause
notice to be mailed specifying such adjustment to each holder of
record of shares of such Career Share Series at his last address
appearing on the books of the Corporation. Neither the transfer
agent or agents nor any conversion agent shall at any time be
under any duty or responsibility to any such holder to determine
whether any facts exist which may require any adjustment of the
conversion rate, or with respect to the nature and extent of such
adjustment when made, or with respect to the method employed in
making the same.
(C) The Corporation shall at all times reserve and keep
available, out of its authorized but unissued shares of Common
Stock or out of shares of Common Stock held in its treasury, the
full number of shares of Common Stock into which all Career
Shares from time to time outstanding are convertible.
(D) The issuance of stock certificates on conversions of
Career Shares into shares of Common Stock shall be without charge
to the converting stockholders for any issue tax. The
Corporation shall not, however, be required to pay any tax which
may be payable in respect of any transfer involved in the issue
and delivery of shares of Common Stock in any name other than
that of the registered holder of the Career Shares converted, and
the Corporation shall not be required to issue or deliver any
such stock certificate unless and until the person or persons
requesting the issuance thereof shall have paid to the
Corporation the amount of such tax or shall have established to
the satisfaction of the Corporation that such tax has been paid.
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<PAGE>
(E) Any holder of Career Shares who shall choose to convert
Career Shares held by him pursuant to this Section 5 shall, as a
condition of conversion, present the certificates for such Career
Shares (which certificate or certificates, if the Corporation
shall so require, shall be duly endorsed or accompanied by
appropriate instruments of transfer satisfactory to the
Corporation) at the office of the transfer agent or agents for
such Career Shares, or at such other office as may be designated
by the Corporation, and shall give written notice to the
Corporation at said office that such holder elects to convert the
same or part thereof and shall state in writing therein the name
or names in which such holder wishes the certificate or
certificates for shares of Common Stock to be issued. The
Corporation will, as soon as practicable thereafter, issue and
deliver at said office to such holder, or to the designee of such
holder, certificates for the number of full shares of Common
Stock to which such holder or its designee shall be entitled as
aforesaid, together with cash in lieu of any fraction of a share
as hereinabove provided and certificates for the Career Shares,
if any, not converted. Career Shares shall be deemed to have
been converted as of the close of business on the date of the
presentation of such shares for conversion as provided above, and
the person or persons entitled to receive the shares of Common
Stock issuable upon such conversion shall be treated for all
purposes as the record holder or holders of such shares of Common
Stock as of such time and date.
SECTION 6. Voting. (A) The holders of Career Shares
shall not be entitled to vote at any meeting of the shareholders
of the Corporation or on any other occasion where shareholders
are entitled to vote, except as otherwise expressly provided in
this Section 6. The holders of shares of any Career Share Series
shall vote as a single or separate class with the holders of all
other series of Preferred Stock, or as a single or separate
series of Preferred Stock, as and to the extent provided in
Subsection 6(B) and by Ohio law.
(B) The Corporation may, in the manner provided in Article
Fifth and as permitted by Ohio law, from time to time alter or
change the voting rights, dividend rate or rates, dividend
payment date or dates, redemption rights and price, sinking fund
requirements, conversion rights and restrictions on issuance of
any Career Share Series; provided, however, that without the
affirmative vote of the holders of at least two-thirds of the
outstanding shares of all series of Preferred Stock, the
Corporation shall not amend, alter, change, add or insert any
provision in the Articles which, or authorize the merger or
consolidation of the Corporation with any other corporation if
the plan of such merger or consolidation contains any provision
which if contained in the Articles, would (i) make any adverse
change in the voting
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<PAGE>
rights, dividend rate or rates, dividend payment date or dates,
redemption rights and price, sinking fund requirements,
conversion rights and restrictions on issuance or special or
relative rights of Preferred Stock, (ii) authorize a new class of
stock senior or superior to Preferred Stock, or (iii) increase
the number of authorized shares of a senior or superior class of
stock, and, without the affirmative vote of the holders of at
least a majority of the outstanding shares of all series of
Preferred Stock, the Corporation shall not amend, alter, change,
add or insert any provision in the Articles which, or authorize
the merger or consolidation of the Corporation with any other
corporation if the plan of such merger or consolidation contains
any provision which if contained in the Articles, would increase
the authorized number of shares of Preferred Stock. Without the
affirmative vote of the holders of at least two-thirds of the
outstanding shares of any Career Shares Series, the Corporation
shall not amend, alter, change, add or insert any provision in
the Articles which, or authorize the merger or consolidation of
the Corporation with any other corporation if the plan of such
merger or consolidation contains any provision which if contained
in the Articles, would adversely affect such Career Share Series
but would not adversely affect each other series of Preferred
Stock. Nothing in this Section 6 shall require a class vote or
consent in connection with the authorization,designation,
increase or issuance of any shares of any class or series of
capital stock which is subordinate to shares of any Career Share
Series as to dividends, or in connection with the authorization,
designation, increase or issuance of any bonds, mortgages,
debentures or other obligations of the Corporation, or because of
any adjustment in the provisions of any Career Share Series made
pursuant to Section 5(B).
SECTION 7. No Liquidation Preference. The holders of
Career Shares shall not be entitled to any payment out of the
assets of the Corporation in the event of a voluntary or
involuntary liquidation, dissolution or winding up of the
Corporation, which is preferential to the rights of the holders
of Common Stock.
SECTION 8. Status of Career Shares After Redemption.
Career Shares of any series redeemed or purchased by the
Corporation shall be retired and cancelled and shall not be
reissued by the Board of Directors of the Corporation and shall
be restored to the status of authorized but unissued shares of
Preferred Stock. The Board of Directors shall, upon the
redemption or repurchase of all the outstanding shares of any
series of Career Shares, adopt an amendment to these Articles of
Incorporation to eliminate all references to the shares of such
series of Career Shares and to make such other appropriate
changes as are required by such elimination.
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<PAGE>
FIFTH. Amendment to Articles of Incorporation. The
Corporation shall have the right to amend, alter, change or
repeal any provision contained in these Articles of Incorporation
or any provision that may be added or inserted in these Articles
of Incorporation, provided that:
(a) Such amendment, alteration, change, repeal, addition or
insertion is consistent with law and is accomplished in the
manner now or hereafter prescribed by statute or these Articles;
(b) Any provision of these Articles of Incorporation which
requires, or the change of which requires, the vote or consent of
all or a specific number or percentage of the holders of shares
of any class or series shall not be amended, altered, changed or
repealed by any lesser amount, number or percentage of votes or
consents of such class or series; and,
(c) No amendment to these Articles of Incorporation
pursuant to Ohio Revised Code 1701.69(B)(10) or any successor
provision may be adopted without the affirmative vote or consent
of the holders of an aggregate of two-thirds of the total voting
power of the Corporation.
Any rights at any time conferred upon the shareholders of the
Corporation are granted subject to the provisions of this
Article.
SIXTH. No holder of any shares of this Corporation shall
have any preemptive rights to subscribe for or to purchase any
shares of this Corporation of any class, whether such shares or
such class be now or hereafter authorized, or to purchase or
subscribe for any security convertible into, or exchangeable for,
shares of any class or to which shall be attached or appertained
any warrants or rights entitling the holder thereof to purchase
or subscribe for shares of any class.
SEVENTH. This Corporation, through its Board of Directors,
shall have the right and power to purchase any of its outstanding
shares at such price and upon such terms as may be agreed upon
between the Corporation and any selling shareholder.
EIGHTH. Subject to the provisions of Article Fifth hereof,
the affirmative vote of shareholders entitled to exercise a
majority of the voting power of this Corporation shall be
required to amend these Articles of Incorporation, approve
mergers and to take any other action which by law must be
approved by a specified percentage of the voting power of the
Corporation or of all outstanding shares entitled to vote.
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NINTH. The provisions of Ohio Revised Code Chapter 1704
or any successor provisions relating to transactions involving
interested shareholders shall not be applicable to the
Corporation.
TENTH. The provisions of Ohio Revised Code 1701.831 or
any successor provisions relating to control share acquisitions
shall not be applicable to the Corporation.
ELEVENTH. These Amended and Restated Articles of
Incorporation take the place of and supersede the existing
Articles of Incorporation of the Corporation as heretofore
amended.
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CODE OF REGULATIONS
OF
AMERICAN FINANCIAL GROUP, INC.
ARTICLE I
Shareholders
Section 1. Annual Meetings. The Annual Meeting of the
Shareholders of this Corporation, for the election of the Board
of Directors and the transaction of such other business as may
properly be brought before such meeting, shall be held at the
time, date and place designated by the Board of Directors or, if
it shall so determine, by the Chairman of the Board or the
President. If the Annual Meeting is not held or if Directors are
not elected thereat, a Special Meeting may be called and held for
that purpose.
Section 2. Special Meetings. Special meetings of the Share
holders may be held on any business day when called by the
Chairman of the Board, the President, a majority of Directors, or
persons holding twenty percent of all voting power of the
Corporation and entitled to vote at such meeting.
Section 3. Place of Meetings. Any meeting of Shareholders
may be held at such place within or without the State of Ohio as
may be designated in the Notice of said meeting.
Section 4. Notice of Meeting and Waiver of Notice
4.1 Notice. Written notice of the time, place and pur
poses of any meeting of Shareholders shall be given to each
Shareholder entitled thereto not less than seven (7) days
nor more than sixty (60) days before the date fixed for the
meeting and as prescribed by law. Such notice shall be
given either by personal delivery or mail to the Share
holders at their respective addresses as they appear on the
records of the Corporation. Notice shall be deemed to have
<PAGE>
been given on the day mailed. If any meeting is adjourned
to another time or place, no notice as to such adjourned
meeting need be given other than by announcement at the
meeting at which such an adjournment is taken. No business
shall be transacted at any such adjourned meeting except as
might have been lawfully transacted at the meeting at which
such adjournment was taken.
4.2 Notice to Joint Owners. All notices with respect
to any shares to which persons are entitled by joint or
common ownership may be given to that one of such persons
who is named first upon the books of this Corporation, and
notice so given shall be sufficient notice to all the holde
rs of such shares.
4.3 Waiver. Notice of any meeting may be waived in
writing by any Shareholder either before or after any
meeting, or by attendance at such meeting without protest to
its commencement.
Section 5. Shareholders Entitled to Notice and to Vote. If a
record date shall not be fixed, the record date for the determina
tion of Shareholders entitled to notice of or to vote at any
meeting of Shareholders shall be the close of business on the
twentieth day prior to the date of the meeting and only Sharehold
ers of record at such record date shall be entitled to notice of
and to vote at such meeting.
Section 6. Quorum and Voting. The holders of shares
entitling them to exercise a majority of the voting power of the
Corporation, present in person or by proxy, shall constitute a
quorum for any meeting. The Shareholders present in person or by
proxy, whether or not a quorum be present, may adjourn the
meeting from time to time without notice other than by
announcement at the meeting.
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In any other matter brought before any meeting of
Shareholders, the affirmative vote of the holders of shares
representing a majority of the votes actually cast shall be the
act of the Shareholders provided, however, that no action
required by law, the Articles, or these Regulations to be
authorized or taken by the holders of a designated proportion of
the shares of the Corporation may be authorized or taken by a
lesser proportion.
Section 7. Organization of Meetings.
7.1 Presiding Officer. The Chairman of the Board, or
in his absence the President, or the person designated by
the Board of Directors, shall call all meetings of the
Shareholders to order and shall act as Chairman thereof; if
all are absent, the Shareholders shall elect a Chairman.
7.2 Minutes. The Secretary of the Corporation, or in his
absence, an Assistant Secretary, or, in the absence of both, a
person appointed by the Chairman of the meeting, shall act as
Secretary of the meeting and shall keep and make a record of the
proceedings thereat.
Section 8. Voting. Except as provided by statute or in the
Articles, every Shareholder entitled to vote shall be entitled to
cast one vote on each proposal submitted to the meeting for each
share held of record on the record date for the determination of
the Shareholders entitled to vote at the meeting. At any meeting
at which a quorum is present, all questions and business which
may come before the meeting shall be determined by a majority of
votes cast, except when a greater proportion is required by law,
the Articles, or these Regulations.
Section 9. Proxies. A person who is entitled to attend a
Shareholders' meeting, to vote thereat, or to execute consents,
waivers and releases, may be represented at such meeting or vote
thereat, and execute consents, waivers, and releases and exercise
any of his rights, by proxy or proxies appointed by a writing
signed by such person, or by his duly authorized attorney which
may be transmitted physically, by facsimile or by other
electronic medium.
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Section 10. List of Shareholders. At any meeting of Sharehol
ders a list of Shareholders, alphabetically arranged, showing the
number and classes of shares held by each on the record date
applicable to such meeting, shall be produced on the request of
any Shareholder.
ARTICLE II
Directors
Section 1. General Powers.
The authority of this Corporation shall be exercised by or
under the direction of the Board of Directors, except where the
law, the Articles or these Regulations require action to be
authorized or taken by the Shareholders.
Section 2. Election, Number and Qualification of Directors.
2.1 Election. The Directors shall be elected at the annual
meeting of the Shareholders, or if not so elected, at a special
meeting of Shareholders called for that purpose. The only
candidates who shall be eligible for election at such meeting
shall be those who have been nominated by or at the direction of
the Board of Directors (which nominations shall be either made at
such meeting or disclosed in a proxy statement, or supplement
thereto, distributed to Shareholders for such meeting or at the
direction of the Board of Directors) and those who have been
nominated at such meeting by a Shareholder who has complied with
the procedures set forth in this Section 2. A Shareholder may
make a nomination for the office of director only if such
Shareholder has first delivered or sent by certified mail, return
receipt requested, to the Secretary of the Corporation notice in
writing at least five and no more than thirty days prior to such
meeting of Shareholders, which notice shall set forth or be
accompanied by (a) the name and residence of such Shareholder;
(b) a representation that such Shareholder is a holder of record
of voting stock of the Corporation and intends to appear in
person or by proxy at such meeting to nominate the person or
persons specified in the notice; (c) the name and residence of
each such nominee; and (d) the consent of such nominee to serve
as director if so elected.
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<PAGE>
2.2 Number. The number of Directors, which shall not be
less than the lesser of three or the number of Shareholders of
record, may be fixed or changed at a meeting of the Shareholders
called for the purpose of electing Directors at which a quorum is
present, by the affirmative vote of the holders of a majority of
the shares represented at the meeting and entitled to vote on
such proposal. In addition, the number of Directors may be fixed
or changed by action of the Directors at any meeting at which a
quorum is present by a majority vote of the Directors present at
the meeting. The Directors then in office may fill any
Director's office that is created by an increase in the number of
Directors. The number of Directors elected shall be deemed to be
the number of Directors fixed unless otherwise fixed by
resolution adopted at the meeting at which such Directors are
elected.
2.3 Qualifications. Directors need not be Shareholders of
the Corporation.
Section 3. Term of Office of Directors.
3.1 Term. Each Director shall hold office until the next
annual meeting of the Shareholders and until his successor has
been elected or until his earlier resignation, removal from
office, or death. Directors shall be subject to removal as
provided by statute or by other lawful procedures and nothing
herein shall be construed to prevent the removal of any or all
Directors in accordance therewith.
3.2 Resignation. A resignation from the Board of Directors
shall be deemed to take effect immediately upon its being
received by any incumbent corporate officer other than an officer
who is also the resigning Director, unless some other time is
specified therein.
3.3 Vacancy. In the event of any vacancy in the Board of
Directors for any reason, the remaining Directors, though less
than a majority of the whole Board, may fill any such vacancy for
the unexpired term.
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Section 4. Meetings of Directors.
4.1 Regular Meetings. Regular meetings of the Board of
Directors shall be held at such times and places as may be fixed
by the Directors.
4.2 Special Meetings. Special Meetings of the Board of
Directors may be held at any time upon call of the Chairman of
the Board, the President, any Vice President, or any two Direc
tors.
4.3 Place of Meeting. Any meeting of Directors may be held
at such place within or without the State of Ohio as may be
designated in the notice of said meeting.
4.4 Notice of Meeting and Waiver of Notice. Notice of the
time and place of any regular or special meeting of the Board of
Directors shall be given to each Director by personal delivery,
telephone, facsimile transmission or mail at least forty-eight
hours before the meeting, which notice need not specify the
purpose of the meeting.
Section 5. Quorum and Voting.
At any meeting of Directors, not less than one-half of the
whole authorized number of Directors is necessary to constitute a
quorum for such meeting, except that a majority of the remaining
Directors in office shall constitute a quorum for filling a
vacancy in the Board. At any meeting at which a quorum is
present, all acts, questions, and business which may come before
the meeting shall be determined by a majority of votes cast by
the Directors present at such meeting, unless the vote of a
greater number is required by the Articles or Regulations.
Section 6. Committees.
6.1 Appointment. The Board of Directors may from time to
time appoint certain of its members to act as a committee or
committees in the intervals between meetings of the Board and may
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<PAGE>
delegate to such committee or committees power to be exercised
under the control and direction of the Board. Each committee
shall be composed of at least three directors unless a lesser
number is allowed by law. Each such committee and each member
thereof shall serve at the pleasure of the Board.
6.2 Executive Committee. In particular, the Board of
Directors may create from its membership and define the powers
and duties of an Executive Committee. During the intervals
between meetings of the Board of Directors, the Executive Commit
tee shall possess and may exercise all of the powers of the Board
of Directors in the management and control and the business of
the
Corporation to the extent permitted by law. All action taken by
the Executive Committee shall be reported to the Board of
Directors at its first meeting thereafter.
6.3 Committee Action. Unless otherwise provided by the
Board of Directors, a majority of the members of any committee
appointed by the Board of Directors pursuant to this Section
shall constitute a quorum at any meeting thereof and the act of
a majority of the members present at a meeting at which a quorum
is present shall be the act of such committee. Any such
committee shall prescribe its own rules for calling and holding
meetings and its method of procedure, subject to any rules
prescribed by the Board of Directors, and shall keep a written
record of all action taken by it.
Section 7. Action of Directors Without a Meeting.
Any action which may be taken at a meeting of Directors or
any committee thereof may be taken without a meeting if
authorized by a writing or writings signed by all the Directors
or all of the members of the particular committee, which writing
or writings shall be filed or entered upon the records of the
Corporation.
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<PAGE>
Section 8. Compensation of Directors.
The Board of Directors may allow compensation to directors
for performance of their duties and for attendance at meetings or
for any special services, may allow compensation to members of
any committee, and may reimburse any Director for his expenses in
connection with attending any Board or committee meeting.
Section 9. Relationship with Corporation.
Directors shall not be barred from providing professional or
other services to the Corporation. No contract, action or
transaction shall be void or voidable with respect to the Cor
poration for the reason that it is between or affects the Corpora
tion and one or more of its Directors, or between or affects the
Corporation and any other person in which one or more of its
Directors are directors, trustees or officers or have a financial
or personal interest, or for the reason that one or more inter
ested Directors participate in or vote at the meeting of the
Directors or committee thereof that authorizes such contract,
action or transaction, if in any such case any of the following
apply:
9.1 the material facts as to the Director's relationship or
interest and as to the contract, action or transaction are
disclosed or are known to the Directors or the committee and the
Directors or committee, in good faith, reasonably justified by
such facts, authorize the contract, action or transaction by
the affirmative vote of a majority of the disinterested
Directors, even though the disinterested Directors constitute less
than a quorum;
9.2 the material facts as to the Director's relationship or
interest and as to the contract, action or transaction are
disclosed or are known to the shareholders entitled to vote
thereon and the contract, action or transaction is specifically
approved at a meeting of the shareholders held for such purpose
by the affirmative vote of the holders of shares entitling them
to exercise a majority of the voting power of the Corporation
held by persons not interested in the contract, action or
transaction; or
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<PAGE>
9.3 the contract, action or transaction is fair as to the
Corporation as of the time it is authorized or approved by the
Directors, a committee thereof or the shareholders.
Section 10. Attendance at Meetings of Persons
Who Are Not Directors
Unless waived by a majority of Directors in attendance, not
less than twenty-four (24) hours before any regular or special
meeting of the Board of Directors, any Director who desires the
presence at such meeting of a person who is not a Director shall
so notify all other Directors, request the presence of such
person at the meeting, and state the reason in writing. Such
person will not be permitted to attend the Directors' meeting
unless a majority of the Directors in attendance vote to admit
such person to the meeting. Such vote shall constitute the first
order of business for any such meeting of the Board of Directors.
Such right to attend, whether granted by waiver or vote, may be
revoked at any time during any such meeting by the vote of a
majority of the Directors in attendance.
ARTICLE III
Officers
Section 1. General Provisions.
The Board of Directors shall elect a President, a Secretary
and a Treasurer, and may elect a Chairman of the Board, a Chief
Executive Officer, one or more Vice Presidents, and such other
officers and assistant officers as the Board may from time-to-
time deem necessary. The Chairman of the Board, if any, shall be
a Director, but none of the other officers need be a Director.
Any two or more offices may be held by the same person, but no
officer shall execute, acknowledge or verify any instrument in
more than one capacity if such instrument is required to be
executed, acknowledged or verified by two or more officers.
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<PAGE>
Section 2. Powers and Duties.
All officers, as between themselves and the Corporation,
shall respectively have such authority and perform such duties as
are customarily incident to their respective offices, and as may
be specified from time to time by the Board of Directors, regard
less of whether such authority and duties are customarily inci
dent to such office. The Chief Executive Officer shall also
serve either
as Chairman of the Board or President and shall have plenary
power over the business and activities of the Corporation and
over its officers and employees, subject, however, to the control
of the Board of Directors and any limitations thereon contained
in these Regulations. In the absence of any officer of the Cor
poration, or for any other reason the Board of Directors may deem
sufficient, the powers or duties of such officer, or any of them
may be delegated to any other officer or to any Director. The
Board of Directors may from time to time delegate to any officer
authority to appoint and remove subordinate officers and to pre
scribe their authority and duties.
Section 3. Term of Office and Removal.
3.1 Term. Each officer of the Corporation shall hold
office at the pleasure of the Board of Directors.
3.2 Removal. The Board of Directors may remove any officer
at any time with or without cause by the affirmative vote of a
majority of Directors in office.
Section 4. Compensation of Officers.
The Directors shall establish the compensation of officers
and employees or may, to the extent not prohibited by law,
delegate such authority to one or more officers or Directors as
they determine.
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<PAGE>
ARTICLE IV
Indemnification
Section 1. Right to Indemnification.
Each person who was or is made a party or is threatened to
be made a party to or is otherwise involved (including, without
limitation, as a witness) in any actual or threatened action,
suit, or proceeding, whether civil, criminal, administrative, or
investigative (hereinafter a "proceeding"), by reason of the fact
that he or she is or was a director or officer of the Corporation
or that, being or having been such a director or officer of the
Corporation, he or she is or was serving at the request of an
executive officer of the Corporation as a director, officer,
partner, employee, or agent of another corporation or of a
partnership, joint venture, trust, limited liability company, or
other enterprise, including service with respect to an employee
benefit plan (hereinafter an "indemnitee"), whether the basis of
such proceeding is alleged action in an official capacity as such
a director, officer, partner, employee, or agent, shall be
indemnified and held harmless by the Corporation to the fullest
extent permitted by the General Corporation Law of Ohio, as the
same exists or may hereafter be amended (but, in the case of any
such amendment, only to the extent that such amendment permits
the Corporation to provide broader indemnification rights than
permitted prior thereto), or by other applicable law as then in
effect, against all expense, liability, and loss (including,
without limitation, attorneys' fees, costs of investigation,
judgments, fines, excise taxes or penalties arising under the
Employee Retirement Income Security Act of 1974 ("ERISA") or
other federal or state acts) actually incurred or suffered by
such indemnitee in connection therewith and such indemnification
shall continue as to an indemnitee who has ceased to be a
director, officer, employee, or agent and shall inure to the
benefit of the indemnitee's heirs, executors, and administrators.
Except as provided in Section 2 with respect to proceedings
seeking to enforce rights to indemnification, the Corporation
shall indemnify any such indemnitee in connection with a
proceeding (or part thereof) initiated by such indemnitee only if
such proceeding (or part thereof) was authorized or ratified by
the Board of Directors of the Corporation.
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<PAGE>
The right to indemnification conferred in this Section 1
shall be a contract right and shall include the right to be paid
by the Corporation the expenses incurred in defending any such
proceeding in advance of its final disposition (hereinafter an
"advancement of expenses"). An advancement of expenses incurred
by an indemnitee in his or her capacity as a director, officer or
employee (and not in any other capacity in which service was or
is rendered by such indemnitee including, without limitation,
service to an employee benefit plan) shall be made only upon
delivery to the Corporation of an undertaking, by or on behalf of
such indemnitee to repay all amounts so advanced if it is proved
by clear and convincing evidence in a court of competent
jurisdiction that his omission or failure to act involved an act
or omission undertaken with deliberate intent to cause injury to
the Corporation or undertaken with reckless disregard for the
best interests of the Corporation. An advancement of expenses
shall not be made if the Corporation's Board of Directors makes a
good faith determination that such payment would violate
applicable law.
Section 2. Right of Indemnitee to Bring Suit.
If a claim under Section 1 is not paid in full by the
Corporation within thirty days after a written claim has been
received by the Corporation, except in the case of a claim for an
advancement of expenses, in which case the applicable period
shall be twenty days, the indemnitee may at any time thereafter
bring suit against the Corporation to recover the unpaid amount
of the claim. If successful in whole or in part in any such
suit, or in a suit brought by the Corporation to recover an
advancement of expenses pursuant to the terms of an undertaking,
the indemnitee shall also be entitled to be paid the expense of
prosecuting or defending such suit. The indemnitee shall be
presumed to be entitled to indemnification under this Article IV
upon submission of a written claim (and, in an action brought to
enforce a claim for an advancement of expenses, where the
required undertaking has been tendered to the Corporation), and
thereafter the Corporation shall have the burden of proof to
overcome the presumption that the indemnitee is not so entitled.
Neither the failure of the Corporation (including its Board of
Directors, independent legal counsel, or its shareholders) to
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<PAGE>
have made a determination prior to the commencement of such suit
that indemnification of the indemnitee is proper in the
circumstances, nor an actual determination by the Corporation
(including its Board of Directors, independent legal counsel or
its shareholders) that the indemnitee is not entitled to
indemnification shall be a defense to the suit or create a
presumption that the indemnitee is not so entitled.
Section 3. Nonexclusivity and Survival of Rights.
The rights to indemnification and to the advancement of
expenses conferred in this Article IV shall not be exclusive of
any other right which any person may have or hereafter acquire
under any statute, provisions of the Articles of Incorporation,
Code of Regulations, agreement, vote of shareholders or
disinterested directors, or otherwise.
Notwithstanding any amendment to or repeal of this Article
IV, or of any of the procedures established by the Board of
Directors pursuant to Section 6, any indemnitee shall be entitled
to indemnification in accordance with the provisions hereof and
thereof with respect to any acts or omissions of such indemnitee
occurring prior to such amendment or repeal.
Without limiting the generality of the foregoing paragraph,
the rights to indemnification and to the advancement of expenses
conferred in this Article IV shall, notwithstanding any amendment
to or repeal of this Article IV, inure to the benefit of any
person who otherwise may be entitled to be indemnified pursuant
to this Article IV (or the estate or personal representative of
such person) for a period of six years after the date such
person's service to or in behalf of the Corporation shall have
terminated or for such longer period as may be required in the
event of a lengthening in the applicable statute of limitations.
Section 4. Insurance, Contracts, and Funding.
The Corporation may maintain insurance, at its expense, to
protect itself and any director, officer, employee, or agent of
the Corporation or another corporation, partnership, joint
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<PAGE>
venture, trust, or other enterprise against any expense,
liability, or loss, whether or not the Corporation would have the
power to indemnify such person against such expense, liability,
or loss under the General Corporation Law of Ohio. The
Corporation may enter into contracts with any indemnitee in
furtherance of the provisions of this Article IV and may create a
trust fund, grant a security interest, or use other means
(including, without limitation, a letter of credit) to ensure the
payment of such amounts as may be necessary to effect
indemnification as provided in this Article IV.
Section 5. Indemnification of Employees and Agents
of the Corporation.
The Corporation may, by action of its Board of Directors,
authorize one or more executive officers to grant rights to
advancement of expenses to employees or agents of the Corporation
on such terms and conditions no less stringent than provided in
Section 1 hereof as such officer or officers deem appropriate
under the circumstances. The Corporation may, by action of its
Board of Directors, grant rights to indemnification and
advancement of expenses to employees or agents or groups of
employees or agents of the Corporation with the same scope and
effect as the provisions of this Article IV with respect to the
indemnification and advancement of expenses of directors and
officers of the Corporation; provided, however, that an
undertaking shall be made by an employee or agent only if
required by the Board of Directors.
Section 6. Procedures for the Submission of Claims.
The Board of Directors may establish reasonable procedures
for the submission of claims for indemnification pursuant to this
Article IV, determination of the entitlement of any person
thereto, and review of any such determination. Such procedures
shall be set forth in an appendix to these Code of Regulations
and shall be deemed for all purposes to be a part hereof.
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<PAGE>
ARTICLE V
Amendments
This Code of Regulations may be amended by the affirmative
vote or the written consent of the Shareholders entitled to
exercise a majority of the voting power on such proposal. If an
amendment is adopted by written consent the Secretary shall mail
a copy of such amendment to each Shareholder who would be
entitled to vote thereon and did not participate in the adoption
thereof. This Code of Regulations may also be amended by the
affirmative vote of a majority of the directors to the extent
permitted by Ohio law at the time of such amendment.
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FORM 5 [Outside Director]
AMERICAN PREMIER GROUP, INC.
STOCK OPTION AGREEMENT
Subject and pursuant to the provisions of the American
Premier Group, Inc. Stock Option Plan (the "Plan"),
__________________________________ (the "Optionee") is hereby
granted the option (the "Option") to purchase _______________
_________________________ (________) fully paid and
non-assessable shares of Common Stock, $1.00 par value (the
"Shares"), of American Premier Group, Inc., an Ohio corporation
(the "Company"), upon and subject to the following terms and
conditions:
1. Option Price. The price at which each Share may be
purchased pursuant to the Option is $_______ per share.
2. Duration of Option. Except as otherwise provided
herein, the Option shall expire, and all rights to purchase
Shares pursuant thereto shall cease, on the third day after the
tenth anniversary of the date of grant of the Option (the
"Expiration Date"), as set forth below.
3. Designation as Non-Incentive Option. The Option is
designated a "Non-Incentive Option" (which term, as used herein,
shall mean an option not intended to be an "incentive stock
option" within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code")).
4. Vesting of Option. The Option is fully exercisable
and vested as of the date on which the Option was granted.
5. Merger, Consolidation, Etc. In the event that the
Company shall, pursuant to action by its Board of Directors, at
any time propose to merge into, consolidate with, or sell or
otherwise transfer all or substantially all of its assets to
another corporation and provision is not made pursuant to the
terms of such transaction for the assumption by the surviving,
resulting or acquiring corporation of the Option, or for the
substitution of a new option therefor, a committee of the Board
of Directors designated by the Board of Directors (the
"Committee") shall cause written notice of the proposed
transaction to be given to the Optionee not less than 40 days
prior to the anticipated effective date of the proposed
transaction, and, prior to a date specified in such notice, which
shall be not more than 10
<PAGE>
days prior to the anticipated effective date of the proposed
transaction, the Optionee shall have the right to exercise the
Option to purchase any or all Shares then subject to the Option,
including those, if any, which by reason of
other provisions of the Option have not then become available for
purchase. The Optionee, by so notifying the Company in writing,
may, in exercising the Option, condition such exercise upon, and
provide that such exercise shall become effective at the time of,
but immediately prior to, the consummation of the transaction, in
which event the Optionee need not make payment for the Shares to
be purchased upon exercise of the Option until 5 days after
written notice by the Company to the Optionee that the
transaction has been consummated. If the transaction is
consummated, the Option, to the extent not previously exercised
prior to the date specified in the foregoing notice, shall
terminate on the effective date of such consummation. If the
transaction is abandoned, any Shares not purchased upon exercise
of the Option shall continue to be available for purchase in
accordance with the other provisions of the Option.
6. Exercise of Option. A person entitled to exercise
the Option may exercise it in whole at any time, or in part from
time to time, by delivering to the Secretary of the Company
written notice specifying the number of Shares with respect to
which the Option is being exercised, together with payment in
full of the purchase price of such Shares plus any applicable
federal, state or local taxes for which the Company (or a
Subsidiary (as defined below)) has a withholding obligation in
connection with such exercise. Such payment shall be made in
whole or in part: (i) in cash or by personal check, money market
check, certified check, or bank draft to the order of the
Company, (ii) by the exchange of Common Stock of the Company
acquired by the person entitled to exercise the Option more than
6 months prior to the date of exercise and having a "fair market
value" on the date of exercise at least equal to the price for
which the Shares may be purchased pursuant to the Option plus any
applicable federal, state or local taxes for which the Company
(or a Subsidiary) has a withholding obligation as noted above
(including any such taxes with respect to income recognized by
the Optionee upon the disposition of the Common Stock of the
Company used to effect such exchange) or (iii) by a promissory
note payable to the Company, but only in accordance with the
provisions of, and if the Optionee is at the time of exercise
otherwise eligible under, the Company's Stock Option Loan
Program, or any successor program, as in effect from time to time
(the "Loan Program"), (a) in a principal amount up to 100% of the
payment or such applicable lower percentage as may be specified
by the Committee pursuant to the Loan Program and (b) bearing
interest at a rate not less than the applicable test rate
prescribed under Section 483 of the Code, or any successor
provision, or such higher rate as may be specified by the
Committee pursuant to the Loan Program. Notwithstanding the
foregoing, the Committee may, in its sole discretion, authorize
such payment, in whole or in part, in any other form. As used
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<PAGE>
herein, the term "Subsidiary" means any domestic or foreign
corporation, at least 50% of the outstanding voting stock or
voting power of which is beneficially owned, directly or
indirectly, by the Company. The "fair market value" of the
Shares on any date shall be the mean between the high and low
prices of the Shares on such date on the New York Stock Exchange
Composite Tape (or the principal market in which the Shares are
traded, if the Shares are not listed on that Exchange on such
date), or if the Shares were not
traded on such date, the mean between the high and low prices of
the Shares on the next preceding trading day during which the
Shares were traded.
7. Nontransferability. The Option shall not be
transferable other than by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order
as defined by the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder.
Options may be exercised, during the lifetime of the Optionee,
only by the Optionee.
8. Termination of Service. In the event of the
Optionee's termination of service as a member of the Board of
Directors for any reason, the Option shall terminate on (i) the
date which is the later of (a) 90 days from the date of such
termination of service or (b) six months and ten days after such
Optionee's last purchase or sale of Shares prior to his or her
ceasing to be a member of the Board of Directors or (ii) its
Expiration Date, whichever shall first occur.
9. No Rights as Stockholder. The Optionee shall not
have any rights as a stockholder of the Company with respect to
any Shares prior to the date of issuance to the Optionee of the
certificate or certificates for such Shares.
10. Issuance of Shares; Restrictions.
(i) Subject to the conditions and restrictions
provided in this Paragraph 10, the Company shall,
within twenty business days after the Option has been
duly exercised in whole or in part, deliver to the
person who exercised the Option a certificate,
registered in the name of such person, for the number
of Shares with respect to which the Option has been
exercised. The Company may legend any stock
certificate issued hereunder to reflect any
restrictions provided for in this Paragraph 10.
(ii) Unless the Shares subject to the Option have
been registered under the Securities Act of 1933, as
amended (the "Act"), (and, if the Optionee may be
deemed an "affiliate" of the Company as defined in Rule
405 under the Act, such Shares have been registered
under the Act for resale by the Optionee), or the
Company has determined that an exemption from
registration is available, the Company may require
prior to and as a condition of
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<PAGE>
the issuance of any Shares that the person exercising the Option
furnish the Company with a written representation in a form
prescribed by the Committee to the effect that such person is
acquiring such Shares solely with a view to investment for such
person's own account and not with a view to the resale or
distribution of all or any part thereof, and that such person
will not dispose of any such Shares otherwise than in accordance
with the provisions of Rule 144 under the Act unless and until
either the Shares are registered under the Act or the Company is
satisfied that an exemption for such registration is available.
(iii) Anything contained herein to the contrary
notwithstanding, the Company shall not be obligated to
sell or issue any Shares pursuant to the Option unless
and until the Company is satisfied that such sale or
issuance complies with (a) all applicable requirements
of the New York Stock Exchange (or the governing
body of the principal market in which such Shares are
traded, if such Shares are not then listed on that
Exchange), (b) all applicable provisions of the Act and
(c) all other laws or regulations by which the Company
is bound or to which the Company is subject.
11. Adjustments. The number of Shares and the Option
price for Shares covered by the Option shall be proportionately
adjusted for any increase or decrease in the number of issued
Shares resulting from any stock dividend, stock split or similar
event, any other capital adjustment (including a reclassification
of Shares or recapitalization or reorganization of the Company),
or the distribution to holders of Shares of rights, warrants,
assets or evidences of indebtedness (other than regular cash
dividends) in such manner as the Committee in its sole judgment
determines to be equitable.
12. Optionee Acknowledgement. Optionee acknowledges
receipt of a copy of the Plan, as amended. Optionee hereby agrees
to accept as final and conclusive all determinations,
interpretations and constructions made by the Committee pursuant
to the Plan and the Option.
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<PAGE>
Date of Grant: June 1, ______
(Corporate Seal) AMERICAN PREMIER GROUP, INC.
Attest: By__________________________
Robert W. Olson
Senior Vice President
and Secretary
_________________________
Pamela S. Meyers
Assistant Secretary
____________________________
Optionee
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AMERICAN FINANCIAL GROUP, INC.
STOCK OPTION LOAN PROGRAM
Adopted on January 26, 1984,
as amended March 28, 1985,
February 8, 1991
and April 3, 1995
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
STOCK OPTION LOAN PROGRAM
1. Purpose
The purpose of the Stock Option Loan Program (the "Loan Prog
ram") is to assist in the exercise of options granted under the
American Financial Group, Inc. (the "Company") Stock Option Plan
(the "Plan"). Consistent with this purpose, the Loan Program aut
horizes the Company to make loans to certain participants in the
Plan on the terms and conditions hereinafter set forth. Unless
otherwise defined herein, terms defined in the Plan shall have
the same meaning herein as in the Plan.
2. Administration
The Loan Program shall be administered by the Compensation
Committee or a successor committee or subcommittee (the "Commit
tee") of the Board of Directors of the Company (the "Board").
Subject to the express provisions of the Loan Program, the
Committee shall have exclusive power to determine those individu
als who shall be eligible to participate in the Loan Program and
the terms and conditions to which loans under the Loan Program
(the "Loans") may be subject. Subject again to the express
provisions of the Loan Program, the Committee shall have full and
final authority to interpret the Loan Program and establish,
adopt or revise such rules and regulations and to make all
determinations relating to the Loan Program as it may, from time
to time, deem necessary or advisable for the administration of
the Loan Program. The Committee's interpretation of the Loan
Program and all of its actions and decisions with respect to the
Loan Program shall be final, binding and conclusive on all par
ties.
3. Options For Which Loan Program Is Available
The Loan Program shall be available in connection with the
exercise by Eligible Participants (as defined in Paragraph 4
hereof) of all Incentive Options granted on or after January 26,
1984 and all Non-Incentive Options, regardless of the date of
grant.
4. Eligible Participants
Eligible Participants shall be Employees and directors of
the Company who are Participants in the Plan as such Eligible
Participants may be limited from time to time by the Committee.
The term "Employee" shall mean any person (including any officer)
employed by the Company or a Subsidiary on a full-time salaried
basis. The term "Subsidiary" shall mean any corporation a majori
ty of the outstanding voting stock or voting power of which is
beneficially owned directly or indirectly by the Company. The
term "Participant" shall mean an Eligible Participant who obtains
a Loan pursuant to this Loan Program.
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<PAGE>
5. Terms and Conditions of Loans
Each Loan shall be evidenced by a written secured promissory
note (a "Note") from the Participant payable to the order of the
Company in such form as shall comply with the applicable terms
and conditions of the Loan Program. In addition, any Note may
include or contain other terms and conditions that are not incon
sistent with the provisions of the Loan Program.
(a) Timing and Amount of Loan
Except as otherwise provided in the last sentence of
this subparagraph (a), an Eligible Participant may obtain a
Loan only at the time of, and in connection with, the
exercise of an Option for which the Loan Program is avail
able, as described in Paragraph 3 hereof. An Eligible
Participant may borrow up to 95% of the purchase price of
the Shares with respect to which the Option is being exer
cised and up to 100% of the applicable federal, state or
local taxes for which the Company (or a Subsidiary) has a
withholding obligation in connection with such exercise, and
proceeds of the Loan may be used only for such purposes. An
Eligible Participant may obtain a Loan at a time subsequent
to the time of exercise of an Option for the purpose of
satisfying any applicable taxes for which there is a with
holding obligation which arises at such subsequent time
rather than at the time of exercise.
(b) Interest Rate and Payments
Each Note shall accrue and bear interest compound
ed on each June 30 and December 31 at a rate per annum
equal to:
(i) except as otherwise provided in clauses (ii)
and (iii) of this subparagraph (b), the rate per
annum publicly announced from time to time by
Chemical Bank, New York, New York, as the prime
rate in effect for 90-day loans to prime commer
cial customers as such prime rate is in effect at
the beginning of each such quarter, provided,
however, that such interest rate shall in no case
be less than the test rate prescribed under Sec
tions 483, 1274 or 7872 of the United States In
ternal Revenue Code (the "Code"), if applicable,
or any successor provisions;
(ii) if the Loan was obtained in connection with
the exercise of an Incentive Option granted on or
after February 8, 1991 or a Non-Incentive Option,
the applicable short-term or mid-term federal rate
for loans compounded semiannually in effect under
Section 7872 of the Code, or any successor provi
sion, as of the date of the Loan;
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<PAGE>
(iii) if the Loan was outstanding on February 8,
1991, the applicable short-term federal rate for
loans compounded semiannually in effect under
section 7872 of the Code as of February 8, 1991.
Interest shall be payable at the same time as the
principal of the Note shall be payable.
(c) Term of Loan
Each Loan shall become due and payable upon the
first to occur of any of the following events:
(i) (x) except as otherwise provided in
clause (y) of this clause (i) of this subparagraph
(c), the day of the eighteenth month after the
date of the Loan which corresponds to the date of
the Loan (or if such month does not have a corre
sponding day, then on the last day of such
eighteenth month); (y) if the Loan was obtained in
connection with the exercise of an Incentive
Option granted on or after February 8, 1991 or a
Non-Incentive Option or if the Loan was
outstanding on February 8, 1991, the day of the
sixtieth month (or any shorter period of months
not less than six that may be specified by the
Participant) after the date of the Loan (or if
such month does not have a corresponding day, then
on the last day of such month);
(ii) failure of the Participant to maintain a
margin of collateral pledged with the Company,
consisting of the Shares, the purchase of which is
being financed by the Loan to the Participant (or
other collateral acceptable to a financial officer
of the Company), sufficient to cause the Loan
(including the accrued and unpaid interest thereon
to the end of the most recent calendar quarter of
a year) not to exceed 95% of the value of the
pledged collateral, or such other ratio of the
Loan and the interest thereon to the value of the
collateral as may be required by any law, rule or
regulation of the United States, any state, or any
federal or state board, commission, agency or
service;
(iii) the voluntary bankruptcy or insolvency of
the Participant (or admission thereof by the Par
ticipant), or the seeking of relief by the Partic
ipant under a statute for the relief of debtors,
or the failure of the Participant promptly to
cause the discharge of a creditor action brought
against the Participant under the Bankruptcy Code
or other bankruptcy or insolvency law;
-4-
<PAGE>
(iv) thirty (30) days after the termination of
the employment of the Participant as an employee
of the Company or a Subsidiary of the Company, or
thirty (30) days after the Participant ceases to
be a director of the Company, unless the Committee
authorizes the extension of such thirty (30) day
period; provided, however, that if (x) the Partic
ipant is a former director or officer of the Com
pany subject to the provisions of Section 16(a) of
the Securities Exchange Act of 1934 and (y) the
Loan was obtained in connection with the exercise
of an Incentive Option granted on or after March
28, 1985 or a Non-Incentive Option, such Loan
shall become due and payable on the date which is
the later of 30 days from the date of such termi
nation of employment or six (6) months and ten
(10) days after such director's or officer's last
purchase or sale of Shares prior to his ceasing to
be such a director or officer; further, provided
that (a) transfer of employment of an employee
between the Company and a Subsidiary or between
Subsidiaries of the Company shall not constitute a
termination of employment, (b) the Committee may
determine whether a leave of absence is for the
purpose of the Loan a termination of employment
and (c) in the event of the death of a Participant
while employed by the Company or a Subsidiary, or
while serving as a director of the Company, the
personal representative of the Participant will be
afforded a period of time (to be specified in the
Note) in which to assume the obligations provided
for in the Note, and upon such assumption the
payment date of the Loan will not be accelerated
by reason of the death of the Participant; or
(v) failure of the Participant to observe or
perform any other provision of the Note applicable
to it.
(d) Pledge of Shares
The Shares purchased upon exercise of the Option with
respect to which the Loan is made shall be pledged by the Pa
rticipant to the Company in order to secure the payment of
the principal of and interest on the Loan including any
taxes required to be withheld by the Company. The Partici
pant shall be entitled to all dividends and distributions
which may be paid on the Shares (except that dividends
payable in stock of the Company shall be retained by the
Company and pledged to secure the Loan) and to all voting
rights with respect to such Shares. The Company may place a
legend on any Share certificate to reflect any restrictions
provided for in this Loan Program.
-5-
<PAGE>
(e) Prepayment
The Loan may be prepaid in whole or in part by the Par
ticipant at any time and pledged Shares shall be released
from pledge in approximate proportion to the amount of the
Loan prepaid except to the extent that the retention of
Shares by the Company is necessary to maintain the required
ratio of the value of the pledged Shares to the unpaid
amount of the Loan and the accrued interest thereon.
(f) Default
In the event, the Participant shall fail to pay any
amount due under the terms of the Note including any amount
becoming due and payable by acceleration of its payment
date, the Company upon giving notice to the Participant may
sell the pledged Shares (or other pledged collateral) and
shall be entitled to deduct from the proceeds its costs and
expenses of enforcing payment of the Note and liquidation of
the collateral, the unpaid interest on the Note and the
unpaid principal of the Note before remitting the balance to
the Participant. In the event, the liquidation of the
pledged collateral shall not provide funds sufficient to pay
the entire unpaid principal of and interest on the Note and
the costs and expenses of enforcing payment of the Note, the
Participant shall be liable to the Company for the amount of
such deficiency.
6. Miscellaneous
(a) Government and Other Regulations
The obligation of the Company to make Loans to Eligible
Participants, and each Loan made to an Eligible Participant,
shall be subject to all applicable laws, rules and regula
tions and to any required approvals by governmental agen
cies.
(b) No Employment Rights
Neither this Loan Program nor any action taken hereun
der shall be construed as conferring on any Employee any rig
ht to continue in the employ of the Company or a Subsidiary
or affect in any way the right of the Company or a
Subsidiary to terminate the employment of any Employee at
any time.
(c) Nontransferability
A Participant's rights and interests under the Loan
Program may not be assigned, pledged or transferred except
that in the event of the death of a Participant, while an
employee or director, the personal representative may assume
and succeed to the rights and obligations of the Partici
pant.
-6-
<PAGE>
(d) Applicable Law
The Loan Program and all other governing documents,
agreements and instruments and all actions taken hereunder
shall be governed by the laws of the State of New York.
7. Amendment and Termination
The Board may at any time terminate the Loan Program. The
Board or Committee may at any time, or from time to time, amend
or suspend and, if suspended reinstate, the Loan Program in whole
or in part. Notwithstanding the foregoing, the Loan Program
shall continue in effect to the extent necessary to settle all
matters relating to Loans made prior to any such termination or
suspension.
-7-
AMERICAN FINANCIAL CORPORATION
ANNUAL BONUS PLAN
Adopted on January 17, 1996
<PAGE>
AMERICAN FINANCIAL CORPORATION
ANNUAL BONUS PLAN
1. PURPOSE
The purpose of the Annual Bonus Plan (the "Plan") is to
further the profitability of American Financial Corporation, and
its subsidiaries and affiliates (the "Company") to the benefit of
the shareholders of the Company by providing incentive to the
Plan participants.
2. ADMINISTRATION
Except as otherwise expressly provided herein, the Plan
shall be administered by the Compensation Committee or a
successor committee or subcommittee (the "Committee") of the
Board of Directors of the Company (the "Board") composed solely
of two or more "outside directors" as defined pursuant to Section
162(m) of the Internal Revenue Code. No member of the Committee
while serving as such shall be eligible to be granted a bonus
under the Plan. Subject to the provisions of the Plan (and to
the approval of the Board where specified in the Plan), the
Committee shall have exclusive power to determine the conditions
(including performance requirements) to which the payment of the
bonuses may be subject and to certify that performance goals are
attained. Subject to the provisions of the Plan, the Committee
shall have the authority to interpret the Plan and establish,
adopt or revise such rules and regulations and to make all
determinations relating to the Plan as it may deem necessary or
advisable for the administration of the Plan. The Committee's
interpretation of the Plan and all of its actions and decisions
with respect to the Plan shall be final, binding and conclusive
on all parties.
3. PLAN TERM AND BONUS YEARS
The term of the Plan is one year, commencing January 1,
1996, which term shall be renewed from year to year unless and
until the Plan shall be terminated or suspended as provided in
Section 9. As used in the Plan the term "Bonus Year" shall mean
a calendar year.
4. PARTICIPATION
Subject to the approval of the Committee and the Board of
Directors (based on the recommendation of the Committee),
management of the Company shall suggest those persons who are
deemed to be key employees of the Company for participation in
the Plan (the "Participants").
<PAGE>
5. ESTABLISHMENT OF INDIVIDUAL BONUS TARGETS AND PERFORMANCE
CRITERIA
The Committee shall establish the individual target amount
of bonus (the "Bonus Target") that may be awarded to each
Participant and recommend that the Board adopt such action. In
no event shall the establishment of any Participant's Bonus
Target give a Participant any right to be paid all or any part of
such amount unless and until a bonus is actually awarded pursuant
to Section 6.
The Committee shall establish the performance criteria (the
"Performance Criteria") that will apply to the determination of
each Participant's bonus for that Bonus Year and recommend that
the Board adopt such action. The individuals, their Bonus
Targets and Performance Criteria set forth on Schedules I and II
have been recommended by the Committee and approved by the Board.
6. DETERMINATION OF BONUSES AND TIME OF PAYMENT
As soon as practicable after the end of 1996, the Committee
shall certify whether or not the performance criteria of each
Participant has been attained and shall recommend to the Board,
and the Board shall determine, the amount of the bonus, if any,
to be awarded to each Participant for 1996 according to the terms
of this Plan. Such bonus determinations shall be based on
achievement of the Performance Criteria for 1996.
Once the bonus is so determined for a Participant, it shall
be paid seventy-five percent in cash and twenty-five percent in
Company Common Stock to the Participant (less any applicable
withholding and employment taxes) as soon as practicable. The
number of shares of Company Common Stock to be issued to a
Participant shall be determined by dividing twenty-five percent
of the bonus payable (before applicable taxes and deductions) by
the average of the per share Fair Market Value of the Common
Stock for the last twenty trading days of 1996; the resulting
number shall then be rounded to the nearest hundred.
"Fair Market Value" means the last sale price reported on
any stock exchange or over-the-counter trading system on which
Company Common Stock is trading on the last trading day prior to
a specified date or, if no last sales price is reported, the
average of the closing bid and asked prices for a share of Common
Stock on a specified date. If no sale has been made on any date,
then prices on the last preceding day on which any such sale
shall have been made be used in determining Fair Market Value
under either method prescribed in the previous sentence.
-2-
<PAGE>
7. TERMINATION OF EMPLOYMENT
If a Participant's employment with the Company or a
subsidiary, as the case may be, is terminated for any reason
other than discharge for cause, he may be entitled to such bonus,
if any, as the Committee, in its sole discretion, may determine.
In the event of a Participant's discharge for cause from the
employ of the Company or a Subsidiary, as the case may be, he
shall not be entitled to any amount of bonus unless the
Committee, in its sole discretion, determines otherwise.
8. MISCELLANEOUS
A. Government and Other Regulations. The obligation
of the Company to make payment of bonuses shall be subject
to all applicable laws, rules and regulations and to such
approvals by governmental agencies as may be required.
B. Tax Withholding. The Company or a Subsidiary, as
appropriate, shall have the right to deduct from all bonuses
paid in cash any federal, state or local taxes required by
law to be withheld with respect to such cash payments.
C. Claim to Bonuses and Employment Rights. The
designation of persons to participate in the Plan shall be
wholly at the discretion of the Board. Neither this Plan
nor any action taken hereunder shall be construed as giving
any Participant any right to be retained in the employ of
the Company or a Subsidiary.
D. Beneficiaries. Any bonuses awarded under this
Plan to a Participant who dies prior to payment shall be
paid to the beneficiary designated by the Participant on a
form filed with the Company. If no such beneficiary has
been designated or survives the Participant, payment shall
be made to the Participant's legal representative. A
beneficiary designation may be changed or revoked by a
Participant at any time provided the change or revocation is
filed with the Company.
E. Nontransferability. A person's rights and
interests under the Plan may not be assigned, pledged or
transferred except, in the event of a Participant's death,
to his designated beneficiary as provided in the Plan or, in
the absence of such designation, by will or the laws of
descent and distribution.
-3-
<PAGE>
F. Indemnification. Each person who is or shall have
been a member of the Committee or of the Board shall be
indemnified and held harmless by the Company (to the extent
permitted by the Articles of Incorporation and Code of
Regulations of the Company and applicable law) against and
from any loss, cost, liability or expense that may be
imposed upon or reasonably incurred by him in connection
with or resulting from any claim, action, suit or proceeding
to which he may be a party or in which they may be involved
by reason of any action taken or failure to act under the
Plan and against and from any and all amounts paid by him in
settlement thereof, with the Company's approval, or paid by
him, in satisfaction of judgment in any such action, suit or
proceeding against him. He shall give the Company an
opportunity, at its own expense, to handle and defend the
same before he undertakes to handle and defend it on his own
behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which
such person may be entitled under the Company's Articles of
Incorporation or Code of Regulations, as a matter of law or
otherwise or of any power that the Company may have to
indemnify him or hold him harmless.
G. Reliance on Reports. Each member of the Committee
and each member of the Board shall be fully justified in
relying or acting in good faith upon any report made by the
independent certified public accountants of the Company or
of its Subsidiaries or upon any other information furnished
in connection with the Plan by any officer or director of
the Company or any of its Subsidiaries. In no event shall
any person who is or shall have been a member of the
Committee or of the Board be liable for any determination
made or other action taken or any omission to act in
reliance upon any such report or information or for any
action taken, including the furnishing of information, or
failure to act, if in good faith.
H. Expenses. The expenses of administering the Plan
shall be borne by the Company and its Subsidiaries in such
proportions as shall be agreed upon by them from time to
time.
I. Pronouns. Masculine pronouns and other words of
masculine gender shall refer to both men and women.
J. Titles and Headings. The titles and headings of
the sections in the Plan are for convenience of reference
only, and, in the event of any conflict between any such
title or heading and the text of the Plan, such text shall
control.
-4-
<PAGE>
9. AMENDMENT AND TERMINATION
The Board may at any time terminate the Plan. The Board may
at any time, or from time to time, amend or suspend and, if
suspended, reinstate the Plan in whole or in part.
Notwithstanding the foregoing, the Plan shall continue in effect
to the extent necessary to settle all matters relating to the
payment of bonuses awarded prior to any such termination or
suspension.
-5-
RESOLVED, that the Corporation hereby adopts
the following Retirement Program for Outside Directors:
Retirement Program for outside Directors
of American Premier Group, Inc.
1. Eligibility
Any person (other than an officer or employee of
American Premier Group, Inc. (the "Corporation") or any of its
subsidiaries) who retires as a director of the Corporation after
having met the applicable eligibility requirements set forth in
Paragraph 2 shall be entitled to the retirement benefit referred
to in Paragraph 3. For purposes of this Retirement Program for
Outside Directors, a person's retirement as a director of the
Corporation means his resignation as a director of the
Corporation or his not being nominated for reelection as a
director of the Corporation by the Corporation's shareholders
upon the expiration of his term of office as a director of the
Corporation.
2. Eligibility Requirements
To be eligible for the retirement benefit referred to
in Paragraph 3, a person must have served for at least four years
as a director of the Corporation (or of American Premier
Underwriters, Inc.) while not being an officer or employee of the
Corporation or any of its subsidiaries (or of American Premier
Underwriters, Inc. or any of its subsidiaries) and must have
reached the age of 55.
3. Retirement Benefit
Upon retirement as a director of the Corporation, an
eligible person will revive an amount equal to five times the
annual directors fee in effect at the time of his retirement.
The retiring director may elect to receive the benefit in lump
sum or in deferred payments.
<PAGE>
4. Death Benefit
A death benefit equal to the retirement benefit will be
paid to the designated beneficiary or estate of any director of
the Corporation who dies while in office, whether or not the
director was eligible for a retirement benefit at the time of his
death. This death benefit, which shall be in lieu of any
retirement benefit, shall not be available to a director who at
any time during the two years immediately preceding his death,
was an officer or employee of the Corporation or any of its
subsidiaries.
5. Condition to Receipt of Retirement Benefit
As a condition to receipt of the retirement benefit, a
director must agree in writing that for a period of 5 years
following his retirement
(a) he will, without further compensation (except reimbursement
for expenses), provide consulting services upon request to the
Corporation (such services shall not exceed 10 days per year),
(b) he will not, without the permission of the Corporation,
engage in significant competition with any major operation of the
Corporation and its subsidiaries taken as a whole, or serve on
the board of directors of any corporation that is engaged in
significant competition with any major operation of the
Corporation and its subsidiaries taken as a whole, and
(c) he will not disclose any confidential information of the
Corporation or any of its subsidiaries, or intentionally engage
in any activity causing injury to the Corporation or any of its
subsidiaries.
-2-
AMERICAN FINANCIAL GROUP, INC.
DIRECTORS' COMPENSATION PLAN
P R E A M B L E
The purpose of the Directors' Compensation Plan ("Plan") of
American Financial Group, Inc. (the "Company") is to align
further the interests of the Company's non-employee directors
with the interests of shareholders by providing that a minimum of
50% of such directors' annual retainers are paid through the
issuance of shares of the Company's Common Stock, $1.00 par value
("Common Stock").
Directors who are not employees of the Company or a Company
subsidiary are paid an annual retainer ("Board Retainer"), an
additional annual Board Committee retainer ("Committee Retainer")
and an attendance fee for each Board or Committee meeting
attended ("Meeting Fees"), in amounts which shall be set by the
Board of Directors. The initial amounts established by the Board
of Directors for the retainers and fees is set forth on the
attached Schedule 1. These amounts may be changed by the Board
of Directors from time to time without shareholder approval.
1. PAYMENT OF COMPENSATION TO NON-EMPLOYEE DIRECTORS.
The Board Retainer and Committee Retainer shall be paid by
the Company quarterly, in arrears, as soon as practicable
following the end of each calendar quarter. The quarterly
portion of the Board Retainer and Committee Retainer (if
applicable) shall be paid 50% in cash and 50%, or in such
proportion as an eligible director may elect pursuant to Section
3 below, in the form of shares of the Company's Common Stock.
The number of shares of Common Stock to be issued to each
non-employee director pursuant to this Plan shall be determined
by dividing the amount of the retainers payable in Common Stock
by the average of the per share Fair Market Value of the Common
Stock (as defined in Section 3 below) for the ten trading days
ending on the last business day of each calendar quarter; the
resulting number shall then be rounded up to the nearest share.
The Meeting Fees accrued during each calendar quarter, if
any, shall be paid by the Company at the end of such quarter in
cash, together with the cash portion of the applicable quarterly
retainers.
<PAGE>
2. ELECTION BY NON-EMPLOYEE DIRECTORS TO RECEIVE CASH PORTION
OF THEIR COMPENSATION IN ADDITIONAL COMPANY COMMON STOCK.
Each non-employee director may elect to receive all or a
portion (in 20% increments) of the quarterly cash portion of
their applicable retainers for service on the Board of Directors
in shares of Common Stock. Such election shall be irrevocable
for each quarter and shall be made at least six months in advance
of the date the non-employee director is to receive the quarterly
payment.
3. FAIR MARKET VALUE OF COMPANY COMMON STOCK.
The "Fair Market Value" of a share of Common Stock shall be
the mean between the high and low prices of the shares on such
date on the New York Stock Exchange Composite Tape (or the
principal market in which the Common Stock is traded, if the
shares are not listed on that Exchange on such date) or, if the
shares were not traded on such date, then the mean between the
high and low prices of the shares on the next preceding trading
day during which the shares were traded.
4. RESTRICTIVE LEGEND; HOLDING PERIOD FOR SHARES OF COMMON
STOCK.
In order to comply with certain provisions of the Federal
securities laws, including Section 16(b) of the Securities
Exchange Act of 1934, all certificates representing shares of
Common Stock issued pursuant to the Plan shall bear the following
restrictive legend which will prevent the recipient from
disposing of such shares for six months from the date of
issuance:
THE SHARES OF COMMON STOCK REPRESENTED BY THIS
CERTIFICATE MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED UNTIL THE
EXPIRATION OF THE SIX MONTH PERIOD BEGINNING ON THE
DATE OF ORIGINAL ISSUANCE BY AMERICAN FINANCIAL GROUP,
INC. (THE "COMPANY") AS PROVIDED BY SECTION 4 OF THE
COMPANY'S DIRECTORS' COMPENSATION PLAN EFFECTIVE AS OF
, 1996, A COMPLETE AND CORRECT COPY OF THE FORM OF
WHICH WILL BE FURNISHED BY THE COMPANY TO THE HOLDER
HEREOF UPON REQUEST.
When the legend requirement imposed by this Section shall
terminate, the holder of shares of Common Stock for which such
legend requirement has terminated may request that the Company
(at its expense) promptly issue a replacement certificate
representing such shares without such legend.
-2-
<PAGE>
5. NO RIGHT TO CONTINUANCE AS A DIRECTOR.
Neither the action of the Company in establishing the Plan
nor the issuance of Common Stock hereunder shall be deemed to
create any obligation on the part of the Board of Directors to
nominate any non-employee director for reelection by the
Company's shareholders or to be evidence of any agreement or
understanding, express or implied, that the non-employee director
has a right to continue as a director for any period of time or
at any particular rate of compensation.
6. SHARES SUBJECT TO THE PLAN.
One hundred thousand shares of Common Stock are authorized
for issuance under the Plan in accordance with the provisions
hereof. The Company shall at all times during the term of the
Plan retain as authorized and unissued Common Stock at least the
number of shares from time to time required under the provisions
of the Plan, or otherwise assure itself of its ability to perform
its obligations hereunder.
7. EFFECTIVE DATE AND EXPIRATION OF PLAN.
The Plan is subject to approval by a majority of the votes
cast at the next Annual Meeting of Shareholders of the Company by
the holders of shares of Common Stock entitled to vote thereon,
and, if so approved, shall be effective beginning on the first
day of the calendar quarter immediately following such vote (the
"Effective Date"). Unless earlier terminated by the Board of
Directors pursuant to Section 10, the Plan shall terminate on the
tenth anniversary of the Effective Date. No shares of Common
Stock shall be issued pursuant to the Plan after its termination
date.
8. ELECTION TO DEFER DIRECTOR COMPENSATION.
a. Any non-employee director may, by delivering a
written election to the Secretary of the Company on or
before December 31 of any calendar year, elect to defer
receipt of all or a specified portion (in 20%
increments) of his cash or Common Stock compensation
during the calendar year following such election and
succeeding calendar years.
b. Any person who shall become a non-employee
director during any calendar year, and who was not a
non-employee director on the preceding December 31,
may, before his term begins, elect to defer receipt of
all or a specified portion (in 20% increments) of his
cash compensation during the balance of such calendar
year and for succeeding calendar years.
-3-
<PAGE>
c. A non-employee director's election to defer
receipt of compensation shall continue until the date
on which such non-employee director ceases to be a
director of the Company or until he terminates such
election by written notice delivered to the Secretary
of the Company.
9. PAYMENT IN EVENT OF DEATH.
If a non-employee director dies (before or after his ceasing
to be a Company director), any portion of his compensation
pursuant to the Plan (whether or not deferred) then unpaid shall
be paid to the beneficiaries of the director named in the most
recent beneficiary designation filed with the Secretary of the
Company. In the absence of such a designation, such compensation
shall be paid to, or as directed by, the director's personal
representative, in one or more installments as the non-employee
director may have elected in writing.
10. AMENDMENT, SUSPENSION AND TERMINATION OF PLAN.
The amount, pricing and timing of Company Common Stock
issuances pursuant to the Plan shall not be amended more than
once every six months, other than to comport with changes in the
Internal Revenue Code of 1986, as amended, the Employee
Retirement Income Security Act of 1974, as amended, or the rules
thereunder.
The Board of Directors may suspend or terminate the Plan or
any portion of it at any time, and may amend it, subject only to
the preceding paragraph, from time to time in such respects as
the Board may deem advisable in order that any awards hereunder
shall conform to any change in applicable laws or regulations or
in any other respect the Board may deem to be in the best
interests of the Company; provided, however, that no such
amendment shall, without the further approval of the shareholders
of the Company by the affirmative vote of shareholders entitled
to cast at least a majority of the total number of votes
represented at a meeting of shareholders of the Company, increase
the number of shares of Common Stock which may be issued under
the Plan, materially modify the requirements as to eligibility
for participating in the Plan, or extend the termination date of
the Plan.
-4-
SCHEDULE 1
Annual Board Retainer $40,000
Annual Board Committee Retainer $12,000
Attendance Fee per Meeting $ 1,000
-5-
THE PENN CENTRAL CORPORATION
TRANSITION/RETENTION AND SEVERANCE ARRANGEMENTS FOR
NEIL M. HAHL, V.P. - ACCOUNTING AND TAXES
TERM SHEET
I. Transition/Retention Bonus:
Provided that an Eligible Executive remains continuously employed
by The Penn Central Corporation ("PCC") or a PCC subsidiary
company or a successor to PCC or a PCC subsidiary company until
March 31, 1988, or, if earlier, his involuntary termination of
employment, other than for Cause ("Involuntary Termination"), he
will be paid a lump sum "Transition/Retention Bonus" (less
appropriate payroll deductions) on April 1, 1988 (or upon any
such earlier Involuntary Termination) equal to his "Annual Cash
Compensation" times the applicable multiple specified in Section
V below. The Retention Bonus shall not be considered an offset
against, or taken into account in determining, any other amount
to which he might otherwise be entitled under PCC's plans and
programs, including his Annual Incentive Compensation ("AIC")
Plan award for 1987.
Annual Cash Compensation is defined for purposes of the
Transition/Retention Bonus as an Eligible Executive's annual base
salary at March 31, 1987 plus his AIC Plan annual target bonus
opportunity as of that date. The term AIC Plan as used in this
term sheet, includes any successor plan in which the Eligible
Executive participates which provides the Eligible Executive with
annual cash bonus opportunities at least equal to those provided
by the AIC Plan.
II. Severance Arrangement:
Upon the Involuntary Termination or an Eligible Executive, he
will be paid a lump sum "Severance Payment", less required
payroll deductions, equal to his Annual Cash Compensation times
the applicable multiple specified in Section V below. The
Severance Payment shall be in addition to any
Transition/Retention Bonus to which an Eligible Executive may be
entitled and, in addition, shall not be considered an offset
against, or taken into account in determining, any other amount
to which an Eligible Executive might otherwise be entitled,
including any earned but unpaid awards under the AIC Plan.
Annual Cash Compensation for purposes of the Severance Payment is
defined as an Eligible Executive's then current annual base
salary plus his then current AIC Plan annual target bonus
opportunity.
The Severance Arrangement will remain in effect as long as the
Eligible Executive is employed by PCC or one of its subsidiaries,
but not after he reaches age 65.
III. Definitions of Involuntary Termination and Cause:
Involuntary Termination for purposes of the Transition/Retention
Bonus and the Severance Arrangement includes voluntary
termination as a result of (1) the Eligible Executive being
required to relocate outside the New York metropolitan area
without his consent, or (2) a reduction in the Eligible
Executive's annual base salary or AIC annual target bonus
opportunity
<PAGE>
immediately prior to such reduction), other than such a reduction
which occurs after March 31, 1988, and is related primarily to
the economic performance or prospects of PCC and is not applied
to such Eligible Executive in a discriminatory manner.
"Cause" as used in this Term Sheet means the willful engaging by
the Eligible Executive in conduct that is materially injurious to
PCC.
IV. Stock Options, Retirement and Savings, Vacation and Group
Insured Benefit Programs:
Upon an Eligible Executive's Involuntary Termination, he will
become fully vested in his PCC employee stock options and in his
accrued benefit in any savings and retirement plans, including
Benefit Equalization Plans and other supplemental plans or
arrangements, in which he participates, and each of his PCC
employee stock options will become fully exercisable for a period
ending the earlier of (i) two years after the date of such
Involuntary Termination or (ii) ten years after the date of grant
of such options. Additionally, he will be paid a lump sum amount
equal to his unused vacation pay entitlement, less required
payroll deductions. Moreover, participation in all of the group
benefit plans provided by PCC, a PCC subsidiary or a successor,
as the case may be, prior to such Involuntary Termination,
including medical, dental, life, disability and other insured
benefits ( or their equivalents) and his ten current special
benefits, including use of a company-provided automobile will be
continued, at no cost to him, for a one year period of until he
obtains comparable benefits with another employer, whichever
occurs first.
Upon termination of his group medical and dental coverage, a
described above, the Eligible Executive will be entitled to such
contributory medical, dental or other insurance coverage as
required by law. Additionally, he will be eligible within 31
days after termination of his life and/or medical insurance
coverage (including any contributory extended coverage required
by law) to convert such coverages to individuals policies.
V. Eligible Executives:
Multiple
Name Title Transition/
Retention Severance
N. M. Hahl VP - Acctg & Taxes 1.0 1.0
VI. Death or Disability:
If an Eligible Executive's employment should terminate prior to
March 31, 1988 due to his death or disability, he (or his legal
representatives) shall be paid a pro-rata portion of his
Transition/Retention Bonus opportunity based on the portion of
the 12 months ending March 31, 1988 that he was continuously
employed by PCC or one of its subsidiaries.
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<PAGE>
VII. PCC Obligation:
The Transition/Retention Bonus and Severance Arrangements
described herein will be legal obligations of and binding upon
PCC and its successors and assigns.
-3-
SHARE PURCHASE AGREEMENT
Relating to the Acquisition of
BUCKEYE MANAGEMENT COMPANY
by
BMC ACQUISITION COMPANY
Dated: January 5, 1996
TABLE OF CONTENTS
Page
ARTICLE 1 SALE AND PURCHASE OF SHARES 1
1.1 Sale and Purchase of the Shares 1
1.2 The Purchase Price 1
ARTICLE 2 THE CLOSING 2
2.1 Closing Date 2
2.2 Deliveries 2
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE
SHAREHOLDER 2
3.1 Organization and Standing 2
3.2 Capitalization and Share Ownership 3
3.3 Authority and Binding Effect 3
3.4 Validity of Contemplated Transactions 3
3.5 Subsidiaries 4
3.6 Taxes 4
3.7 No Material Undisclosed Facts 5
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE BUYER 5
4.1 Organization and Standing 5
4.2 Authority and Binding Effect 5
4.3 Validity of Contemplated Transactions 5
4.4 Purchase for Investment 6
4.5 Available Financing 6
4.6 Financial Projections 6
4.7 Investigation and Evaluation 6
4.8 Securities Law Matters 7
ARTICLE 5 CERTAIN COVENANTS 8
5.1 Conduct of Business Pending Closing 8
5.2 Approvals 9
5.3 Confidential Information. 9
5.4 Public Announcements 10
5.5 Tax Matters 10
5.6 Audit Adjustments. 12
5.7 Certain Employee Benefit Arrangements 13
5.8 Insurance Arrangements 14
5.9 NJ Environmental Liabilities 16
5.10 Prudential Financing and Special Committee
Approval 17
5.11 No Solicitation of Transactions 17
ARTICLE 6 CONDITIONS PRECEDENT TO OBLIGATIONS OF THE
BUYER 18
6.1 Representations and Warranties 18
6.2 Performance by the Shareholder 18
6.3 Certificates 18
6.4 Intentionally Omitted 18
6.5 Litigation Affecting Closing 18
6.6 Regulatory Compliance and Approvals 18
6.7 Consents 19
6.8 Financing 19
6.9 Special Committee 19
ARTICLE 7 CONDITIONS PRECEDENT TO OBLIGATIONS OF THE
SHAREHOLDER 19
7.1 Buyer Representations True at Closing 19
7.2 Performance by the Buyer 19
7.3 Officer's Certificate 19
7.4 Demand Notes 20
7.5 Incumbency Certificate 20
7.6 Opinion of Counsel 20
7.7 Litigation Affecting Closing 20
7.8 Regulatory Compliance and Approval 20
7.9 Special Committee 20
ARTICLE 8 MISCELLANEOUS 20
8.1 No Survival of Representation and Warranties 20
8.2 Payment of Expenses 21
8.3 Termination 21
8.4 Brokers' and Finders' Fees 21
8.5 Assignment and Binding Effect 22
8.6 Waiver 22
8.7 Notices 22
8.8 Pennsylvania Law to Govern 23
8.9 Remedies Not Exclusive 23
8.10 No Benefit to Others 23
8.11 Contents of Agreement 23
8.12 Section Headings and Gender 24
8.13 Cooperation 24
8.14 Severability 24
8.15 Counterparts 24
Annex I Certain Defined Terms
Schedule 4.1 List of Common Stock Subscribers
<PAGE>
SHARE PURCHASE AGREEMENT
This SHARE PURCHASE AGREEMENT is dated as of January 5,
1996. The parties are PENNSYLVANIA COMPANY, a Delaware
corporation (the "Shareholder"), being the owner of all of the
issued and outstanding shares of capital stock of BUCKEYE
MANAGEMENT COMPANY, a Delaware corporation (the "Company"), and
BMC ACQUISITION COMPANY, a Delaware corporation (the "Buyer").
PREAMBLE
The Shareholder owns 1,000 shares of Common Stock, par
value $1.00 per share (the "Common Stock"), of the Company which
constitutes all of the issued and outstanding shares of capital
stock of the Company (the "Shares"). The Buyer desires to
purchase from the Shareholder, and the Shareholder desires to
sell to the Buyer, all of the Shares in exchange for the Purchase
Price in accordance with the terms and conditions set forth in
this Agreement. The parties hereto have determined to make an
election under Section 338(h)(10) of the Internal Revenue Code of
1986, as amended and in effect on the date hereof (the "Code"),
to have the purchase and sale of the Shares hereunder treated for
Federal income tax purposes as a purchase of assets by the Buyer
from the Shareholder.
For convenience and brevity, certain terms used in
various parts of this Agreement are listed in alphabetical order
and defined or referred to on Annex I hereto (such terms to be
equally applicable to both singular and plural forms of the terms
defined).
NOW, THEREFORE, in consideration of the respective
covenants, representations and warranties herein contained, and
intending to be legally bound hereby, the parties hereto agree as
follows:
ARTICLE 1
SALE AND PURCHASE OF SHARES
1.1 Sale and Purchase of the Shares. On the Closing
Date and subject to the terms and conditions hereinafter set
forth and on the basis of and in reliance upon the
representations, warranties, obligations and agreements set forth
herein, the Shareholder shall sell to the Buyer and the Buyer
shall purchase from the Shareholder all of the Shares in exchange
for the payment to the Shareholder of the Purchase Price.
1.2 The Purchase Price. On the Closing Date and
subject to the terms and conditions hereinafter set forth and on
the basis of and in reliance upon the representations,
warranties, obligations and agreements set forth herein, the
Buyer shall pay to the Shareholder $63,000,000 (the "Purchase
Price"), payable by wire transfer of immediately available funds
to such account as the Shareholder shall designate.
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<PAGE>
ARTICLE 2
THE CLOSING
2.1 Closing Date. The Closing (the "Closing") of the
sale and purchase of the Shares shall take place at the offices
of Morgan, Lewis & Bockius LLP, 2000 One Logan Square,
Philadelphia, Pennsylvania at 10:00 A.M. local time, on the later
of (i) March 8, 1996, (ii) the fifth business day following the
satisfaction or waiver of all of the conditions set forth in
Articles 6 and 7 hereof, or (iii) at such other time or place or
on such other date as the Buyer and the Shareholder may agree to
in writing. The date of the Closing is hereinafter sometimes
referred to as the "Closing Date." The Closing shall be deemed
to have occurred as of the close of business on the Closing Date.
2.2 Deliveries. At the Closing, subject to the
provisions of this Agreement, the Shareholder shall deliver to
the Buyer, free and clear of all Liens, the certificates for the
Shares to be sold by such Shareholder, duly endorsed in blank, or
with separate stock transfer powers attached thereto and signed
in blank, and the Buyer shall deliver to the Shareholder the
Purchase Price by wire transfer of immediately available funds.
At the Closing, the Shareholder shall also deliver to the Buyer,
and the Buyer shall deliver to the Shareholder, the certificates,
opinions and other instruments and documents referred to in
Articles 6 and 7. The Buyer and the Shareholder shall deliver
executed copies of IRS Form 8023 making the joint election under
Section 338(h)(10) of the Code, and in the case of the Buyer the
election under Section 338(g) of the Code to allow the election
under Section 338(h)(10) of the Code to be made. The parties
shall cooperate with each other to reach agreement upon a
schedule of the allocation of the Purchase Price to be attached
to the IRS Form 8023 by each of the Buyer and the Shareholder.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER
The Shareholder hereby represents and warrants to the
Buyer that:
3.1 Organization and Standing. The Company is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, having full corporate
power and authority to carry on its business as it is now being
conducted and to own, lease and operate its assets. The Company
is duly qualified to do business and is in good standing in every
jurisdiction in which its business or the character of its assets
requires such qualification and in which the failure to be so
qualified would have a Company Material Adverse Effect.
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<PAGE>
3.2 Capitalization and Share Ownership. The Company's
authorized capital stock consists of 1,000 shares of Common
Stock, par value $1.00 per share, of which 1,000 shares are
presently outstanding (previously defined as the "Shares"), which
Shares are owned by the Shareholder free and clear of any Liens.
All of the Shares have been duly authorized and validly issued,
are fully paid and nonassessable, were not issued in violation of
the terms of any Contract binding upon the Company, and were
issued in compliance with all applicable charter documents of the
Company. No equity securities of the Company, other than the
Shares, are issued or outstanding. There are, and have been, no
preemptive rights with respect to the issuance of the Shares.
There are no existing Contracts, subscriptions, options,
warrants, calls, commitments or rights of any character to
purchase or otherwise acquire any capital stock or other
securities of the Company, whether or not presently issued or
outstanding, from the Shareholder or the Company, at any time, or
upon the happening of any stated event.
3.3 Authority and Binding Effect. The Shareholder has
the full corporate power, authority and legal right to execute,
deliver and perform this Agreement. The execution, delivery and
performance of this Agreement by the Shareholder has been duly
authorized by all necessary corporate and shareholder action.
This Agreement has been, and the other agreements, documents and
instruments required to be delivered by the Shareholder in
accordance with the provisions hereof (the "Shareholder
Documents") will be, duly executed and delivered on behalf of the
Shareholder by duly authorized officers of the Shareholder, and
this Agreement constitutes, and the Shareholder Documents will
constitute, the legal, valid and binding obligations of the
Shareholder, enforceable against the Shareholder in accordance
with their respective terms, except as may be limited by
bankruptcy or insolvency laws and other similar laws or equitable
principles affecting rights of creditors generally.
3.4 Validity of Contemplated Transactions. Neither
the execution and delivery of this Agreement by the Shareholder
nor the consummation of the transactions contemplated hereby will
contravene or violate the charter documents or by-laws of the
Shareholder or the Company or any Regulation or Court Order which
is applicable to the Company or the Shareholder, or will result
in a Default under, or require the consent or approval of any
party to, any material Contract relating to its business or its
assets or to or by which the Company or the Shareholder is a
party or otherwise bound or affected, or, to the Shareholder's
knowledge based upon oral opinions of counsel, require the
Company or the Shareholder to notify or obtain any License from
any federal, state, local or other court or governmental agency
or body or from any other regulatory authority, except for public
utility commission or environmental approvals required to be
obtained by the Company.
-3-
<PAGE>
3.5 Subsidiaries. Except for interests in Buckeye
Pipe Line Company, a Delaware corporation (the "Management
Subsidiary"), and the Master Partnership, and the interests of
the Management Subsidiary in each of the Operating Partnerships,
neither the Company nor the Management Subsidiary has any
subsidiaries or stock or other equity or ownership interest
(whether controlling or not) in any corporation, association,
partnership, limited liability company, joint venture or other
entity. The Company owns of record and beneficially (i) all of
the issued and outstanding capital stock of the Management
Subsidiary free and clear of any Liens, and (ii) a 1% general
partnership interest in the Master Partnership in accordance with
the Master Partnership Agreement. The Company is the general
partner of the Master Partnership. The Management Subsidiary
owns of record and beneficially a 1% general partnership interest
in each of the Operating Partnerships in accordance with the
Operating Partnership Agreements related thereto and a .99%
limited partnership interest in Buckeye Pipe Line Company of
Michigan, L.P. pursuant to its Operating Partnership Agreement.
The Management Subsidiary is the sole general partner of the
Operating Partnerships. There are: (a) no existing Contracts,
subscriptions, options, warrants, calls, commitments or rights of
any character to purchase or otherwise acquire from the Company
or the Management Subsidiary at any time, or upon the happening
of any stated event, any capital shares or other securities of
the Company, the Management Subsidiary, the Master Partnership,
or the Operating Partnerships, whether or not presently issued or
outstanding; (b) no outstanding securities of the Management
Subsidiary that are convertible into or exchangeable for capital
shares or other securities of the Management Subsidiary; and (c)
no Contracts, subscriptions, options, warrants, calls,
commitments or rights to purchase or otherwise acquire from the
Company or the Management Subsidiary any such convertible or
exchangeable securities.
3.6 Taxes. All United States Federal income tax
returns and all other material tax returns which are required to
be filed with respect to the Company and the Management
Subsidiary have been filed (except in instances in which there is
an effective extension of the time in which to file a tax return)
and all taxes due with respect thereto or pursuant to any
assessment with respect to the Company or the Management
Subsidiary have been paid, except for assessments the validity of
which is being contested in good faith by appropriate
proceedings.
3.7 No Material Undisclosed Facts. The Shareholder
has not omitted to disclose to the Buyer any material fact with
respect to the Company or the Management Subsidiary, actually
known by the Shareholder which is not known to the Company or the
Management Subsidiary.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE BUYER
The Buyer hereby represents and warrants to the Company
and the Shareholder as follows:
-4-
<PAGE>
4.1 Organization and Standing. The Buyer is a
corporation duly organized, validly existing and in good standing
under the laws of Delaware, having all requisite corporate power
and authority to perform its obligations under this Agreement.
As of the date hereof, the Buyer has received legally binding
subscriptions from the persons listed on Schedule 4.1 to
contribute not less than $5 million to the Company on or before
the Closing Date in return for common stock of the Buyer. (In
the case of Alfred W. Martinelli, his subscription is subject to
financing to be provided by the Shareholder or its affiliates in
the event that the Closing Date occurs prior to March 13, 1996.)
The Buyer has no assets or liabilities except for its rights and
obligations under this Agreement, the subscriptions and
Prudential Commitment Letter.
4.2 Authority and Binding Effect. The Buyer has the
corporate power and authority to execute, deliver and perform
this Agreement and the other agreements, documents and
instruments required to be delivered by the Buyer in accordance
with the provisions hereof (the "Buyer Documents"), and has taken
all actions necessary to secure all approvals required in
connection therewith. The execution, delivery and performance of
this Agreement and the Buyer Documents by the Buyer has been duly
authorized by all necessary corporate and shareholder action.
This Agreement has been, and the Buyer Documents will be, duly
executed and delivered on behalf of the Buyer by duly authorized
officers of the Buyer, and this Agreement constitutes, and the
Buyer Documents will constitute, the legal, valid and binding
obligation of the Buyer, enforceable against it in accordance
with their respective terms, except as may be limited by
bankruptcy or insolvency and other similar laws or equitable
principles affecting rights of creditors generally.
4.3 Validity of Contemplated Transactions. Neither
the execution and delivery of this Agreement by the Buyer nor the
consummation of the transactions contemplated hereby by the Buyer
will contravene or violate any Regulation or Court Order which is
applicable to the Buyer, or the charter documents or By-Laws of
the Buyer, or will result in a Default under any Contract to
which the Buyer is a party or by which it is otherwise bound, or
require the Buyer to notify or obtain any License from any
federal, state, local or other court or governmental agency or
body or from any other regulatory authority.
4.4 Purchase for Investment. The Buyer is acquiring
the Shares solely for its own account for investment and not with
a view to or for the sale or distribution thereof. The Buyer
acknowledges that the Shares are not registered under the
Securities Act of 1933, as amended, and that such Shares may not
be transferred or sold except pursuant to the registration
provisions of the Securities Act or pursuant to an applicable
exemption therefrom.
-5-
<PAGE>
4.5 Available Financing. The Buyer has delivered to
the Shareholder a commitment letter (the "Prudential Commitment
Letter") from Prudential Capital Group to lend the Buyer up to
$63,000,000 to purchase the Shares. The Buyer has no reason to
believe that Prudential Capital Group and the Buyer will not be
able to reach agreement on the form and substance of a definitive
agreement reflecting the terms of the Prudential Commitment
Letter or that all conditions precedent to the obligations of
Prudential Capital Group contained therein or in the Prudential
Commitment Letter will not be satisfied.
4.6 Financial Projections. The Buyer has provided to
the Shareholder financial projections for the Buyer, the Company,
and the Management Subsidiary, supported by a cost reduction
proposal, which reflects the financial impact of the Company's
results of operations, reimbursements from the Master Partnership
and Operating Partnerships, sources of expense savings, repayment
of the financing described in the Prudential Commitment Letter,
and the payment by the Buyer, the Company and the Management
Subsidiary of their obligations as they become due (the
"Financial Information"). The Buyer represents that (i) such
Financial Information was prepared in good faith, (ii) the Buyer
reasonably believes the assumptions upon which the projections
contained in the Financial Information are based are reasonable
and (iii) the Buyer currently intends to operate the Company and
the Management Subsidiary in a manner consistent in all material
respects with the assumptions contained in the Financial
Information.
4.7 Investigation and Evaluation. The Buyer
acknowledges that (a) the Buyer is experienced in the operation
of the type of business conducted by the Company, the Management
Subsidiary, the Master Partnership and the Operating
Partnerships, (b) the Buyer and its directors, officers,
attorneys, accountants and advisors have been given the
opportunity to examine to the full extent deemed necessary by the
Buyer all books, records and other information with respect to
the Company, the Management Subsidiary, the Master Partnership
and the Operating Partnerships, (c) the Buyer has taken full
responsibility for determining the scope of its investigations of
the Company, the Management Subsidiary, the Master Partnership
and the Operating Partnerships, and for the manner in which such
investigations have been conducted, and has examined the Company,
the Management Subsidiary, the Master Partnership and the
Operating Partnerships to the Buyer's full satisfaction, (d) the
Buyer is fully capable of evaluating the adequacy and accuracy of
the information and material obtained by the Buyer in the course
of such investigations, (e) the Buyer has not relied on the
Shareholder with respect to any matter in connection with the
Buyer's evaluation of the Company, the Management Subsidiary, the
Master Partnership and the Operating Partnerships, other than the
representations and warranties specifically set forth in Article
3, and (f) the Shareholder is making no representations or
warranties, express or implied, of any nature whatever with
respect to the Company, the
-6-
<PAGE>
Management Subsidiary, the Master Partnership and the Operating
Partnerships, other than the representations and warranties of
the Shareholder specifically set forth in Article 3. The Buyer
acknowledges that (a) the Buyer has taken full responsibility for
evaluating the adequacy, completeness and accuracy of various
forecasts, projections, opinions and similar material heretofore
furnished by the Shareholder, its affiliates or their
representatives to the Buyer in connection with the Buyer's
investigations of the Company, the Management Subsidiary, the
Master Partnership, and the Operating Partnerships and their
respective businesses, assets and liabilities; (b) there are
uncertainties inherent in attempting to make projections and
forecasts and render opinions, the Buyer is familiar with such
uncertainties, and the Buyer is not relying on any projections,
forecasts or opinions furnished to it by the Shareholder, or any
affiliate thereof or any of their representatives; and (c)
neither the Shareholder nor any affiliate of the Shareholder
makes any representations or warranties concerning any such
forecasts or projections.
4.8 Securities Law Matters. To the knowledge of the
Buyer, neither this Agreement, nor any other agreement, document,
certificate or written statement furnished to the Buyer by or on
behalf of the Shareholder in connection with the transactions
contemplated hereby contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make
the statements contained herein or therein not misleading. The
Buyer, for itself, its employees, shareholders and affiliates,
irrevocably acknowledges and confirms that the Shareholder has
complied in all respects with its obligations to the Buyer, if
any, under Rule 10b-5 under the Securities Exchange Act of 1934,
as amended, and under all other federal and state securities laws
in connection with the transactions contemplated hereby.
ARTICLE 5
CERTAIN COVENANTS
5.1 Conduct of Business Pending Closing. Until the
Closing Date, except as may be approved by the Buyer in writing
or as otherwise provided in this Agreement, the Shareholder shall
use its reasonable efforts (subject to the fiduciary duty of the
Company and the Management Subsidiary to the Master Partnership
and the Operating Partnerships) to cause the Company and the
Management Subsidiary to:
(A) operate the business of the Company, the
Management Subsidiary, the Master Partnership and the Operating
Partnerships solely in the ordinary course and in substantially
the same manner as such business has been operated in the past;
-7-
<PAGE>
(B) not issue, repurchase or redeem or commit to
issue, repurchase or redeem, or permit the Master Partnership to
issue, repurchase or redeem, any shares of capital stock or
partnership units, any options or other rights to acquire such
stock or units or any securities convertible into or exchangeable
for such stock or units except pursuant to the Buckeye Partners,
L.P. Unit Option and Distribution Equivalent Plan;
(C) not declare or pay any dividend on, or make any
other distribution with respect to, the Shares;
(D) not declare, pay or make any other distribution
with respect to, the partnership units of the Master Partnership,
except for periodic distributions by the Master Partnership with
respect to such units in amounts and at times which are
consistent with past practice;
(E) not (1) incur a material amount of long or
short-term debt for money borrowed, (2) guarantee or agree to
guarantee the obligations of others, (3) indemnify or agree to
indemnify others, or (4) incur any other material Liabilities, in
each case other than those incurred in the ordinary course of
business consistent with past practice;
(F) use its reasonable efforts to retain the employees
of the Management Subsidiary and maintain the respective
businesses of the Company and the Management Subsidiary so that
employees will remain available to the Management Subsidiary on
and after the Closing Date and to maintain existing relationships
with suppliers, customers and others having business dealings
with the Company or the Management Subsidiary;
(G) not amend its Certificate of Incorporation or
By-Laws or the Master Partnership Agreement or the Operating
Partnership Agreements;
(H) not merge with or into any other corporation or,
except in the ordinary course of business, sell, assign,
transfer, pledge or encumber any part of the assets of the
Company or the Management Subsidiary or agree to do any of the
foregoing;
(I) except in the ordinary course of business, not
enter into any Contract on their own behalf, rather than as agent
for or a partner of the Master Partnership or any of the
Operating Partnerships, that is material, or permit any amendment
or termination of any such material Contract to which the Company
or the Management Subsidiary is a party;
(J) except in the ordinary course of business, not
waive any rights of material value that would otherwise accrue to
the Company after the Closing Date;
-8-
<PAGE>
(K) except in the ordinary course of business (or as
disclosed in the Disclosure Letter), not increase the salaries or
benefits of, or make any bonus or similar payments to or
establish or modify any Employee Benefit Plans for, any of the
Company's directors, officers or employees or enter into or
modify any employment, consulting or similar Contracts with any
such persons or agree to do any of the foregoing;
(L) use its reasonable efforts to obtain any consents
or approvals required under any material Contracts that are
necessary to complete the Acquisition or to avoid a Default under
any such Contracts; and
(M) not make any capital expenditures on its own
behalf, rather than as agent for or a partner of the Master
Partnership or any of the Operating Partnerships, in excess of
$1,000,000.
5.2 Approvals. The Buyer and the Shareholder shall
use their reasonable efforts to obtain promptly all Licenses from
all Regulatory Bodies and all consents required under the terms
of any Contracts which are required in connection with the
consummation of the Acquisition.
5.3 Confidential Information. Promptly, but in no
event later than 5 business days, following the later of (a) the
approval by the Special Committee of the matters described in
Section 7.9 and (b) the delivery by the Buyer to the Shareholder
of written confirmation from Prudential Capital Group that the
Finance Committee of the Board of Directors of The Prudential
Insurance Company of America has authorized Prudential Capital
Group to purchase a note or notes in accordance with the
Prudential Commitment Letter, the Shareholder shall cause Furman
Selz LLC to require all parties to any confidentiality agreement
between Furman Selz LLC on behalf of the Shareholder and any
other party with respect to a sale of the Company to return or
destroy all confidential information of the Company, the
Management Subsidiary, the Master Partnership and the Operating
Partnerships in accordance with the terms of such confidentiality
agreements. At the Closing, the Shareholder will, to the extent
legally assignable, assign all of its rights under such
confidentiality agreements to the Company.
5.4 Public Announcements. The Buyer and the
Shareholder shall not make any public announcement of the
transactions contemplated hereby without the prior written
consent of the other party. Nothing contained herein shall
prevent either party at any time from furnishing any information
to any governmental agency or pursuant to any Court Order or
which is required by any Regulation or any rule of the New York
Stock Exchange.
-9-
<PAGE>
5.5 Tax Matters.
(A) Section 338(h)(10) Election. The Shareholder and
the Buyer shall make a timely joint election under Section
338(h)(10) of the Code and pursuant to the applicable provisions
of the Temporary Treasury Regulations in order that the
transaction contemplated by this Agreement will be treated for
Federal income tax purposes as a purchase of assets by the Buyer
from the Company. Any liability for taxes resulting from the
election by the Buyer and the Shareholder under Section
338(h)(10) of the Code will be paid by the Shareholder.
(B) Taxes Prior to and After the Closing Date. The
Shareholder shall include the Company in the applicable
consolidated federal income tax return for the period prior to
and including the Closing Date. Taxes as a result of the joint
election under Section 338(h)(10) will be borne by the
Shareholder. Any adjustments in taxes of the Company for the
period to and including the Closing Date shall be borne by the
Shareholder. The liability for any taxes of the Company for the
periods beginning after the Closing Date shall be borne by the
Company and the Buyer. The Buyer shall make an election under
Section 338(g) of the Code to the extent necessary to allow the
Section 338(h)(10) election to be made. The Buyer will indemnify
and hold harmless the Shareholder and the Company against any and
all liability (including, without limitation, interest, additions
to tax and penalties) for or with respect to federal, state or
local income taxes of the Company claimed or assessed for all
taxable periods beginning after the Closing Date. The
Shareholder will indemnify and hold harmless the Buyer and the
Company against any and all liability (including, without
limitation, interest, additions to tax and penalties) for or with
respect to federal, state or local income taxes of the Company
claimed or assessed for all taxable periods including periods to
and including the Closing Date.
(C) Indemnification With Respect to Taxes. Without
limiting the indemnification obligations of any party contained
elsewhere herein: After the Closing, the Shareholder will
indemnify and hold harmless the Buyer and the Company against any
and all liability (including, without limitation, interest,
additions to tax and penalties) for or with respect to federal
income taxes (and state or local income taxes in states in which
tangible personal property or real property of the Company is
located) of the Company claimed or assessed for all taxable
periods ending on or prior to the Closing Date attributable to
gain realized by the Company as a result of the purchase and sale
of the Shares pursuant hereto and the making of the joint
election by the Shareholder and the Buyer under Section
338(h)(10) of the Code (and by the Buyer under Section 338(g) of
the Code but only to the extent it is required for the election
under Section 338(h)(10) of the Code)), net of any tax benefit
resulting from such payment. If the parties are unable to agree
with respect to the amount of any payment due under the preceding
sentence, the matter shall be submitted to an independent
accounting firm selected by both parties. The decision of such
independent accounting firm shall be binding upon both parties
and the expense of such independent accounting firm shall be
borne equally by the parties.
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(D) Prior Period Adjustments. The Shareholder shall
have the right to contest any adjustment that increases the
liability of the Company or the Shareholder for taxes which arose
during the period or periods ending on or prior to the Closing
Date (including federal income taxes (and state or local income
taxes in states which tangible personal property or real property
of the Company is located) attributable to gain realized by the
Company as a result of the purchase and sale of the Shares
pursuant hereto and the making of the joint election by the
Shareholder and Buyer under Section 338(h)(10) of the Code (and
by the Buyer under Section 338(g) of the Code but only to the
extent it is required for the election under Section 338(h)(10)
of the Code)). The Buyer agrees to cooperate or cause the
Company to cooperate in the negotiation, settlement or litigation
of any such adjustment. All decisions with respect to the
negotiation, settlement or litigation of any such adjustment
shall be made by the Shareholder and shall be binding upon the
Buyer. All expenses to contest such adjustment on behalf of the
Company shall be borne by the Shareholder. Any indemnity payable
by the Shareholder to the Buyer or the Company pursuant to this
Section 5.5(D) shall be payable within 10 days of the Buyer's
and/or the Company's request therefor, which request shall be no
sooner than within 20 days of the required remittance to the tax
authority. The parties agree that any payment made pursuant to
this Section 5.5(D) shall be deemed an adjustment to the Purchase
Price hereunder.
(E) Cooperation. After the Closing Date, the Buyer,
the Shareholder and the Company shall cooperate fully with each
other and shall make available to the other, as reasonably
requested, and to any taxing authority, all information, records
or documents relating to tax liabilities or potential tax
liabilities of the Company for all periods prior to or ending on
the Closing Date and shall preserve all such information, records
and documents until the expiration of any applicable statutes of
limitation or extensions thereof. The Buyer, the Shareholder and
the Company shall also make available to each other, as
reasonably requested, personnel responsible for preparing or
maintaining information, records and documents in connection with
tax matters.
(F) Audits. So long as taxable periods of the Company
ending on or before the Closing Date remain open, the Buyer and
the Shareholder shall promptly notify the other in writing within
10 days from receipt by the Buyer or the Shareholder of notice of
(i) any pending or threatened federal, state or local income tax
audits or assessments of the Company, and (ii) any pending or
threatened federal, state or local income tax audits or
assessments of the Buyer which may affect the tax liabilities of
the Company for taxable periods ending on or before the Closing
Date. The Shareholder shall have the right to represent the
interests of the Company in any tax audit or administrative or
court proceeding relating to fiscal periods ending on or before
the Closing and to employ counsel of its choice at its expense.
The Buyer agrees that it will, at the Shareholder's expense,
cooperate fully with the Shareholder and its counsel in the
defense against or compromise of any claim in any said
proceeding.
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5.6 Audit Adjustments.
(A) If, as a result of the examination of the
consolidated federal, state or local income tax return of the
Shareholder or the Company (or any predecessor) for a taxable
year ending on or before or including the Closing Date, there
shall be any adjustment which decreases deductions, losses or
credits against taxes ("Tax Benefits") or which increases income,
gains or recaptures of credits against taxes ("Tax Detriments")
for any such taxable year and which will permit the Buyer or the
Company (or any corporation in an affiliated group of which the
Buyer or the Company is a member) to increase the Tax Benefits or
decrease the Tax Detriments to which they would otherwise have
been entitled for any taxable year beginning on or after the
Closing Date, the Shareholder will notify the Buyer of such
adjustment and provide the Buyer with such information as may be
necessary for the Buyer to take account of such increases or
decreases through the filing of a claim for refund or otherwise.
The Buyer shall take such action as is necessary to secure the
benefit of such increases or decreases and shall pay the
Shareholder the amount of such benefit (together with interest,
if any, received), such amount to be paid when and as such
benefit is realized, less the amount, if any, of the Buyer's
reasonable expenses incurred in securing such benefit for the
Shareholder.
(B) If, as a result of the examination of the
consolidated or separate federal, state or local income tax
return of any group of corporations of which the Buyer or the
Company (or any successor) is a member for a taxable year
beginning on or after the Closing Date, there shall be any
adjustment which decreases Tax Benefits or increases Tax
Detriments for any such taxable year and which will permit the
Shareholder or any member of the Shareholder's consolidated group
to increase Tax Benefits or decrease Tax Detriments to which the
Shareholder would otherwise have been entitled for any taxable
year ending on or before and including the Closing Date, the
Buyer will notify the Shareholder of such adjustment and provide
the Shareholder with such information as may be necessary for the
Shareholder to take account of such increase or decrease through
the filing of a claim for refund or otherwise. The Shareholder
shall take such action as is necessary to secure the benefit of
such increases or decreases and shall pay to the Buyer the amount
of such benefit (together with interest, if any, received), such
amount to be paid when and as such benefit is realized, less the
amount, if any, of the Shareholder's reasonable expenses incurred
in securing such benefit for the Buyer.
5.7 Certain Employee Benefit Arrangements. From and
after the Closing:
(A) The Buckeye Pipe Line Company Retirement Income
Guarantee Plan. The Buckeye Pipe Line Company Retirement Income
Guarantee Plan (the "RIGP") is funded through a master defined
benefit trust (the "Master DB
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Trust"). After the Closing Date, Buckeye Pipe Line Company will
continue to be the "Plan Sponsor", as defined in ERISA, for such
RIGP (and will continue to be responsible for any contributions
required or due with respect to the RIGP). Within 45 days after
the Closing Date, the Buyer shall identify a successor trust to
hold the assets of the RIGP, and promptly after identification of
such successor trust, the trustee of the Master DB Trust shall
transfer the pro rata share of the assets of the Master DB Trust
allocable to the RIGP to the trustee of such successor trust.
(B) The Buckeye Pipe Line Company Retirement and
Savings Plan. After the Closing Date, Buckeye Pipe Line Company
will continue to be the "Plan Sponsor", as defined in ERISA, with
respect to the Buckeye Pipe Line Company Retirement and Savings
Plan (the "RASP") (and will continue to be responsible for any
contributions required or due with respect to the RASP). The
Buyer agrees to retain, through the end of 1996, the provision in
the RASP allowing participants in the RASP to transfer their
account balances from the RASP to the American Premier Retirement
and Savings Plan. A portion of the assets of the RASP are
invested in a trust which holds fixed income assets on behalf of
the RASP and other qualified retirement plans (the "Fixed Income
Trust"). Within 45 days after the Closing Date, the Buyer shall
identify a successor trust to hold the assets of the RASP
invested in the Fixed Income Trust and, promptly after
identification of such successor trust, the trustee of the Fixed
Income Trust shall transfer a pro rata share of the assets in the
Fixed Income Trust allocable to the RASP to the trustee of such
successor trust.
5.8 Insurance Arrangements. From and after the
Closing:
(a) The Company and the Management Subsidiary
shall cease to be covered with respect to any occurrence after
the Closing under the insurance policies and agreements obtained
and maintained by the Shareholder and its affiliates covering the
Company and the Management Subsidiary, (the "Policies"). All
such occurrences prior to the Closing which are insured under the
Policies shall continue to be so insured, and the Company and
Management Subsidiary shall be entitled to the benefits thereof,
subject to applicable Retention Levels. The Buyer shall cause
the Company and the Management Subsidiary to pay to the
Shareholder and its affiliates any retrospective premium
adjustments and premium audit adjustments payable to insurance
carriers and all retention payments in respect of insurance
covering the Company and the Management Subsidiary for periods
prior to the Closing Date. The Shareholder shall, or shall cause
its affiliates to, pay to the Company any rebate received with
respect to any premiums paid prior to the Closing Date in respect
of Policies covering the Company and the Management Subsidiary
for periods subsequent to the Closing Date as a result of the
removal of the Company and the Management Subsidiary from
coverage under such Policies.
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(b) Provided the Buyer is not in breach of its
obligations under subsection (c) hereof, the Shareholder shall
indemnify and hold the Company and the Management Subsidiary to
the extent they are named insured under the applicable Policy or
Policies harmless from and against any and all Insured Losses to
the extent such Insured Losses exceed the applicable Retention
Level of the Company or the Management Subsidiary but do not
exceed the Retention Level applicable to the Shareholder and its
affiliates with respect thereto. Neither the Shareholder nor its
affiliates shall have any liability to the Company or the
Management Subsidiary for any Insured Losses to the extent such
Insured Losses (a) are within the applicable Retention Level for
the particular company or (b) exceed the applicable Retention
Level for the Shareholder and its affiliates. In addition, the
Shareholder and its affiliates shall have no liability to the
Buyer, the Company or the Management Subsidiary for any Loss
which would not be covered by the insuring terms and conditions
of the applicable Policy, assuming a Retention Level for the
Shareholder and its affiliates of zero.
(c) The Company and the Management Subsidiary
shall be liable and responsible for all the Insured Losses that
are within the Retention Levels applicable to them. Accordingly,
provided the Shareholder and its affiliates are not in breach of
their obligations under section (b) hereof, the Buyer will cause
the Company and the Management Subsidiary to either, as the
Shareholder shall direct, (a) reimburse the Shareholder and its
affiliates for such payments as the Shareholder and its
affiliates may make in the normal course of their claims
management program to the applicable insurer or claims
administrator of Insured Losses that are within the Retention
Levels of the Company and the Management Subsidiary, such
reimbursement to be made promptly and in any event within 15 days
of presentation of the Shareholder's written invoices therefor or
(b) pay such Insured Losses directly to the applicable insurer or
claims administrator. The Buyer will, and will cause the Company
and the Management Subsidiary to, negotiate in good faith to
settle all claims under the Policies within the applicable
Retention Levels of the Company and the Management Subsidiary and
promptly notify and consult with the Shareholder regarding any
such claim that may exceed the applicable Retention Levels of the
Company and the Management Subsidiary. The Shareholder shall
have the right to control and direct the defense of any such
claim that is likely to exceed the Retention Levels of the
Company and the Management Subsidiary.
(d) The parties hereto shall give, and shall
cause the Company and the Management Subsidiary to give, to each
other prompt notice of the assertion by any person of any claim
against the Shareholder or any of its affiliates, or the Company
and the Management Subsidiary, as the case may be, which might be
subject to the insurance coverage or related obligations
described in this Section 5.8. The parties hereto shall
cooperate, and shall cause the Company and the Management
Subsidiary to cooperate, with the Shareholder and its affiliates,
or the Company and the Management Subsidiary, as the case may be,
and any applicable insurance carrier or claims administrator in
any investigation by the Shareholder and its affiliates, or
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<PAGE>
by the Company and the Management Subsidiary, as the case may be,
or any applicable insurance carrier or claims administrator, of
any such claim, including without limitation any currently
pending claim which relates to a pre-Closing occurrence; and the
Buyer shall give, and shall cause the Company and the Management
Subsidiary to give, to the Shareholder and its affiliates, and
any applicable insurance carrier or claims administrator,
reasonable access to the books, records and personnel of the
Company and the Management Subsidiary to the extent reasonably
necessary to enable the Shareholder or any of its affiliates, and
any applicable insurance carrier or claims administrator, to
investigate such claim.
5.9 NJ Environmental Liabilities. From and after the
Closing, the Shareholder or an affiliate of the Shareholder (the
Shareholder and each of its affiliates, the "Shareholder Group")
shall continue to retain the liabilities described that certain
Administrative Consent Order, dated November 17, 1986, issued by
the New Jersey Department of Environmental Protection (such
liabilities, the "NJ Environmental Liabilities"). In connection
with the NJ Environmental Liabilities, the parties agree as
follows:
(a) The Buyer shall cooperate, and cause the
employees and officers of the Company and the Management
Subsidiary to cooperate, with the Shareholder Group in connection
with all matters related to the NJ Environmental Liabilities and
shall provide, at no charge, such administrative assistance with
respect thereto as the Shareholder may reasonably request (which
may include, without limitation, review of documents and
attendance at meetings and teleconferences regarding the NJ
Environmental Liabilities).
(b) The Buyer shall, and shall cause the
Company and the Management Subsidiary to, provide to the
Shareholder Group such services, labor and materials, to the
extent reasonably available, as the Shareholder may request in
connection with the NJ Environmental Liabilities. The
Shareholder shall reimburse the Buyer, the Company or the
Management Subsidiary, as appropriate, for such entity's direct,
out-of-pocket cost (i) of all hourly labor furnished by such
entity at the request of the Shareholder, (ii) of all services
provided by non-employees of the Buyer, the Company or the
Management Subsidiary at the request of the Shareholder, and
(iii) of all materials provided by such entity at the request of
the Shareholder. The Shareholder Group shall have the right to
use, without cost, the water filtration system/waste recovery
system and plant located at the Linden, New Jersey premises of
the Operating Partnerships (the "Waste Recovery System") in
connection with the activities of the Shareholder Group related
to the NJ Environmental Liabilities, subject to reimbursement by
the Shareholder Group of any costs incurred for activated carbon
attributed solely to the Shareholder Group's utilization of the
Waste Recovery System.
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<PAGE>
(c) Without the prior consent of the Shareholder,
the Buyer shall not take any action which it knows is reasonably
likely to increase the amount of the NJ Environmental
Liabilities. In addition, the Buyer shall, and shall cause the
Company and the Management Subsidiary to, take all commercially
reasonable actions to mitigate the expense and liability of the
Shareholder Group with respect to the NJ Environmental
Liabilities.
(d) In connection with the NJ Environmental
Liabilities, the Shareholder Group agrees to use commercially
reasonable efforts to obtain a Declaration of Environmental
Restriction ("DER"). Buyer hereby consents to the issuance of a
DER, and agrees that it shall execute, and shall cause the
Company, the Management Subsidiary, the Master Partnership and
the Operating Partnership, to execute all commercially reasonable
documents necessary to obtain a DER.
(e) Upon request of the Shareholder the Buyer
will use reasonable efforts to support and facilitate any
reasonable proposal from the Shareholder Group that the Master
Partnership, in consideration for a payment by the Shareholder
Group, assume the remaining costs anticipated to be associated
with the NJ Environmental Liabilities.
(f) The Buyer acknowledges on its own behalf and
on behalf of The Company and the Management Subsidiary that there
are no unpaid charges for services, labor, materials or
facilities provided by the Company or the Management Subsidiary
in connection with the NJ Environmental Liabilities.
(g) The Buyer acknowledges that the Shareholder
Group will not be liable for any environmental liability or
expense related to, or arising out of the business of, the
Company, the Management Subsidiary, the Master Partnership, or
any of the Operating Partnerships, other than the NJ
Environmental Liabilities.
(h) The Buyer shall indemnify the Shareholder
Group against any failure by the Company, the Management
Subsidiary, the Master Partnership and the Operating Partnerships
to comply with the provisions of this Section 5.9.
5.10 Prudential Financing and Special Committee
Approval. The Buyer shall use its best efforts to diligently and
as promptly as practicable (i) obtain the approval of the Special
Committee of the matters described in Section 6.9 hereof and
provide such information in connection therewith as the Special
Committee may request; and (ii) negotiate, execute and deliver,
and consummate a definitive agreement with Prudential Capital
Group providing for the financing described in the Prudential
Commitment Letter. Upon the Shareholder's request from time to
time, the Buyer shall report to the Shareholder concerning the
status of such matters.
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5.11 No Solicitation of Transactions. Prior to the
termination of this Agreement pursuant to Section 8.3, none of
the Shareholder or any of its affiliates or any of their
respective directors, officers, employees, representatives,
investment bankers or agents shall, directly or indirectly,
solicit or initiate inquiries or proposals form, or provide
confidential information to or participate in any discussions or
negotiations with, any corporation, partnership, person, trust or
other entity or group (other than the Buyer and its affiliates
and representatives) concerning the sale of stock of the Company
or the Management Subsidiary or any of their respective assets or
any merger, consolidation, recapitalization, liquidation or
similar transaction involving the Company or the Management
Subsidiary. This Section 5.11 shall not be considered to limit
any rights or remedies the Buyer may have a result of a breach of
this Agreement by the Shareholder.
ARTICLE 6
CONDITIONS PRECEDENT TO OBLIGATIONS OF THE BUYER
Subject to waiver as set forth in Section 8.6, the
obligations of the Buyer under this Agreement are subject to the
fulfillment prior to or at the Closing of each of the following
conditions:
6.1 Representations and Warranties. The
representations and warranties of the Shareholder set forth in
Article 3 shall be true and correct in all material respects on
the Closing Date with the same effect as if made at that time.
6.2 Performance by the Shareholder. The Shareholder
shall have performed and satisfied in all material respects all
agreements and conditions which it is required by this Agreement
to perform or satisfy prior to or on the Closing Date.
6.3 Certificates. The Buyer shall have received
certificates from the Shareholder dated the Closing Date
certifying in such detail as the Buyer may reasonably request
that each of the conditions described in Sections 6.1 and 6.2 has
been fulfilled.
6.4 Intentionally Omitted.
6.5 Litigation Affecting Closing. No Court Order
shall have been issued or entered which prohibits the completion
of the Acquisition.
6.6 Regulatory Compliance and Approvals. All
approvals required under any Regulations to carry out the
Acquisition shall have been obtained and the Company and the
Shareholder shall have complied in all material respects with all
Regulations applicable to the Acquisition.
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6.7 Consents. The Shareholder or the Company shall
have delivered to the Buyer all consents required to be obtained
in connection with the Acquisition in order to avoid a Default
under any material Contract to or by which the Company is a party
or may be bound.
6.8 Financing. The Buyer and Prudential Capital Group
shall have entered into a definitive agreement reflecting the
terms of the Prudential Commitment Letter and the Prudential
Capital Group shall be prepared to fund the loan provided for
thereby in the amount of $63,000,000 contemporaneously with the
Closing.
6.9 Special Committee. A committee of independent
directors of the Company which will exclude all directors who are
employees of the Shareholder, the Company or their affiliates
(the "Special Committee") shall have approved on behalf of the
Master Partnership (i) the form of opinion of Morgan, Lewis &
Bockius LLP relating to the satisfaction by the Buyer of the
Company's capital requirement in compliance with Sections 17.6
and 19.1 of the Master Partnership Agreement after giving effect
to the cancellation of the Demand Notes and (ii) the Buyer's
employee stock ownership plan as a fringe benefit, the cost of
which may be reasonably allocated to the Partnership pursuant to
Section 7.4 of the Master Partnership Agreement.
ARTICLE 7
CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SHAREHOLDER
Subject to waiver as set forth in Section 8.6, the
obligations of the Shareholder under this Agreement are subject
to the fulfillment prior to or at the Closing of each of the
following conditions:
7.1 Buyer Representations True at Closing. The
representations and warranties of the Buyer set forth in Article
4 shall be true and correct in all material respects on the
Closing Date with the same effect as if made at that time.
7.2 Performance by the Buyer. The Buyer shall have
performed and satisfied all agreements and conditions which it is
required by this Agreement to perform or satisfy prior to or on
the Closing Date.
7.3 Officer's Certificate. The Shareholder shall have
received a certificate from an appropriate officer of the Buyer
dated the Closing Date certifying in such detail as the
Shareholder may reasonably request that each of the conditions
described in Sections 7.1 and 7.2 has been fulfilled.
7.4 Demand Notes. The Shareholder shall have been
released from its obligations under the Demand Notes, and the
Buyer shall have provided for capitalization of the Company in
the amount of at least $6 million.
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7.5 Incumbency Certificate. The Shareholder shall
have received a certificate of the Secretary or an Assistant
Secretary of the Buyer dated the Closing Date certifying to the
incumbency of the officers of the Buyer signing for it and as to
the authenticity of their signatures.
7.6 Opinion of Counsel. The Shareholder shall have
received the written opinion dated the Closing Date of Morgan,
Lewis & Bockius LLP, counsel for the Buyer, in form and substance
reasonably satisfactory to the Shareholder.
7.7 Litigation Affecting Closing. No Court Order
shall have been issued or entered which would be prohibits the
completion of the Acquisition. No person who or which is not a
party to this Agreement shall have commenced or threatened to
commence any Litigation seeking to restrain or prohibit, or to
obtain substantial damages in connection with, this Agreement or
the transactions contemplated by this Agreement.
7.8 Regulatory Compliance and Approval. All approvals
required under any Regulations to carry out the Acquisition shall
have been obtained and that the Buyer shall have complied in all
material respects with all Regulations applicable to the
Acquisition.
7.9 Special Committee. The Special Committee shall
have approved on behalf of the Master Partnership (i) the form of
opinion of Morgan, Lewis & Bockius LLP relating to the
satisfaction by the Buyer of the Company's capital requirement in
compliance with Sections 17.6 and 19.1 of the Master Partnership
Agreement after giving effect to the cancellation of the Demand
Notes, (ii) cancellation of the Demand Notes effective at the
Closing and (iii) the Buyer's employee stock ownership plan as a
fringe benefit, the cost of which may be reasonably allocated to
the Partnership pursuant to Section 7.4 of the Master Partnership
Agreement.
ARTICLE 8
MISCELLANEOUS
8.1 No Survival of Representation and Warranties.
None of the representations, warranties, covenants and agreements
made by each party in this Agreement or in any attachment,
Exhibit, certificate, document or list delivered by any such
party pursuant hereto or in connection with the Acquisition shall
survive the Closing.
8.2 Payment of Expenses. The Buyer shall pay all
legal, accounting and other fees and expenses which it incurs in
connection with this Agreement and the transactions contemplated
hereby, and all legal, accounting and other fees and expenses
incurred by the Shareholder in connection with this Agreement
shall be paid by the Shareholder (other than expenses and costs
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incurred for, by or on account of employees of the Company or the
Company's auditors and other than expenses and costs, including
without limitation reasonable attorney's fees, related to the
securing of all requisite Regulatory Approvals, all of which
shall be paid by the Company).
8.3 Termination. This Agreement may be terminated
before the Closing occurs only as follows:
(a) By written consent of the Shareholder and the
Buyer;
(b) By written notice by the Shareholder to the
Buyer at any time after February 22, 1996, unless on or prior
thereto the Buyer shall have provided the Shareholder with
satisfactory evidence that the Special Committee has approved the
matters described in Section 7.9 hereof;
(c) By written notice by the Shareholder to the
Buyer at any time after February 22, 1996, unless on or prior
thereto the Buyer shall have delivered to the Shareholder written
confirmation from Prudential Capital Group that the Finance
Committee of the Board of Directors of The Prudential Insurance
Company of America has authorized Prudential Capital Group to
purchase a note or notes in accordance with the Prudential
Commitment Letter;
(d) By written notice by the Shareholder to the
Buyer, at any time after April 15, 1995, except that no such
notice may be given under this clause (d) if as of the date of
such notice the only condition specified in Article 7 that is not
satisfied or able to be satisfied is the condition specified in
Section 7.8; or
(e) By written notice by the Shareholder or the
Buyer to the other at any time after June 30, 1995.
8.4 Brokers' and Finders' Fees. The Shareholder and
the Buyer each to the other represents and warrants that all
negotiations relative to this Agreement have been carried on by
them directly without the intervention of any person, firm,
corporation or other entity who or which may be entitled to any
brokerage fee or other commission in respect of the execution of
this Agreement or the consummation of the transactions
contemplated hereby except for (i) Furman Selz LLC, whose fees
shall be paid by the Shareholder and (ii) Houlihan, Lokey, Howard
& Zukin, Inc., whose fees shall be paid by the Buyer, and each of
them shall indemnify and hold the other or any affiliate of them
harmless against any and all claims, losses, liabilities or
expenses which may be asserted against any of them as a result of
any dealings, arrangements or agreements by the indemnifying
party with any such person, firm, corporation or other entity.
8.5 Assignment and Binding Effect. This Agreement may
not be assigned prior to the Closing by any party hereto without
the prior written consent of the other parties. Subject to the
foregoing, all of the terms and provisions of this Agreement
shall be binding upon and inure to the benefit of and be
enforceable by the successors and assigns of the Shareholder and
by the successors and assigns of the Buyer.
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8.6 Waiver. Any term or provision of this Agreement
may be waived at any time by the party entitled to the benefit
thereof by a written instrument executed by such party.
8.7 Notices. Any notice, request, demand, waiver,
consent, approval or other communication which is required or
permitted hereunder shall be in writing and shall be deemed given
only if delivered personally to the address set forth below (to
the attention of the person identified below) or sent by
facsimile message, Federal Express (or other reputable overnight
delivery service) or by registered or certified mail, postage
prepaid, as follows:
If to the Buyer, to:
BMC Acquisition Company
5 Radnor Corporate Center
100 Matson Ford Road
Radnor, PA 19087
Attention: A. W. Martinelli
With required copies to:
Buckeye Management Company
If by mail: If by Federal Express:
P.O. Box 368 3900 Hamilton Boulevard
Emmaus, PA 18049 Allentown, PA 18103
Attention: Stephen C. Muther, Esquire
If to the Shareholder, to:
American Financial Group, Inc.
One East Fourth Street
Cincinnati, OH 45202
Attention: Neil M. Hahl
With a required copy to the Corporate Secretary of
the Shareholder at the same address.
or to such other address as the addressee may have specified in a
notice duly given to the sender as provided herein. Such notice,
request, demand, waiver, consent, approval or other communication
will be deemed to have given as of the date so delivered or sent
by facsimile message, the day after the date sent when sent by
Federal Express (or other reputable overnight delivery service),
or, if mailed, three business days after the date so mailed.
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8.8 Pennsylvania Law to Govern. This Agreement shall
be governed by and interpreted and enforced in accordance with
the substantive laws of the Commonwealth of Pennsylvania
applicable to contracts made and to be performed in that
Commonwealth.
8.9 Remedies Not Exclusive. Nothing in this Agreement
shall be deemed to limit or restrict in any manner other rights
or remedies that any party may have against any other party at
law, in equity or otherwise.
8.10 No Benefit to Others. The representations,
warranties, covenants and agreements contained in this Agreement
are for the sole benefit of the parties hereto and the Company
and their successors and assigns, and they shall not be construed
as conferring and are not intended to confer any rights on any
other persons.
8.11 Contents of Agreement. This Agreement sets forth
the entire agreement of the parties hereto with respect to the
transactions contemplated hereby. This Agreement may not be
amended except by an instrument in writing signed by the parties
hereto, and no claimed amendment, modification, termination or
waiver shall be binding unless in writing and signed by the party
against whom or which such claimed amendment, modification,
termination or waiver is sought to be enforced. The Shareholder
agrees that upon request of the Buyer, it will amend this
Agreement and take such other action as may be necessary to
modify the structure of the transaction contemplated hereby from
a stock purchase to a partial stock purchase and partial stock
redemption, except that the Shareholder shall be so obligated
only if such modification will not have an adverse effect on the
Shareholder or its affiliates.
8.12 Section Headings and Gender. All section headings
and the use of a particular gender are for convenience only and
shall in no way modify or restrict any of the terms or provisions
hereof. Any reference in this Agreement to a Section, Annex or
Exhibit shall be deemed to be a reference to a Section, Annex or
Exhibit of this Agreement unless the context otherwise expressly
requires.
8.13 Cooperation. Subject to the provisions hereof,
the parties hereto shall use their reasonable efforts to take, or
cause to be taken, such action, to execute and deliver, or cause
to be executed and delivered, such additional documents and
instruments and to do, or cause to be done, all things necessary,
proper or advisable under the provisions of this Agreement and
under applicable law to consummate and make effective the
transactions contemplated by this Agreement.
8.14 Severability. Any provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall be
ineffective to the extent of such invalidity or unenforceability
without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in
any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.
-22-
<PAGE>
8.15 Counterparts. This Agreement may be executed in
two or more counterparts, each of which is an original and all of
which together shall be deemed to be one and the same instrument.
This Agreement shall become binding when one or more counterparts
taken together shall have been executed and delivered by all of
the parties. It shall not be necessary in making proof of this
Agreement or any counterpart hereof to produce or account for any
of the other counterparts.
IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the date first written above.
PENNSYLVANIA COMPANY
By: /s/ Neil M. Hahl
Title: Senior Vice President
BMC ACQUISITION COMPANY
By: /s/ A.W. Martinelli
Title: Chairman
-23-
<PAGE>
ANNEX I
CERTAIN DEFINED TERMS
"Acquisition" means the acquisition of all of the Shares by
the Buyer and all related transactions provided for in or
contemplated by this Agreement.
"Agreement" means this Share Purchase Agreement.
"Buyer" means BMC, a Delaware corporation.
"Company Material Adverse Effect" shall mean a material
adverse change in, or material adverse effect on, the results of
operations, financial condition or business of the Company and
the Management Subsidiary, taken as a whole; but in any case
after application of the proceeds of any insurance or indemnity
under any contract or agreement with any third party.
"Contract" means any written or oral contract, agreement,
lease, instrument or other commitment that is binding on any
person or its property under applicable law.
"Court Order" means any judgment, decree, injunction, order
or ruling of any federal, state or local court or governmental or
regulatory body or authority that is binding on any person or its
property under applicable law.
"Default" means (1) a material breach of or material default
under any Contract, (2) the occurrence of an event that with the
passage of time or the giving of notice or both would constitute
a material breach of or material default under any Contract, or
(3) the occurrence of an event that with or without the passage
of time or the giving of notice or both would give rise to a
right of termination, renegotiation or acceleration under any
Contract.
"Demand Notes" mean that certain Demand Promissory Note,
dated November 18, 1986, in the aggregate principal amount of
$24,000,000, by the Shareholder to the Company, and that certain
Demand Promissory Note, dated December 23, 1986, in the aggregate
principal amount of $4,000,000, by the Shareholder to the
Company.
"Employee Benefit Plans" means "employee benefit plans" as
defined in section 3(3) of ERISA and any other plan, policy,
program, practice or arrangement providing benefits to any
officer or employee of the Company, the Management Subsidiary, or
any dependent or beneficiary thereof, which are now maintained by
the Company or the Management Subsidiary, or under which the
Company or the Management Subsidiary has any obligation or
liability, including, without limitation, all incentive, bonus,
deferred compensation, medical, disability, share purchase, unit
purchase, retirement or other similar plans, policies, programs,
practices or arrangements; provided, however, that such term
shall not include (i) any employment agreements entered into by
the Company or the Management Subsidiary with their respective
employees, or (ii) any regular payroll practices of the Company
or the Management Subsidiary.
<PAGE>
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended.
"Insured Losses" shall mean Losses under the Policies and
any related loss adjustment expense, including attorney fees and
claims administration and handling costs.
"IRS" means the Internal Revenue Service.
"Liability" means any direct or indirect liability,
indebtedness, obligation, expense, claim, deficiency, guaranty or
endorsement of or by any person (other than endorsements of
notes, bills and checks presented to banks for collection or
deposit in the ordinary course of business).
"Licenses" means licenses, franchises, permits, easements,
rights and other authorizations.
"Lien" means any mortgage, lien, security interest, pledge,
encumbrance, restriction on transferability, defect of title,
charge or claim of any nature whatsoever on any property or
property interest.
"Litigation" means any lawsuit, action, arbitration,
administrative or other proceeding, criminal prosecution or
governmental investigation or inquiry involving the Company, the
Management Subsidiary, their respective businesses or assets, or
any Contracts to which the Company or the Management Subsidiary
is a party or by which it or any of their respective businesses
or assets may be bound.
"Loss" or "Losses" shall mean: liabilities, damages, costs,
judgments, costs of investigating claims, amounts paid in
settlement, interest, penalties, assessments and out-of-pocket
expenses (including reasonable attorneys' and auditors' and
actuaries' fees) actually incurred.
"Master Partnership" means Buckeye Partners, L.P., a
Delaware limited partnership.
"Master Partnership Agreement" means that certain Amended
and Restated Agreement of Limited Partnership of the Master
Partnership, dated as of December 23, 1986.
"Operating Partnerships" means Buckeye Pipe Line Company,
L.P., a Delaware limited partnership, Buckeye Pipe Line Company
of Michigan, L.P., a Delaware limited partnership, Buckeye Tank
Terminals Company, L.P., a Delaware limited partnership,
Everglades Pipe Line Company, L.P., a Delaware limited
partnership, and Laurel Pipe Line Company, L.P., a Delaware
limited partnership.
<PAGE>
"Regulation" means any statute, law, ordinance, regulation,
order or rule of any federal, state, local or other governmental
agency or body or of any other type of regulatory body,
including, without limitation, those covering environmental,
energy, safety, health, transportation, bribery, recordkeeping,
zoning, antidiscrimination, antitrust, wage and hour, and price
and wage control matters.
"Retention Levels" shall mean the retention levels specified
in the Policies for the respective companies, time periods and
types of insurance coverage specified thereon.
<PAGE>
INDEX OF DEFINED TERMS
Acquisition 26
Agreement 26
Buyer 1
Buyer Documents 5
Closing 2
Closing Date. 2
Code 1
Common Stock 1
Company 1
Company Material Adverse Effect 26
Contract 26
Court Order 26
Default 26
Demand Notes 26
Employee Benefit Plans 26
ERISA 27
Financial Information 6
Fixed Income Trust 14
Insured Losses 27
IRS 27
Liability 27
Licenses 27
Lien 27
Litigation 27
Loss or Losses 27
Management Subsidiary 4
Master DB Trust 13
Master Partnership 27
Master Partnership Agreement 27
Operating Partnerships 28
Plan Sponsor 13
Policies 14
Prudential Commitment Letter 6
Purchase Price 2
RASP 13
Regulation 28
Retention Levels 28
RIGP 13
Shareholder 1
Shareholder Documents 3
Shares 1
Special Committee 19
Tax Benefits 12
Tax Detriments 12
<PAGE>
SCHEDULE 4.1
(Names of subscribers for common stock)
Alfred W. Martinelli
C. Richard Wilson
Stephen C. Muther
Steven C. Ramsey
Michael P. Epperly
<PAGE>
AMENDMENT TO SHARE PURCHASE AGREEMENT
THIS AMENDMENT is made as of this 22nd day of March, 1996 by
Pennsylvania Company, a Delaware corporation (the "Shareholder")
and BMC Acquisition Company, a Delaware corporation (the
"Buyer").
WHEREAS, the Shareholder and the Buyer have entered into a
Share Purchase Agreement (the "Agreement") dated as of January 5,
1996 providing for the acquisition of all of the issued and
outstanding shares of capital stock of Buckeye Management
Company, a Delaware corporation ("Company") by the Buyer from the
Shareholder; and
WHEREAS, the Shareholder and the Buyer desire to amend the
Agreement as set forth in this Amendment.
NOW, THEREFORE, intending to be legally bound, the parties
hereto agree as follows:
1. The Shareholder and the Buyer hereby agree that, prior
to the Closing, the Buyer may terminate the existing subscription
agreements from the persons listed on the form of Schedule 4.1
originally attached to the Agreement and simultaneously enter
into a new subscription agreement with Glenmoor Partners, LLP, a
Pennsylvania limited liability partnership, to acquire not less
than $5,000,000 of common stock of the Buyer on or before the
Closing Date.
2. The Shareholder and the Buyer hereby agree that the
date "April 15, 1995" in Section 8.3(d) and the date "June 30,
1995" in Section 8.3(e) were intended to be and are hereby
amended to be "April 15, 1996" and "June 30, 1996" respectively.
3. The Shareholder and the Buyer hereby agree that Section
8.1 of the Agreement shall be amended to insert the phrase
"Except as otherwise specifically set forth in this Agreement in
the case of covenants and agreements," at the beginning of such
section.
4. Buyer shall use commercially reasonable efforts to
obtain as soon as practicable following the Closing Date, but in
no event later than August 14, 1996, the release of Shareholder
and its affiliates from all surety bonds for which Shareholder or
any of its affiliates is a guarantor or an account party, but
which relate to the operations of the Company, the Master
Partnership and the Operating Partnerships. Shareholder agrees
to keep any such surety bonds in place until August 14, 1996,
after which time Shareholder or its affiliates may give notice of
cancellation with respect to their guaranty. Buyer agrees to
indemnify and hold harmless Seller and its affiliates from any
loss arising out of such surety bonds.
5. All capitalized terms used in this Amendment but not
defined herein shall have the same meaning as such term has in
the Agreement.
6. Any provision of this Amendment that is inconsistent
with the provisions of the Agreement shall be deemed amended to
effectuate the intention of the parties as expressed herein.
Every other provision of the Agreement shall remain unchanged and
shall remain in full force and effect.
7. This Amendment may be executed in two or more
counterparts, each of which is an original, and all of which
together shall be deemed to be one and the same instrument. This
Amendment shall become binding when one or more counterparts
taken together shall have been executed and delivered by both of
the parties. It shall not be necessary in making proof of this
Amendment or any counterpart hereof to produce or account for any
of the other counterparts.
IN WITNESS WHEREOF, the parties hereto have duly executed
this Amendment as of the date first written above.
PENNSYLVANIA COMPANY
By: /s/ Neil M. Hahl
Name: Neil M. Hahl
Title: Senior Vice President
BMC ACQUISITION COMPANY
By: /s/ C. Richard Wilson
Name: C. Richard Wilson
Title: President
AMERICAN FINANCIAL INSURANCE GROUP
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 & 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)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 70,112 34,741 17,825
02 1986 2,281,532 443,245 1,838,288 1,092,788 193,759 100,278
03 1987 2,243,964 364,196 1,879,768 1,060,511 158,565 102,368
04 1988 2,227,970 302,127 1,925,843 1,157,810 147,600 97,059
05 1989 2,153,293 239,026 1,914,276 1,224,595 135,773 95,811
06 1990 2,353,869 245,072 2,108,797 1,376,884 184,938 106,707
07 1991 2,511,087 307,339 2,203,748 1,300,840 142,362 104,065
08 1992 2,708,653 369,869 2,338,784 1,358,878 201,656 98,035
09 1993 3,060,302 497,436 2,562,866 1,369,357 200,740 88,208
10 1994 3,627,461 712,954 2,914,507 1,666,762 339,189 77,389
11 1995 3,879,571 875,363 3,004,207 1,243,959 303,724 35,712
12 TOTAL XXX XXX XXX 12,922,494 2,043,032 923,460
SCHEDULE P - PART 1 - SUMMARY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 8,501 1,910 2,946 47,649 XXX 335,838
02 1986 21,211 30,073 84,344 1,062,440 XXX 21,282
03 1987 23,010 30,992 86,609 1,067,905 XXX 43,863
04 1988 10,243 36,520 92,181 1,189,208 XXX 70,076
05 1989 9,374 38,089 101,329 1,276,588 XXX 46,026
06 1990 8,450 42,968 105,259 1,395,472 XXX 47,451
07 1991 10,001 39,655 111,071 1,363,622 XXX 71,927
08 1992 13,588 42,008 115,269 1,356,939 XXX 105,910
09 1993 14,245 46,362 116,117 1,358,697 XXX 190,542
10 1994 18,049 43,979 123,761 1,510,675 XXX 425,194
11 1995 7,885 25,922 104,310 1,072,371 XXX 788,625
12 TOTAL 144,541 378,486 1,043,187 12,701,572 XXX 2,146,731
SCHEDULE P - PART 1 - SUMMARY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 138,108 261,683 138,396 17,718 7,836 35,169
02 1986 7,616 18,478 4,741 2,286 558 3,143
03 1987 24,363 24,176 16,337 3,623 1,568 3,094
04 1988 28,774 16,474 1,997 9,106 3,633 4,259
05 1989 10,602 43,489 16,433 3,340 327 12,376
06 1990 7,047 53,856 16,986 5,749 586 14,184
07 1991 8,839 67,494 18,413 9,441 1,259 14,163
08 1992 13,594 94,170 32,106 12,992 1,235 20,453
09 1993 26,143 217,651 51,744 27,433 4,417 42,720
10 1994 80,144 230,610 40,646 47,636 8,271 51,641
11 1995 130,675 555,539 86,599 80,150 18,280 83,965
12 TOTAL 475,915 1,583,627 424,389 219,474 47,956 285,177
SCHEDULE P - PART 1 - SUMMARY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 12,510 0 17,911 371,468 XXX XXX
02 1986 1,252 4 2,566 33,588 XXX 1,328,696
03 1987 1,535 4 1,937 32,899 XXX 1,328,525
04 1988 633 706 1,969 66,838 XXX 1,450,353
05 1989 5,105 1,202 3,005 75,776 XXX 1,533,797
06 1990 4,576 2,211 5,870 97,907 XXX 1,720,549
07 1991 4,769 3,378 7,489 137,232 XXX 1,691,462
08 1992 6,393 5,990 9,916 190,109 XXX 1,822,029
09 1993 8,307 7,990 25,172 412,907 XXX 2,084,820
10 1994 6,853 16,498 40,955 660,132 XXX 2,672,023
11 1995 12,124 41,585 69,736 1,330,339 XXX 2,971,402
12 TOTAL 64,054 79,561 186,519 3,409,203 XXX XXX
SCHEDULE P - PART 1 - SUMMARY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 14,965
02 1986 232,669 1,096,027 58.237 52.492 59.622 0
03 1987 227,712 1,100,813 59.204 62.525 58.561 0
04 1988 194,300 1,256,053 65.098 64.311 65.221 0
05 1989 181,436 1,352,361 71.230 75.906 70.646 0
06 1990 227,170 1,493,379 73.095 92.695 70.817 0
07 1991 190,610 1,500,852 67.360 62.019 68.105 0
08 1992 274,980 1,547,049 67.267 74.345 66.148 0
09 1993 313,216 1,771,604 68.125 62.966 69.126 0
10 1994 501,218 2,170,805 73.661 70.302 74.483 0
11 1995 568,683 2,402,719 76.591 64.965 79.978 0
12 TOTAL XXX XXX XXX XXX XXX 14,965
SCHEDULE P - PART 1 - SUMMARY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 306,052 50,460
02 1986 0 .000 27,402 6,186
03 1987 0 .000 27,339 5,560
04 1988 0 .000 55,770 11,068
05 1989 0 .000 62,487 13,288
06 1990 0 .000 77,273 20,633
07 1991 0 .000 112,167 25,067
08 1992 0 .000 154,377 35,739
09 1993 0 .000 330,316 82,591
10 1994 0 .000 535,015 125,108
11 1995 0 .000 1,126,892 203,449
12 TOTAL 0 XXX 2,815,090 579,149
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 146 2 73
02 1986 99,292 4,359 94,933 52,628 1,041 1,634
03 1987 84,274 3,855 80,419 42,258 1,100 1,220
04 1988 83,433 3,509 79,924 46,440 1,125 1,071
05 1989 88,257 3,394 84,863 68,548 6,352 2,235
06 1990 97,693 3,468 94,225 56,977 1,484 3,510
07 1991 104,735 4,134 100,601 65,175 1,763 3,475
08 1992 98,838 5,154 93,684 56,913 4,228 2,674
09 1993 93,698 6,757 86,941 57,086 3,030 2,413
10 1994 99,208 14,184 85,024 61,967 5,697 1,371
11 1995 106,819 16,636 90,183 52,109 7,938 679
12 TOTAL XXX XXX XXX 560,248 33,760 20,361
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 130 3 220 XXX 1,201
02 1986 71 1,100 4,573 57,723 31,621 0
03 1987 34 667 4,191 46,535 22,942 33
04 1988 15 638 3,269 49,640 21,954 15
05 1989 23 727 4,284 68,692 30,817 149
06 1990 0 1,370 3,234 62,237 25,617 378
07 1991 0 952 3,460 70,347 28,419 703
08 1992 5 531 4,165 59,519 22,271 1,451
09 1993 51 415 5,246 61,664 23,205 2,449
10 1994 104 623 4,854 62,391 27,639 2,255
11 1995 66 251 3,498 48,282 22,483 8,652
12 TOTAL 368 7,403 40,786 587,267 XXX 17,294
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 253 5 13 0 0
02 1986 0 12 0 0 0 0
03 1987 0 0 0 1 0 0
04 1988 0 -1 0 0 0 0
05 1989 0 0 -1 19 0 -5
06 1990 0 -54 -3 41 0 0
07 1991 0 -33 -5 80 0 0
08 1992 55 -79 -6 152 0 0
09 1993 2 -114 -14 283 0 0
10 1994 156 1,079 64 275 18 110
11 1995 399 8,297 568 1,097 53 1,109
12 TOTAL 612 9,357 607 1,969 71 1,214
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 15 1,478 20 XXX
02 1986 0 0 0 12 0 58,935
03 1987 0 0 5 40 0 47,785
04 1988 0 2 3 18 0 50,850
05 1989 0 12 8 171 5 75,335
06 1990 0 52 25 394 10 64,271
07 1991 0 85 45 800 25 73,058
08 1992 0 96 80 1,564 49 65,529
09 1993 0 202 141 2,778 83 67,736
10 1994 7 278 201 3,682 159 72,475
11 1995 74 585 1,217 19,277 1,832 76,934
12 TOTAL 81 1,312 1,751 30,214 2,199 XXX
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 540
02 1986 1,201 57,734 59.355 27.552 60.815 0
03 1987 1,209 46,576 56.701 31.361 57.916 0
04 1988 1,192 49,658 60.947 33.969 62.131 0
05 1989 6,470 68,865 85.358 190.630 81.148 0
06 1990 1,639 62,632 65.788 47.260 66.470 0
07 1991 1,904 71,154 69.755 46.057 70.728 0
08 1992 4,445 61,084 66.299 86.243 65.202 0
09 1993 3,294 64,442 72.291 48.749 74.121 0
10 1994 6,402 66,073 73.053 45.135 77.710 0
11 1995 9,376 67,558 72.022 56.359 74.912 0
12 TOTAL XXX XXX XXX XXX XXX 540
SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 910 28
02 1986 0 .000 12 0
03 1987 0 .000 33 6
04 1988 0 .000 14 3
05 1989 0 .000 148 23
06 1990 0 .000 328 66
07 1991 0 .000 674 126
08 1992 0 .000 1,323 233
09 1993 0 .000 2,346 424
10 1994 0 .000 3,113 569
11 1995 0 .000 15,981 3,296
12 TOTAL 0 XXX 24,882 4,774
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 2,534 1,613 63
02 1986 297,892 43,001 254,891 218,907 30,042 12,412
03 1987 298,607 23,834 274,773 210,398 10,287 13,166
04 1988 358,332 25,904 332,429 259,401 19,060 16,393
05 1989 388,984 7,615 381,368 289,226 12,626 18,712
06 1990 479,335 8,101 471,235 361,025 26,867 24,044
07 1991 592,849 44,309 548,540 385,533 22,793 21,794
08 1992 702,598 47,425 655,181 427,241 21,306 21,527
09 1993 842,376 78,687 763,689 503,211 39,574 22,162
10 1994 1,081,173 174,703 906,469 620,378 103,394 21,004
11 1995 1,255,643 256,776 998,866 387,568 81,207 8,897
12 TOTAL XXX XXX XXX 3,665,410 368,763 180,183
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 190 21 96 889 XXX 4,209
02 1986 2,012 2,876 13,469 212,741 127,038 133
03 1987 512 3,115 15,828 228,601 125,249 253
04 1988 1,278 4,099 18,696 274,160 115,232 241
05 1989 1,347 5,182 22,693 316,659 125,708 1,366
06 1990 663 6,512 26,771 384,298 154,771 3,884
07 1991 1,505 7,409 30,953 413,980 171,842 4,576
08 1992 1,451 8,980 34,435 460,444 192,824 11,518
09 1993 2,356 10,333 39,984 523,434 242,250 31,678
10 1994 4,958 8,358 44,411 577,434 330,243 104,829
11 1995 1,784 3,691 37,268 350,742 337,147 328,671
12 TOTAL 18,068 60,563 284,602 3,743,367 XXX 491,346
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 556 838 0 151 87 0
02 1986 0 270 211 85 0 -9
03 1987 0 -542 0 54 0 0
04 1988 0 -161 0 61 0 -5
05 1989 0 -11 0 255 0 3
06 1990 408 496 -1 623 61 107
07 1991 242 426 1 707 37 237
08 1992 172 5,805 415 1,869 12 806
09 1993 1,500 11,728 739 5,998 283 1,157
10 1994 12,761 36,278 6,468 14,823 2,529 5,492
11 1995 56,720 152,043 20,916 34,237 8,648 16,892
12 TOTAL 72,357 207,178 28,748 58,863 11,659 24,687
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 41 4,597 118 XXX
02 1986 0 0 9 277 4 246,455
03 1987 0 0 7 -229 9 239,827
04 1988 0 9 13 150 23 295,277
05 1989 0 18 87 1,701 66 333,174
06 1990 0 84 247 4,891 153 417,958
07 1991 0 160 272 5,939 411 445,256
08 1992 12 627 910 20,301 1,127 504,564
09 1993 55 1,385 2,268 50,249 3,991 618,687
10 1994 144 3,736 6,529 146,058 17,036 854,692
11 1995 457 8,658 26,175 471,285 77,037 992,889
12 TOTAL 668 14,685 36,567 705,207 99,991 XXX
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 1,088
02 1986 33,437 213,018 82.733 77.759 83.572 0
03 1987 11,456 228,371 80.315 48.066 83.113 0
04 1988 20,966 274,311 82.403 80.937 82.517 0
05 1989 14,821 318,353 85.652 194.629 83.477 0
06 1990 28,762 389,196 87.195 355.043 82.591 0
07 1991 25,339 419,917 75.104 57.187 76.552 0
08 1992 23,818 480,746 71.814 50.222 73.376 0
09 1993 45,015 573,672 73.445 57.208 75.119 0
10 1994 131,203 723,489 79.052 75.101 79.814 0
11 1995 170,871 822,018 79.074 66.545 82.295 0
12 TOTAL XXX XXX XXX XXX XXX 1,088
SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 3,405 105
02 1986 0 .000 192 85
03 1987 0 .000 -289 61
04 1988 0 .000 81 69
05 1989 0 .000 1,356 346
06 1990 0 .000 3,973 917
07 1991 0 .000 4,760 1,179
08 1992 0 .000 16,736 3,565
09 1993 0 .000 41,167 9,081
10 1994 0 .000 121,886 24,173
11 1995 0 .000 403,079 68,206
12 TOTAL 0 XXX 596,346 107,787
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 382 379 501
02 1986 199,568 46,150 153,411 104,038 15,994 9,213
03 1987 192,604 33,679 158,925 98,413 10,358 6,987
04 1988 177,929 19,651 158,271 106,228 12,573 12,720
05 1989 173,088 16,078 157,010 118,836 17,333 13,958
06 1990 172,720 27,431 145,280 111,921 22,812 14,299
07 1991 156,610 30,267 126,344 75,759 12,349 8,338
08 1992 181,790 61,881 119,908 81,285 27,380 11,183
09 1993 193,879 64,654 129,224 81,396 24,995 11,669
10 1994 200,607 67,314 133,294 65,479 28,436 8,731
11 1995 181,296 49,699 131,597 24,321 3,582 1,872
12 TOTAL XXX XXX XXX 868,052 176,183 99,459
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 330 751 -1 172 XXX 11,359
02 1986 1,415 1,268 8,913 104,754 20,667 58
03 1987 925 556 9,850 103,974 20,130 119
04 1988 2,179 1,339 10,542 114,729 21,632 1,755
05 1989 2,549 837 11,116 124,027 21,932 1,115
06 1990 4,553 1,169 10,311 109,167 19,372 2,448
07 1991 1,491 649 7,845 78,098 17,011 8,101
08 1992 4,533 609 7,396 67,945 16,973 12,983
09 1993 4,738 522 6,349 69,687 21,479 24,211
10 1994 5,194 578 5,073 45,649 25,261 44,655
11 1995 558 217 3,677 25,729 19,539 48,255
12 TOTAL 28,474 8,521 81,067 843,931 XXX 155,058
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 1,914 4,016 3,242 29 17 47
02 1986 0 3,281 524 1 0 102
03 1987 21 1,270 345 4 0 172
04 1988 857 506 583 74 12 233
05 1989 534 947 469 75 46 402
06 1990 1,161 3,270 1,526 253 107 302
07 1991 4,062 8,697 3,062 1,373 707 1,238
08 1992 5,604 12,894 5,374 1,335 414 1,568
09 1993 8,667 19,968 8,652 3,455 872 2,686
10 1994 16,740 24,445 8,083 4,251 1,202 3,133
11 1995 15,559 35,482 8,635 4,294 1,217 4,500
12 TOTAL 55,119 114,781 40,489 15,143 4,596 14,384
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR -3 0 103 10,393 78 XXX
02 1986 73 0 8 2,853 1 125,762
03 1987 102 0 2 1,099 4 117,006
04 1988 179 1 47 985 16 132,315
05 1989 345 5 39 1,183 32 146,817
06 1990 259 65 118 3,342 71 143,293
07 1991 763 78 366 11,180 146 112,086
08 1992 689 109 578 17,276 359 129,762
09 1993 1,372 190 1,233 31,997 967 151,515
10 1994 1,020 324 2,418 51,857 2,181 158,717
11 1995 1,169 565 3,873 69,823 4,896 126,817
12 TOTAL 5,977 1,347 8,792 201,972 8,768 XXX
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 4,858
02 1986 18,154 107,608 63.017 39.337 70.144 0
03 1987 11,932 105,074 60.750 35.429 66.115 0
04 1988 16,606 115,709 74.364 84.505 73.108 0
05 1989 21,609 125,208 84.822 134.401 79.745 0
06 1990 30,784 112,509 82.963 112.223 77.443 0
07 1991 22,810 89,276 71.570 75.363 70.661 0
08 1992 44,543 85,219 71.380 71.982 71.070 0
09 1993 49,832 101,683 78.149 77.075 78.687 0
10 1994 61,211 97,506 79.118 90.934 73.151 0
11 1995 31,263 95,554 69.950 62.905 72.611 0
12 TOTAL XXX XXX XXX XXX XXX 4,858
SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 5,370 165
02 1986 0 .000 2,815 38
03 1987 0 .000 1,023 76
04 1988 0 .000 822 163
05 1989 0 .000 1,059 124
06 1990 0 .000 3,035 307
07 1991 0 .000 9,674 1,506
08 1992 0 .000 14,899 2,377
09 1993 0 .000 26,860 5,138
10 1994 0 .000 44,278 7,581
11 1995 0 .000 59,542 10,281
12 TOTAL 0 XXX 169,377 27,756
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 24,433 10,048 2,838
02 1986 427,544 24,044 403,499 261,433 7,660 17,424
03 1987 433,195 30,016 403,172 257,073 8,372 17,072
04 1988 505,610 36,569 469,041 284,000 9,722 18,644
05 1989 499,237 18,041 481,189 289,903 10,882 18,560
06 1990 519,315 22,015 497,300 316,788 14,477 21,776
07 1991 534,013 38,500 495,512 286,325 15,463 25,576
08 1992 575,303 47,467 527,835 238,573 20,368 21,706
09 1993 617,537 48,345 569,192 192,483 15,335 13,999
10 1994 639,203 35,089 604,114 155,595 9,297 8,748
11 1995 475,226 24,132 451,094 66,886 3,594 2,578
12 TOTAL XXX XXX XXX 2,373,494 125,225 168,904
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 806 375 1,535 17,945 XXX 153,306
02 1986 700 3,288 25,563 296,060 81,844 10,937
03 1987 455 3,404 26,370 291,674 79,264 11,177
04 1988 510 3,552 29,723 322,127 78,268 61,630
05 1989 696 4,917 29,328 326,211 70,507 33,800
06 1990 929 6,027 31,538 354,696 71,325 25,025
07 1991 1,559 3,742 33,394 328,273 63,455 35,426
08 1992 1,989 2,765 32,035 269,958 60,671 45,951
09 1993 1,131 3,162 30,396 220,403 56,840 67,942
10 1994 256 566 28,939 183,730 61,106 120,609
11 1995 56 114 20,281 86,095 50,330 164,047
12 TOTAL 9,094 31,913 289,100 2,697,170 XXX 729,843
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 70,869 21,521 7,340 4,892 2,398 1,087
02 1986 2,779 1,342 35 352 44 358
03 1987 3,849 2,294 1 380 18 680
04 1988 26,655 2,147 -2 7,304 3,518 853
05 1989 8,358 4,052 567 677 47 1,720
06 1990 3,261 5,986 773 717 107 1,697
07 1991 3,232 7,732 1,785 785 177 2,175
08 1992 4,014 10,344 3,458 841 307 4,483
09 1993 3,959 51,327 5,071 797 304 22,470
10 1994 5,594 61,038 6,286 922 234 24,467
11 1995 6,815 73,329 6,793 1,448 207 18,885
12 TOTAL 139,386 241,131 32,107 19,113 7,376 78,883
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 307 0 4,675 104,566 1,762 XXX
02 1986 246 4 958 10,850 209 318,780
03 1987 374 4 894 11,191 291 316,272
04 1988 15 278 1,104 42,845 392 405,779
05 1989 43 665 1,400 32,634 513 379,824
06 1990 60 1,199 2,328 31,551 913 406,310
07 1991 184 1,608 3,477 44,217 1,514 395,641
08 1992 327 2,374 3,959 57,471 1,946 359,065
09 1993 460 2,982 15,433 148,167 2,994 396,239
10 1994 556 4,818 22,949 217,321 5,658 424,612
11 1995 616 5,451 15,748 259,026 12,137 364,433
12 TOTAL 3,195 19,385 72,932 959,825 28,370 XXX
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 538
02 1986 11,876 306,904 74.561 49.393 76.061 0
03 1987 13,410 302,862 73.009 44.676 75.120 0
04 1988 40,806 364,973 80.255 111.586 77.813 0
05 1989 20,984 358,840 76.081 116.313 74.574 0
06 1990 20,071 386,239 78.240 91.170 77.667 0
07 1991 23,151 372,490 74.088 60.132 75.173 0
08 1992 31,634 327,431 62.413 66.644 62.033 0
09 1993 27,669 368,570 64.164 57.232 64.753 0
10 1994 23,569 401,043 66.428 67.169 66.385 0
11 1995 19,304 345,129 76.686 79.993 76.509 0
12 TOTAL XXX XXX XXX XXX XXX 538
SCHEDULE P - PART 1D - WORKERS' COMPENSATION
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 96,089 7,940
02 1986 0 .000 9,464 1,386
03 1987 0 .000 9,622 1,570
04 1988 0 .000 37,125 5,729
05 1989 0 .000 28,927 3,699
06 1990 0 .000 26,968 4,582
07 1991 0 .000 38,141 6,069
08 1992 0 .000 48,822 8,641
09 1993 0 .000 110,239 37,928
10 1994 0 .000 169,768 47,554
11 1995 0 .000 223,768 35,257
12 TOTAL 0 XXX 798,933 160,355
SCHEDULE P - PART 2 - SUMMARY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 1,169,015 1,262,585 1,362,659 1,446,879 1,483,016 1,493,589
02 1986 1,206,401 1,156,469 1,128,951 1,072,294 1,051,904 1,034,873
03 1987 XXX 1,185,350 1,153,971 1,123,080 1,086,928 1,056,742
04 1988 XXX XXX 1,261,180 1,245,225 1,259,436 1,242,104
05 1989 XXX XXX XXX 1,289,801 1,320,598 1,290,075
06 1990 XXX XXX XXX XXX 1,440,457 1,443,547
07 1991 XXX XXX XXX XXX XXX 1,480,678
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2 - SUMMARY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 1,552,056 1,620,456 1,742,685 1,742,511 -174 122,055
02 1986 1,020,971 1,004,206 1,009,755 1,010,311 557 6,106
03 1987 1,045,499 1,017,521 1,011,816 1,013,554 1,740 -3,968
04 1988 1,217,374 1,204,421 1,175,241 1,162,534 -12,709 -41,879
05 1989 1,287,731 1,270,642 1,248,822 1,249,982 1,160 -20,668
06 1990 1,441,127 1,431,703 1,401,787 1,383,442 -18,353 -48,269
07 1991 1,483,940 1,471,599 1,410,874 1,383,034 -27,838 -88,565
08 1992 1,563,143 1,529,712 1,494,030 1,422,515 -71,517 -107,206
09 1993 XXX 1,695,576 1,647,428 1,630,513 -16,916 -65,063
10 1994 XXX XXX 2,020,975 2,006,397 -14,578 XXX
11 1995 XXX XXX XXX 2,228,751 XXX XXX
12 TOTAL -158,626 -247,457
SCHEDULE P - PART 3 - SUMMARY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 402,580 665,537 864,593 1,021,105 1,121,843
02 1986 346,478 588,691 721,663 821,401 884,527 923,719
03 1987 XXX 336,896 604,084 749,650 845,514 902,043
04 1988 XXX XXX 388,570 680,174 836,076 940,833
05 1989 XXX XXX XXX 438,022 775,398 948,684
06 1990 XXX XXX XXX XXX 510,885 869,883
07 1991 XXX XXX XXX XXX XXX 547,853
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3 - SUMMARY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 1,200,168 1,263,730 1,323,594 1,368,294 XXX XXX
02 1986 946,059 961,091 972,200 978,104 XXX XXX
03 1987 937,004 964,862 978,312 981,295 XXX XXX
04 1988 1,005,021 1,044,520 1,085,465 1,097,033 XXX XXX
05 1989 1,051,776 1,116,597 1,154,150 1,175,267 XXX XXX
06 1990 1,071,308 1,182,559 1,249,634 1,290,212 XXX XXX
07 1991 925,916 1,100,306 1,199,467 1,252,551 XXX XXX
08 1992 586,211 979,567 1,155,245 1,241,669 XXX XXX
09 1993 XXX 663,637 1,057,400 1,242,581 XXX XXX
10 1994 XXX XXX 840,983 1,386,911 XXX XXX
11 1995 XXX XXX XXX 968,065 XXX XXX
SCHEDULE P - PART 4 - SUMMARY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 263,118 189,973 156,997 173,284 116,762 101,382
02 1986 508,715 329,004 238,572 140,252 95,547 62,201
03 1987 XXX 487,873 288,078 204,166 136,037 87,465
04 1988 XXX XXX 439,686 248,202 191,801 148,640
05 1989 XXX XXX XXX 402,226 209,434 134,966
06 1990 XXX XXX XXX XXX 432,714 222,408
07 1991 XXX XXX XXX XXX XXX 467,761
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4 - SUMMARY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 87,799 84,226 146,345 145,945
02 1986 38,249 16,730 17,278 15,638
03 1987 58,284 23,090 10,552 9,405
04 1988 99,997 74,915 30,941 18,102
05 1989 94,926 66,467 36,955 34,335
06 1990 150,620 104,249 68,963 46,477
07 1991 245,196 178,156 96,872 58,471
08 1992 460,968 246,682 170,190 76,123
09 1993 XXX 519,665 289,313 200,329
10 1994 XXX XXX 497,553 234,810
11 1995 XXX XXX XXX 540,782
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 970 188 2,204
02 1986 240,615 29,957 210,665 77,222 6,393 17,540
03 1987 245,686 27,957 217,737 87,815 9,002 14,960
04 1988 244,676 22,602 222,066 103,672 7,417 17,154
05 1989 227,933 21,826 206,114 110,880 12,861 17,034
06 1990 242,666 20,707 221,951 113,721 8,001 18,761
07 1991 234,914 21,561 213,353 117,059 11,585 17,613
08 1992 211,142 23,520 187,628 112,300 15,752 15,128
09 1993 196,490 25,469 171,021 68,751 9,485 10,286
10 1994 223,459 37,281 186,176 90,718 12,561 7,761
11 1995 261,227 52,570 208,657 53,074 12,979 3,272
12 TOTAL XXX XXX XXX 936,180 106,215 141,711
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 29 60 28 2,985 XXX 5,099
02 1986 1,744 2,403 7,624 94,249 14,278 1,117
03 1987 989 1,903 7,571 100,348 12,964 2,002
04 1988 867 6,415 7,901 120,444 14,427 2,732
05 1989 1,366 3,699 7,691 121,377 16,047 4,581
06 1990 1,101 2,828 8,245 131,632 16,552 7,318
07 1991 1,478 2,445 9,898 131,498 16,044 9,509
08 1992 1,103 3,794 9,758 120,330 14,717 17,232
09 1993 952 931 7,680 76,272 14,532 16,077
10 1994 894 661 6,095 91,127 16,704 26,818
11 1995 544 2,767 4,942 47,757 12,843 48,158
12 TOTAL 11,060 27,906 77,418 1,038,026 XXX 140,644
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 85 9,724 460 1,303 28 2,344
02 1986 11 915 34 364 4 160
03 1987 0 384 20 661 0 107
04 1988 -378 -328 -125 898 0 28
05 1989 70 697 45 1,508 23 370
06 1990 124 9,223 1,309 2,400 45 3,224
07 1991 343 7,353 855 3,124 113 2,731
08 1992 845 11,136 1,371 5,604 256 4,281
09 1993 956 13,604 1,795 5,212 275 4,849
10 1994 2,443 14,623 1,138 8,347 595 5,496
11 1995 10,450 34,701 3,118 14,045 2,123 12,341
12 TOTAL 14,958 102,033 10,022 43,474 3,462 35,936
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 146 0 1,061 18,814 151 XXX
02 1986 11 0 125 2,628 36 105,302
03 1987 7 0 161 3,288 37 113,571
04 1988 2 332 176 4,005 56 131,794
05 1989 53 358 393 7,349 96 142,879
06 1990 472 457 1,444 21,668 180 164,451
07 1991 353 725 1,434 22,487 281 168,704
08 1992 618 1,399 2,352 37,522 499 178,117
09 1993 677 922 2,455 38,493 777 129,510
10 1994 430 1,934 3,456 54,142 1,607 164,821
11 1995 1,045 3,426 6,873 99,391 3,133 179,089
12 TOTAL 3,815 9,567 19,955 309,785 6,886 XXX
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 444
02 1986 8,423 96,879 43.764 28.117 45.987 0
03 1987 9,935 103,636 46.226 35.537 47.597 0
04 1988 7,347 124,447 53.865 32.506 56.041 0
05 1989 14,153 128,726 62.685 64.845 62.454 0
06 1990 11,153 153,298 67.768 53.861 69.068 0
07 1991 14,710 153,994 71.815 68.225 72.178 0
08 1992 20,274 157,843 84.359 86.199 84.126 0
09 1993 14,737 114,773 65.912 57.862 67.110 0
10 1994 19,560 145,261 73.759 52.466 78.023 0
11 1995 31,941 147,148 68.557 60.759 70.521 0
12 TOTAL XXX XXX XXX XXX XXX 444
SCHEDULE P - PART 1E - COMMERICAL MULTIPLE PERIL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 13,827 4,543
02 1986 0 .000 1,987 641
03 1987 0 .000 2,366 922
04 1988 0 .000 2,906 1,098
05 1989 0 .000 5,155 2,194
06 1990 0 .000 15,109 6,559
07 1991 0 .000 15,671 6,824
08 1992 0 .000 26,143 11,370
09 1993 0 .000 26,928 11,573
10 1994 0 .000 37,868 16,275
11 1995 0 .000 69,292 30,099
12 TOTAL 0 XXX 217,252 92,098
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 2,122 1,416 7
02 1986 8 0 8 0 0 0
03 1987 0 0 0 0 -1 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 1 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL XXX XXX XXX 2,122 1,417 7
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 6 0 -2 705 XXX 2,163
02 1986 0 0 0 0 0 0
03 1987 0 0 0 1 0 0
04 1988 0 0 1 0 0 0
05 1989 0 0 5 5 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 -1 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 -4 -4 0 0
11 1995 0 0 -2 -2 0 0
12 TOTAL 6 0 -1 705 XXX 2,163
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 31 1,384 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL 31 1,384 0 0 0 0
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 1 3,525 107 XXX
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 1
05 1989 0 0 0 0 0 5
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL 0 0 1 3,525 107 XXX
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 0 0 .000 .000 .000 0
03 1987 -1 1 .000 .000 .000 0
04 1988 0 1 .000 .000 .000 0
05 1989 0 5 .000 .000 .000 0
06 1990 0 0 .000 .000 .000 0
07 1991 0 0 .000 .000 .000 0
08 1992 1 -1 .000 .000 .000 0
09 1993 0 0 .000 .000 .000 0
10 1994 4 -4 .000 .000 .000 0
11 1995 2 -2 .000 .000 .000 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 3,524 1
02 1986 0 .000 0 0
03 1987 0 .000 0 0
04 1988 0 .000 0 0
05 1989 0 .000 0 0
06 1990 0 .000 0 0
07 1991 0 .000 0 0
08 1992 0 .000 0 0
09 1993 0 .000 0 0
10 1994 0 .000 0 0
11 1995 0 .000 0 0
12 TOTAL 0 XXX 3,524 1
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 775 177 598 0 20 100
11 1995 1,764 435 1,320 177 21 48
12 TOTAL XXX XXX XXX 177 40 148
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 191 270 6 668
11 1995 0 0 200 405 10 473
12 TOTAL 0 0 391 683 XXX 1,141
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 99 0 0 109 5 0
11 1995 0 0 0 146 5 0
12 TOTAL 99 0 0 256 10 0
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 673 5 1,067
11 1995 0 0 0 624 7 1,069
12 TOTAL 0 0 0 1,289 13 XXX
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 0 0 .000 .000 .000 0
03 1987 0 0 .000 .000 .000 0
04 1988 0 0 .000 .000 .000 0
05 1989 0 0 .000 .000 .000 0
06 1990 0 0 .000 .000 .000 0
07 1991 0 0 .000 .000 .000 0
08 1992 0 0 .000 .000 .000 0
09 1993 0 0 .000 .000 .000 0
10 1994 123 944 137.677 69.492 157.860 0
11 1995 40 1,029 60.601 9.195 77.955 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1986 0 .000 0 0
03 1987 0 .000 0 0
04 1988 0 .000 0 0
05 1989 0 .000 0 0
06 1990 0 .000 0 0
07 1991 0 .000 0 0
08 1992 0 .000 0 0
09 1993 0 .000 0 0
10 1994 0 .000 569 104
11 1995 0 .000 473 142
12 TOTAL 0 XXX 1,042 246
SCHEDULE P - PART 1G - SPECIAL LIABILITY
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 213 25 111
02 1986 26,852 9,797 17,054 10,877 2,971 1,192
03 1987 27,165 10,333 16,832 14,638 5,997 1,216
04 1988 26,953 9,997 16,956 13,999 4,045 1,373
05 1989 26,916 9,547 17,370 18,352 6,943 1,553
06 1990 33,146 11,003 22,141 26,491 10,704 2,148
07 1991 40,879 13,519 27,360 25,887 8,812 2,292
08 1992 56,131 17,747 38,383 48,932 24,888 2,897
09 1993 73,633 24,798 48,835 40,504 13,218 3,167
10 1994 78,655 25,099 53,547 30,567 4,798 1,870
11 1995 76,959 21,275 55,682 15,229 3,559 933
12 TOTAL XXX XXX XXX 245,687 85,958 18,750
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 69 8 2 233 XXX 1,944
02 1986 169 1,477 564 9,484 XXX 142
03 1987 312 1,850 675 10,212 XXX 121
04 1988 385 1,086 907 11,848 XXX 241
05 1989 286 1,798 981 13,656 XXX 368
06 1990 461 1,688 1,010 18,484 XXX 429
07 1991 418 1,418 957 19,899 XXX 1,053
08 1992 749 2,235 1,468 27,668 XXX 1,349
09 1993 641 3,737 2,086 31,898 XXX 4,840
10 1994 199 1,372 1,835 29,274 XXX 10,220
11 1995 140 167 1,221 13,677 XXX 13,557
12 TOTAL 3,836 16,844 11,696 186,341 XXX 34,280
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 228 1,361 85 23 1 0
02 1986 3 10 0 6 0 0
03 1987 10 36 0 4 0 1
04 1988 9 65 -4 13 0 2
05 1989 10 60 -9 23 1 4
06 1990 33 118 -9 30 1 5
07 1991 205 180 -19 134 11 6
08 1992 89 -250 -64 222 11 5
09 1993 1,322 -1,003 -183 734 217 2
10 1994 1,958 -1,299 17 1,053 140 75
11 1995 2,214 7,009 969 1,940 272 1,536
12 TOTAL 6,082 6,295 785 4,182 662 1,636
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 33 3,048 41 XXX
02 1986 0 0 2 158 0 12,827
03 1987 0 0 2 154 0 16,715
04 1988 0 15 4 321 0 16,649
05 1989 0 46 8 462 2 21,402
06 1990 0 72 11 575 5 30,311
07 1991 0 140 37 1,211 30 30,616
08 1992 0 291 45 1,336 30 54,802
09 1993 0 831 122 3,340 152 50,663
10 1994 45 1,470 204 8,100 427 44,776
11 1995 231 3,048 945 21,299 871 42,611
12 TOTAL 276 5,924 1,415 40,018 1,577 XXX
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 176
02 1986 3,177 9,650 47.769 32.428 56.585 0
03 1987 6,342 10,373 61.531 61.376 61.627 0
04 1988 4,473 12,176 61.770 44.743 71.809 0
05 1989 7,277 14,125 79.514 76.223 81.318 0
06 1990 11,252 19,059 91.447 102.263 86.080 0
07 1991 9,507 21,109 74.894 70.323 77.153 0
08 1992 25,790 29,012 97.632 145.320 75.586 0
09 1993 15,425 35,238 68.805 62.203 72.157 0
10 1994 7,402 37,374 56.927 29.491 69.797 0
11 1995 7,627 34,984 55.368 35.850 62.828 0
12 TOTAL XXX XXX XXX XXX XXX 176
SCHEDULE P - PART 1G - SPECIAL LIABILITY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 2,816 56
02 1986 0 .000 150 8
03 1987 0 .000 145 7
04 1988 0 .000 301 20
05 1989 0 .000 428 34
06 1990 0 .000 531 44
07 1991 0 .000 1,045 166
08 1992 0 .000 1,074 262
09 1993 0 .000 2,706 641
10 1994 0 .000 6,953 1,147
11 1995 0 .000 17,383 3,916
12 TOTAL 0 XXX 33,532 6,301
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 30,975 12,721 8,905
02 1986 401,372 143,546 257,826 134,491 64,457 27,053
03 1987 333,967 103,353 230,615 98,886 34,139 18,065
04 1988 250,757 77,062 173,695 91,773 27,627 15,312
05 1989 192,051 70,183 121,868 46,311 9,865 8,030
06 1990 196,352 61,867 134,483 43,414 15,878 7,419
07 1991 186,597 49,656 136,941 47,025 11,986 7,894
08 1992 181,673 61,832 119,841 37,860 12,949 6,502
09 1993 219,088 103,829 115,267 35,244 18,308 7,284
10 1994 240,444 115,501 124,942 26,878 12,121 4,816
11 1995 298,327 140,253 158,074 10,435 -474 1,846
12 TOTAL XXX XXX XXX 603,278 219,575 113,138
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 5,077 351 1,033 23,115 XXX 114,839
02 1986 10,199 644 5,512 92,399 11,584 4,781
03 1987 2,964 576 5,288 85,144 8,650 4,815
04 1988 1,697 1,883 7,019 84,781 6,688 2,218
05 1989 -920 143 6,098 51,503 5,433 1,978
06 1990 -1,801 798 4,214 40,980 4,863 2,814
07 1991 959 210 4,034 45,997 4,607 7,052
08 1992 1,239 109 3,295 33,468 5,944 6,373
09 1993 1,923 34 3,305 25,601 6,936 23,139
10 1994 936 19 3,341 21,978 8,464 29,672
11 1995 673 9 2,973 15,057 3,552 27,479
12 TOTAL 22,939 4,786 46,114 520,020 XXX 225,160
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 38,711 138,780 67,335 6,101 2,928 20,105
02 1986 2,111 8,698 2,969 900 273 1,931
03 1987 1,940 7,241 3,327 1,147 467 1,726
04 1988 642 12,778 991 643 62 2,761
05 1989 387 30,465 13,273 382 87 7,736
06 1990 181 27,181 11,834 750 20 7,250
07 1991 630 33,138 10,666 2,142 166 6,463
08 1992 780 42,617 18,529 1,638 177 7,837
09 1993 6,019 75,788 31,799 6,122 1,526 9,690
10 1994 8,420 66,051 14,162 6,777 1,470 10,828
11 1995 9,198 108,219 31,363 6,979 2,606 17,256
12 TOTAL 69,027 550,949 206,246 33,582 9,796 93,587
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 6,704 0 8,655 172,804 3,429 XXX
02 1986 762 0 1,021 11,226 138 185,224
03 1987 857 0 740 9,079 82 138,475
04 1988 269 13 355 16,805 74 133,308
05 1989 4,051 38 816 23,573 88 102,690
06 1990 3,363 22 1,093 23,682 125 95,225
07 1991 2,889 72 1,479 35,917 163 110,337
08 1992 3,923 26 1,470 36,527 315 108,909
09 1993 4,865 8 2,441 72,971 1,497 165,045
10 1994 3,814 9 2,870 88,331 3,310 152,555
11 1995 6,937 17 6,143 115,956 1,608 183,442
12 TOTAL 38,426 204 27,082 606,871 10,858 XXX
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 7,221
02 1986 81,592 103,632 46.148 56.840 40.195 0
03 1987 44,241 94,234 41.464 42.806 40.862 0
04 1988 31,721 101,587 53.162 41.163 58.486 0
05 1989 27,613 75,077 53.470 39.344 61.605 0
06 1990 30,572 64,653 48.497 49.416 48.075 0
07 1991 28,423 81,914 59.131 57.240 59.817 0
08 1992 38,918 69,991 59.948 62.942 58.403 0
09 1993 66,481 98,564 75.333 64.029 85.509 0
10 1994 42,246 110,309 63.447 36.576 88.288 0
11 1995 52,428 131,014 61.490 37.381 82.881 0
12 TOTAL XXX XXX XXX XXX XXX 7,221
SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 140,352 25,223
02 1986 0 .000 8,400 2,825
03 1987 0 .000 6,789 2,290
04 1988 0 .000 13,370 3,436
05 1989 0 .000 18,776 4,796
06 1990 0 .000 17,971 5,701
07 1991 0 .000 28,887 7,030
08 1992 0 .000 29,673 6,845
09 1993 0 .000 61,109 11,862
10 1994 0 .000 73,148 15,192
11 1995 0 .000 95,121 20,828
12 TOTAL 0 XXX 493,596 106,028
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1986 28,619 13,637 14,982 2,093 1,006 606
03 1987 78,100 26,911 51,189 13,660 9,729 2,266
04 1988 78,766 22,134 56,631 8,305 2,162 1,876
05 1989 65,766 13,191 52,575 20,531 8,727 3,892
06 1990 73,175 15,049 58,118 50,066 10,259 2,177
07 1991 78,659 10,224 68,435 7,441 139 2,073
08 1992 93,711 11,248 82,463 20,582 3,327 2,069
09 1993 109,153 9,590 99,563 6,423 736 3,026
10 1994 129,444 12,185 117,259 31,432 3,718 2,358
11 1995 134,567 24,153 110,413 2,230 6,834 833
12 TOTAL XXX XXX XXX 162,763 46,637 21,173
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1986 246 1 0 1,447 104 0
03 1987 769 20 668 6,096 446 11
04 1988 489 3 388 7,927 282 0
05 1989 1,726 4 1,021 14,991 263 1,210
06 1990 436 4 2,255 43,794 347 4,039
07 1991 202 0 1,301 10,474 476 5,076
08 1992 472 0 1,979 20,822 440 3,769
09 1993 105 72 1,369 9,986 571 16,525
10 1994 17 0 1,450 31,512 680 27,699
11 1995 35 0 608 -3,198 833 27,017
12 TOTAL 4,504 105 11,047 143,841 XXX 85,346
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 1 0 0 13 1 0
04 1988 28 0 0 0 7 0
05 1989 404 0 0 298 100 0
06 1990 480 37 5 776 119 4
07 1991 139 2,451 47 1,018 34 36
08 1992 15 4,841 127 701 3 90
09 1993 1,793 36,186 365 3,960 433 154
10 1994 144 19,133 570 6,696 4 301
11 1995 2,807 62,383 1,469 6,616 198 3,645
12 TOTAL 5,819 125,030 2,582 20,069 907 4,231
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1986 0 0 0 0 0 2,699
03 1987 0 0 2 24 2 16,568
04 1988 0 0 -1 -36 1 10,586
05 1989 0 0 49 1,054 7 27,044
06 1990 1 0 189 4,433 36 59,726
07 1991 14 0 255 8,602 58 19,695
08 1992 35 0 141 9,360 86 34,218
09 1993 61 0 792 54,964 146 68,553
10 1994 92 0 1,286 54,306 273 90,877
11 1995 376 0 1,564 96,376 799 105,424
12 TOTAL 579 0 4,286 229,084 1,425 XXX
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 1,252 1,447 9.431 9.181 9.658 0
03 1987 10,448 6,120 21.214 38.824 11.956 0
04 1988 2,695 7,891 13.440 12.176 13.934 0
05 1989 11,007 16,037 41.122 83.443 30.503 0
06 1990 11,498 48,228 81.621 76.404 82.983 0
07 1991 619 19,076 25.038 6.054 27.875 0
08 1992 4,036 30,182 36.514 35.882 36.601 0
09 1993 3,604 64,949 62.805 37.581 65.234 0
10 1994 5,051 85,826 70.206 41.453 73.194 0
11 1995 12,246 93,178 78.343 50.702 84.390 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1986 0 .000 0 0
03 1987 0 .000 10 14
04 1988 0 .000 -28 -8
05 1989 0 .000 806 247
06 1990 0 .000 3,592 850
07 1991 0 .000 7,342 1,260
08 1992 0 .000 8,467 894
09 1993 0 .000 50,562 4,403
10 1994 0 .000 46,118 8,188
11 1995 0 .000 85,124 11,251
12 TOTAL 0 XXX 201,993 27,099
SCHEDULE P - PART 1I - SPECIAL PROPERTY
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 10,850 6,048 1,384
02 1994 309,665 106,955 202,711 218,030 87,484 6,587
03 1995 386,507 140,432 246,075 171,304 70,828 4,085
04 TOTAL XXX XXX XXX 400,176 164,367 12,055
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 347 655 66 5,897 XXX 7,117
02 1994 1,644 909 4,926 140,407 XXX 55,559
03 1995 1,262 573 3,793 107,084 XXX 78,068
04 TOTAL 3,260 2,137 8,777 253,389 XXX 140,744
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 1,814 6,933 1,999 613 179 605
02 1994 28,763 1,821 297 3,352 1,382 242
03 1995 15,413 22,732 1,400 3,266 945 1,615
04 TOTAL 45,990 31,478 3,696 7,225 2,506 2,453
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 242 280 144 11,171 1,911 XXX
02 1994 52 350 614 31,086 157 291,728
03 1995 161 781 1,301 89,061 1,505 286,583
04 TOTAL 455 1,410 2,058 131,319 3,583 XXX
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 57
02 1994 120,237 171,491 94.208 112.418 84.599 0
03 1995 90,438 196,145 74.147 64.400 79.709 0
04 TOTAL XXX XXX XXX XXX XXX 57
SCHEDULE P - PART 1I - SPECIAL PROPERTY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 10,181 932
02 1994 0 .000 28,310 2,776
03 1995 0 .000 83,996 5,074
04 TOTAL 0 XXX 122,487 8,782
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX -2,401 -112 1,024
02 1994 553,965 103,301 450,665 359,922 69,445 12,557
03 1995 623,985 125,309 498,676 456,872 112,324 10,348
04 TOTAL XXX XXX XXX 814,383 181,663 23,930
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 50 5,326 -26 -1,342 XXX 2,307
02 1994 3,308 29,612 20,868 320,593 321,733 -1,384
03 1995 2,674 17,141 24,286 376,500 379,830 30,546
04 TOTAL 6,041 52,082 45,125 695,749 XXX 31,469
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 6 2,277 -5 215 2 118
02 1994 157 -422 -55 305 49 51
03 1995 7,171 22,621 5,085 3,670 1,248 1,717
04 TOTAL 7,334 24,475 5,025 4,192 1,298 1,885
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 4 1,851 236 5,146 453 XXX
02 1994 28 2,962 193 -1,434 5,795 392,269
03 1995 27 18,332 2,692 47,713 36,258 553,103
04 TOTAL 59 23,135 3,121 51,434 42,516 XXX
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1994 73,110 319,159 70.811 70.774 70.820 0
03 1995 128,881 424,222 88.640 102.851 85.070 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 4,583 564
02 1994 0 .000 -1,908 474
03 1995 0 .000 40,910 6,804
04 TOTAL 0 XXX 43,585 7,842
SCHEDULE P - PART 1K - FIDELITY, SURETY
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX -888 -224 196
02 1994 40,231 8,177 32,055 4,088 1,462 677
03 1995 41,693 8,761 32,932 3,418 935 161
04 TOTAL XXX XXX XXX 6,619 2,173 1,033
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 82 936 -189 -739 XXX -3,886
02 1994 245 1 1,022 4,072 XXX 1,277
03 1995 32 21 1,105 3,717 XXX 11,637
04 TOTAL 360 957 1,939 7,049 XXX 9,020
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR -1,629 -489 -79 -688 -366 0
02 1994 1,800 -329 -53 180 377 0
03 1995 2,915 9,524 1,521 1,682 413 1,406
04 TOTAL 3,087 8,698 1,381 1,174 423 1,406
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 523 -181 -3,169 418 XXX
02 1994 0 278 -86 -1,081 149 7,069
03 1995 223 328 1,735 20,904 85 31,159
04 TOTAL 223 1,130 1,461 16,645 653 XXX
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1994 4,079 2,990 17.571 49.884 9.328 0
03 1995 6,532 24,627 74.734 74.558 74.781 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1K - FIDELITY, SURETY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX -2,676 -502
02 1994 0 .000 -799 -283
03 1995 0 .000 16,724 4,179
04 TOTAL 0 XXX 13,249 3,394
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 323 130 0
02 1994 12,044 4,995 7,049 1,680 793 0
03 1995 15,933 6,986 8,947 43 146 0
04 TOTAL XXX XXX XXX 2,046 1,069 0
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 12 205 XXX 445
02 1994 0 0 108 996 XXX 372
03 1995 0 0 45 -57 XXX 44
04 TOTAL 0 0 166 1,144 XXX 871
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 169 1,003 421 0 0 0
02 1994 164 2,430 987 0 0 0
03 1995 20 7,151 1,790 0 0 0
04 TOTAL 353 10,592 3,197 0 0 0
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 859 0 XXX
02 1994 0 0 0 1,659 0 4,603
03 1995 0 0 0 5,386 0 7,286
04 TOTAL 0 0 0 7,904 0 XXX
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1994 1,947 2,656 38.218 38.979 37.679 0
03 1995 1,957 5,329 45.729 28.013 59.562 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 859 0
02 1994 0 .000 1,659 0
03 1995 0 .000 5,386 0
04 TOTAL 0 XXX 7,904 0
SCHEDULE P - PART 1M - INTERNATIONAL
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 665 130 0
02 1986 -244 -10 -234 0 0 0
03 1987 169 3 166 0 0 0
04 1988 175 9 166 0 0 0
05 1989 -13 -1 -12 0 0 0
06 1990 -14 -1 -13 0 0 0
07 1991 2 0 2 0 0 0
08 1992 16 1 15 0 0 0
09 1993 3 0 3 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL XXX XXX XXX 665 130 0
SCHEDULE P - PART 1M - INTERNATIONAL
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 38 573 XXX 2,978
02 1986 0 0 0 0 XXX 0
03 1987 0 0 0 0 XXX 0
04 1988 0 0 0 0 XXX 0
05 1989 0 0 0 0 XXX 0
06 1990 0 0 0 0 XXX 0
07 1991 0 0 0 0 XXX 0
08 1992 0 0 0 0 XXX 0
09 1993 0 0 0 0 XXX 0
10 1994 0 0 0 0 XXX 0
11 1995 0 0 0 0 XXX 0
12 TOTAL 0 0 38 573 XXX 2,978
SCHEDULE P - PART 1M - INTERNATIONAL
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 676 1,374 59 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL 676 1,374 59 0 0 0
SCHEDULE P - PART 1M - INTERNATIONAL
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 317 3,934 312 XXX
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 0 0 0 0 0 0
10 1994 0 0 0 0 0 0
11 1995 0 0 0 0 0 0
12 TOTAL 0 0 317 3,934 312 XXX
SCHEDULE P - PART 1M - INTERNATIONAL
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 0 0 .000 .000 .000 0
03 1987 0 0 .000 .000 .000 0
04 1988 0 0 .000 .000 .000 0
05 1989 0 0 .000 .000 .000 0
06 1990 0 0 .000 .000 .000 0
07 1991 0 0 .000 .000 .000 0
08 1992 0 0 .000 .000 .000 0
09 1993 0 0 .000 .000 .000 0
10 1994 0 0 .000 .000 .000 0
11 1995 0 0 .000 .000 .000 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1M - INTERNATIONAL
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 3,617 317
02 1986 0 .000 0 0
03 1987 0 .000 0 0
04 1988 0 .000 0 0
05 1989 0 .000 0 0
06 1990 0 .000 0 0
07 1991 0 .000 0 0
08 1992 0 .000 0 0
09 1993 0 .000 0 0
10 1994 0 .000 0 0
11 1995 0 .000 0 0
12 TOTAL 0 XXX 3,617 317
SCHEDULE P - PART 1N - REINSURANCE A
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 62 2 60 0 0 0
07 1994 215 11 204 0 0 0
08 1995 213 19 194 0 0 0
09 TOTAL XXX XXX XXX 0 0 0
SCHEDULE P - PART 1N - REINSURANCE A
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1N - REINSURANCE A
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 1995 0 0 0 0 0 0
09 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1N - REINSURANCE A
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX XXX
SCHEDULE P - PART 1N - REINSURANCE A
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 1995 0 0 .000 .000 .000 0
09 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1N - REINSURANCE A
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 1995 0 .000 0 0
09 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1O - REINSURANCE B
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 2,011 0 2,011 0 0 0
02 1989 612 1,823 -1,211 0 0 0
03 1990 231 7 224 0 0 0
04 1991 -326 -8 -318 0 0 0
05 1992 134 0 134 0 0 0
06 1993 516 0 516 0 0 0
07 1994 0 0 0 0 0 0
08 1995 86 0 86 0 0 0
09 TOTAL XXX XXX XXX 0 0 0
SCHEDULE P - PART 1O - REINSURANCE B
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1O - REINSURANCE B
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 1995 0 0 0 0 0 0
09 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1O - REINSURANCE B
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX XXX
SCHEDULE P - PART 1O - REINSURANCE B
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 1995 0 0 .000 .000 .000 0
09 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1O - REINSURANCE B
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 1995 0 .000 0 0
09 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1P - REINSURANCE C
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 1995 0 0 0 0 0 0
09 TOTAL XXX XXX XXX 0 0 0
SCHEDULE P - PART 1P - REINSURANCE C
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1P - REINSURANCE C
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 0 0 0 0 0 0
07 1994 0 0 0 0 0 0
08 1995 0 0 0 0 0 0
09 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1P - REINSURANCE C
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 1988 0 0 0 0 XXX 0
02 1989 0 0 0 0 XXX 0
03 1990 0 0 0 0 XXX 0
04 1991 0 0 0 0 XXX 0
05 1992 0 0 0 0 XXX 0
06 1993 0 0 0 0 XXX 0
07 1994 0 0 0 0 XXX 0
08 1995 0 0 0 0 XXX 0
09 TOTAL 0 0 0 0 XXX XXX
SCHEDULE P - PART 1P - REINSURANCE C
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 1988 0 0 .000 .000 .000 0
02 1989 0 0 .000 .000 .000 0
03 1990 0 0 .000 .000 .000 0
04 1991 0 0 .000 .000 .000 0
05 1992 0 0 .000 .000 .000 0
06 1993 0 0 .000 .000 .000 0
07 1994 0 0 .000 .000 .000 0
08 1995 0 0 .000 .000 .000 0
09 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1P - REINSURANCE C
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 1988 0 .000 0 0
02 1989 0 .000 0 0
03 1990 0 .000 0 0
04 1991 0 .000 0 0
05 1992 0 .000 0 0
06 1993 0 .000 0 0
07 1994 0 .000 0 0
08 1995 0 .000 0 0
09 TOTAL 0 XXX 0 0
SCHEDULE P - PART 1Q - REINSURANCE D
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 464 0 108
02 1986 2,194 0 2,194 2,125 224 13
03 1987 7,261 3,615 3,646 34,660 28,196 17,680
04 1988 XXX XXX XXX 37,249 28,420 17,801
SCHEDULE P - PART 1Q - REINSURANCE D
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 4 576 XXX 2,619
02 1986 0 0 4 1,918 XXX 204
03 1987 15,082 2,447 359 9,420 XXX 19,264
04 1988 15,082 2,447 367 11,914 XXX 22,087
SCHEDULE P - PART 1Q - REINSURANCE D
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 1,887 0 111 0 17
02 1986 0 178 0 0 0 0
03 1987 17,878 11,950 11,950 950 939 0
04 1988 17,878 14,015 11,950 1,061 939 17
SCHEDULE P - PART 1Q - REINSURANCE D
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 87 4,721 XXX XXX
02 1986 0 0 11 393 XXX 316
03 1987 0 0 0 1,397 XXX 84,863
04 1988 0 0 98 6,511 XXX 0
SCHEDULE P - PART 1Q - REINSURANCE D
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 0 316 14.403 .000 14.403 0
03 1987 74,039 10,824 1,168.751 2,048.105 296.873 0
04 1988 XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1Q - REINSURANCE D
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 4,506 215
02 1986 0 .000 382 11
03 1987 0 .000 1,386 11
04 1988 0 XXX 6,274 237
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 6,978 7,598 2,911
02 1986 114,896 52,778 62,118 37,365 22,081 7,407
03 1987 109,235 38,440 70,795 14,299 7,916 3,406
04 1988 64,218 27,037 37,181 15,875 12,212 5,769
05 1989 40,187 19,668 20,519 8,849 5,300 1,824
06 1990 33,551 16,741 16,810 7,019 5,096 1,426
07 1991 24,228 14,297 9,931 2,317 1,596 1,939
08 1992 11,503 2,383 9,120 2,027 977 1,428
09 1993 19,070 8,228 10,842 743 979 555
10 1994 13,550 5,013 8,537 -146 -190 352
11 1995 16,280 5,880 10,400 259 131 155
12 TOTAL XXX XXX XXX 95,585 63,696 27,172
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 1,948 13 227 570 XXX 33,200
02 1986 2,611 107 1,810 21,890 1,104 3,823
03 1987 509 145 180 9,460 710 6,025
04 1988 1,716 125 -2,024 5,692 390 1,214
05 1989 1,023 237 555 4,905 271 989
06 1990 943 755 922 3,328 364 2,070
07 1991 1,119 1,775 986 2,527 361 236
08 1992 368 1,941 600 2,710 275 1,049
09 1993 266 1,717 255 308 303 2,823
10 1994 74 1,287 427 749 252 1,258
11 1995 39 977 359 603 217 1,911
12 TOTAL 10,616 9,079 4,297 52,742 XXX 54,597
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 24,571 78,014 59,371 5,034 2,364 11,580
02 1986 2,710 3,321 956 560 235 573
03 1987 794 1,522 694 402 150 407
04 1988 827 1,496 567 105 3 387
05 1989 745 6,360 1,541 62 22 1,962
06 1990 2,007 6,969 1,309 295 217 1,507
07 1991 93 7,444 1,872 84 24 1,205
08 1992 314 5,933 2,659 334 28 1,339
09 1993 2,385 5,708 2,742 895 593 1,349
10 1994 530 5,545 2,527 369 144 1,413
11 1995 952 11,399 2,785 675 322 3,017
12 TOTAL 35,929 133,713 77,014 8,814 4,104 24,733
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 5,358 0 2,833 38,989 909 XXX
02 1986 158 0 422 4,639 66 55,351
03 1987 196 0 125 6,655 53 26,352
04 1988 168 2 283 1,920 38 22,044
05 1989 503 3 205 6,760 32 20,969
06 1990 367 76 419 7,360 40 20,669
07 1991 534 73 114 6,560 21 14,645
08 1992 774 258 224 5,105 43 13,294
09 1993 724 326 239 4,561 33 12,985
10 1994 653 322 313 5,045 36 9,757
11 1995 691 389 1,439 13,691 47 19,557
12 TOTAL 10,150 1,457 6,626 101,293 1,328 XXX
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 43
02 1986 28,811 26,539 48.174 54.589 42.723 0
03 1987 10,254 16,100 24.124 26.675 22.741 0
04 1988 14,432 7,612 34.326 53.378 20.472 0
05 1989 9,302 11,667 52.178 47.295 56.859 0
06 1990 9,982 10,688 61.604 59.626 63.581 0
07 1991 5,566 9,079 60.446 38.931 91.420 0
08 1992 5,487 7,806 115.569 230.255 85.592 0
09 1993 8,116 4,871 68.091 98.638 44.927 0
10 1994 3,964 5,793 72.007 79.074 67.857 0
11 1995 5,263 14,293 120.128 89.506 137.432 0
12 TOTAL XXX XXX XXX XXX XXX 43
SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 27,221 11,725
02 1986 0 .000 3,477 1,162
03 1987 0 .000 6,059 588
04 1988 0 .000 1,316 604
05 1989 0 .000 5,064 1,695
06 1990 0 .000 5,724 1,637
07 1991 0 .000 5,724 845
08 1992 0 .000 4,010 1,095
09 1993 0 .000 3,404 1,166
10 1994 0 .000 3,747 1,298
11 1995 0 .000 9,581 4,111
12 TOTAL 0 XXX 75,324 25,926
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1986 6,129 2,629 3,500 6 1 4
03 1987 14,443 3,545 10,898 1,981 263 1,657
04 1988 13,133 3,126 9,999 1,183 119 663
05 1989 10,082 2,163 7,927 1,274 377 592
06 1990 7,977 1,480 6,497 3,625 1,479 718
07 1991 9,569 2,044 7,525 1,107 823 268
08 1992 7,471 3,221 4,250 911 356 739
09 1993 3,863 2,707 1,155 815 7 246
10 1994 4,823 2,970 1,861 184 162 446
11 1995 3,054 2,033 1,021 38 120 13
12 TOTAL XXX XXX XXX 11,141 3,715 5,346
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1986 1 0 0 8 12 0
03 1987 62 0 269 3,588 177 0
04 1988 85 0 95 1,728 125 14
05 1989 19 0 166 1,634 180 0
06 1990 238 0 329 2,956 89 50
07 1991 156 0 111 515 340 362
08 1992 351 0 27 970 83 1,114
09 1993 7 0 149 1,197 56 326
10 1994 207 0 230 490 85 687
11 1995 10 0 56 -23 41 106
12 TOTAL 1,147 0 1,439 13,071 XXX 2,668
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 9 0 0 6 4 0
05 1989 0 3 0 0 0 0
06 1990 50 11 4 4 4 2
07 1991 4 73 13 21 1 5
08 1992 628 58 22 36 7 9
09 1993 30 133 63 42 7 21
10 1994 415 204 154 173 110 26
11 1995 42 660 197 59 16 40
12 TOTAL 1,187 1,150 453 341 150 103
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1986 0 0 0 0 0 10
03 1987 0 0 0 0 2 3,914
04 1988 0 0 0 8 1 1,962
05 1989 0 0 0 3 0 2,035
06 1990 1 0 0 8 0 4,739
07 1991 3 0 4 442 10 1,957
08 1992 5 0 3 557 7 2,905
09 1993 12 0 6 417 9 1,755
10 1994 15 0 8 397 29 1,989
11 1995 110 0 27 527 22 1,013
12 TOTAL 146 0 49 2,376 87 XXX
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1986 2 8 .163 .076 .229 0
03 1987 326 3,588 27.100 9.196 32.923 0
04 1988 217 1,745 14.939 6.942 17.452 0
05 1989 397 1,638 20.184 18.354 20.664 0
06 1990 1,774 2,965 59.408 119.865 45.636 0
07 1991 1,000 957 20.451 48.924 12.718 0
08 1992 1,370 1,535 38.884 42.533 36.118 0
09 1993 133 1,622 45.431 4.913 140.433 0
10 1994 1,101 888 41.240 37.071 47.716 0
11 1995 501 512 33.170 24.643 50.147 0
12 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1986 0 .000 0 0
03 1987 0 .000 0 0
04 1988 0 .000 6 3
05 1989 0 .000 3 0
06 1990 0 .000 7 1
07 1991 0 .000 417 25
08 1992 0 .000 522 36
09 1993 0 .000 367 50
10 1994 0 .000 314 83
11 1995 0 .000 526 0
12 TOTAL 0 XXX 2,162 198
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
($000 OMITTED)
1 PREMIUMS EARNED LOSS AND LOSS EXPENSE PAYMENTS
YEARS IN 2 3 4 ALLOCATED LOSS
WHICH PRE- LOSS PAYMENTS EXP PAYMENTS
MIUMS WERE DIRECT NET 5 6 7
EARNED AND AND CEDED (2 - 3) DIRECT DIRECT
LOSSES ASSUMED AND CEDED AND
WERE INC ASSUMED ASSUMED
01 PRIOR XXX XXX XXX 0 0 0
02 1994 0 0 0 0 0 0
03 1995 0 0 0 0 0 0
04 TOTAL XXX XXX XXX 0 0 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 LOSS AND LOSS EXPENSE PAYMENTS LOSSES UNPAID
YEARS IN ALLOC LOSS 9 10 11 12 CASE BASIS
WHICH PRE- EXPENSE NUMBER OF
MIUMS WERE PAYMENTS SALVAGE UNALLOCATED TOTAL CLAIMS 13
EARNED AND 8 AND LOSS NET PAID REPORTED - DIRECT
LOSSES CEDED SUBROGATION EXPENSE (5 - 6 + 7 DIRECT AND AND
WERE INC RECEIVED PAYMENTS - 8 + 10) ASSUMED ASSUMED
01 PRIOR 0 0 0 0 XXX 0
02 1994 0 0 0 0 XXX 0
03 1995 0 0 0 0 XXX 0
04 TOTAL 0 0 0 0 XXX 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 LOSSES UNPAID ALLOCATED LOSS EXPENSES UNPAID
YEARS IN CASE BASIS BULK + IBNR CASE BASIS BULK + IBNR
WHICH PRE-
MIUMS WERE 14 15 16 17 18 19
EARNED AND DIRECT DIRECT DIRECT
LOSSES CEDED AND CEDED AND CEDED AND
WERE INC ASSUMED ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 0
02 1994 0 0 0 0 0 0
03 1995 0 0 0 0 0 0
04 TOTAL 0 0 0 0 0 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 21 22 23 24 TOTAL LOSSES
YEARS IN BULK + IBNR & LOSS EXP
WHICH PRE- NUMBER OF INCURRED
MIUMS WERE 20 SALVAGE UNALLOCATED TOTAL CLAIMS 25
EARNED AND AND LOSS NET LOSSES OUTSTANDING DIRECT
LOSSES CEDED SUBROGATION EXPENSES & EXPENSES DIRECT AND AND
WERE INC ANTICIPATED UNPAID UNPAID ASSUMED ASSUMED
01 PRIOR 0 0 0 0 0 XXX
02 1994 0 0 0 0 0 0
03 1995 0 0 0 0 0 0
04 TOTAL 0 0 0 0 0 XXX
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 TOTAL LOSSES AND LOSS LOSS AND LOSS EXPENSE PERCENTAGE DISCOUNT FOR
YEARS IN EXPENSES INCURRED (INCURRED/PREMIUMS EARNED) TIME VALUE
WHICH PRE- OF MONEY
MIUMS WERE 26 27 28 29 30 31
EARNED AND DIRECT
LOSSES CEDED NET* AND CEDED NET LOSS
WERE INC ASSUMED
01 PRIOR XXX XXX XXX XXX XXX 0
02 1994 0 0 .000 .000 .000 0
03 1995 0 0 .000 .000 .000 0
04 TOTAL XXX XXX XXX XXX XXX 0
SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 DISCOUNT FOR 33 NET BALANCE SHEET
YEARS IN TIME VALUE RESERVES AFTER DISCOUNT
WHICH PRE- OF MONEY INTER-
MIUMS WERE 32 COMPANY 34 35
EARNED AND POOLING LOSS
LOSSES LOSS PARTICIPATION LOSSES EXPENSES
WERE INC EXPENSE PERCENTAGE UNPAID UNPAID
01 PRIOR 0 XXX 0 0
02 1994 0 .000 0 0
03 1995 0 .000 0 0
04 TOTAL 0 XXX 0 0
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 17,919 20,106 19,415 20,219 21,384 21,069
02 1986 56,595 55,001 54,560 53,367 53,282 53,403
03 1987 XXX 42,008 43,710 42,608 42,822 43,065
04 1988 XXX XXX 42,100 45,946 46,361 46,758
05 1989 XXX XXX XXX 60,606 64,933 64,952
06 1990 XXX XXX XXX XXX 55,260 60,811
07 1991 XXX XXX XXX XXX XXX 63,148
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 20,524 20,351 20,219 20,316 97 -35
02 1986 53,071 53,086 53,161 53,163 3 78
03 1987 42,604 42,440 42,356 42,379 23 -61
04 1988 46,168 46,211 46,313 46,384 71 173
05 1989 64,194 64,119 64,364 64,572 200 444
06 1990 58,039 58,617 59,018 59,373 355 756
07 1991 65,094 66,197 67,158 67,641 483 1,444
08 1992 57,128 55,459 55,994 56,840 846 1,373
09 1993 XXX 58,742 57,042 59,060 2,018 318
10 1994 XXX XXX 61,756 61,019 -738 XXX
11 1995 XXX XXX XXX 62,836 XXX XXX
12 TOTAL 3,366 4,506
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 88,574 111,607 117,343 116,962 116,305 116,300
02 1986 208,664 206,747 203,374 200,444 199,712 200,525
03 1987 XXX 213,532 212,109 212,968 214,794 213,779
04 1988 XXX XXX 251,340 253,553 261,105 257,748
05 1989 XXX XXX XXX 308,340 303,896 296,650
06 1990 XXX XXX XXX XXX 379,267 363,269
07 1991 XXX XXX XXX XXX XXX 414,081
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 114,997 117,887 117,212 117,795 582 -92
02 1986 199,847 198,466 198,945 199,541 596 1,067
03 1987 212,918 213,173 212,990 212,535 -454 -638
04 1988 256,170 256,501 255,870 255,600 -271 -909
05 1989 295,047 296,051 295,646 295,581 -65 -479
06 1990 362,241 362,514 363,657 362,180 -1,486 -334
07 1991 396,713 390,056 388,265 388,695 438 -1,362
08 1992 484,260 453,070 445,880 445,396 -485 -7,675
09 1993 XXX 543,275 529,849 531,423 1,574 -11,845
10 1994 XXX XXX 678,980 672,550 -6,430 XXX
11 1995 XXX XXX XXX 758,581 XXX XXX
12 TOTAL -6,009 -22,257
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 106,767 112,845 132,644 132,152 134,340 133,046
02 1986 106,946 107,623 102,235 99,813 99,317 98,314
03 1987 XXX 103,351 101,202 98,676 101,201 97,309
04 1988 XXX XXX 101,819 101,416 106,236 103,943
05 1989 XXX XXX XXX 111,935 117,990 109,572
06 1990 XXX XXX XXX XXX 105,301 97,036
07 1991 XXX XXX XXX XXX XXX 88,837
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 130,554 127,097 126,130 125,952 -177 -1,145
02 1986 97,519 96,910 97,325 98,686 1,361 1,776
03 1987 97,075 95,375 94,942 95,216 280 -159
04 1988 107,692 106,308 105,501 105,126 -368 -1,182
05 1989 118,792 120,065 116,728 114,046 -2,674 -6,019
06 1990 108,845 105,042 106,719 102,071 -4,648 -2,971
07 1991 87,052 92,809 89,158 81,071 -8,087 -11,738
08 1992 79,247 87,808 89,143 77,238 -11,905 -10,569
09 1993 XXX 105,982 98,678 94,098 -4,580 -11,884
10 1994 XXX XXX 94,747 90,016 -4,731 XXX
11 1995 XXX XXX XXX 88,003 XXX XXX
12 TOTAL -35,540 -43,886
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 499,448 527,991 554,412 577,752 579,304 586,244
02 1986 271,328 280,695 281,807 285,085 282,910 287,088
03 1987 XXX 278,375 280,092 282,996 277,654 279,233
04 1988 XXX XXX 355,695 365,193 363,109 357,260
05 1989 XXX XXX XXX 313,178 347,792 340,316
06 1990 XXX XXX XXX XXX 351,858 385,186
07 1991 XXX XXX XXX XXX XXX 327,493
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2D - WORKERS' COMPENSATION
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 587,142 595,309 622,604 619,349 -3,255 24,040
02 1986 285,569 280,452 280,351 281,567 1,214 1,114
03 1987 282,973 276,304 276,713 276,888 174 584
04 1988 354,690 348,562 337,352 334,777 -2,575 -13,793
05 1989 337,719 330,642 329,776 330,055 278 -588
06 1990 376,429 363,685 355,950 353,566 -2,384 -10,119
07 1991 373,488 360,644 345,252 336,361 -8,891 -24,282
08 1992 336,432 336,837 317,673 292,078 -25,596 -44,759
09 1993 XXX 332,077 325,903 322,931 -2,963 -9,138
10 1994 XXX XXX 365,516 349,473 -16,042 XXX
11 1995 XXX XXX XXX 309,169 XXX XXX
12 TOTAL -60,046 -76,933
SCHEDULE P - PART 2E - COMMERICAL MULTIPLE PERIL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 155,533 185,871 204,693 222,561 217,516 221,099
02 1986 118,706 102,761 92,241 91,215 88,953 87,062
03 1987 XXX 112,925 98,809 94,736 93,109 96,573
04 1988 XXX XXX 127,648 113,098 112,456 116,128
05 1989 XXX XXX XXX 128,411 125,324 118,908
06 1990 XXX XXX XXX XXX 155,370 143,015
07 1991 XXX XXX XXX XXX XXX 162,856
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2E - COMMERICAL MULTIPLE PERIL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 223,617 226,831 236,883 238,729 1,845 11,898
02 1986 87,015 85,898 88,007 89,128 1,122 3,230
03 1987 97,855 95,415 94,155 95,911 1,756 488
04 1988 116,443 119,941 116,496 116,370 -126 -3,570
05 1989 121,606 121,295 120,567 120,641 73 -653
06 1990 143,270 142,966 142,475 143,602 1,127 644
07 1991 145,588 142,906 146,982 142,661 -4,322 -244
08 1992 160,642 138,997 140,812 145,733 4,922 6,736
09 1993 XXX 115,044 110,619 104,638 -5,981 -10,415
10 1994 XXX XXX 126,946 135,717 8,763 XXX
11 1995 XXX XXX XXX 135,334 XXX XXX
12 TOTAL 9,171 8,120
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 1,643 1,840 2,146 2,144 2,172 2,154
02 1986 7 6 6 0 0 0
03 1987 XXX 12 0 1 1 1
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 2,248 2,221 4,127 4,606 471 2,376
02 1986 0 0 0 0 0 0
03 1987 1 1 -13 1 13 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 -1 0 1 0
07 1991 0 0 0 0 0 0
08 1992 0 -1 -1 -1 0 0
09 1993 XXX 0 0 0 0 0
10 1994 XXX XXX 0 0 0 XXX
11 1995 XXX XXX XXX 0 XXX XXX
12 TOTAL 486 2,376
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 XXX 0 0 0 0 0
10 1994 XXX XXX 466 754 278 XXX
11 1995 XXX XXX XXX 829 XXX XXX
12 TOTAL 278 0
SCHEDULE P - PART 2G - SPECIAL LIABILITY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 11,366 11,260 10,507 11,069 11,469 10,835
02 1986 9,160 10,190 9,588 8,999 9,121 8,976
03 1987 XXX 8,543 10,081 9,963 9,571 9,815
04 1988 XXX XXX 8,957 9,756 11,097 11,247
05 1989 XXX XXX XXX 10,156 11,766 12,275
06 1990 XXX XXX XXX XXX 12,135 16,808
07 1991 XXX XXX XXX XXX XXX 14,809
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2G - SPECIAL LIABILITY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 10,426 10,307 10,012 10,419 415 111
02 1986 8,935 9,043 8,988 9,084 96 41
03 1987 9,594 9,757 9,653 9,696 43 -62
04 1988 11,001 11,306 11,309 11,257 -52 -48
05 1989 12,360 12,806 13,111 13,138 27 324
06 1990 17,108 17,944 18,090 18,038 -52 94
07 1991 19,520 19,248 19,387 20,123 736 876
08 1992 21,853 27,628 27,417 27,490 73 -138
09 1993 XXX 27,253 32,085 33,031 946 5,778
10 1994 XXX XXX 34,321 35,336 1,016 XXX
11 1995 XXX XXX XXX 32,810 XXX XXX
12 TOTAL 3,240 6,976
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 246,964 244,617 261,090 308,092 348,521 342,862
02 1986 196,751 175,883 174,494 130,383 126,596 111,715
03 1987 XXX 165,165 149,853 137,134 123,853 106,834
04 1988 XXX XXX 106,989 117,293 117,044 109,866
05 1989 XXX XXX XXX 78,527 82,736 77,708
06 1990 XXX XXX XXX XXX 79,427 83,768
07 1991 XXX XXX XXX XXX XXX 98,746
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 399,182 446,448 521,521 520,827 -703 74,379
02 1986 104,233 97,028 98,317 97,092 -1,225 64
03 1987 102,074 89,562 88,145 88,197 51 -1,367
04 1988 118,186 113,417 100,490 94,205 -6,285 -19,212
05 1989 77,782 73,283 66,022 68,163 2,139 -5,121
06 1990 77,294 81,506 65,325 59,354 -5,970 -22,152
07 1991 91,212 99,586 77,735 76,402 -1,324 -23,184
08 1992 76,695 92,630 82,156 65,222 -16,925 -27,408
09 1993 XXX 96,060 90,503 92,819 2,316 -3,240
10 1994 XXX XXX 92,036 104,109 12,072 XXX
11 1995 XXX XXX XXX 121,897 XXX XXX
12 TOTAL -15,854 -27,249
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 984 629 110 275 210 135
02 1986 10,441 7,154 6,777 4,409 3,224 2,204
03 1987 XXX 38,067 41,765 29,596 18,316 13,441
04 1988 XXX XXX 46,121 33,159 31,539 28,778
05 1989 XXX XXX XXX 38,938 33,780 34,685
06 1990 XXX XXX XXX XXX 54,594 50,313
07 1991 XXX XXX XXX XXX XXX 47,267
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 110 72 72 72 0 0
02 1986 1,766 1,494 1,496 1,447 -49 -47
03 1987 10,859 9,288 8,178 5,450 -2,729 -3,839
04 1988 9,477 8,080 7,217 7,496 279 -584
05 1989 30,466 23,537 15,678 14,975 -711 -8,570
06 1990 54,907 56,358 49,326 45,784 -3,534 -10,574
07 1991 46,880 44,143 21,752 17,511 -4,241 -26,633
08 1992 56,648 51,749 50,690 28,063 -22,627 -23,687
09 1993 XXX 68,578 68,999 62,780 -6,210 -5,797
10 1994 XXX XXX 90,048 83,081 -6,967 XXX
11 1995 XXX XXX XXX 91,005 XXX XXX
12 TOTAL -46,790 -79,722
SCHEDULE P - PART 2I - SPECIAL PROPERTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2I - SPECIAL PROPERTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 42,265 42,538 40,728 -1,818 -1,536
02 1994 XXX XXX 150,169 165,960 15,783 XXX
03 1995 XXX XXX XXX 191,053 XXX XXX
04 TOTAL 13,973 -1,536
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 40,373 26,066 24,953 -1,114 -15,420
02 1994 XXX XXX 307,906 298,098 -9,809 XXX
03 1995 XXX XXX XXX 397,240 XXX XXX
04 TOTAL -10,942 -14,148
SCHEDULE P - PART 2K - FIDELITY, SURETY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2K - FIDELITY, SURETY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 3,350 8,155 1,757 -6,390 -1,585
02 1994 XXX XXX 7,302 2,054 -5,248 XXX
03 1995 XXX XXX XXX 21,781 XXX XXX
04 TOTAL -11,639 -1,585
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 2,381 2,508 1,704 -804 -684
02 1994 XXX XXX 2,244 2,547 295 XXX
03 1995 XXX XXX XXX 5,284 XXX XXX
04 TOTAL -509 -684
SCHEDULE P - PART 2M - INTERNATIONAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 1,690 1,869 2,441 2,866 2,996 3,201
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2M - INTERNATIONAL
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 4,316 5,139 3,636 3,694 58 -1,445
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 XXX 0 0 0 0 0
10 1994 XXX XXX 0 0 0 XXX
11 1995 XXX XXX XXX 0 XXX XXX
12 TOTAL 58 -1,445
SCHEDULE P - PART 2N - REINSURANCE A
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
09 TOTAL
SCHEDULE P - PART 2N - REINSURANCE A
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 XXX 0 0 0 0 XXX
07 1994 XXX XXX 0 0 0 XXX
08 1995 XXX XXX XXX 0 XXX XXX
09 TOTAL 0 0
SCHEDULE P - PART 2O - REINSURANCE B
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
09 TOTAL
SCHEDULE P - PART 2O - REINSURANCE B
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 XXX 0 0 0 0 XXX
07 1994 XXX XXX 0 0 0 XXX
08 1995 XXX XXX XXX 0 XXX XXX
09 TOTAL 0 0
SCHEDULE P - PART 2P - REINSURANCE C
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
09 TOTAL
SCHEDULE P - PART 2P - REINSURANCE C
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 1988 0 0 0 0 0 0
02 1989 0 0 0 0 0 0
03 1990 0 0 0 0 0 0
04 1991 0 0 0 0 0 0
05 1992 0 0 0 0 0 0
06 1993 XXX 0 0 0 0 XXX
07 1994 XXX XXX 0 0 0 XXX
08 1995 XXX XXX XXX 0 XXX XXX
09 TOTAL 0 0
SCHEDULE P - PART 2Q - REINSURANCE D
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 1,392 2,296 2,933 244,914 4,735 5,056
02 1986 2,085 1,970 2,892 3,104 3,223 3,175
03 1987 XXX 6,560 10,174 10,460 10,527 10,458
04 1988
SCHEDULE P - PART 2Q - REINSURANCE D
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 5,943 5,859 6,158 8,317 2,159 2,458
02 1986 3,074 3,673 3,673 2,296 -1,377 -1,377
03 1987 10,459 10,459 10,457 10,458 1 -1
04 1988 783 1,080
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 29,414 34,331 43,887 44,438 39,339 47,480
02 1986 47,413 45,863 44,066 39,509 30,320 27,913
03 1987 XXX 40,347 36,661 36,188 26,992 18,178
04 1988 XXX XXX 40,426 17,421 21,155 20,891
05 1989 XXX XXX XXX 13,667 10,753 12,535
06 1990 XXX XXX XXX XXX 10,847 13,954
07 1991 XXX XXX XXX XXX XXX 8,390
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 49,516 61,864 73,039 71,288 -1,750 9,425
02 1986 26,023 24,472 25,469 24,306 -1,162 -165
03 1987 12,699 11,895 12,552 15,794 3,242 3,899
04 1988 9,224 10,457 10,995 9,363 -1,640 -1,103
05 1989 8,850 10,529 8,616 10,905 2,289 376
06 1990 11,374 13,461 10,278 9,347 -930 -4,114
07 1991 6,221 9,424 7,300 7,988 688 -1,436
08 1992 3,117 6,747 6,224 6,984 752 237
09 1993 XXX 4,243 5,016 4,368 -648 133
10 1994 XXX XXX 7,659 5,053 -2,606 XXX
11 1995 XXX XXX XXX 12,496 XXX XXX
12 TOTAL -1,767 7,252
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 145 102 111 21 13 5
02 1986 2,528 2,161 1,609 1,281 788 365
03 1987 XXX 10,677 7,794 10,524 10,663 10,107
04 1988 XXX XXX 6,162 8,023 8,587 7,992
05 1989 XXX XXX XXX 6,119 5,609 5,669
06 1990 XXX XXX XXX XXX 4,195 3,990
07 1991 XXX XXX XXX XXX XXX 5,013
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
12 TOTAL
SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR 3 0 0 0 0 0
02 1986 203 7 7 8 1 1
03 1987 8,509 4,027 3,905 3,320 -594 -715
04 1988 7,636 2,720 1,653 1,642 -11 -1,078
05 1989 5,539 2,562 1,463 1,463 0 -1,090
06 1990 4,190 3,314 2,709 2,635 -73 -679
07 1991 5,529 1,853 1,162 843 -319 -1,010
08 1992 3,452 2,471 1,573 1,505 -69 -973
09 1993 XXX 1,905 1,504 1,458 -46 -439
10 1994 XXX XXX 877 649 -220 XXX
11 1995 XXX XXX XXX 421 XXX XXX
12 TOTAL -1,340 -5,984
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
04 TOTAL
SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 ONE YEAR TWO YEAR
LOSSES WERE DEVELOPMENT DEVELOPMENT
INCURRED
01 PRIOR XXX 0 0 0 0 0
02 1994 XXX XXX 0 0 0 XXX
03 1995 XXX XXX XXX 0 XXX XXX
04 TOTAL 0 0
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 7,390 12,887 15,596 17,094 18,092
02 1986 35,399 48,069 50,620 52,003 52,520 52,759
03 1987 XXX 26,642 37,927 40,429 41,797 42,279
04 1988 XXX XXX 29,202 41,834 44,344 45,149
05 1989 XXX XXX XXX 42,501 58,949 61,309
06 1990 XXX XXX XXX XXX 37,502 54,048
07 1991 XXX XXX XXX XXX XXX 44,356
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 18,355 18,528 18,637 18,854 424 123
02 1986 52,914 53,023 53,149 53,152 30,786 808
03 1987 42,376 42,318 42,300 42,345 22,293 598
04 1988 45,610 45,923 46,053 46,369 21,232 698
05 1989 62,490 63,163 64,101 64,401 29,555 1,247
06 1990 56,092 57,591 58,641 59,004 24,224 1,383
07 1991 59,863 64,652 66,084 66,894 27,364 1,026
08 1992 36,701 50,850 53,582 55,356 21,357 859
09 1993 XXX 40,058 52,935 56,417 20,795 2,325
10 1994 XXX XXX 43,617 57,546 22,632 4,851
11 1995 XXX XXX XXX 44,775 17,479 3,276
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 60,771 88,307 103,194 108,487 109,984
02 1986 81,481 150,953 177,622 191,065 196,328 197,964
03 1987 XXX 85,415 159,210 186,837 201,683 208,551
04 1988 XXX XXX 101,708 189,339 227,870 245,403
05 1989 XXX XXX XXX 115,407 221,016 262,427
06 1990 XXX XXX XXX XXX 145,989 267,498
07 1991 XXX XXX XXX XXX XXX 160,362
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 111,944 112,254 112,452 113,245 6 1
02 1986 198,054 198,766 199,249 199,272 73,075 26,536
03 1987 210,805 212,045 212,521 212,771 71,675 26,913
04 1988 251,980 254,139 255,252 255,461 86,382 30,925
05 1989 283,768 290,554 293,614 293,965 125,822 48,224
06 1990 318,313 344,465 354,132 357,537 145,606 58,769
07 1991 297,485 352,297 373,536 383,027 158,925 59,319
08 1992 182,458 344,583 403,479 426,003 170,651 64,001
09 1993 XXX 223,178 415,480 483,443 201,632 80,859
10 1994 XXX XXX 287,892 533,024 250,700 104,820
11 1995 XXX XXX XXX 313,473 184,732 79,120
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 49,581 79,317 102,554 111,605 114,641
02 1986 16,724 44,979 62,954 79,284 88,174 92,772
03 1987 XXX 16,544 43,887 62,682 79,180 86,147
04 1988 XXX XXX 18,821 46,711 69,932 84,546
05 1989 XXX XXX XXX 22,090 52,569 80,492
06 1990 XXX XXX XXX XXX 18,599 46,515
07 1991 XXX XXX XXX XXX XXX 16,658
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 115,953 116,401 115,489 115,662 84 196
02 1986 93,914 94,994 95,463 95,840 15,701 2,978
03 1987 91,311 93,111 93,947 94,127 14,858 2,790
04 1988 96,841 101,351 103,654 104,195 15,727 3,582
05 1989 96,126 107,320 111,750 112,911 17,020 4,591
06 1990 73,654 89,136 95,366 98,855 15,151 3,807
07 1991 41,816 56,193 64,765 70,256 13,170 3,597
08 1992 14,486 35,313 50,236 60,547 12,730 4,081
09 1993 XXX 15,407 35,837 63,337 14,704 6,102
10 1994 XXX XXX 17,427 40,579 15,881 7,481
11 1995 XXX XXX XXX 22,052 10,664 4,037
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 154,604 258,384 333,025 380,975 421,622
02 1986 56,064 129,701 183,884 219,180 239,128 253,291
03 1987 XXX 51,104 129,446 182,804 216,932 237,859
04 1988 XXX XXX 56,978 141,390 201,784 240,107
05 1989 XXX XXX XXX 59,077 150,052 218,352
06 1990 XXX XXX XXX XXX 72,446 183,139
07 1991 XXX XXX XXX XXX XXX 72,943
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3D - WORKERS' COMPENSATION
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 447,018 462,307 480,505 496,914 293 87
02 1986 260,373 265,021 268,340 270,497 74,097 3,312
03 1987 250,426 258,331 262,474 265,311 71,092 3,967
04 1988 261,410 273,392 288,318 292,404 72,582 4,666
05 1989 256,485 276,718 288,737 296,875 65,960 4,031
06 1990 253,572 292,577 311,580 323,158 65,222 5,188
07 1991 175,902 242,043 277,652 294,879 57,411 4,529
08 1992 65,738 155,130 211,387 237,922 54,629 4,095
09 1993 XXX 63,493 140,328 190,008 50,004 3,834
10 1994 XXX XXX 65,541 154,790 51,189 4,259
11 1995 XXX XXX XXX 65,815 35,216 2,977
SCHEDULE P - PART 3E - COMMERICAL MULTIPLE PERIL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 64,320 110,987 153,178 182,879 198,759
02 1986 20,742 38,482 49,595 61,798 70,448 76,289
03 1987 XXX 23,354 46,705 59,012 69,554 78,853
04 1988 XXX XXX 29,672 57,416 69,755 83,124
05 1989 XXX XXX XXX 30,117 62,077 79,167
06 1990 XXX XXX XXX XXX 38,153 71,907
07 1991 XXX XXX XXX XXX XXX 47,163
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3E - COMMERICAL MULTIPLE PERIL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 207,389 212,042 218,019 220,976 562 296
02 1986 80,181 82,195 84,660 86,633 12,247 2,008
03 1987 86,374 89,327 91,741 92,776 11,133 1,807
04 1988 90,106 100,913 109,565 112,542 12,284 2,101
05 1989 89,731 99,517 108,485 113,686 13,784 2,169
06 1990 92,158 104,898 117,422 123,387 13,856 2,512
07 1991 83,701 100,647 113,968 121,601 13,191 2,583
08 1992 44,118 82,139 97,021 110,572 11,342 2,879
09 1993 XXX 33,199 55,173 68,600 10,675 3,076
10 1994 XXX XXX 46,653 85,031 11,637 3,462
11 1995 XXX XXX XXX 42,814 7,728 1,987
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 52 80 130 172 172
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 1 1 1
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 171 173 375 1,082 0 0
02 1986 0 0 0 0 0 0
03 1987 1 1 -13 1 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 -1 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 -1 -1 -1 0 0
09 1993 XXX 0 0 0 0 0
10 1994 XXX XXX 0 0 0 0
11 1995 XXX XXX XXX 0 0 0
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 0 0 0 0 0 0
04 1988 0 0 0 0 0 0
05 1989 0 0 0 0 0 0
06 1990 0 0 0 0 0 0
07 1991 0 0 0 0 0 0
08 1992 0 0 0 0 0 0
09 1993 XXX 0 0 0 0 0
10 1994 XXX XXX 9 80 1 0
11 1995 XXX XXX XXX 205 2 1
SCHEDULE P - PART 3G - SPECIAL LIABILITY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 2,915 4,048 5,477 6,387 6,494
02 1986 3,613 7,733 8,206 8,517 8,710 8,727
03 1987 XXX 3,913 7,735 8,737 9,105 9,533
04 1988 XXX XXX 3,490 8,224 9,524 9,896
05 1989 XXX XXX XXX 4,046 10,822 11,121
06 1990 XXX XXX XXX XXX 5,670 13,852
07 1991 XXX XXX XXX XXX XXX 7,708
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3G - SPECIAL LIABILITY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 6,686 6,700 7,173 7,404 XXX XXX
02 1986 8,805 8,897 8,843 8,928 XXX XXX
03 1987 9,476 9,581 9,499 9,538 XXX XXX
04 1988 10,216 10,341 10,915 10,942 XXX XXX
05 1989 11,798 12,179 12,337 12,676 XXX XXX
06 1990 15,448 16,849 17,482 17,474 XXX XXX
07 1991 16,410 17,755 18,363 18,948 XXX XXX
08 1992 13,652 23,716 24,994 26,199 XXX XXX
09 1993 XXX 17,909 27,623 29,813 XXX XXX
10 1994 XXX XXX 13,559 27,440 XXX XXX
11 1995 XXX XXX XXX 12,456 XXX XXX
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 53,454 98,408 135,962 191,089 221,930
02 1986 3,519 14,848 32,178 49,140 63,782 72,157
03 1987 XXX 3,675 15,093 35,319 49,540 56,204
04 1988 XXX XXX 1,736 17,586 29,217 42,048
05 1989 XXX XXX XXX 1,165 9,089 11,831
06 1990 XXX XXX XXX XXX 1,489 4,382
07 1991 XXX XXX XXX XXX XXX -4,800
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 256,493 297,676 334,606 356,680 4,318 4,518
02 1986 78,818 82,991 86,892 86,888 6,794 3,551
03 1987 65,511 75,441 79,356 79,857 5,601 2,317
04 1988 61,504 68,379 76,631 77,761 4,559 1,725
05 1989 26,959 37,859 42,748 45,397 3,707 1,605
06 1990 16,959 26,964 32,668 36,765 3,177 1,528
07 1991 11,305 21,572 33,568 41,963 3,038 1,367
08 1992 5,172 11,868 24,062 30,172 4,184 1,382
09 1993 XXX 3,241 9,961 22,288 3,943 1,411
10 1994 XXX XXX 513 18,637 3,395 1,630
11 1995 XXX XXX XXX 12,083 1,055 806
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 4 28 58 71 71
02 1986 88 323 720 1,280 1,342 1,408
03 1987 XXX 189 3,460 3,630 5,595 6,734
04 1988 XXX XXX 1,599 2,227 2,993 3,716
05 1989 XXX XXX XXX 727 2,497 5,667
06 1990 XXX XXX XXX XXX 520 5,681
07 1991 XXX XXX XXX XXX XXX 1,827
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 71 72 72 72 12 18
02 1986 1,426 1,431 1,444 1,447 41 60
03 1987 6,583 7,818 7,880 5,428 191 252
04 1988 5,669 6,604 7,030 7,531 112 166
05 1989 7,681 9,727 12,388 13,970 87 168
06 1990 18,452 21,607 31,769 41,540 112 200
07 1991 3,096 5,488 6,411 9,164 124 294
08 1992 785 9,816 15,932 18,844 108 246
09 1993 XXX 159 5,010 8,608 148 276
10 1994 XXX XXX 3,412 30,063 93 314
11 1995 XXX XXX XXX -3,806 31 3
SCHEDULE P - PART 3I - SPECIAL PROPERTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3I - SPECIAL PROPERTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 23,874 29,704 XXX XXX
02 1994 XXX XXX 93,049 135,489 XXX XXX
03 1995 XXX XXX XXX 103,291 XXX XXX
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 20,802 19,597 144,035 45,366
02 1994 XXX XXX 267,418 299,726 233,758 77,341
03 1995 XXX XXX XXX 352,217 218,947 65,809
SCHEDULE P - PART 3K - FIDELITY, SURETY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3K - FIDELITY, SURETY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 5,303 4,761 XXX XXX
02 1994 XXX XXX 1,670 3,050 XXX XXX
03 1995 XXX XXX XXX 2,612 XXX XXX
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 653 845 XXX XXX
02 1994 XXX XXX 64 888 XXX XXX
03 1995 XXX XXX XXX -102 XXX XXX
SCHEDULE P - PART 3M - INTERNATIONAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 74 505 970 1,154 1,309
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3M - INTERNATIONAL
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 1,660 1,775 -458 77 XXX XXX
02 1986 0 0 0 0 XXX XXX
03 1987 0 0 0 0 XXX XXX
04 1988 0 0 0 0 XXX XXX
05 1989 0 0 0 0 XXX XXX
06 1990 0 0 0 0 XXX XXX
07 1991 0 0 0 0 XXX XXX
08 1992 0 0 0 0 XXX XXX
09 1993 XXX 0 0 0 XXX XXX
10 1994 XXX XXX 0 0 XXX XXX
11 1995 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3N - REINSURANCE A
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3N - REINSURANCE A
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 0 0 0 0 XXX XXX
06 1993 XXX 0 0 0 XXX XXX
07 1994 XXX XXX 0 0 XXX XXX
08 1995 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3O - REINSURANCE B
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3O - REINSURANCE B
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 0 0 0 0 XXX XXX
06 1993 XXX 0 0 0 XXX XXX
07 1994 XXX XXX 0 0 XXX XXX
08 1995 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3P - REINSURANCE C
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3P - REINSURANCE C
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 1988 0 0 0 0 XXX XXX
02 1989 0 0 0 0 XXX XXX
03 1990 0 0 0 0 XXX XXX
04 1991 0 0 0 0 XXX XXX
05 1992 0 0 0 0 XXX XXX
06 1993 XXX 0 0 0 XXX XXX
07 1994 XXX XXX 0 0 XXX XXX
08 1995 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 3Q - REINSURANCE D
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 347 546 -303 801 1,177
02 1986 0 317 481 692 1,005 1,024
03 1987 XXX -127 3,519 10,460 9,597 10,396
SCHEDULE P - PART 3Q - REINSURANCE D
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 2,283 2,869 3,111 3,683 XXX XXX
02 1986 1,773 1,774 1,879 1,914 XXX XXX
03 1987 8,392 9,324 9,166 9,061 XXX XXX
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 7,527 13,250 15,870 23,466 28,497
02 1986 201 1,028 3,187 6,276 11,147 14,584
03 1987 XXX 199 908 2,104 3,068 4,965
04 1988 XXX XXX 1,243 1,464 3,068 6,213
05 1989 XXX XXX XXX 50 899 1,098
06 1990 XXX XXX XXX XXX 399 -234
07 1991 XXX XXX XXX XXX XXX -110
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 33,167 35,924 34,779 35,133 182 785
02 1986 16,415 18,603 18,949 20,089 394 458
03 1987 4,915 6,626 8,573 9,272 268 270
04 1988 2,357 3,574 5,356 7,717 179 139
05 1989 2,265 3,364 3,796 4,350 127 117
06 1990 -610 903 1,169 2,406 218 109
07 1991 -869 426 1,174 1,542 223 120
08 1992 -98 290 980 2,103 162 73
09 1993 XXX -64 35 47 206 65
10 1994 XXX XXX 143 321 164 52
11 1995 XXX XXX XXX 244 138 33
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1986 0 6 7 7 9 9
03 1987 XXX 47 883 1,836 2,433 3,322
04 1988 XXX XXX 168 425 835 1,370
05 1989 XXX XXX XXX 41 188 1,174
06 1990 XXX XXX XXX XXX 44 915
07 1991 XXX XXX XXX XXX XXX 100
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR 0 0 0 0 0 0
02 1986 9 7 7 8 2 10
03 1987 3,321 3,403 3,403 3,320 120 56
04 1988 1,523 1,628 1,633 1,633 75 48
05 1989 1,454 1,466 1,455 1,460 118 64
06 1990 2,113 2,108 2,678 2,628 53 37
07 1991 1,066 144 359 397 278 50
08 1992 160 671 842 943 49 26
09 1993 XXX 69 204 1,047 34 14
10 1994 XXX XXX 2 260 47 9
11 1995 XXX XXX XXX -78 17 2
SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995 NUMBER OF NUMBER OF
LOSSES WERE CLMS CLOSED CLMS CLOSED
INCURRED WITH LOSS WITHOUT LOSS
PAYMENT PAYMENT
01 PRIOR XXX 0 0 0 XXX XXX
02 1994 XXX XXX 0 0 XXX XXX
03 1995 XXX XXX XXX 0 XXX XXX
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 3,124 1,314 991 1,221 912 608
02 1986 10,114 2,721 1,570 451 420 356
03 1987 XXX 4,465 2,138 397 398 453
04 1988 XXX XXX 4,186 1,278 749 813
05 1989 XXX XXX XXX 11,301 1,847 1,168
06 1990 XXX XXX XXX XXX 7,567 2,254
07 1991 XXX XXX XXX XXX XXX 7,529
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 362 333 246 249
02 1986 43 17 12 12
03 1987 99 72 -4 0
04 1988 -12 9 -8 -1
05 1989 -8 -94 -37 -5
06 1990 -557 -12 -102 -51
07 1991 709 234 -140 -29
08 1992 13,252 594 -124 -71
09 1993 XXX 9,847 788 -94
10 1994 XXX XXX 10,280 1,119
11 1995 XXX XXX XXX 8,764
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 12,707 12,249 7,495 2,115 1,214 445
02 1986 42,458 18,294 9,026 3,240 956 1,540
03 1987 XXX 41,116 14,325 6,412 2,894 1,182
04 1988 XXX XXX 52,273 17,618 9,462 2,736
05 1989 XXX XXX XXX 73,655 24,460 6,365
06 1990 XXX XXX XXX XXX 95,750 28,835
07 1991 XXX XXX XXX XXX XXX 100,408
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 47 854 903 838
02 1986 794 -885 -567 50
03 1987 51 18 -112 -542
04 1988 516 831 -44 -166
05 1989 1,209 729 22 -30
06 1990 10,754 5,946 4,289 493
07 1991 34,982 10,602 2,892 490
08 1992 120,061 35,739 14,114 5,996
09 1993 XXX 112,743 33,615 11,938
10 1994 XXX XXX 130,847 35,211
11 1995 XXX XXX XXX 147,562
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 21,630 12,842 9,873 6,937 4,133 3,234
02 1986 40,974 27,187 14,441 8,975 3,664 3,094
03 1987 XXX 42,593 24,931 15,343 9,878 4,569
04 1988 XXX XXX 36,559 19,417 11,589 4,960
05 1989 XXX XXX XXX 36,316 20,786 6,598
06 1990 XXX XXX XXX XXX 39,785 16,538
07 1991 XXX XXX XXX XXX XXX 42,162
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 2,433 506 684 823
02 1986 2,278 1,459 1,497 2,786
03 1987 2,565 1,008 506 995
04 1988 3,906 2,031 209 -22
05 1989 8,699 5,984 2,242 534
06 1990 14,990 4,918 5,505 1,787
07 1991 22,338 19,232 14,765 6,111
08 1992 32,955 27,064 22,007 8,399
09 1993 XXX 54,535 28,005 12,630
10 1994 XXX XXX 38,346 18,474
11 1995 XXX XXX XXX 30,171
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 72,683 54,725 44,190 49,705 34,390 26,318
02 1986 87,399 48,569 27,924 20,007 14,679 11,940
03 1987 XXX 85,751 34,637 24,607 19,294 14,624
04 1988 XXX XXX 110,137 50,338 35,976 29,657
05 1989 XXX XXX XXX 96,353 51,114 31,674
06 1990 XXX XXX XXX XXX 96,771 55,160
07 1991 XXX XXX XXX XXX XXX 83,929
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4D - WORKERS' COMPENSATION
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 19,887 17,293 19,041 14,961
02 1986 8,303 2,147 1,814 1,420
03 1987 12,865 5,075 2,890 2,599
04 1988 25,494 18,354 3,730 2,988
05 1989 23,695 13,397 7,463 5,162
06 1990 33,770 18,446 9,978 6,851
07 1991 51,943 30,583 15,042 7,931
08 1992 94,868 63,417 38,312 11,044
09 1993 XXX 108,984 84,109 68,266
10 1994 XXX XXX 110,444 78,671
11 1995 XXX XXX XXX 84,806
SCHEDULE P - PART 4E - COMMERICAL MULTIPLE PERIL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 38,439 30,511 25,655 29,730 11,630 5,684
02 1986 71,661 42,254 22,243 12,664 7,659 4,505
03 1987 XXX 67,563 31,523 16,269 7,660 5,779
04 1988 XXX XXX 63,356 33,308 18,108 14,148
05 1989 XXX XXX XXX 56,360 28,134 14,464
06 1990 XXX XXX XXX XXX 73,887 29,172
07 1991 XXX XXX XXX XXX XXX 71,469
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4E - COMMERICAL MULTIPLE PERIL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 2,977 2,819 11,588 11,454
02 1986 1,305 594 1,031 1,029
03 1987 4,545 2,362 408 464
04 1988 9,236 6,476 463 -178
05 1989 7,889 6,233 2,105 967
06 1990 21,781 16,364 12,456 10,666
07 1991 29,894 19,724 16,739 8,876
08 1992 64,303 26,029 17,815 13,427
09 1993 XXX 57,408 31,395 15,979
10 1994 XXX XXX 40,251 18,558
11 1995 XXX XXX XXX 42,880
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 1,455 1,377 1,399 1,409 1,409 1,395
02 1986 7 6 6 0 0 0
03 1987 XXX 12 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 1,395 1,392 1,384 1,384
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 4G - SPECIAL LIABILITY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 2,989 2,739 2,763 2,499 2,543 2,056
02 1986 1,376 717 430 -63 110 71
03 1987 XXX 1,029 235 -35 54 75
04 1988 XXX XXX 1,219 146 573 615
05 1989 XXX XXX XXX 745 -27 39
06 1990 XXX XXX XXX XXX 118 79
07 1991 XXX XXX XXX XXX XXX 347
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4G - SPECIAL LIABILITY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 1,879 1,446 1,265 1,277
02 1986 4 11 10 10
03 1987 30 21 20 37
04 1988 459 595 92 70
05 1989 -49 65 62 73
06 1990 -179 82 159 131
07 1991 16 106 237 205
08 1992 1,059 -458 -416 -180
09 1993 XXX 164 -1,536 -819
10 1994 XXX XXX 401 -1,279
11 1995 XXX XXX XXX 7,343
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 93,532 58,576 47,149 60,508 51,726 50,985
02 1986 170,250 132,641 117,821 62,360 48,669 28,957
03 1987 XXX 144,548 110,923 80,178 55,378 38,547
04 1988 XXX XXX 92,601 80,250 70,470 56,065
05 1989 XXX XXX XXX 66,748 55,426 48,969
06 1990 XXX XXX XXX XXX 72,126 68,918
07 1991 XXX XXX XXX XXX XXX 95,940
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 47,434 45,106 83,026 84,839
02 1986 17,479 8,297 8,166 6,898
03 1987 25,444 9,192 5,255 4,792
04 1988 46,024 39,646 21,531 14,287
05 1989 38,404 32,548 19,623 20,878
06 1990 45,388 45,240 27,073 19,226
07 1991 60,525 58,820 32,652 26,048
08 1992 61,200 57,152 44,699 28,002
09 1993 XXX 84,851 60,757 48,815
10 1994 XXX XXX 78,777 58,910
11 1995 XXX XXX XXX 87,166
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 959 545 45 212 139 64
02 1986 10,098 6,305 5,546 3,013 1,839 787
03 1987 XXX 31,352 26,846 22,540 12,378 6,499
04 1988 XXX XXX 33,022 23,518 22,443 20,773
05 1989 XXX XXX XXX 20,724 17,445 12,521
06 1990 XXX XXX XXX XXX 12,289 6,732
07 1991 XXX XXX XXX XXX XXX 30,774
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 39 0 0 0
02 1986 340 0 0 0
03 1987 2,736 1,443 12 0
04 1988 1,702 307 12 0
05 1989 6,013 967 24 0
06 1990 11,731 2,355 128 35
07 1991 32,825 29,763 6,051 2,426
08 1992 41,298 28,740 27,864 4,768
09 1993 XXX 51,077 40,011 35,914
10 1994 XXX XXX 44,763 18,773
11 1995 XXX XXX XXX 64,183
SCHEDULE P - PART 4I - SPECIAL PROPERTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4I - SPECIAL PROPERTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR XXX 19,823 7,436 5,289
02 1994 XXX XXX 9,086 1,713
03 1995 XXX XXX XXX 22,785
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR XXX 18,186 3,602 2,321
02 1994 XXX XXX 20,940 -344
03 1995 XXX XXX XXX 19,225
SCHEDULE P - PART 4K - FIDELITY, SURETY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4K - FIDELITY, SURETY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR XXX 2,131 5,533 -410
02 1994 XXX XXX 3,597 -276
03 1995 XXX XXX XXX 9,187
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR XXX 1,305 1,387 582
02 1994 XXX XXX 2,027 1,442
03 1995 XXX XXX XXX 5,361
SCHEDULE P - PART 4M - INTERNATIONAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 158 27 32 34 44 50
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4M - INTERNATIONAL
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 456 852 1,334 1,315
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 4N - REINSURANCE A
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4N - REINSURANCE A
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 4O - REINSURANCE B
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4O - REINSURANCE B
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 4P - REINSURANCE C
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4P - REINSURANCE C
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 4Q - REINSURANCE D
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 175 25 25 565 1,729 540
02 1986 1,655 2,612 2,769 1,057 1,045 1,071
03 1987 XXX 0 0 0 0 0
SCHEDULE P - PART 4Q - REINSURANCE D
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 545 539 749 1,904
02 1986 1,002 1,498 1,498 178
03 1987 0 0 0 0
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 12,684 14,473 15,791 14,899 4,444 6,441
02 1986 45,659 42,728 37,037 27,561 15,634 9,568
03 1987 XXX 39,062 34,484 32,480 22,054 11,003
04 1988 XXX XXX 25,111 14,647 14,927 10,648
05 1989 XXX XXX XXX 13,002 8,764 8,599
06 1990 XXX XXX XXX XXX 9,729 12,355
07 1991 XXX XXX XXX XXX XXX 8,056
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 6,676 10,004 24,119 24,865
02 1986 6,498 3,492 3,366 2,780
03 1987 5,533 3,692 1,596 1,039
04 1988 4,921 4,153 4,393 1,148
05 1989 5,187 5,585 4,199 6,270
06 1990 10,206 10,268 7,511 6,801
07 1991 6,787 7,491 5,914 6,244
08 1992 3,278 5,249 3,713 3,832
09 1993 XXX 4,397 4,497 3,591
10 1994 XXX XXX 7,236 3,771
11 1995 XXX XXX XXX 10,948
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR 145 102 6 21 13 5
02 1986 2,528 2,155 1,486 1,267 775 356
03 1987 XXX 10,458 6,147 6,541 6,777 4,838
04 1988 XXX XXX 5,831 6,511 6,247 6,059
05 1989 XXX XXX XXX 5,449 4,539 3,615
06 1990 XXX XXX XXX XXX 3,652 1,549
07 1991 XXX XXX XXX XXX XXX 4,740
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS MADE
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR 3 0 0 0
02 1986 194 0 0 0
03 1987 4,457 321 0 0
04 1988 5,873 1,065 0 0
05 1989 3,769 1,036 8 3
06 1990 1,552 502 31 8
07 1991 3,922 1,414 375 62
08 1992 2,768 1,056 108 40
09 1993 XXX 828 216 80
10 1994 XXX XXX 561 61
11 1995 XXX XXX XXX 394
SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
LOSSES WERE
INCURRED
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1994 XXX XXX XXX XXX XXX XXX
03 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY
1 BULK & INCURRED BUT NOT REPORTED RESERVES ON LOSSES & ALLOCATED EXPENSES
AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
LOSSES WERE
INCURRED
01 PRIOR XXX 0 0 0
02 1994 XXX XXX 0 0
03 1995 XXX XXX XXX 0
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 1,882 1,858 1,850
02 1986 25,333 29,562 29,768 30,701 30,736 30,748
03 1987 XXX 17,305 21,149 22,191 22,265 22,285
04 1988 XXX XXX 15,928 20,968 21,140 21,187
05 1989 XXX XXX XXX 23,189 29,169 29,436
06 1990 XXX XXX XXX XXX 18,612 23,854
07 1991 XXX XXX XXX XXX XXX 22,485
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 1,845 1,884 1,845 1,851
02 1986 30,756 30,762 30,765 30,765
03 1987 22,287 22,293 22,289 22,291
04 1988 21,205 21,220 21,228 21,232
05 1989 29,503 29,532 29,551 29,557
06 1990 24,094 24,183 24,213 24,222
07 1991 27,052 27,267 27,329 27,362
08 1992 16,948 21,100 21,309 21,355
09 1993 XXX 17,908 20,833 20,794
10 1994 XXX XXX 20,752 22,632
11 1995 XXX XXX XXX 17,418
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 10 288 139 85 55 33
02 1986 742 217 106 59 30 14
03 1987 XXX 662 134 66 31 17
04 1988 XXX XXX 670 125 67 37
05 1989 XXX XXX XXX 909 195 81
06 1990 XXX XXX XXX XXX 900 220
07 1991 XXX XXX XXX XXX XXX 676
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 17 16 28 24
02 1986 9 6 1 1
03 1987 9 7 6 5
04 1988 23 10 7 1
05 1989 61 32 15 9
06 1990 113 48 21 11
07 1991 181 104 57 26
08 1992 586 192 77 50
09 1993 XXX 1,715 147 84
10 1994 XXX XXX 1,726 156
11 1995 XXX XXX XXX 1,818
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 26,234 30,219 30,366 31,269 31,599 31,607
03 1987 XXX 17,959 21,579 22,585 22,925 22,935
04 1988 XXX XXX 16,612 21,386 21,886 21,917
05 1989 XXX XXX XXX 24,292 30,475 30,667
06 1990 XXX XXX XXX XXX 20,493 25,355
07 1991 XXX XXX XXX XXX XXX 23,819
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 31,614 31,618 31,620 31,621
03 1987 22,938 22,942 22,941 22,942
04 1988 21,940 21,945 21,955 21,954
05 1989 30,748 30,803 30,814 30,817
06 1990 25,549 25,595 25,612 25,617
07 1991 28,177 28,359 28,406 28,419
08 1992 18,097 22,066 22,250 22,271
09 1993 XXX 21,154 23,326 23,205
10 1994 XXX XXX 26,822 27,639
11 1995 XXX XXX XXX 22,483
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 25,665 38,232 38,470
02 1986 38,835 53,011 54,919 61,011 61,260 61,586
03 1987 XXX 37,297 51,664 60,713 61,547 62,056
04 1988 XXX XXX 44,166 70,270 73,562 74,758
05 1989 XXX XXX XXX 70,340 99,382 104,255
06 1990 XXX XXX XXX XXX 82,557 116,189
07 1991 XXX XXX XXX XXX XXX 92,749
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 40,070 38,209 39,035 39,041
02 1986 63,414 63,441 63,869 63,564
03 1987 63,817 63,873 64,428 64,142
04 1988 76,596 76,790 77,437 77,287
05 1989 106,998 107,608 108,328 107,039
06 1990 122,743 124,439 125,848 123,896
07 1991 129,562 135,171 136,867 135,203
08 1992 102,023 141,824 147,326 148,887
09 1993 XXX 120,706 163,194 180,607
10 1994 XXX XXX 149,840 226,757
11 1995 XXX XXX XXX 184,452
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 375 1,425 763 558 384 129
02 1986 14,267 3,346 1,343 467 208 86
03 1987 XXX 16,044 3,830 1,394 617 246
04 1988 XXX XXX 17,371 4,898 1,899 731
05 1989 XXX XXX XXX 27,913 6,165 2,038
06 1990 XXX XXX XXX XXX 32,926 7,028
07 1991 XXX XXX XXX XXX XXX 32,588
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 87 58 42 111
02 1986 58 25 13 6
03 1987 126 50 20 9
04 1988 328 125 42 24
05 1989 906 301 121 75
06 1990 2,483 943 325 169
07 1991 6,749 2,182 832 426
08 1992 34,445 7,161 2,231 1,150
09 1993 XXX 44,719 9,149 4,022
10 1994 XXX XXX 53,552 17,097
11 1995 XXX XXX XXX 78,228
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 67,954 77,485 78,538 90,193 90,140 792,448
03 1987 XXX 67,706 77,922 92,671 93,047 93,431
04 1988 XXX XXX 79,432 107,827 109,116 109,745
05 1989 XXX XXX XXX 128,366 144,092 145,805
06 1990 XXX XXX XXX XXX 151,771 170,388
07 1991 XXX XXX XXX XXX XXX 164,930
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 92,493 92,532 93,160 92,766
03 1987 95,366 95,424 96,253 95,898
04 1988 111,590 111,682 112,606 112,468
05 1989 147,931 148,190 149,095 149,032
06 1990 173,712 174,344 175,791 175,824
07 1991 187,044 189,410 190,811 186,799
08 1992 181,028 206,832 209,100 202,947
09 1993 XXX 223,497 251,563 249,468
10 1994 XXX XXX 283,771 334,015
11 1995 XXX XXX XXX 341,995
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 262 1,089 1,481
02 1986 9,950 12,971 13,478 13,790 13,918 14,922
03 1987 XXX 8,666 11,878 12,537 12,786 14,107
04 1988 XXX XXX 9,052 13,003 13,738 14,934
05 1989 XXX XXX XXX 10,368 13,991 15,354
06 1990 XXX XXX XXX XXX 8,940 12,400
07 1991 XXX XXX XXX XXX XXX 7,645
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 1,495 1,141 1,345 1,354
02 1986 15,499 15,508 15,959 15,958
03 1987 14,782 14,893 15,550 15,389
04 1988 15,613 15,725 16,411 16,237
05 1989 16,214 16,415 17,003 17,009
06 1990 14,127 14,507 15,159 15,136
07 1991 11,284 11,950 13,121 13,141
08 1992 7,691 10,807 12,403 12,659
09 1993 XXX 8,774 13,698 14,654
10 1994 XXX XXX 10,830 15,724
11 1995 XXX XXX XXX 10,664
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 29 1,729 892 669 272 143
02 1986 2,887 1,097 619 264 106 57
03 1987 XXX 2,767 1,020 442 223 133
04 1988 XXX XXX 3,602 1,195 526 307
05 1989 XXX XXX XXX 3,208 1,243 720
06 1990 XXX XXX XXX XXX 3,098 1,680
07 1991 XXX XXX XXX XXX XXX 3,342
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 100 77 76 79
02 1986 27 12 2 1
03 1987 60 25 10 5
04 1988 124 56 32 17
05 1989 322 146 67 32
06 1990 780 301 123 72
07 1991 1,512 622 300 145
08 1992 3,605 1,229 603 357
09 1993 XXX 4,256 1,838 954
10 1994 XXX XXX 5,035 2,149
11 1995 XXX XXX XXX 4,908
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 15,041 17,483 17,752 17,877 17,890 19,353
03 1987 XXX 13,777 16,393 16,716 16,789 18,636
04 1988 XXX XXX 15,805 18,437 18,712 20,252
05 1989 XXX XXX XXX 16,487 19,048 20,491
06 1990 XXX XXX XXX XXX 14,309 17,938
07 1991 XXX XXX XXX XXX XXX 12,899
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 19,995 20,002 20,659 20,671
03 1987 19,355 19,377 20,336 20,132
04 1988 20,889 20,907 21,883 21,642
05 1989 21,093 21,147 21,929 21,937
06 1990 19,052 19,013 19,467 19,384
07 1991 15,708 15,620 17,062 17,004
08 1992 13,307 15,090 16,853 16,988
09 1993 XXX 16,144 21,068 21,495
10 1994 XXX XXX 20,773 25,294
11 1995 XXX XXX XXX 19,580
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 844 951 2,161
02 1986 31,780 41,440 42,454 71,668 72,635 73,143
03 1987 XXX 25,727 35,835 66,401 68,015 68,951
04 1988 XXX XXX 26,809 62,637 65,075 66,792
05 1989 XXX XXX XXX 43,673 59,642 62,482
06 1990 XXX XXX XXX XXX 43,840 58,072
07 1991 XXX XXX XXX XXX XXX 37,560
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,302 2,578 2,843 3,136
02 1986 73,423 73,564 73,681 73,757
03 1987 69,489 69,764 69,965 70,066
04 1988 67,664 68,104 68,455 68,638
05 1989 64,283 65,101 65,651 65,960
06 1990 61,462 63,494 64,593 65,222
07 1991 50,821 54,068 56,225 57,411
08 1992 37,104 50,024 52,981 54,629
09 1993 XXX 35,425 47,805 50,004
10 1994 XXX XXX 38,068 51,189
11 1995 XXX XXX XXX 35,216
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 813 10,345 7,647 5,439 4,861 3,385
02 1986 13,484 6,057 3,823 2,336 1,383 826
03 1987 XXX 15,460 6,242 4,015 2,424 1,412
04 1988 XXX XXX 15,786 6,462 4,222 2,348
05 1989 XXX XXX XXX 14,834 6,529 3,803
06 1990 XXX XXX XXX XXX 15,449 7,537
07 1991 XXX XXX XXX XXX XXX 15,334
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,844 2,604 2,328 1,771
02 1986 504 356 281 211
03 1987 808 545 382 292
04 1988 1,347 916 560 393
05 1989 2,094 1,305 810 514
06 1990 4,517 2,566 1,514 914
07 1991 7,819 4,728 2,673 1,515
08 1992 14,288 6,152 3,572 1,947
09 1993 XXX 13,730 5,049 3,003
10 1994 XXX XXX 14,349 5,667
11 1995 XXX XXX XXX 12,146
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 39,766 48,229 48,664 81,529 81,675 81,754
03 1987 XXX 33,394 43,351 78,673 78,970 79,097
04 1988 XXX XXX 36,313 77,102 77,798 78,025
05 1989 XXX XXX XXX 60,674 69,432 70,041
06 1990 XXX XXX XXX XXX 62,857 70,258
07 1991 XXX XXX XXX XXX XXX 55,714
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5D - WORKERS' COMPENSATION
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 81,714 81,738 81,828 81,845
03 1987 79,061 79,112 79,234 79,264
04 1988 78,078 78,153 78,238 78,268
05 1989 70,252 70,363 70,478 70,516
06 1990 70,879 71,112 71,260 71,325
07 1991 62,576 63,100 63,372 63,463
08 1992 54,006 59,951 60,524 60,679
09 1993 XXX 51,920 56,504 56,841
10 1994 XXX XXX 55,541 61,114
11 1995 XXX XXX XXX 50,331
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 6 0 0 1,967 2,074 2,136
02 1986 7,892 10,941 11,498 11,834 12,004 12,099
03 1987 XXX 6,661 9,931 10,502 10,758 10,936
04 1988 XXX XXX 7,745 11,116 11,671 11,928
05 1989 XXX XXX XXX 8,378 12,527 13,117
06 1990 XXX XXX XXX XXX 8,650 12,603
07 1991 XXX XXX XXX XXX XXX 8,593
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,220 2,245 3,114 3,123
02 1986 12,158 12,196 12,751 12,247
03 1987 11,049 11,093 11,572 11,133
04 1988 12,090 12,190 12,671 12,284
05 1989 13,422 13,589 14,339 13,784
06 1990 13,216 13,513 14,119 13,856
07 1991 11,972 12,591 13,309 13,191
08 1992 7,080 10,403 11,262 11,342
09 1993 XXX 7,224 10,169 10,675
10 1994 XXX XXX 8,431 11,637
11 1995 XXX XXX XXX 7,728
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 25 2,015 1,293 882 559 423
02 1986 1,580 877 602 377 226 135
03 1987 XXX 1,383 806 542 364 200
04 1988 XXX XXX 1,587 780 555 388
05 1989 XXX XXX XXX 1,521 968 639
06 1990 XXX XXX XXX XXX 1,974 1,055
07 1991 XXX XXX XXX XXX XXX 1,712
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 297 225 182 152
02 1986 90 66 48 37
03 1987 108 71 39 38
04 1988 245 141 71 58
05 1989 442 299 170 97
06 1990 682 419 232 180
07 1991 1,113 704 451 281
08 1992 1,628 1,036 694 500
09 1993 XXX 1,859 1,153 786
10 1994 XXX XXX 2,634 1,617
11 1995 XXX XXX XXX 3,145
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 10,100 13,191 13,692 13,932 14,055 14,116
03 1987 XXX 8,562 11,932 12,453 12,365 12,775
04 1988 XXX XXX 10,075 13,441 13,944 14,188
05 1989 XXX XXX XXX 10,628 15,021 15,572
06 1990 XXX XXX XXX XXX 11,401 15,431
07 1991 XXX XXX XXX XXX XXX 11,079
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5E - COMMERICAL MULTIPLE PERIL
SECTION 3
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 14,169 14,227 14,829 14,293
03 1987 12,845 12,892 13,433 12,970
04 1988 14,291 14,360 14,870 14,442
05 1989 15,844 15,958 16,705 16,052
06 1990 16,064 16,281 16,871 16,555
07 1991 15,042 15,597 16,285 16,057
08 1992 9,743 13,825 14,710 14,720
09 1993 XXX 10,337 14,084 14,537
10 1994 XXX XXX 12,757 16,714
11 1995 XXX XXX XXX 12,860
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 1
11 1995 XXX XXX XXX 2
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 2 7 7 6 6
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 3 3 1 107
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 2 6
11 1995 XXX XXX XXX 8
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 2 7
11 1995 XXX XXX XXX 11
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 4 0 0 4,452 4,647 4,748
02 1986 3,301 5,248 5,931 6,309 6,492 6,606
03 1987 XXX 2,612 4,309 4,829 5,154 5,194
04 1988 XXX XXX 2,181 3,263 3,632 3,801
05 1989 XXX XXX XXX 2,104 3,079 3,305
06 1990 XXX XXX XXX XXX 1,596 2,613
07 1991 XXX XXX XXX XXX XXX 1,435
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 4,848 4,936 4,908 4,932
02 1986 6,672 6,703 6,666 6,702
03 1987 5,279 5,408 5,426 5,461
04 1988 3,922 4,036 4,073 4,086
05 1989 3,491 3,634 3,692 3,707
06 1990 2,848 3,046 3,158 3,177
07 1991 2,395 2,810 2,991 3,038
08 1992 2,232 3,743 4,080 4,184
09 1993 XXX 1,861 2,917 3,943
10 1994 XXX XXX 1,535 3,395
11 1995 XXX XXX XXX 1,055
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 10 12 12
02 1986 6 20 31 37 38 40
03 1987 XXX 36 64 89 100 177
04 1988 XXX XXX 47 80 90 129
05 1989 XXX XXX XXX 40 53 83
06 1990 XXX XXX XXX XXX 32 50
07 1991 XXX XXX XXX XXX XXX 52
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 12 12 12 12
02 1986 42 42 42 42
03 1987 172 174 249 192
04 1988 125 126 140 113
05 1989 84 87 112 88
06 1990 69 77 86 113
07 1991 121 144 104 124
08 1992 109 39 65 108
09 1993 XXX 14 64 148
10 1994 XXX XXX 38 93
11 1995 XXX XXX XXX 31
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 1,603 3,244 3,003 2,156 1,821 1,766
02 1986 2,126 1,284 921 619 406 263
03 1987 XXX 1,473 1,010 639 472 298
04 1988 XXX XXX 1,049 707 563 400
05 1989 XXX XXX XXX 826 622 536
06 1990 XXX XXX XXX XXX 711 569
07 1991 XXX XXX XXX XXX XXX 559
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 2,005 2,137 2,338 3,441
02 1986 197 158 158 140
03 1987 204 148 120 84
04 1988 255 141 104 75
05 1989 373 221 144 88
06 1990 446 313 250 127
07 1991 530 450 298 164
08 1992 674 553 407 316
09 1993 XXX 992 670 1,496
10 1994 XXX XXX 998 3,315
11 1995 XXX XXX XXX 1,588
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 4 5 3 1 0 0
02 1986 39 21 12 7 5 2
03 1987 XXX 135 73 30 19 13
04 1988 XXX XXX 111 55 45 29
05 1989 XXX XXX XXX 147 94 58
06 1990 XXX XXX XXX XXX 202 143
07 1991 XXX XXX XXX XXX XXX 337
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 1 1 0
03 1987 9 4 3 3
04 1988 15 9 6 2
05 1989 21 12 13 8
06 1990 112 89 55 37
07 1991 174 118 97 60
08 1992 221 212 148 88
09 1993 XXX 277 247 147
10 1994 XXX XXX 589 274
11 1995 XXX XXX XXX 808
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 7,056 9,813 10,572 10,873 11,425 11,407
03 1987 XXX 5,204 7,281 7,815 8,314 8,277
04 1988 XXX XXX 4,218 5,619 6,168 6,336
05 1989 XXX XXX XXX 3,372 4,677 4,998
06 1990 XXX XXX XXX XXX 2,725 4,030
07 1991 XXX XXX XXX XXX XXX 2,385
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 11,449 11,509 11,498 11,564
03 1987 8,351 8,544 8,709 8,634
04 1988 6,440 6,569 6,753 6,654
05 1989 5,188 5,308 5,485 5,403
06 1990 4,384 4,639 4,978 4,832
07 1991 3,685 4,287 4,721 4,563
08 1992 3,147 5,177 5,868 5,886
09 1993 XXX 3,001 4,882 6,851
10 1994 XXX XXX 3,650 8,342
11 1995 XXX XXX XXX 3,446
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 62 91 94 99 100 100
03 1987 XXX 182 232 247 251 346
04 1988 XXX XXX 172 224 236 296
05 1989 XXX XXX XXX 191 237 272
06 1990 XXX XXX XXX XXX 244 343
07 1991 XXX XXX XXX XXX XXX 424
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 101 102 104 104
03 1987 327 327 459 446
04 1988 277 277 298 284
05 1989 237 237 285 264
06 1990 345 354 352 349
07 1991 506 515 476 478
08 1992 582 643 427 442
09 1993 XXX 325 556 580
10 1994 XXX XXX 661 690
11 1995 XXX XXX XXX 842
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 206 233 297
02 1986 140 241 279 295 329 373
03 1987 XXX 98 161 189 154 226
04 1988 XXX XXX 51 77 39 110
05 1989 XXX XXX XXX 36 21 73
06 1990 XXX XXX XXX XXX 45 107
07 1991 XXX XXX XXX XXX XXX 62
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 308 298 351 359
02 1986 390 376 381 391
03 1987 227 233 226 266
04 1988 136 133 178 173
05 1989 77 87 106 127
06 1990 119 130 167 218
07 1991 100 121 144 223
08 1992 76 118 141 162
09 1993 XXX 111 163 206
10 1994 XXX XXX 90 164
11 1995 XXX XXX XXX 138
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 2 2 2 2 2
03 1987 XXX 27 32 45 57 59
04 1988 XXX XXX 23 39 60 69
05 1989 XXX XXX XXX 42 61 65
06 1990 XXX XXX XXX XXX 21 33
07 1991 XXX XXX XXX XXX XXX 26
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE NO OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT & ASSUMED YR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 2 2 2 2
03 1987 77 80 83 120
04 1988 63 69 71 75
05 1989 91 92 98 118
06 1990 57 61 58 53
07 1991 263 271 300 278
08 1992 25 33 38 49
09 1993 XXX 19 21 34
10 1994 XXX XXX 15 47
11 1995 XXX XXX XXX 17
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 143 342 227 1,107 1,003 1,140
02 1986 151 123 89 130 94 164
03 1987 XXX 73 52 88 62 103
04 1988 XXX XXX 11 53 49 94
05 1989 XXX XXX XXX 38 45 64
06 1990 XXX XXX XXX XXX 38 85
07 1991 XXX XXX XXX XXX XXX 41
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 1,135 1,043 994 913
02 1986 151 98 95 66
03 1987 91 60 76 53
04 1988 74 44 43 40
05 1989 65 30 27 32
06 1990 94 53 56 41
07 1991 50 40 43 23
08 1992 26 43 62 46
09 1993 XXX 30 63 35
10 1994 XXX XXX 75 38
11 1995 XXX XXX XXX 47
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 3 2 2 1 1 0
03 1987 XXX 12 29 21 13 11
04 1988 XXX XXX 18 42 28 19
05 1989 XXX XXX XXX 28 17 25
06 1990 XXX XXX XXX XXX 17 29
07 1991 XXX XXX XXX XXX XXX 30
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 10 4 3 3
04 1988 8 2 2 2
05 1989 2 1 2 0
06 1990 11 4 1 1
07 1991 58 40 20 11
08 1992 31 16 8 8
09 1993 XXX 34 16 10
10 1994 XXX XXX 31 30
11 1995 XXX XXX XXX 23
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 376 606 662 758 803 1,336
03 1987 XXX 257 386 481 408 796
04 1988 XXX XXX 127 207 151 446
05 1989 XXX XXX XXX 133 70 275
06 1990 XXX XXX XXX XXX 98 287
07 1991 XXX XXX XXX XXX XXX 124
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 3A
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 1,381 1,051 1,116 1,141
03 1987 823 629 714 728
04 1988 468 325 434 400
05 1989 258 218 462 277
06 1990 353 267 495 370
07 1991 208 215 534 367
08 1992 118 198 487 280
09 1993 XXX 166 491 306
10 1994 XXX XXX 243 255
11 1995 XXX XXX XXX 217
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX XXX XXX
02 1986 4 11 11 12 12 12
03 1987 XXX 46 85 109 127 130
04 1988 XXX XXX 46 99 116 124
05 1989 XXX XXX XXX 76 119 131
06 1990 XXX XXX XXX XXX 41 99
07 1991 XXX XXX XXX XXX XXX 62
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 3B
1 CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR XXX XXX XXX XXX
02 1986 12 12 12 12
03 1987 133 134 136 176
04 1988 121 122 127 127
05 1989 169 169 177 180
06 1990 95 95 88 91
07 1991 372 372 387 340
08 1992 74 78 87 83
09 1993 XXX 66 75 58
10 1994 XXX XXX 66 86
11 1995 XXX XXX XXX 42
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 171,139 188,272 189,583
10 1994 XXX XXX 178,461 193,246
11 1995 XXX XXX XXX 177,173
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 60,086 68,032 65,088
10 1994 XXX XXX 59,289 66,604
11 1995 XXX XXX XXX 48,696
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 603,250 614,008 614,005
10 1994 XXX XXX 627,994 636,343
11 1995 XXX XXX XXX 493,870
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6D - WORKERS' COMPENSATION
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 36,911 46,897 46,055
10 1994 XXX XXX 30,094 29,638
11 1995 XXX XXX XXX 25,001
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 191,351 195,366 195,138
10 1994 XXX XXX 213,075 219,695
11 1995 XXX XXX XXX 248,635
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6E - COMMERICAL MULTIPLE PERIL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 20,074 28,049 26,170
10 1994 XXX XXX 28,970 38,415
11 1995 XXX XXX XXX 49,796
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 204,253 231,865 228,924
10 1994 XXX XXX 224,278 249,941
11 1995 XXX XXX XXX 368,653
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 88,906 92,678 87,862
10 1994 XXX XXX 97,423 99,965
11 1995 XXX XXX XXX 18,515
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 91,624 108,550 103,115
10 1994 XXX XXX 97,357 115,729
11 1995 XXX XXX XXX 144,745
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 5,235 6,564 6,602
10 1994 XXX XXX 6,289 7,330
11 1995 XXX XXX XXX 1,933
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6M - INTERNATIONAL
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6N - REINSURANCE A
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 1
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 1988 XXX XXX 0 0 0 0
02 1989 XXX XXX XXX 0 0 0
03 1990 XXX XXX XXX XXX 0 0
04 1991 XXX XXX XXX XXX XXX 0
05 1992 XXX XXX XXX XXX XXX XXX
06 1993 XXX XXX XXX XXX XXX XXX
07 1994 XXX XXX XXX XXX XXX XXX
08 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6O - REINSURANCE B
SECTION 2
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 1988 0 0 0 0
02 1989 0 0 0 0
03 1990 0 0 0 0
04 1991 0 0 0 0
05 1992 0 0 0 0
06 1993 XXX 0 0 0
07 1994 XXX XXX 0 0
08 1995 XXX XXX XXX 0
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 1A
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 8,940 10,901 15,806
10 1994 XXX XXX 9,806 11,773
11 1995 XXX XXX XXX 14,231
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 1B
1 CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 1,881 1,862 1,862
10 1994 XXX XXX 1,769 1,773
11 1995 XXX XXX XXX 499
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE
SECTION 2A
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 3,587 4,515 6,880
10 1994 XXX XXX 2,862 3,548
11 1995 XXX XXX XXX 5,128
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS MADE
SECTION 2B
1 CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END (000 OMITTED)
YEARS 8 9 10 11 12 13
IN WHICH 1992 1993 1994 1995
PREMS WERE
EARNED &
LOSSES INC
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 1,335 1,313 1,313
10 1994 XXX XXX 1,732 1,734
11 1995 XXX XXX XXX 490
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
1 2 3 4 5 6 7
TOTAL NET LOSSES LOSS NET PREMIUMS LOSS
SCH P NET LOSSES & EXPENSES SENSITIVE TOTAL NET WRITTEN ON SENSITIVE
PART & EXPENSES UNPAID ON AS PREMIUMS LOSS AS
1 UNPAID LOSS SENSITI PERCENTAGE WRITTEN SENSITIVE PERCENTAGE
CONTRACTS OF TOTAL CONTRACTS OF TOTAL
01 30,214 0 .000 90,804 0 .000
02 705,207 0 .000 1,013,342 0 .000
03 201,972 1,031 .030 135,367 1,275 .042
04 959,825 22,979 .675 455,687 35,599 1.160
05 309,785 329 .010 217,108 115 .004
06 3,525 0 .000 0 0 .000
07 1,289 0 .000 765 0 .000
08 40,018 0 .000 56,706 0 .000
09 606,871 4,872 .143 145,633 1,831 .060
10 229,084 0 .000 141,281 0 .000
11 131,319 0 .000 247,198 0 .000
12 51,434 80 .002 508,602 245 .008
13 16,645 0 .000 36,260 0 .000
14 7,904 0 .000 8,750 0 .000
15 3,934 0 .000 1 0 .000
16 XXX XXX XXX XXX XXX XXX
17 XXX XXX XXX XXX XXX XXX
18 XXX XXX XXX XXX XXX XXX
19 XXX XXX XXX XXX XXX XXX
20 101,293 1,652 .049 10,281 237 .008
21 2,376 0 .000 1,471 0 .000
22 0 0 .000 0 0 .000
23 3,402,695 30,943 .909 3,069,256 39,302 1.282
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 2
1 INCURRED LOSSES & ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 2
1 INCURRED LOSSES & ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 12,674 9,999 10,029
02 1986 0 36,772 37,017 37,353
03 1987 0 44,028 44,462 45,234
04 1988 0 30,266 30,673 30,729
05 1989 0 23,478 23,883 23,903
06 1990 0 12,571 12,608 13,105
07 1991 0 12,698 14,615 15,233
08 1992 0 12,103 13,808 15,044
09 1993 XXX 3,915 11,295 13,720
10 1994 XXX XXX 5,929 12,587
11 1995 XXX XXX XXX 6,418
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 3
1 BULK & IBNR RESERVES FOR LOSSES & ALLOC EXPENSE AT YR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 3
1 BULK & IBNR RESERVES FOR LOSSES & ALLOC EXPENSE AT YR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 4
1 NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 4
1 NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 33,232 33,125 33,062
03 1987 0 39,284 39,118 39,043
04 1988 0 35,234 35,280 35,382
05 1989 0 34,797 35,131 35,621
06 1990 0 24,920 25,596 25,708
07 1991 0 31,663 33,070 34,414
08 1992 0 39,765 35,907 37,127
09 1993 XXX 33,459 31,199 25,534
10 1994 XXX XXX 43,817 37,579
11 1995 XXX XXX XXX 31,172
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 5
1 NET RESERVE FOR PREMIUM ADJMNTS & ACCRUED RETRO PREMIUMS ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS
SECTION 5
1 NET RESERVE FOR PREMIUM ADJMNTS & ACCRUED RETRO PREMIUMS ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 62 0 0
03 1987 0 65 418 0
04 1988 0 234 484 137
05 1989 0 194 202 200
06 1990 0 272 304 71
07 1991 0 67 571 604
08 1992 0 2,606 223 514
09 1993 XXX 481 3,953 488
10 1994 XXX XXX 0 5,938
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
1 2 3 4 5 6 7
TOTAL NET LOSSES LOSS NET PREMIUMS LOSS
SCH P NET LOSSES & EXPENSES SENSITIVE TOTAL NET WRITTEN ON SENSITIVE
PART & EXPENSES UNPAID ON AS PREMIUMS LOSS AS
1 UNPAID LOSS SENSITI PERCENTAGE WRITTEN SENSITIVE PERCENTAGE
CONTRACTS OF TOTAL CONTRACTS OF TOTAL
01 169 0 .000 654 0 .000
02 7,414 0 .000 10,117 0 .000
03 16,904 0 .000 19,546 0 .000
04 13,302 0 .000 0 0 .000
05 1,160 0 .000 5,981 0 .000
06 0 0 .000 0 0 .000
07 0 0 .000 0 0 .000
08 0 0 .000 0 0 .000
09 18,972 0 .000 24,393 0 .000
10 0 0 .000 0 0 .000
11 603 0 .000 3,777 0 .000
12 875 0 .000 11,483 0 .000
13 109 0 .000 4,170 0 .000
14 0 0 .000 0 0 .000
15 0 0 .000 0 0 .000
16 0 0 .000 0 0 .000
17 0 0 .000 0 0 .000
18 0 0 .000 0 0 .000
19 0 0 .000 XXX XXX XXX
20 1,687 0 .000 4,201 0 .000
21 0 0 .000 0 0 .000
22 0 0 .000 0 0 .000
23 61,195 0 .000 84,322 0 .000
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 2
1 INCURRED LOSSES & ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 2
1 INCURRED LOSSES & ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 3
1 BULK & IBNR RESERVES FOR LOSSES & ALLOC EXPENSE AT YR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 3
1 BULK & IBNR RESERVES FOR LOSSES & ALLOC EXPENSE AT YR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 4
1 NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 4
1 NET EARNED PREMIUMS REPORTED AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 5
1 NET RESERVE FOR PREMIUM ADJMNTS & ACCRUED RETRO PREMIUMS ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 5
1 NET RESERVE FOR PREMIUM ADJMNTS & ACCRUED RETRO PREMIUMS ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 6
1 INCURRED ADJUSTABLE COMMISSIONS REPORTED YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 6
1 INCURRED ADJUSTABLE COMMISSIONS REPORTED YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 7
1 RESERVES FOR COMMISSION ADJUSTMENTS AT YEAR END ($000 OMITTED)
YEARS 2 3 4 5 6 7
IN WHICH 1986 1987 1988 1989 1990 1991
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0 0 0
02 1986 0 0 0 0 0 0
03 1987 XXX 0 0 0 0 0
04 1988 XXX XXX 0 0 0 0
05 1989 XXX XXX XXX 0 0 0
06 1990 XXX XXX XXX XXX 0 0
07 1991 XXX XXX XXX XXX XXX 0
08 1992 XXX XXX XXX XXX XXX XXX
09 1993 XXX XXX XXX XXX XXX XXX
10 1994 XXX XXX XXX XXX XXX XXX
11 1995 XXX XXX XXX XXX XXX XXX
SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS
SECTION 7
1 RESERVES FOR COMMISSION ADJUSTMENTS AT YEAR END ($000 OMITTED)
YEARS 8 9 10 11
IN WHICH 1992 1993 1994 1995
POLICIES
WERE ISSUED
01 PRIOR 0 0 0 0
02 1986 0 0 0 0
03 1987 0 0 0 0
04 1988 0 0 0 0
05 1989 0 0 0 0
06 1990 0 0 0 0
07 1991 0 0 0 0
08 1992 0 0 0 0
09 1993 XXX 0 0 0
10 1994 XXX XXX 0 0
11 1995 XXX XXX XXX 0
