RECOInsuranceProgram

AsofFebruary29,2012

20002011LossesandPremiums

Millions

Premium

Losses

$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
2000 2001

2002 2003

2004 2005

2006

2007 2008

2009 2010

2011

Millions

20002011InsurerCumulativeNetIncome
$20
$15
$10
$5
$0
$5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$10
$15
$20
(1)
Policy
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
(1)
(2)
(3)
(4)
(5)
(6)

Registrants
37,083
37,860
37,657
38,337
40,884
43,768
46,369
48,896
51,736
54,555
56,948
56,081

(2)
Insurance
Rate
$105.00
$105.00
$105.00
$115.00
$105.00
$115.00
$127.00
$147.50
$175.00
$230.00
$292.00
$292.00

(3)
Insurance
Premium
$ 3,893,715
$ 3,975,300
$ 3,953,985
$ 4,408,755
$ 4,292,820
$ 5,033,320
$ 5,888,863
$ 7,212,160
$ 9,053,800
$ 12,547,650
$ 16,628,816
$ 16,375,652
$93,264,836

(4)
Losses
Incurred
$ 2,149,929
$ 4,018,522
$ 4,297,568
$ 6,057,457
$ 7,400,722
$ 11,307,041
$ 12,301,696
$ 5,264,069
$ 9,143,105
$ 9,029,284
$ 5,588,723
$ 3,077,874
$ 79,635,992

(5)
Loss
Ratio
55%
101%
109%
137%
172%
225%
209%
73%
101%
72%
34%
19%

Note:Brokeragesdonotpaypremium
FormsapartofRECO'stotalcollections
=[Column(1)*Column(2)]
combinedE&O,CommissionsProtectionandConsumerDepositcoverages
notincludingadjustments/projectionsforfutureclaimdevelopment
=[Column(4)/Column(3)]
Note:Lossratioisacommonmetricformeasuringinsuranceprogramperformance
CumulativelossesfromColumn(4)dividedbycumulativepremiumsfromColumn(3)

(6)
Cumulative
LossRatio
55%
78%
89%
102%
117%
138%
151%
137%
130%
118%
100%
85%