ST.

PAUL FIRE AND MARINE INSURANCE COMPANY

*24767201320100100*

PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION

ANNUAL STATEMENT
For the Year Ended December 31, 2013
OF THE CONDITION AND AFFAIRS OF THE

ST. PAUL FIRE AND MARINE
INSURANCE COMPANY
NAIC Group Code

3548

3548

NAIC Company Code 24767 Employer's ID Number 41-0406690

(Current Period) (Prior Period)

Organized under the Laws of Connecticut, State of Domicile or Port of Entry Connecticut,
Country of Domicile US
INCORPORATED/ORGANIZED, APRIL 20, 1925

COMMENCED BUSINESS, APRIL 22, 1925

Statutory Home Office: One Tower Square, Hartford, CT, US 06183
Main Administrative Office: One Tower Square, Hartford, CT, US 06183 (860) 277-0111
Mail Address: One Tower Square, Hartford, CT, US 06183
Primary Location of Books and Records: 385 Washington Street, St. Paul, MN, US 55102 (651) 310-7911
Internet Website Address: www.travelers.com
Statutory Statement Contact: Michael J. Doody (860) 277-3966
Annual.Statement.Contact@travelers.com (860) 277-7002
(E-Mail Address)
(Fax Number)

OFFICERS
Name

Title

Name

1. BRIAN WILLIAM MacLEAN ... Chairman, President & Chief Executive Officer
2. JAY STEVEN BENET ........................ Vice Chairman & Chief Financial Officer
3. WILLIAM HERBERT HEYMAN .... Vice Chairman & Chief Investment Officer
4. ALAN DAVID SCHNITZER .................... Vice Chairman & Chief Legal Officer
5. DOREEN SPADORCIA ............................................................... Vice Chairman
6. ANDY FRANCIS BESSETTE .................................. Executive Vice President &
Chief Administrative Officer
7. ROBERT CARL BRODY ................... Executive Vice President, Claim Services
8. JOHN PATRICK CLIFFORD, JR. ............................... Executive Vice President,
Human Resources
9. WILLIAM EUGENE CUNNINGHAM, JR. ................. Executive Vice President,
Business Insurance
10. WILLIAM PATRICK HANNON ........ Executive Vice President, Enterprise Risk
Management & Business Conduct Officer

Title

MADELYN JOSEPH LANKTON ...........................Executive Vice President &
Chief Information Officer
MARIA OLIVO .................Executive Vice President, Strategic Development &
Treasurer
KENNETH FRANKLIN SPENCE, III .....................Executive Vice President &
General Counsel
GREGORY CHESHIRE TOCZYDLOWSKI .............Executive Vice President,
Personal Insurance
DOUGLAS KEITH BELL .................. Senior Vice President, Accounting Policy
DOUGLAS KENNETH RUSSELL ............................... Senior Vice President &
Corporate Controller
SCOTT WILLIAM RYNDA .................... Senior Vice President, Corporate Tax
WENDY CONSTANCE SKJERVEN............ Associate Group General Counsel,
Corporate & Corporate Secretary
SMITESH DAVÉ .............................. Vice President & Chief Corporate Actuary

DIRECTORS
JAY STEVEN BENET
WILLIAM HERBERT HEYMAN
STATE OF MINNESOTA
COUNTY OF RAMSEY

}

BRIAN WILLIAM MacLEAN
DOREEN SPADORCIA

KENNETH FRANKLIN SPENCE, III
GREGORY CHESHIRE TOCZYDLOWSKI

ss:

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated
above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and
that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and
liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended,
and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state
law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their
information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing
with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be
requested by various regulators in lieu of or in addition to the enclosed statement.

Brian W. MacLean

Wendy C. Skjerven

Douglas K. Russell

President

Secretary

Controller

Subscribed and sworn to before me this
21st day of January, 2014
Notary Public
My Commission Expires January 31, 2016
326

a. Is this an original filing?
b. If no:
1. State the amendment number
2. Date filed
3. Number of pages attached

Yes  No 

Annual Statement for the year 2013 of the

ST. PAUL FIRE AND MARINE INSURANCE COMPANY

ASSETS
1

Current Year
2

Assets

Nonadmitted
Assets

3
Net Admitted
Assets
(Cols. 1 - 2)

Prior Year
4
Net
Admitted Assets

1.

Bonds (Schedule D)........................................................................................................... .........10,494,654,861 .................................0 .........10,494,654,861 .........10,845,612,797

2.

Stocks (Schedule D):

3.

4.

2.1

Preferred stocks....................................................................................................... ...................1,195,000 .................................0 ...................1,195,000 ...................3,041,551

2.2

Common stocks....................................................................................................... ...........3,851,331,378 .................13,289,682 ...........3,838,041,696 ...........3,787,395,559

Mortgage loans on real estate (Schedule B):
3.1

First liens.................................................................................................................. .................42,900,000 .................................0 .................42,900,000 .................43,900,000

3.2

Other than first liens................................................................................................. .................................0 .................................0 .................................0 ...................1,125,000

Real estate (Schedule A):
4.1

Properties occupied by the company (less $............0
encumbrances)........................................................................................................ .................76,758,189 .................................0 .................76,758,189 .................80,162,348

4.2

Properties held for the production of income (less $............0
encumbrances)........................................................................................................ ..............710,584,737 .................................0 ..............710,584,737 ..............647,740,328

4.3

Properties held for sale (less $..........0 encumbrances).......................................... .................................0 .................................0 .................................0 .................................0

5.

Cash ($.....30,769,913, Schedule E-Part 1), cash equivalents ($.....38,344,738,
Schedule E-Part 2) and short-term investments ($.....249,649,920, Schedule DA)......... ..............318,764,570 .................................0 ..............318,764,570 ..............225,480,280

6.

Contract loans (including $..........0 premium notes).......................................................... .................................0 .................................0 .................................0 .................................0

7.

Derivatives (Schedule DB)................................................................................................. .................................0 .................................0 .................................0 .................................0

8.

Other invested assets (Schedule BA)................................................................................ ..............855,899,141 .................31,354,013 ..............824,545,127 ..............835,562,789

9.

Receivables for securities.................................................................................................. ......................176,867 .................................0 ......................176,867 .................................0

10. Securities lending reinvested collateral assets (Schedule DL)......................................... .................32,022,952 .................................0 .................32,022,952 .................67,700,576
11. Aggregate write-ins for invested assets............................................................................. .......................(64,785) .................................0 .......................(64,785) .......................(64,785)
12. Subtotals, cash and invested assets (Lines 1 to 11)......................................................... .........16,384,222,910 .................44,643,696 .........16,339,579,214 .........16,537,656,444
13. Title plants less $..........0 charged off (for Title insurers only)........................................... .................................0 .................................0 .................................0 .................................0
14. Investment income due and accrued................................................................................. ..............122,603,421 .................................0 ..............122,603,421 ..............127,567,529
15. Premiums and considerations:
15.1 Uncollected premiums and agents' balances in the course of collection............... ..............610,692,000 .................41,816,382 ..............568,875,618 ..............524,716,770
15.2 Deferred premiums, agents' balances and installments booked but deferred
and not yet due (including $.....23,424,326 earned but unbilled premiums).......... ..............996,891,142 ...................4,800,504 ..............992,090,638 ..............989,668,171
15.3 Accrued retrospective premiums............................................................................. .................24,292,162 ......................703,822 .................23,588,341 .................28,316,222
16. Reinsurance:
16.1 Amounts recoverable from reinsurers..................................................................... .................61,765,655 .................................0 .................61,765,655 .................66,542,390
16.2 Funds held by or deposited with reinsured companies........................................... .................15,531,386 .................................0 .................15,531,386 .................16,663,416
16.3 Other amounts receivable under reinsurance contracts......................................... .................................0 .................................0 .................................0 .................................0
17. Amounts receivable relating to uninsured plans................................................................ .................................0 .................................0 .................................0 .................................0
18.1 Current federal and foreign income tax recoverable and interest thereon....................... .................................0 .................................0 .................................0 .................................0
18.2 Net deferred tax asset........................................................................................................ ..............448,945,937 .................96,451,909 ..............352,494,028 ..............380,659,640
19. Guaranty funds receivable or on deposit........................................................................... ......................327,114 .................................0 ......................327,114 ......................806,106
20. Electronic data processing equipment and software......................................................... ........................34,243 .................................0 ........................34,243 ......................143,327
21. Furniture and equipment, including health care delivery assets ($..........0)..................... .................15,656,650 .................15,656,650 .................................0 .................................0
22. Net adjustment in assets and liabilities due to foreign exchange rates............................ .................................0 .................................0 .................................0 ...................6,376,130
23. Receivables from parent, subsidiaries and affiliates......................................................... .................................0 .................................0 .................................0 .................................0
24. Health care ($..........0) and other amounts receivable...................................................... .................................0 .................................0 .................................0 .................................0
25. Aggregate write-ins for other than invested assets........................................................... .................93,207,369 ...................3,780,708 .................89,426,661 .................82,648,007
26. Total assets excluding Separate Accounts, Segregated Accounts and Protected
Cell Accounts (Lines 12 to 25)........................................................................................... .........18,774,169,990 ..............207,853,670 .........18,566,316,320 .........18,761,764,152
27. From Separate Accounts, Segregated Accounts and Protected Cell Accounts............... .................................0 .................................0 .................................0 .................................0
28. TOTALS (Lines 26 and 27)................................................................................................ .........18,774,169,990 ..............207,853,670 .........18,566,316,320 .........18,761,764,152
DETAILS OF WRITE-INS
1101. Deferred gain/loss.............................................................................................................. .......................(64,785) .................................0 .......................(64,785) .......................(64,785)
1102. ............................................................................................................................................ .................................0 .................................0 .................................0 .................................0
1103. ............................................................................................................................................ .................................0 .................................0 .................................0 .................................0
1198. Summary of remaining write-ins for Line 11 from overflow page...................................... .................................0 .................................0 .................................0 .................................0
1199. Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above)................................................ .......................(64,785) .................................0 .......................(64,785) .......................(64,785)
2501. Real estate operating fund................................................................................................. .................22,134,170 .................................0 .................22,134,170 .................20,474,185
2502. Equities and deposits in pools and associations............................................................... .................19,162,955 .................................0 .................19,162,955 .................25,311,472
2503. Amounts receivable under high deductible policies.......................................................... .................20,838,589 ...................3,308,956 .................17,529,633 .................15,984,774
2598. Summary of remaining write-ins for Line 25 from overflow page...................................... .................31,071,654 ......................471,752 .................30,599,902 .................20,877,576
2599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)................................................ .................93,207,369 ...................3,780,708 .................89,426,661 .................82,648,007

2

Annual Statement for the year 2013 of the

ST. PAUL FIRE AND MARINE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

1
Current Year

2
Prior Year

1.

Losses (Part 2A, Line 35, Column 8)..................................................................................................................................................... ................7,648,975,444 ................7,710,930,540

2.

Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)............................................... ...................275,194,117 ...................319,038,306

3.

Loss adjustment expenses (Part 2A, Line 35, Column 9)..................................................................................................................... ................1,721,718,149 ................1,735,754,840

4.

Commissions payable, contingent commissions and other similar charges......................................................................................... ...................155,227,718 ...................146,752,975

5.

Other expenses (excluding taxes, licenses and fees)........................................................................................................................... ...................161,327,693 ...................144,612,180

6.

Taxes, licenses and fees (excluding federal and foreign income taxes)............................................................................................... .....................90,940,717 .....................86,212,163

7.1

Current federal and foreign income taxes (including $.....(49,169,743) on realized capital gains (losses))......................................... .......................2,337,018 .....................24,629,510

7.2

Net deferred tax liability.......................................................................................................................................................................... ......................................0 ......................................0

8.

Borrowed money $..........0 and interest thereon $..........0.................................................................................................................... ......................................0 ......................................0

9.

Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of
$.....372,849,033 and including warranty reserves of $..........0 and accrued accident and health experience rating refunds
including $..........0 for medical loss ratio rebate per the Public Health Service Act)............................................................................. ................2,274,421,678 ................2,231,148,979

10.

Advance premium................................................................................................................................................................................... ..............................1,918 ......................................0

11.

Dividends declared and unpaid:
11.1 Stockholders................................................................................................................................................................................... ......................................0 ......................................0
11.2 Policyholders.................................................................................................................................................................................. .....................11,646,381 .....................12,880,997

12.

Ceded reinsurance premiums payable (net of ceding commissions)................................................................................................... .....................83,515,399 .....................96,017,096

13.

Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19)........................................................................ ..........................656,414 .......................1,109,308

14.

Amounts withheld or retained by company for account of others......................................................................................................... .....................57,763,369 .....................61,052,051

15.

Remittances and items not allocated..................................................................................................................................................... .....................18,263,788 .....................10,479,016

16.

Provision for reinsurance (including $.....1,723,450 certified) (Schedule F, Part 8).............................................................................. .....................35,904,335 .....................47,459,996

17.

Net adjustments in assets and liabilities due to foreign exchange rates............................................................................................... .....................25,128,050 ......................................0

18.

Drafts outstanding.................................................................................................................................................................................. ......................................0 ......................................0

19.

Payable to parent, subsidiaries and affiliates........................................................................................................................................ .....................20,203,949 .....................24,684,287

20.

Derivatives.............................................................................................................................................................................................. ......................................0 ......................................0

21.

Payable for securities............................................................................................................................................................................. ......................................0 .......................9,162,884

22.

Payable for securities lending................................................................................................................................................................ .....................32,022,952 .....................67,700,576

23.

Liability for amounts held under uninsured plans.................................................................................................................................. ......................................0 ......................................0

24.

Capital notes $..........0 and interest thereon $..........0........................................................................................................................... ......................................0 ......................................0

25.

Aggregate write-ins for liabilities............................................................................................................................................................ .....................36,369,949 .....................31,474,768

26.

Total liabilities excluding protected cell liabilities (Lines 1 through 25)................................................................................................. ..............12,651,619,036 ..............12,761,100,471

27.

Protected cell liabilities........................................................................................................................................................................... ......................................0 ......................................0

28.

Total liabilities (Lines 26 and 27)............................................................................................................................................................ ..............12,651,619,036 ..............12,761,100,471

29.

Aggregate write-ins for special surplus funds........................................................................................................................................ .....................24,973,952 .....................28,567,037

30.

Common capital stock............................................................................................................................................................................ .....................20,000,000 .....................20,000,000

31.

Preferred capital stock............................................................................................................................................................................ ......................................0 ......................................0

32.

Aggregate write-ins for other than special surplus funds...................................................................................................................... ......................................0 ......................................0

33.

Surplus notes.......................................................................................................................................................................................... ......................................0 ......................................0

34.

Gross paid in and contributed surplus................................................................................................................................................... ................3,238,382,533 ................3,238,382,533

35.

Unassigned funds (surplus).................................................................................................................................................................... ................2,631,340,799 ................2,713,714,111

36.

Less treasury stock, at cost:
36.1 ..........0.000 shares common (value included in Line 30 $..........0)............................................................................................ ......................................0 ......................................0
36.2 ..........0.000 shares preferred (value included in Line 31 $..........0)........................................................................................... ......................................0 ......................................0

37.

Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39)...................................................................................... ................5,914,697,284 ................6,000,663,680

38.

TOTALS (Page 2, Line 28, Col. 3)......................................................................................................................................................... ..............18,566,316,320 ..............18,761,764,152
DETAILS OF WRITE-INS

2501. Other liabilities........................................................................................................................................................................................ .....................43,120,000 .....................43,120,000
2502. Investment real estate liability................................................................................................................................................................ .....................18,058,646 .....................16,781,314
2503. Interest deposit liability........................................................................................................................................................................... ..........................600,321 ..........................600,321
2598. Summary of remaining write-ins for Line 25 from overflow page.......................................................................................................... ....................(25,409,018) ....................(29,026,867)
2599. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)..................................................................................................................... .....................36,369,949 .....................31,474,768
2901. Special surplus from retroactive reinsurance......................................................................................................................................... .....................23,973,952 .....................27,567,037
2902. Guaranty surplus fund............................................................................................................................................................................ .......................1,000,000 .......................1,000,000
2903. ................................................................................................................................................................................................................ ......................................0 ......................................0
2998. Summary of remaining write-ins for Line 29 from overflow page.......................................................................................................... ......................................0 ......................................0
2999. Totals (Lines 2901 thru 2903 plus 2998) (Line 29 above)..................................................................................................................... .....................24,973,952 .....................28,567,037
3201. ................................................................................................................................................................................................................ ......................................0 ......................................0
3202. ................................................................................................................................................................................................................ ......................................0 ......................................0
3203. ................................................................................................................................................................................................................ ......................................0 ......................................0
3298. Summary of remaining write-ins for Line 32 from overflow page.......................................................................................................... ......................................0 ......................................0
3299. Totals (Lines 3201 thru 3203 plus 3298) (Line 32 above)..................................................................................................................... ......................................0 ......................................0

3

Annual Statement for the year 2013 of the

ST. PAUL FIRE AND MARINE INSURANCE COMPANY

STATEMENT OF INCOME
1
2
Current Year
Prior Year
Premiums earned (Part 1, Line 35, Column 4)............................................................................................................................ ....................5,079,683,160 ....................4,967,501,601
DEDUCTIONS
Losses incurred (Part 2, Line 35, Column 7)............................................................................................................................... ....................2,480,578,965 ....................2,796,997,642
Loss adjustment expenses incurred (Part 3, Line 25, Column 1)............................................................................................... .......................592,165,437 .......................563,496,824
Other underwriting expenses incurred (Part 3, Line 25, Column 2)............................................................................................ ....................1,575,160,546 ....................1,593,827,747
Aggregate write-ins for underwriting deductions......................................................................................................................... ..........................................0 ..........................................0
Total underwriting deductions (Lines 2 through 5)...................................................................................................................... ....................4,647,904,947 ....................4,954,322,214
Net income of protected cells....................................................................................................................................................... ..........................................0 ..........................................0
Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)................................................................................................... .......................431,778,213 .........................13,179,388

UNDERWRITING INCOME

1.
2.
3.
4.
5.
6.
7.
8.

INVESTMENT INCOME
9. Net investment income earned (Exhibit of Net Investment Income, Line 17)............................................................................. .......................644,745,603 .......................669,435,340
10. Net realized capital gains (losses) less capital gains tax of $.....2,040,958 (Exhibit of Capital Gains (Losses))........................ .........................26,223,144 ...........................6,854,460
11. Net investment gain (loss) (Lines 9 + 10).................................................................................................................................... .......................670,968,747 .......................676,289,799

OTHER INCOME
12. Net gain (loss) from agents' or premium balances charged off (amount recovered $.....2,582,007
amount charged off $.....14,297,089)..........................................................................................................................................
13. Finance and service charges not included in premiums.............................................................................................................
14. Aggregate write-ins for miscellaneous income............................................................................................................................
15. Total other income (Lines 12 through 14)....................................................................................................................................
16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign
income taxes (Lines 8 + 11 + 15).................................................................................................................................................
17. Dividends to policyholders............................................................................................................................................................
18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign
income taxes (Line 16 minus Line 17).........................................................................................................................................
19. Federal and foreign income taxes incurred.................................................................................................................................
20. Net income (Line 18 minus Line 19) (to Line 22).........................................................................................................................

........................(11,715,081)
.........................20,817,555
.........................23,622,778
.........................32,725,251

........................(11,868,936)
.........................21,836,849
...........................8,299,790
.........................18,267,704

....................1,135,472,211 .......................707,736,891
...........................7,213,935 ...........................9,976,096
....................1,128,258,276 .......................697,760,794
.......................244,350,932 .......................102,999,600
.......................883,907,344 .......................594,761,195

CAPITAL AND SURPLUS ACCOUNT
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.

34.
35.
36.
37.
38.
39.

Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2).........................................................
Net income (from Line 20)............................................................................................................................................................
Net transfers (to) from Protected Cell accounts...........................................................................................................................
Change in net unrealized capital gains or (losses) less capital gains tax of $.....26,846,785....................................................
Change in net unrealized foreign exchange capital gain (loss)...................................................................................................
Change in net deferred income tax..............................................................................................................................................
Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Column 3)................................................................
Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)..................................................................
Change in surplus notes...............................................................................................................................................................
Surplus (contributed to) withdrawn from protected cells..............................................................................................................
Cumulative effect of changes in accounting principles................................................................................................................
Capital changes:
32.1 Paid in..................................................................................................................................................................................
32.2 Transferred from surplus (Stock Dividend).........................................................................................................................
32.3 Transferred to surplus.........................................................................................................................................................
Surplus adjustments:
33.1 Paid in..................................................................................................................................................................................
33.2 Transferred to capital (Stock Dividend)...............................................................................................................................
33.3. Transferred from capital.....................................................................................................................................................
Net remittances from or (to) Home Office....................................................................................................................................
Dividends to stockholders.............................................................................................................................................................
Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1)...............................................................
Aggregate write-ins for gains and losses in surplus....................................................................................................................
Change in surplus as regards policyholders for the year (Lines 22 through 37)........................................................................
Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37)...................................

0501.
0502.
0503.
0598.
0599.
1401.
1402.
1403.
1498.
1499.
3701.
3702.
3703.
3798.
3799.

DETAILS OF WRITE-INS
......................................................................................................................................................................................................
......................................................................................................................................................................................................
......................................................................................................................................................................................................
Summary of remaining write-ins for Line 5 from overflow page..................................................................................................
Totals (Lines 0501 thru 0503 plus 0598) (Line 5 above).............................................................................................................
Profit and loss, miscellaneous......................................................................................................................................................
Change in COLI cash values.......................................................................................................................................................
Fines and penalties of regulatory authorities...............................................................................................................................
Summary of remaining write-ins for Line 14 from overflow page................................................................................................
Totals (Lines 1401 thru 1403 plus 1498) (Line 14 above)...........................................................................................................
Prior period adjustment................................................................................................................................................................
......................................................................................................................................................................................................
......................................................................................................................................................................................................
Summary of remaining write-ins for Line 37 from overflow page................................................................................................
Totals (Lines 3701 thru 3703 plus 3798) (Line 37 above)...........................................................................................................

33.

4

....................6,000,663,680
.......................883,907,344
..........................................0
.......................170,438,776
........................(29,068,734)
........................(43,934,322)
.........................36,895,537
.........................11,555,661
..........................................0
..........................................0
..........................................0

....................5,713,603,754
.......................594,761,195
..........................................0
.......................269,523,204
.........................14,436,781
........................(37,265,778)
.........................23,834,221
........................(13,507,584)
..........................................0
..........................................0
..........................(6,722,113)

..........................................0 ..........................................0
..........................................0 ..........................................0
..........................................0 ..........................................0
..........................................0
..........................................0
..........................................0
..........................................0
...................(1,115,000,000)
..........................................0
.............................(760,660)
........................(85,966,397)
....................5,914,697,284

..........................................0
..........................................0
..........................................0
..........................................0
......................(558,000,000)
..........................................0
..........................................0
.......................287,059,927
....................6,000,663,680

..........................................0
..........................................0
..........................................0
..........................................0
..........................................0
.........................24,200,246
..............................885,237
...............................(87,660)
..........................(1,375,046)
.........................23,622,778
.............................(760,660)
..........................................0
..........................................0
..........................................0
.............................(760,660)

..........................................0
..........................................0
..........................................0
..........................................0
..........................................0
...........................3,396,923
...........................1,213,990
...............................(88,620)
...........................3,777,498
...........................8,299,790
..........................................0
..........................................0
..........................................0
..........................................0
..........................................0

Annual Statement for the year 2013 of the

ST. PAUL FIRE AND MARINE INSURANCE COMPANY

CASH FLOW

1
Current Year

2
Prior Year

CASH FROM OPERATIONS
1.

Premiums collected net of reinsurance.......................................................................................................................................... ..................5,073,131,702 ..................4,928,988,713

2.

Net investment income................................................................................................................................................................... .....................741,549,687 .....................761,354,869

3.

Miscellaneous income.................................................................................................................................................................... .......................32,725,251 .......................18,267,704

4.

Total (Lines 1 through 3)................................................................................................................................................................ ..................5,847,406,641 ..................5,708,611,286

5.

Benefit and loss related payments................................................................................................................................................. ..................2,580,469,486 ..................2,760,257,127

6.

Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts.......................................................... ........................................0 ........................................0

7.

Commissions, expenses paid and aggregate write-ins for deductions......................................................................................... ..................2,151,861,413 ..................2,179,372,187

8.

Dividends paid to policyholders..................................................................................................................................................... .........................8,448,551 .........................8,557,407

9.

Federal and foreign income taxes paid (recovered) net of $.....26,604,556 tax on capital gains (losses)................................... .....................268,684,383 .......................60,042,140

10.

Total (Lines 5 through 9)................................................................................................................................................................ ..................5,009,463,833 ..................5,008,228,862

11.

Net cash from operations (Line 4 minus Line 10).......................................................................................................................... .....................837,942,808 .....................700,382,424

CASH FROM INVESTMENTS
12.

Proceeds from investments sold, matured or repaid:
12.1 Bonds................................................................................................................................................................................... ..................2,141,009,293 ..................1,360,996,931
12.2 Stocks................................................................................................................................................................................... .....................404,708,446 .....................128,996,703
12.3 Mortgage loans.................................................................................................................................................................... .........................2,125,000 ............................525,000
12.4 Real estate........................................................................................................................................................................... .......................16,772,351 .......................67,101,221
12.5 Other invested assets.......................................................................................................................................................... .....................136,764,501 .....................154,948,582
12.6 Net gains or (losses) on cash, cash equivalents and short-term investments................................................................... ................................2,441 ...................................482
12.7 Miscellaneous proceeds...................................................................................................................................................... .......................53,562,260 ........................................0
12.8 Total investment proceeds (Lines 12.1 to 12.7).................................................................................................................. ..................2,754,944,292 ..................1,712,568,919

13.

Cost of investments acquired (long-term only):
13.1 Bonds................................................................................................................................................................................... ..................1,846,738,415 ..................1,446,816,891
13.2 Stocks................................................................................................................................................................................... .....................274,052,691 .......................64,062,383
13.3 Mortgage loans.................................................................................................................................................................... ........................................0 ............................300,000
13.4 Real estate........................................................................................................................................................................... .......................99,988,021 .......................86,699,419
13.5 Other invested assets.......................................................................................................................................................... .....................114,722,213 .....................157,333,947
13.6 Miscellaneous applications.................................................................................................................................................. .........................9,339,751 .......................97,778,358
13.7 Total investments acquired (Lines 13.1 to 13.6)................................................................................................................. ..................2,344,841,092 ..................1,852,990,999

14.

Net increase (decrease) in contract loans and premium notes..................................................................................................... ........................................0 ........................................0

15.

Net cash from investments (Line 12.8 minus Lines 13.7 minus Line 14)..................................................................................... .....................410,103,200 ....................(140,422,080)

16.

Cash provided (applied):

CASH FROM FINANCING AND MISCELLANEOUS SOURCES
16.1 Surplus notes, capital notes................................................................................................................................................. ........................................0 ........................................0
16.2 Capital and paid in surplus, less treasury stock.................................................................................................................. ........................................0 ........................................0
16.3 Borrowed funds.................................................................................................................................................................... ........................................0 ........................................0
16.4 Net deposits on deposit-type contracts and other insurance liabilities............................................................................... ........................................0 ........................................0
16.5 Dividends to stockholders.................................................................................................................................................... ..................1,115,000,000 .....................558,000,000
16.6 Other cash provided (applied)............................................................................................................................................. ......................(39,761,718) .......................42,446,808
17.

Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)................................. .................(1,154,761,718) ....................(515,553,192)

18.

Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17).................................... .......................93,284,290 .......................44,407,152

19.

Cash, cash equivalents and short-term investments:

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

19.1 Beginning of year................................................................................................................................................................. .....................225,480,280 .....................181,073,128
19.2 End of year (Line 18 plus Line 19.1)................................................................................................................................... .....................318,764,570 .....................225,480,280
Note: Supplemental disclosures of cash flow information for non-cash transactions:
20.0001 Interest payment received in securities...............................................................................................................................
20.0002 Stock distribution from limited partnership..........................................................................................................................
20.0003 Exchange of bonds..............................................................................................................................................................
20.0004 Exchange of stock................................................................................................................................................................

5

.........................1,258,244
..............................61,285
........................................0
........................................0

............................267,856
.......................18,305,435
.........................2,236,490
.........................1,903,750

............692....................................................130........701........................ ... ..4 Commercial auto liability.............PREMIUMS EARNED 1 Line of Business Net Premiums Written per Column 6...359.......760) ...........................................081 ....................... .526 ....................................................0 16..........0 .........6.... .......................................................................815......5.........76...............................870 ......... .............355 ......154........407 .....................................564 ......779 ......................... .......133........................395............637 ..750.............................388 24...............013 ..........29.251.. ............... Part 1B 2 Unearned Premiums December 31 Prior Yearper Col.......0 .............................. Credit accident and health (group and individual)............. Auto physical damage......occurrence.....................0 31.....728..891 6 .......332.................................................451.......260 .............claims-made.......... ...885 ............265.................................................................184...............70..............191......................33....................119.....6 ......682 ..736 ............0 ....784 ........................................178....510.....................21....................255........... ...3...............906..................22.......................................................757........................329 .................244 .......................364 19.61..........640 ............263.................... Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)......................0 15........593 ..........512 ....................950 ..... ...........................158............829................592 9.619 3..... ..........367................ Part 1A 4 Premiums Earned During Year (Cols............................................950 . Credit..................................823............. ..........2............................ ..........379 .................... Last Year's Part 1 3 Unearned Premiums December 31 Current Yearper Col..............4....(36) ..299 10....151.933...................... Commercial multiple peril.....981.......................243................................965 ...............1.........................750.014.....9.............016 .......334............................................. 19............................739...........................434 ....................621...................................103....................355 ...................0 .........................................646.........704........0 ........................ .................1.509............347 .................837 .........................902...616 32................14...894.......251 ................2............. Fidelity.......0 .66.............................. ....153...0 ................................... Summary of remaining write-ins for Line 34 from overflow page.....14..357.........564 ..407 ..... ....................... Inland marine.....................284..201 29.....1...32............395........535 33................77.nonproportional assumed financial lines...682 ........................438.910 ......0 ...........0 .............................637 ...........................9.....................................917 28...................... ..1....................................418.....................289 17....631 ..............................(2.............................(347) 11..........................608 .................................154......................................468 27..... .........024.........213 ....................539 ......... Aircraft (all perils).......0 ......................426......2 Products liability ...................................301........................ ...............................002.....22............. ............................0 3499......................1......254 .0 ..........189 .283................ Earthquake..0 ...occurrence.........(910) ....nonproportional assumed liability.... Allied lines............................ ..................048 .... Surety................86................................384.....754..........................539 ..781 .....1 Medical professional liability .............................................309.......... ............0 ................534...0 ....48..................................622...414......................418.............................................................. 5.....552 ....110 2........................160 DETAILS OF WRITE-INS 3401.....0 ................415 .............................................. ................795 ................................... Boiler and machinery.... ..........487...............................606 ..................059...................12..............................3 Excess workers' compensation.....791 ......176....................................564 ................................................................. Fire.................................................................................3) 1.......................... Reinsurance ....320............................................600................623.....................................594....896 .................................. ..........103.... ....591 18..........355 .......424..............170......claims-made...............................345......19......145......0 ............................ ..........................................40.....509.occurrence..................854 ................................789.............................2......................... .........................................................nonproportional assumed property..............669 .................1 Other liability ..........056.627...............923.........0 ...........20.......................054 .......81.....................................019..........428.................................Annual Statement for the year 2013 of the ST.................418.........................825 ...............3....832 ............ Mortgage guaranty... Reinsurance .........523............147............................0 ...173 ....................claims-made.. ... TOTALS..150.....550 .................... .......................................(2.................750.003 ..277.......505.....................949....523........................................................3..737.353................................................5................633 .438............................ ......................................045) ........................393..................098 .................5.............................................5......892............ ..........2...................... .079......................2.......................................2 Other liability ....395................781........................ ..6..................................(374) .............. Aggregate write-ins for other lines of business.........084 ......877 .. Workers' compensation.765) 12.361................786................................861 .....................................578......... PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1 ............................................78..................... .(1......005 .................915 13.........................674 ...................................178........423.355 .2.........137 30.........................095.... ...........429.................................................2.....0 ......026 19.............. Warranty.......................................................504........0 ...........0 11.................................................625 ...............................................357 ..1.............314 .....359 18...........964 ....2......173.................. Other accident and health............... ..................743 ...................581...... ..314 ........64...3................881 ...................817............ Financial guaranty......268.........636..............................................2 Medical professional liability .........0 3498...........................(685) ....380..........................................247 22.....0 ................................................588.......159............... Reinsurance ..............303.........486........725 4..........30........10.......... Group accident and health.745 .................303 34.310 ......... .58.........................................................026..185 23............................................... 19.................................140 21.........324...............................................276....0 8.....891 3402...... Homeowners multiple peril........13...........179.................0 ...............169.................629.................9.........622.......864 ....................... Farmowners multiple peril.....................................................................................682 ......... 1 + 2 ........................... .................160......47..............0 ..............750 17........................050........................... ............................................40.......................0 ....0 3403......................178 ........................263 .... International................................61......29................774 ............350...........33.131.............0 ...............425.........979................................... Burglary and theft......................765....................607 .......753...... ...........19................19.............443.....................................198............................0 ........683...........942....................................................004....240 .. Ocean marine.....334 6.....994 ..0 ....782...042...219............509..........4.....565 ..........................372 ..523..................814............639 17....930 ....622................................................390.430........0 ...........394.......................146..............................431......................79.......159...................061 26....891 35..............666.234................. . .912.2 Private passenger auto liability....511...188 .054 .............................................333.. 3..........................964................................0 .... Tribal workers' compensation..................................0 14................176 ........2.569 5....................................3.......................1 Products liability .....................418..........

...........878.....008 .......................127.......................498 ......................0 ..61...........(374) .......2....................629........236 .............370.......................355 35.500...(0) .........326 38...2 Private passenger auto liability..................0 ............ .....................................736 33..........................(382..........86..0 .........930 36.............occurrence.355 .................................. ...............0 .0 ........0 ..........0 .............................................(645..... Group accident and health......2 Products liability ......................................... .0 ......................0 .........0 ......684.......6 ....................199 .......0 .....355................859.....755..nonproportional assumed financial lines..064..0 ...............625 2..........................................................................................................................0 ...........................158..........................................................357 18...............187 ...............................................395.......(7....................75..254 3.........................claims-made............... Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above).....................0 .......0 ......541............... .0 ............184............................................048 19..............159............................................................................................2..........................255..................... ..............176....428.......... Homeowners multiple peril................................................................................806 ..............................002....0 16..........................179..379 23........0 .1 Other liability ............0 ....0 .....609 ......0 3403...............791 18.............................0 ........0 .............................2 Medical professional liability .10......550 22......621....355 (a) State here basis of computation used in each case: Daily pro rata..............................................................................................0 ........................................................................... 1 + 2 + 3 + 4 1.....421) ........380............395...................185.....0 3498.....claims-made.....333........340 ................................0 ....................................................................0 .077.................0 ......................................................................................................... .......19...................................623.......................(438.........280......260 29.....690 ........0 ...................0 ......233.....0 . Financial guaranty................. ......0 .........................469........................431..................................40............................. 19...............................................................................9......0 . ............................................................................421 37.............................................0 .........................................336.....243.937 ......255. Reinsurance ..............0 ............ Fire.. Allied lines..552 27............................................791.......................183 ............355 3402..27.............................................................................785.. Other accident and health..... Farmowners multiple peril.............................(14) ..345..occurrence......................................86..... ....0 .......................... ................................0 15.................................................................0 11...0 .......................561............................379 .....................676 ..............................759) ....0 .(82..................................0 ..............054 19................. ....... ......607 6.......................33.............................(85) .............0 . ............0 3499...............431.. TOTALS.........................0 ..................... ............................669 ...........767.........(8............3.......................................... ....................................................0 ............ ..................(374) 11......691...............195.............................326) ..... Reinsurance ....................................2...47...........792 ........ Ocean marine. .....................0 ..............363 ............140) ...............2................................................... .........................................................................................................964...........219............786.................527 ...................................608 ....... ..........................................................................2.. .............(3.........................................................778) .0 .............0 ...... Reinsurance .238 ...............................0 ................1...............0 ............................................................065........450......................774 13..0 .0 ...............13..............588.(3....................153...................0 ............................274..854 4...(4... Warranty............. ...32........................... Aircraft (all perils)................669.......620......................... Earned but unbilled premiums........................................0 ..424..........................349 ....63..........................093) ...........claims-made........... ........395.0 ..................................................0 .355 17........................1......0 ....................................870 17......678 DETAILS OF WRITE-INS 3401...........674 26.....................0 .. Surety..0 ........................................................260 ...................... ....789...............030...........0 14...........1................200................................0 ........................... Mortgage guaranty.............................. ...... .............................................................................0 ............................................161........... ......0 .......................174.............0 .............................. ..983) ...................669 34...0 ......481 .........2...............331) ...0 ................487 .........0 ........3 Excess workers' compensation.........685. ....................................................0 ..4 Commercial auto liability................ Credit accident and health (group and individual)...116) ..............643......0 ................................2............................................................0 ......................016...........373............ International.......543 ...................................................... Workers' compensation................................ ................... .........189 24.........................815 .................0 ...195 .........12...103.816 .......715 ......... .......(23............. ...867.......077....................... .....6 12........................ Fidelity................179.170....... Commercial multiple peril.......119.....320 .........0 ................................(10... Accrued retrospective premiums based on experience..(1...............393 .......................... ............. Balance (sum of Lines 35 through 37)..........1.................184.............415 9...382 ..............................occurrence....................... Earthquake..0 .................496.........(96) ..........................892.505............034...........................................................................19.............................20..................................................0 ..........355 . Aggregate write-ins for other lines of business.........0 ....0 ...........536 ...................................................432) ................................................................................. ....................0 ....(500..........................................3............................................... .2..............485 ............0 ......................0 .................0 ................................. ...nonproportional assumed property..........087) ...................................443................................... pools and associations as submitted.....0 ........................577) ..70......613 ................... .................0 ..........................................240 ..........923.....................958 ...........nonproportional assumed liability.......... .......................................158.............................0 .....................846 .....................................950 10.0 ...................................0 .........................(608.............879) ..................... Inland marine. Burglary and theft.......................................395................................. Auto physical damage...................606 21.........136.355 .........................276..... Credit...................... .....078 .....987 .....599 ...............................................3........ Tribal workers' compensation....240 5..........................(1) ....................232........2...............934......428.......................347.421....................................881 28......0 ........7..........59............................356) .0 .....0 .1........69....314 17.332....................329 32....129............... ...........276.......1.....................................................0 .....0 ..................................................................................................................0 ...........................054 .............. 19.............................. ................................022 ...............................................(10.........................918............................ Boiler and machinery...099) ..........3........77.................... .578...................................................395.......30.............220..091...586) .....0 .............................. .................074) ................14..........1 Products liability ......1..2...................................................395............368 ....................................................................461) ......19.283.........................(237......................................353........ ......................0 .....754.....................681.467 ......................... ..2...23...................090 ......RECAPITULATION OF ALL PREMIUMS Line of Business 1 2 Amount Unearned (Running One Year or Less from Date of Policy) (a) Amount Unearned (Running More Than One Year from Date of Policy) (a) 3 Earned But Unbilled Premium 4 Reserve for Rate Credits and Retrospective Adjustments Based on Experience 5 Total Reserve for Unearned Premiums Cols.................................265 ............(7..........(14..........6...................539 ... Summary of remaining write-ins for Line 34 from overflow page......................................... 7 ..................................643... ..........................................................................0 ..................781) ......................286 ..................608 30....................................Annual Statement for the year 2013 of the ST.....19.... PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1A ....0 31..................0 .......................................(1.......424......................................................0 8......0 .........................................2 Other liability .........................................826 ................1 Medical professional liability ...........................21...........................846....................2.............387 .195............154...............

.............Annual Statement for the year 2013 of the ST..622.0 ..............(2............483 ............1 Products liability .........................033 ...760) 12..(0) .....................922........... Allied lines.............760) ........................289...287..................................0 3403.....................occurrence..........128.......0 ..................418.............737... ............823................644 .37.....................0 ................................460 .....146.......1.. PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 1B .0 ............883 ..........................622........595 ......... ......0 ............ .347 3......(124.410...............0 ...................419...........................511........355 ............... .......................................407 .....948..........................050 ...........5.......278) ....................0 .. ............ International......511.......206.20...............407 4.....308 ...........................................0 .................................874 ..............0 ...... Commercial multiple peril.........15.... Reinsurance ...3...3..........62................(32) ......686...................188 34..............511.....1...........0 .......542 ..............................081 17....672) ...(1...............631 6....5......................0 ...................852 .........0 .................................... ............ ..............820...XXX.....839 ........................14.........533.................625) ......... 19..244 10.......................................................................686...885 21.. ........................3..............721 ..........603 ........XXX....................44.407 ..........682 ........8.........46..0 ............. Inland marine...............2......622...........................(3....511....4 ..0 ...........................0 ...................355... Summary of remaining write-ins for Line 34 from overflow page..........770 .............. .5.....576 ..565...0 .561.........................................249...1.....666...........921 ........................113.......82...393...............444 ...............637 18...........0 ..0 31..............273............693............137.............509............192) ..........942............................... ................256........................................ ....................... ........... ............ ..190 .............276............ ..........753 .......213 DETAILS OF WRITE-INS 3401.......0 ........304 .. .......15.........829...384..................898........... ...744 .....829 ......3....56.................................................................................. .......(124.................24..(2...................146..31.........495 ..........29........... Group accident and health..........077....... ......29............622.538....231 ....617...299 ........48.................................5. ........ .....514) ......22......................................22...2 Private passenger auto liability.............673......................4..150....2..... .434 ..................0 ....... ........................................40......014) .................................................PREMIUMS WRITTEN 1 Line of Business Reinsurance Assumed 2 3 Direct Business (a) From Affiliates From Non-Affiliates Reinsurance Ceded 4 5 To Affiliates To Non-Affiliates 6 Net Premiums Written (Cols........1...............15...............................................................................410 ..............................411........0 ...22.......... Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)...............390..........0 . Workers' compensation....487. .................................236.434 33........0 ...0 ............832 22..........0 ..... Aggregate write-ins for other lines of business.400............... ..............906.......341 ......... Surety...250 .............742 ..............................978 .............503 .....................................054 28.......008...842 ...30...........................................................0 ................828 ................................... .......765.0 ..............66....................................959.........145 .... ...... Mortgage guaranty.....................593 ....4 Commercial auto liability........................0 ... The amount of such installment premiums $.133..............573..................476 .....35.............. Aircraft (all perils).783 ..XXX............ 1 + 2 + 3 . ...........192) ........160......0 ..............................429........................................................0 .................0 .....510........443.........................................2.......0 ...370.............. ........................593 19..........................407 .........15.138 .............4..........0 ..............438.1...78.949.....0 ........2............................28......0 ...................976..........22..................0 3499............ ..........0 3498...078...........0 .....2 Products liability ...................0 ....601 ...154...........0..................... ........................22..2.2 Other liability ..........39.....0 ...1 Other liability .......176 5.........................828 ....0 ....nonproportional assumed liability...........724...682 .836.................. Other accident and health........................503 .............0 ................704.......418......1..................353 .....619.............940 ................627. Boiler and machinery.........13........10.334) ....0 ................2 Medical professional liability ............3 Excess workers' compensation...............(2............0 11................437............... ..176 ........296 .....084 18......737....7.............875 .0 .2.407 32.15....0 ...0 .......................37......655 ...............................1..........1 Medical professional liability ..................................................718 ....948..........................169............0 ........................... Farmowners multiple peril........0 15...............0 .......0 ........016 27..................14....132 ....... Reinsurance ...(3..29........................................418....................942.............................................................. Homeowners multiple peril........................... Credit accident and health (group and individual)... Warranty...........................0 ..0 .......................143 .......073 .....821.336...............................0 .......585 ...............622..............48........308.....765...............887.....828 ..449 ....................682 .......................521.......................823.............6.0 ................................. .0 .....................487.............0 ................237.........265 ........509.....147..............438..........438.........305 ......10............................466 ......................0 ..................904........ Fire................431 ....................0 ......... ..153.............912....050...............337.0 8.....................................................436 .998 .781 26.........430..........122......................131....147..539..0 ............0 .064 .......359 ..................523......565 23..........(2.......779...........2..........004...992 ......................921 .....5) 1....099 ..............61........0 . Earthquake..............329 ...500 ............0. ...............0 ..........950 30..(2.(910) 29.....................(2......551......................511........ ....................................................0 ..... ...........................................510.418.....44......0 16.........558 .....418....275 ............16...........................2.........829...................(174) ..........0 .. Burglary and theft......10.......claims-made........0 ...107 ...........745..............178 19..........63..........624 . Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $.......188 ...0 .....050.......... Reinsurance ...................527......803 ......................640 17...131 .........1..................................649 ...228.....910 13......................12.....131.579.......511...............540 ...... Financial guaranty..................385.004.......995..........................(36) .............263...784...... ......................................1.....................(3....619...43 .......................553...........379 ............................... ............................................................584.........478 ............. 2..... 19..........4................................................158... Tribal workers' compensation............................912....399......................128...2..............................................828 ............(32) ..084 .......................claims-made....................268............0 ..................0 .......4.......844 .................621 ...0 ............................0 ....994 9..40....................................637 2.......287.............................. ......0 ....0 .occurrence....................912...... ..........364................................41.........308 .0 .....512 ................................................ ......................................661 ...476 ..... Credit.1............82.................499 .............................269 ..............0 14....................485 .....0 .................682 35........0 ................184 ......014..........737 .........................624 ..............682 (a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1...................... Auto physical damage.................................nonproportional assumed property.......................... .379.................565 ..............484 ....0 ........553..........314 24....251 17..........14.206.............claims-made.682 3402.0 .073 ............................828 ........0 .........789 ....... TOTALS......................829................................705............. ...........578..............95... Fidelity........................0 .............5..0 .........................828 ..0 .......1...(36) 11...........5..nonproportional assumed financial lines.........588 .....014) ..... 8 ......(910) .................084 .......................455.......128 ........693.........240.....................145.......occurrence..... ...........2.........622.......... .............0 ..................................... ........672) ..................................215........... Ocean marine...........007............27........827 .......................

........ 18.................7 .................(50.........................................................860......................................................................532 .........................41..17.......................0 ......279 .....2 ..614. 29...........................565 ..152............843...........968.......................268................................................450 .......................................(514......124.(779) .........................818 ..604 ......708.................................................................(14................. Financial guaranty..053 .....................................0 ........826 .....................................2.....0 ..........24....638........838 ............387. 5................................................26.......................2 .............................120 ..................................004................................882 .........................066..............................................826 ..............602....................443...............60.......094.........070 ....................13.........................523 .....363.........3....018 ..........869 ........................152............260.............................2.746 ............51....................................................8.54..926............070 ......claims-made...288...............400..........................(296.............571 .......................60..0 ..6...0 .............45.........................146......................0 ........................ 2.........0 ...153 ............................................7 ......................................854.......... Boiler and machinery.......................481 ............................480..........................................742 ........211..749 .097.................512..................................................93................26..........556..........399......................636.........625...........1.743.............(32....014..............879 .................529...........604 ..0 .........................(2............0 .... Burglary and theft.................751 ...........(3.72...............0..........................110 ..........................1..... 23.......853.............0 ...........................849 ................536 ..........017 .......491.............................567..0 .......327 ................747 .............................280) .................0 ............................313...............334........375 ..............................20......................605 ........742 ............................................ .......9 ..010..............271...............611 ..133 .........................620.063................... Earthquake........61.......562.......................401 ...........................84..........................62.....................................................47..........................832..................................................................................510 ..................claims-made.596..0 ......0 ...........................285.......................370...170 .......................................................................................................441 ...7) ..48.....................0 ..................................652...3...............................904.....(12.............1... 3403............................. 6...............................10.........608) .................2............930..................76.....................276 ..719...45.....................181 .......................277 ....................347......279.299....................438.758 ...981 .Annual Statement for the year 2013 of the ST.........................584.......206 ......................................365......................542...790) ....74.........................................4 ......0) ..................603 .......................................169 ....................5) ...................... PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2 .............506) ........255) ........................................................ Reinsurance .......................................................................4.............................823.928...............(741................288.....1......0 ...838 ........737...2....202 ....106.....727 ........901 ......................4......847 ..........361.....................................6............LOSSES PAID AND INCURRED 1 9 Line of Business 1.............0..................840............237...............255 .........................063 ...................256..........................672 ................... Part 2) to Premiums Earned (Col....524.....3...............136 .......................0 .............................38.....167............360.1..............64..............399 .................0 ........................620........................... 26................481.......349 ...........0 .......841.......................................2 ...48.................0...................................................495 ...............253 ....XXX.............992............................18........... 31.....088 ......568 .......................................245.................................. Workers' compensation.................439...................3 Excess workers' compensation.478..........................601 ............... Part 1) ..........296...3..................... .......987.............205................908) .(48.................................345................................................. 3402.667 .......3.......................604 .........................810 ....235 ......7 .391.......326 ............ Allied lines............16..........0 ..................................................................................29............304.....39.........(3....76...4 .......868..............................................0 .... Group accident and health...........204 ............136 ...................................296 .......................786 .......920..................................742.............(35...0 ....................0 ..............0 .........683 ........................................................................148...........821..........958 .......................30.......758 .......213 ......954 ...110 .............059 ....719 .......................(9................................... Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)...................0 ............828 Reinsurance Assumed ............................... 24............................681............(6.................25..................183...........................0 ..................327 ................7............206...........427 .....................296 .........................986 ......16............2..............0 .............824.......... Surety...........086..................972 .................................12..................0 ......4..2 Private passenger auto liability..............879......620..............8 .............921.768.................................................................16........(0) .....266............400........ 1 + 2 ........296 .......... 19......1 Medical professional liability .......................................3) ...061......025 .............563.....202 ......................415....048....30...... 8......0 ...............305 .......6..................0 .....................268 ..............158.........................................................................................2......133 ...............45...............................1................380......094.........................................626....348..........................098 ...283 .........536............4 .........................................................400..............2.........4 Commercial auto liability......................................32...............797.....................43.......................... 7.179.......290..........1............................4.....................896.444 Net Losses Unpaid Prior Year ...344...53.................................(2...........................906..823.........................................80............010.........................................526................0 ..7.....................................4 ...............440 ..............449..................... Commercial multiple peril......................................................878 ...648..................917 ..................... International...............................938 ............240....................403 .............................0 ..................455...........622........673 ..... Fire..................54.............................141.....................2) ..........672 ............................ 19................369..........................853.............................11...........69..................841...........0 .......... Ocean marine...0 .768 ...........0 ....0 .2 Other liability . 8) ......................... Warranty. Homeowners multiple peril.........296 ....33...........50...183.......38.................721..........850 ...17....................113.....(95.1.......245....................1 ......11........................................272.........................112 ......021 ...............485.222.................911..........548.........................occurrence.. Auto physical damage..196..0 .......1............................... 3401............6.....78..................XXX.....042 .............770.314...........0 ..709 ..................................958....6...............(6............(925......340) ..............934 ................................348..........................229................................735 ...50.............................0 .............................0 ............0 ..................347.................099.339.................. 11.............................4........549.668 .173..................................................699 ................. 10.............................................839) ................................... 3........................786....................000 ...............384..............6) ..........7 ....................................488.0 ........................................................................15............54..................................................050 ...........XXX...............................................(3.......131...523..........735.........554 ........0 ..347...................................0...606....0 .0 ...60...............726...............924 ..................15........801 .141......0) ......663 ......661 .....................2.............939 .......2..............................9) ........61....................085 ..............899.....940 ............................................377 ................... 12.. Tribal workers' compensation...............136 ....3............................ 33.14..............347.......0 ............255 ...................................532 ................339.860. 15.................71....... 4.255) ..534...181................656..3................6.......108 ...955........335.307...............................587 ....354..............................243....628................55...954............423..........061 DETAILS OF WRITE-INS ..............820.......................3...000......476 ..246.......76......... 2 Losses Paid Less Salvage Direct Business ............578.9........................539......81.339...61.116.....................154............. 17..........................5 ..........0 .............2.................941...0 .....XXX......... 17..................................................41................................846 ...79....................848.272 ............52.........328 ................0......133 3 4 Reinsurance Net Payments Recovered (Cols....287..............1 Products liability ............. 19....668 .............................................................................. 17........9.................668 ...................................................574 ............ Aircraft (all perils).1.......0 ..............0 ......0..........................(991.....0 .......................................277.........032 .....201 ...656 ......................4..............................1................1..........14..........45......................................0 ....199.........37.931 ......427 .......nonproportional assumed financial lines.................0 ................016.............13...........................556 ..............289....0 ......0....0......447...........................268..........................................3 ................620.. 4.....................................................710...............................................................................................0 ........................................359) ........2 Medical professional liability ...............456.........................32...............126.....................................868.....................192...................2 ............... 27........................................0 ...022............... Summary of remaining write-ins for Line 34 from overflow page..............................................................................133 ......0 .........476..1 .........854 ...........................................................................175.........234.........................................347........................296 ..........158 ..... 30................341.............045 .13.....................924 ..........810 ..215........022 ........................411...................................754.469...054 .132.......922......675...........440................................601 ...........044 ..912 .........................occurrence.......965 8 Percentage of Losses Incurred (Col............... ..........871....248 ..................................................3...12........................347......365...........................................0 .................690...............670) ..860.....................64..................................605 ....394.........296 ...........133 .........234......394........................389....... Credit accident and health (group and individual).......................3..................................59.217......................................0 .................0 ................................85...........966 ..........1............394........59.........579) ......526 ......................54............ 19......................462 ..................... TOTALS..3........858.........................717 .....................605 ...............................268 ..................... 13..............................0 .......................370.........0 . Farmowners multiple peril....805....................................540 Losses Incurred Current Year (Cols.1.....................................058 ............................................... Reinsurance .........12....................................38....596.... ....................0 ..................................563 ...0 ..................(95.... 35.....2 Products liability ...... Aggregate write-ins for other lines of business.................820................ Credit...712 .......................................................................331 ................................. ....632.3..................476.....................576..............nonproportional assumed liability.........241 ..0 .....................46........868........997...... 28....0 .....................48.3 ........................0 ......................45.....................2........18....................................14.487.....................................205 .................0 ......................................... Mortgage guaranty. 18...................................18..............136 .408....................1) ............... Inland marine........397...........................975...435.............7 ..........010 .................164 .887 ..........................8... 14......................................................496..........142 ................ 9.............070 .........776............................805............841 .......................................... Col.........327 .........133 5 6 7 Net Losses Unpaid Current Year (Part 2A............................. 3498.......500....334) ....083......0 ...........400..........154 ...063 .....................146...............................0 .520 ................. 3499....912 .....................574 .............859 ..136...........232....755....1....400.........(3....875) .....1.. 34.........157......554 ... 32..........................................17....567 .....451.806......... 11.............................579 ............................781 .467) ......................................0 ......... ....................609.......6 ......... 22......1 Other liability .........577................669.....958...........................................919 ........................................................61...............................574 ....................................................................... 21...............763......................1..487 .............................................................0 ......................364 .................500......0 .......... 16.......295 .....................................2 ......(24....claims-made.2.......... Reinsurance .................... 4 + 5 ............219.6) ............216..............332 ..........................815...............241.............................(8.....0 ...nonproportional assumed property....3..............................405..............................1.....occurrence..723 .232...........................13.866 .........248............................... Other accident and health...64................49.....615..8 ..400.45...........................266.....0 .869 .....663 ...85.......................................................621 ..............36....................538 .000) ...... Fidelity....950 .7..............

....1.........7.......416 .............. Credit....854............241.............542 .................0 ...620.....0 ............722............................509........... .2...103 ........................XXX.....712............805.0 .....696 ..709 .............................060 ............197 .........................312..................................032..........................732..1.................391 .....776 ................17.657..............825 ...........039...............................98................832 .......1........784 .......................31................9................................4....676 ......... 18....233.........................297 ................447................107........................268........1...1...............416 .....407....531 DETAILS OF WRITE-INS .............0 ...........383....844 .....554 ......62...087..170.............884 ..................830....XXX........299...........835....1............................368..........................369..623... Boiler and machinery.................. 9.526............0 .........123.......14...............282...............950 ...170 3 4 Net Losses Excluding Incurred but Deduct Reinsurance not Reported Recoverable (Cols......3..claims-made.....................823 ....183 .... 19........854...16.........237.............251 ........313 .............282.................737 ........118................. TOTALS.................16.............729 .103 .................444 ......................148.................... Earthquake.............................13 ........107..........................................57..............................................992.................11.....................0 ............................................................... Aggregate write-ins for other lines of business..............738 .................................................................022..............................452......903. ...6..848.........1.......26...........................000 ...........490 ............................432.......56...................................................206 ..........759 .. 22.......022.........................213........................................257....... 30.................667 .........524........................808 ..............063 .613 ...0 ..........................................25...........................................85...........959 ....0 ..347 .209 ....134.......................................305 ..........................................................................85..XXX..581.............783 ....860.......................................3........................118........567.....327 ............499...584............. 15.996....................93......................0 for present value of life indemnity claims............... Auto physical damage......... Group accident and health...........794.........0 ..........460......0 .154.............878 ......................345 ................441 ......934.609 Reinsurance Ceded ................411 ..........37..........................413 .. 19.273....................27..........430..........736..8....40.....................................................651 ..................295............185.....................283 .................529......0 .......0 .........................335....4....................254 ..................170 ..........7..........771..........................................2.....832 ......229 .091 ...........149 ..397 ....489 .................nonproportional assumed liability..............................566 ...039........... Credit accident and health (group and individual)...............954...114 ............157...........................639 .............45..............4................1.....0 ......3............72......1.................7) ....................................2.........................994 ......343........ ........451.......983..351......... ....occurrence....387.............289) ..........297..........222................7.............041 .9........1.692... 11........0 .768 .....003......649 ....................................................15..970 .......13............812 .................. Ocean marine.....................................0 ..2.....................441.....(5...........069....................735 ......3..000.......occurrence.......1.............22..........470 ................574 .................................620..........532 ...........................................945................... 2.........9.154...............7....2.517 .................146...............................93........................0 ..0 ...... 19...626 ..........................276 .........................................................185........20........... 18...........................0 .........476 ...........871....728........787........................423....044 .......015........3 Excess workers' compensation.0 ......................62.................158 ....642..........XXX......................................0 ..................443..... .096 .....912 . 32............298....................................313 ....................151 ........................5.4.............................1........................293.......546 ............. 31....0 (a)......................671..................559 ...................670 ...........0 ...............................080 ...............935 .............876.........2.....13.861.................369......0 ...........285 ..7.0 ..... 3401.......159 ..137 .587 .........0 ........502....454..612............0 ....442 Reinsurance Assumed .....578 ..........3......235 ...30..181 ..... Mortgage guaranty...680..........................706..761.....................................538 ..........162....432 ......066..........0 ....205..561 ..........138...........259 ......................096....0 ..........302........................567 ..23.....................689 .......772 .................................................397 ...........387........................600 .0 .......0 .........4.643......6........3.................441......................0 .................................. 17......805........................0 .................754....313 .......413) ............... PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 2A ........170 ..117 ...7................379 ....................711 .......................................................4......809 ..278....237 ....................929 ..........903......................1.454 ...9.804..795............UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES 1 10 Line of Business 1...13.........................0 .... 24............0 .......687.27.Annual Statement for the year 2013 of the ST.........315............................ Inland marine....................24...................................... 19..466.........................22............197........33 ...............478 ............685............................651 ..........14........476..........................169.............................................199.153...............................................551.896...132..........................080......................1...207 .........occurrence....382..............683........721 .....609........601.......................107.......601.............173................... 23.......34..........................0 ...........304....31.........................001 ........................455 ...............106.....551..................514 .....267 .............26. .......415....................356......103 .....7.....................610 .....................................069.................297.............594 .......8...3.856..0 ......2........0 .........................0 ..........................38...205.........332 ... 4 + 5 + 6 .............30.................568 .856............365......................198 ......132........5..432.............701......................264 ..........94........................114 ........................... Allied lines......327 ................................10.....................................................687...................10...................................37....159...1.61....86..................133 ........840........................................................442 ..................................718................................45...... 16................................4..620...............................0 .......168 ..................................299 ......................992....................0 .906 ..claims-made......9.518 ........1...............5..................................2.....537 ..........604 ..........835....709 ....................216 . Reinsurance ..................039....848..............83.................770 ..............960......25.............708 ..........922............386 ................ 6...............860.050 .098..............................617.......993..................299..509.....156.51.........694..........15............................615 .154 ..........................287...716...............444......953........425 ...0 ...752................438..74.....829 .....207....064 .........958........637 .753...............818 ......860.......................0 .............108 ..............755 ......................... Including $......................36...............................302.....432.259 ......773.......................... 29...........................244.959 ................................753................................346...........8..........460 ........281......579.....010 ............ Fire........................ 2 Reported Losses Direct ..15.....297.......753......941........2...128...............648.........10...5............40..............................................................................879. 3402...903 ...975..................135 ......264 ...............................................14....805 .........206.................875 .....805......159 ...............9......205 .313 .0 ........524.....................853......405.......028 .......747 .........9....................................................................827.................................487 ..0 ...........307....................0 ....................205..............16........963...255...631 ...307..............561.............43....079......3................... 3499..874........986 ..(126......223...............1....................053 .........6.. Reinsurance ..........0 ....................643.....4 Commercial auto liability.....................................................................................23.........................204 ..........0 ..313 ...41....331.4..0 ........11..........918 ......357....................950 ....945 ...0 .....................780 ......... ................072...........0 ...............................................53.................. Surety..953....743............. .........6...413 .....290.........7......663.......... 33.........................086 .................869..107.169......2..................................0 ....79.....2........3...........523 .........................573.261..313 ..........985 ...171.....202 ..........898..................................................795...........252 ...475 ..................5...........2..................32..............124.434 ............6...... 14.107................................039..1.297 ...........................................315................... 3498...0 ...655 ................622......717.....................................52............0 ...862..829 ...................991...............107....................0 ........17.......................................... Workers' compensation..... 12.........................3.........689 ...........567 ..........................................................0 ...................................................886....010.............039............931 .248..................3) ......237 . 17............................402 ...........................................913.809........................097..........754 ...034 Reinsurance Assumed .........................391....755 .......170 ...............0 ..187..............................................................................0 .................408 ..539..........882 .............0 .........................................385................. 28...........7..... (a) Tribal workers' compensation.....................1.......375...148 .......5.....................................164.................................1...................518 .........4.......412........139 ..127............532 .... 3403..........29...988 ................153 ..........846.......80....19.....967....293.....1..............940..2 Medical professional liability ....258...........................................7..434 ........................ Financial guaranty.............................166 ...655..059..0 .................91.... 17.61...........0 .2...............919 .....2 Other liability ...937 .183..........................................132. Homeowners multiple peril......958..............511 ..............780...938 (a)............................884 ......37.... 27......219 ............035.7. 13......039......594.......264 ....0 ........................................604 .0 .....897 ...............0 ..........151 .......955 .........................................0 ..................790 .......0 .........1........435..........033................................................................ 3...................997.....055........72....549............525...318...............247 ..........146..............................................808 . 21.. Commercial multiple peril......771 ..............8.........0 ....404 ........... Fidelity..........................................2 Products liability ......635..........0 ..............206 .0 .....................434 .......908....34..............................694....................................7................061 .........48................1.............3.................................594 ...264 .............16..........20..........481.......................................................750 .........236 ......... International..709 Direct .............0 ....38.25...........................................................................................3...15..........................................512 ..2..............604 .........537 ..264 .......559 ...........................0 .......................................133........341................................718..............156...................................720 ...........................25...........................................................35......................................1..........307.....................698.........033......0 ...... 1 + 2 ........170 5 Incurred But Not Reported 6 7 8 9 Net Unpaid Loss Adjustment Expenses ........721...............642......................170 ..................998.......432....623 ...0 .........364 ...7...............13................................264 .. Reinsurance ...666 ............021 . Aircraft (all perils)..............................2 Private passenger auto liability.......................675 .731 Net Losses Unpaid (Cols............575.............226 .596....................0 .247...................2........... 11.. 8.....395 .............531......579 ..................0 ......300.........300 .228 ......1................441 .......................114 .........0 .................432....031 ...............912 ...........................................1 Products liability ..................030 ...............0 ....24....0 . Summary of remaining write-ins for Line 34 from overflow page..........3....393 ............................021...641..........65...........7....................519 ....... 4................566..nonproportional assumed property.12.......432.................0 ......0 ................301 .......936.....950..........983 .......692 ..............323...108 .........950 ...................747..............0 ........................83.......8............................ 26.................526. 35.8..351..................................213........................014................................................48................882........22.........359 .....357 ........357 .3. Warranty..........................257..........................................810 ...237.............3.........187...........33 .................................844.................81..3.....0 .......107.....966.....079..........3....................936.......132 .................. 10....845..082...........29........ Other accident and health..............490 ......................736 .951.........................................144..............11................... 34......................1.......................1 Medical professional liability .3................860...................XXX..............364 ........................................................... Burglary and theft.....................claims-made.XXX.016......3..............699 ..082............................................................nonproportional assumed financial lines....................484.................57....1 Other liability .........133 .553..............................411 .....508.......496....................518 .. Farmowners multiple peril....638..321....650......592 ........................930................ Totals (Lines 3401 thru 3403 plus 3498) (Line 34 above)....................155 ........................864 ....306.........604 ......................940 .993 ........3..............0 ..................339................715 .395......320 ...757.................299........ 5.......

....0 ..............................................4....29..........991....current year..........0 .................852.28...42................374...............0 ......500) .303......................................................8..................1 + 2...642 ..840 .......956.........................................35..................................021..4..440....127 2.............0 ....................................................273 20...........................914 .........................926............................302.............. .411 21..........................3 + 20...039 ...1... Boards......280 8..................914........814...................................125) ...........548 .........................946......0 ..281........................... .544 ........604. Employee relations and welfare........21.0 ...........288 .......................631 ..130...675...............................2.........8..........0 ................. Legal and auditing.. Cost of computer software developed for internal use............................0 ........................................................................................4....1 State and local insurance taxes deducting guaranty association credits of $............................................................................310 .............602 2........447 ...........120...................050 ......................4.......815 15.852 ......................130......................................................410) .......0 ..................(21......11..............113 ..... Audit of assureds' records.....0 8........ Taxes.....2............450 ..................3....0 ...............428.......3...735................................................... Aggregate write-ins for miscellaneous expenses.................... Travel and travel items.32.1.309 ..........19......................................332.................... Equipment.......0 ...........213....874....................092 .903 .963................................986..........................129.................059 1.......................0 .............................................858 ..............................reinsurance assumed................023 ......128 .11..................232...............465.............447 20....................................122..............................765.........13.................4.............................817..... ..980 ...............................055.........067................................................. Reimbursements by uninsured plans..667....................... Totals (Lines 2401 thru 2403 plus 2498) (Line 24 above)........................754..............384.......................665 23...........278 ...............................................799.....................15.....171.....0 2499................0 ..........8 Net commission and brokerage (2...................675..... ..0 30............059 ...............................9.665 .....520 2..946...........9...............19...........191 20................................24.702 5..........................0 ............................................................................................0 ..................................593 .... .......................872 ...............78................0 .....321..............4.................. ...........0 ..........................................................28.(30....(655......................................................356........0 ....20........................420 .........495.0 ........0 . exchange and express........................................409...........546.... Directors' fees.............. ..............................437 ................................................................ .877........................... ...3 Reinsurance ceded...................................0 ......................559 ..................... ............1..........601 ...............926...........................960...................1......2 Reinsurance assumed..................................302 17.............reinsurance ceded.....................2.......................2.........................136 .....012.................0 .130....403..............391...............223 ............................................370............................................................ .................... excluding contingent............101.28.............. Cost or depreciation of EDP equipment and software....... current year.............................27........32.direct.......................050 2.......................................... ....111...............575......................275 (a) Includes management fees of $.....315 .............137......1 Direct. .............. Add unpaid expenses ........850..... Totals (Lines 3 to 18)........4 All other (excluding federal and foreign income and real estate).............. bureaus and associations..0 ...(33...............................................................................7 Policy and membership fees.. ...... excluding contingent.................................735 ..................... Salary and related items: 8...............7)... .........510................................................. excluding contingent.......355.0 .......................................................................113.. .................0 ............. .......484..1....315....................... Real estate expenses.060...................988) ....57. ........................046 ...........................1 + 20.891 ................... .....12................ 11 ......23...........3..... Rent and rent items................... telephone and telegraph...............120....0 ..........................(655.............149 ..............026.............................. ............................................ Service reimbursements...............477................(1....092 2.....0 . ........................................ .....0 ............477........1.................................(7.......0 .......................... Real estate taxes...........606................................. ..850......................481 ..... ......550 .................................29......EXPENSES 1 Loss Adjustment Expenses 1....155.....060.........................012..............20...............................13.62....................................138...............571 26....... ..........316........980 .3 + 2...165....................336 .....974....................295........................0 .........700......................................3...4.......................33.........060 .........0 ..................885...........960....463.551.... prior year........599 ................................178...28...2 ...........0 ... ... Less unpaid expenses ........................................3 Gross guaranty association assessments......................................5 .............602 ....................... ........... ....................157 28..531.. .277 27...................815................(7...........335 .0 ..... .....124....................213.............0 ...............................78.........................991.............499) .............0 ...... Surveys and underwriting reports...0 ....Annual Statement for the year 2013 of the ST..... .............................444 ...........0 ...........20..................73...................8.....0 ... Summary of remaining write-ins for Line 24 from overflow page............................................0 ....441.......................121 4................................................................................ ...........2...280) ...0 2..........................398 ......684 ...........(3...4 + 2........2........................209 13.......2 Payroll taxes..............451 .....................995 7.................4 Contingent ..................................891 .................................302................138......469 ............167.....588 (a)........28 + 29)..359......84.................0 29...4....591 .278................2.....................................................869 .............................601 ...0 24...............690) 2403...0 ........................671 .....................................................1 + 1............... licenses and fees: 20....................1 Direct...242....582 10.................................................................................................................................774 ..........815.......52...............422 20......................0 ..........296.................4)....487....................................................687 ...........8..............577 2402.....................939 ................................................264....................................................008............................. Miscellaneous expenses..426 9.3.... Postage.374..............0 .0 .........................655 16............................................ ......................................946..........................718........771 ..191 ............... ........223 2...........................................................214.........4....26 + 27 ..................... ...........612) 2498...........994....................627 14............105........321................. .......... Advertising...................................606.......2 + 20...... Allowances to manager and agents........(142..........................................528.......................121 .........0 ........0 ........................... .0 ..................247.......0 to non-affiliates............520 ....... .....799.....0 ............619......................277.....................386......273 ..................1.................................2 .080) 1.134 .....................152 ...412 6..........738............................................0 .................................2 Insurance department licenses and fees.....................prior year......70........................ 2 Other Underwriting Expenses 3 4 Investment Expenses Total Claim adjustment services: 1...1....055........... ....................105. ...0 .......2 Reinsurance assumed............................................810....................27...................... 2...........412....42.......................0 to affiliates and $................79.................................771 ................................................738.914 3...........026.0 .................................937............ ........... Insurance.......0 .500) 20........680...........23.................................................494 . Total expenses incurred...................1........495..(22........................................................................... ..2..............8.3)...........687 1.........134 11.............11............................................................3 Reinsurance ceded...0 ....................0 ....................647 .............465. ......871.....295....33..548 Commission and brokerage: 2..441...068...........721..................................................5 Contingent .068.............717 19............................................546 ....621...................040................ Amounts receivable relating to uninsured plans..138.............642 ....479.........................................296...903 ................................316........160.......5 Total taxes.........10...............................................804..............2......763 ..............254 .........27...................510....................495.......0 ....19.0 .................0 .....336.........1. Printing and stationery..................11.........................................................993.....461 ..........260 ............................ licenses and fees (20........................202......409....796....................... TOTAL EXPENSES PAID (Lines 25 ............................................................... ......................127 ........0 ........1..............6 + 2..... ................546......... ......080) ............275 25..........62....... Amounts receivable relating to uninsured plans...1 Salaries............132 ....879 .........293 18...............475 ............................................0 .........17...152 12.....518 ... .............................................160.........590.............7..........189 ...............029............11..............6 Contingent ..........0 ...................451 DETAILS OF WRITE-INS 2401..592.....................................137..122........................ PAUL FIRE AND MARINE INSURANCE COMPANY UNDERWRITING AND INVESTMENT EXHIBIT PART 3 .231....................4 Net claim adjustment services (1....................679........................336 22.................411 .................91...............373..... . .............. .....................0 ........15.........

......(2................... 5................430) 12 ....437................512.................................................................................................................................0 amortization of premium and less $.......0 ..........................................................................32.081 ..(31...........(289.............................................622............. 4..............................157........................068 .......472.........................................560 5 Change in Unrealized Foreign Exchange Capital Gain (Loss) ...............726....860) Total Realized Capital Gain (Loss) (Columns 1 + 2) ......0 .....................................228................ Common stocks of affiliates.....958 depreciation on real estate and $................................2 1................ (a).483........................134....................................0 ..0 ...............................1........................................................... Total deductions (Lines 11 through 15)................................................ (b).................................................2 1.. (f)................................................................0 .......................................................................009 Miscellaneous Real Estate Expense.........564..........851...623 Investment expenses...............................................................747 Miscellaneous Expense.....................................................................................850 ..........114. 7...603 0901.................................................. 8..595 Summary of remaining write-ins for Line 15 from overflow page................................................................. Bonds exempt from U....................622....................................................................... ...........................161 .. 11..13..............0 (h).... (c)..... Mortgage loans....... excluding federal income taxes...............0 .1.........515 (g)........................................................................................... 5.......0 ..................... .....644.............508 ..... Interest expense............................................................. 16.........................15...................................................... Preferred stocks (unaffiliated)........804...... ..................................0 ..............0 ...........488......(16...................................... ..... Includes $........................................................................................962 2 3 4 Other Realized Adjustments ...... 1599..1.......... 4.................................... ....................293........... 13..............................................703) ..427 Bonds exempt from U...............................................................................................................................................636 ....................079) .0 .................................................554) ....485 ...........351 Includes $.......0 ... cash equivalents and short-term investments.102...........745...........................573..........0 accrual of discount less $............................ ..............................0 ................... Includes $.......016.......................................................................231.............................32...... Includes $.......................0 ............................535 ..................102............................................................................................877.....................0 Other invested assets...............................................................................................................................................................................................094 .............................................................................623............................................................039 Summary of remaining write-ins for Line 9 from overflow page....................490..1..............................................................................................................................527..........................429 ................................... 1.....................................0 .........844 ............69............................ 6......... licenses and fees........................................................0 .. Investment taxes..0 Totals (Lines 1501 thru 1503 plus 1598) (Line 15 above)........535................................................................293.............................................................. ..........................0 amortization of premium and less $...................873 Mortgage loans..........................126............850 .......... Other invested assets........................(13..........293............................................ Real estate.226 accrual of discount less $.............3 2............351 .....................067..30.......................................................................................2.....................605 Total gross investment income..............................................0 ................................488.......0 investment expenses and $......... Contract loans.............................................................7....501..........075............459) ....................................................................................850 ....................... 7.................................................................950......................581 ..............S.............................................(29.................................................. 0902...........293... 0903...... 1 Collected During Year U........25................................0 ............. Other bonds (unaffiliated)................0 depreciation on other invested assets.....596............................... cash equivalents and short-term investments..............2.(13..441 .............................................. 1501..............21 3.......................... ...................0 ......0 ........... (a).........................0 investment taxes...............................................21 3.................................................2....... (a).....28.231...................0 ................ .... .264...........................36........085 ....703) ........................................63..................................121..................................50...850 ................................536 ...........................(13...................758.........114....................................................................................................................44...........................................................................................1................... Aggregate write-ins for deductions from investment income........0 .........(31......................0 ..................................................... Aggregate write-ins for capital gains (losses).............................................................144....... 0999................... 8......(31............................. Preferred stocks of affiliates.....................852........................(1.........................................................................0 .........................................1 1..........................605 Management fees......................... licenses and fees....0 ............................................ (d)...............145 Other bonds (unaffiliated)..............................................................S..............093......................................................0 interest on encumbrances............... attributable to Segregated and Separate Accounts... 1598.958 ...............950....... Includes $..................131.........................5......................536 ....1 2......................S... Cash............. Summary of remaining write-ins for Line 9 from overflow page...................................................319....501....................................................................................................201..............................081 ..............................873 .........012 ......0 ...... ..............0 .............................................................................849 accrual of discount less $..............................................0 ................................17.......777 .............................0 Cash..................194.................................................................................................0 ............0 ..............................................814 paid for accrued interest on purchases. Common stocks (unaffiliated)....605 ..................430) .......0 .................876 ..118...............................2 2... government bonds..............049....................................081 Miscellaneous income...............................................0 ................... Total capital gains (losses).............................................488........ 0902....0 interest on capital notes............... 1...........................................924 ........(31..488......................................................................218 amortization of premium and less $......................0 ........................... 2 Earned During Year ....................................................................................0 ............138) ....... tax.. EXHIBIT OF CAPITAL GAINS (LOSSES) 1...0 ..............................121...................... Includes $................................. PAUL FIRE AND MARINE INSURANCE COMPANY EXHIBIT OF NET INVESTMENT INCOME 1......144......................................9..636 .............................. 9................................ Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above).............(1..178) .......0 .................1..........................Annual Statement for the year 2013 of the ST.0 accrual of discount less $.................................................398 Bonds of affiliates...............11 2.........537 Common stocks of affiliates.........................401.................153....................................1....................293.......................................0 .......................................................068....(202.................. Bonds of affiliates.................................986 Preferred stocks of affiliates............................158...............................912 ............850 ..039 ..........................................................(289...................................................................................081 Aggregate write-ins for investment income..........................3 2.......015 (i)........................113...............0 Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)...................... Includes $............................................46...............0 .......486..................205.....485 Securities lending income..........S..................767..........................826.................... 15....................... Foreign exchange........................ government bonds..................................................................................278 .........831.........17................. ............................................................ Depreciation on real estate and other invested assets..17..........0 ...............................................................0 ...........................................(311........................285.....884..........209 Real estate.389 for company's occupancy of its own buildings......................................................102 Change in Unrealized Capital Gain (Loss) ............ ........................ 10..........656) .....................501...........................................................0 ................949) ............................................... ...436.............................0 ............................0 ....................................................................................................................................................776) ................................................131................605 ..................................154 .17.................................0 ...777..512.........................................898......................381...38...........6.................... (a).....473.....851...............602.......................................................850 .............134........... 1 Realized Gain (Loss) on Sales or Maturity ...............................................154 ............126......... (a) (b) (c) (d) (e) (f) (g) (h) (i) DETAILS OF WRITE-INS Property and wind plans...................0 .................. 10...................... ...........0 ...................... DETAILS OF WRITE-INS ................763...0 ........227.......................69............................................197........................... excluding federal income taxes...........0 .....0 ..................................................................664.... 0998..................................................................................219......... 0998...........................0 ...........................0 paid for accrued dividends on purchases.................... 14......................................................994 ...........................986 .......0 ................. and excludes $.......2 2............884...................................................................... Includes $....244......................................0 ...969 ....178) ................................................140 Contract loans...0 interest on surplus notes and $..................................................2...1.......................................0 amortization of premium and less $............ (b)....................1 1......1 2..............................................................527..........0 paid for accrued interest on purchases........430) ....0 .........................................................0 ................9.........400......................................... ............ 12...............0 .......................................................................................0 ...588 (g)...0 paid for accrued interest on purchases............................79..........0 amortization of premium.........0 Preferred stocks (unaffiliated)..... ..........................385 ...0 Common stocks (unaffiliated).......................................................... 1503..140 .......................605) ........................ Net investment income (Line 10 minus Line 16)..........0 .....(202.......................................................................703 .............. 0903.................................. (e)....... 0999.......................................................241 .......... ..........................................................1................................................... U.017....................................................................0 ...................... 1502......... 9....0 .......................................................................222 Derivative instruments..................................... tax...734) 0901..............................293.........877...............0 ..................0 ........253................................................................23.................... 17....12............................................. Derivative instruments................................0 ................................................11 2.. 6............0 ............................................................0 accrual of discount less $.........................0 ...................012 .... Includes $...110...................

..............................42...........................354..........................0 .................................0 1199.. including health care delivery assets..................41......................................615................................................................................................494 19.............................. .........................................................................................0 3............................................................................0 ..............(270................................................................ ....................780....... ..... Other assets nonadmitted......................208 ..............3.................3 Properties held for sale.........................686..............0 6.................166..4.......... Title plants (for Title insurers only)......................................................0 ............................... Guaranty funds receivable or on deposit........................................................................................(1........250............... .......................................3.................................... Aggregate write-ins for invested assets................................419 .......................16.........................................704 15......... ............0 18..0 2.............................................................................................956 .........895................0 ......... ....................................................................................................................................................................................067......................................................... ........................................472..752 ......... .067 ..............0 ..................................................................... Segregated Accounts and Protected Cell Accounts..............................0 .................................................... Amounts receivable under high deductible policies.............. agents' balances and installments booked but deferred and not yet due.............................. Totals (Lines 2501 thru 2503 plus 2598) (Line 25 above)......... ...... ..........................................................................0 ........382 ............................1 Preferred stocks...................................2 Properties held for the production of income..............0 ..374 ........... .......0 ............................... ............................................................................289) 13 . Summary of remaining write-ins for Line 11 from overflow page...............................................................0 11................................. ................................... ..0 ......................... Net adjustment in assets and liabilities due to foreign exchange rates...............................0 ................ Cash (Schedule E-Part 1)............................................... ............................................0 16.............................433.................................................................................................................................. Subtotals..................................816..........................................080 22.0 ..............................212...............2 Common stocks...................................................................086 ...................708 .................403 ..............................................................................36............................800........1 Amounts recoverable from reinsurers....... Bonds (Schedule D).................................................................................................... ....................................708 ...........................................................Col............................................................................................................................... 2 ........................................... ..............................853...........................451....0 2599........................244............................................. .....................................................0 ... ....................31........................000 15........................0 ....................................................... subsidiaries and affiliates...0 .......0 .................067..............................................15.................................. Contract loans...............................0 .........730 ...........207..............................(1................... ......0 .....................643...................................0 .........0 .....................0 5............................. Receivables for securities..........................................0 ..44....................................42..............366.....293 2503..................................................................................................094..2......................946) 9......286............................................... ....................895..............0 .....................................013 ....... ......2..................474.........0 ................................................................... ....................0 23......................244...........0 .........1 First liens......................0 4......................2 Deferred premiums......................0 2501.................749..........................045 ...........................................................................0 . From Separate Accounts...647) 16........ ......................................... Total assets excluding Separate Accounts..........170... ..................................................................504 .....853..537 27.................................................................................................... ... ......... ........................... ....................... cash and invested assets (Lines 1 to 11).........................................................24...................405.............................. 4..................................................672...........................................0 .......................................0 ...........822 ..0 .............................................................. ...........471.......... Totals (Lines 1101 thru 1103 plus 1198) (Line 11 above)......................419 ...............................................2........................................................0 .................................................................. Health care and other amounts receivable.............................................9... .....................................................................0 12............... 2..................................0 ....... Amounts receivable relating to uninsured plans..........................35.............................................504 .......... ..805) 13.........749.......0 8........780........................................................ Reinsurance: 16..........2....................................................433................0 .. Other invested assets (Schedule BA)...................................................0 ............................0 ........................................................0 .................................................0 .......................................................................................0 ................................ Securities lending reinvested collateral assets (Schedule DL).......................................................................................................................................11................................... Segregated Accounts and Protected Cell Accounts (Lines 12 through 25)....... ................................. ..(7............ Summary of remaining write-ins for Line 25 from overflow page................0 .........................175 ................... ........................(1.......0 7.....................670 ...................824 ............0 21...... 1) 1.............. Investment income due and accrued......... ...........................0 .......................................................................0 ...............2 Net deferred tax asset......................... Premiums and considerations: 15..............................883...............................................................................................................36...................................139.......0 ...................................... ..................670 ........0 ....0 ........................................308.....................0 ........096........................ ..............094..................... ..3 Other amounts receivable under reinsurance contracts.............................(9..........................859) Mortgage loans on real estate (Schedule B): 3..................207...........................0 24........................0 28.................................1 Current federal and foreign income tax recoverable and interest thereon...................................................................................................................0 ..........0 25.......................0 ............. Stocks (Schedule D): 3.......................................................................................582) 2502................................................ TOTALS (Lines 26 and 27)..................................................................................0 ..................289.............208 ......................0 ..........15.............................. ..656.............................................................................................. Derivatives (Schedule DB)....1 Properties occupied by the company........... ..............................................................0 ............. ......4.........................................0 ................................................................................................. Aggregate write-ins for other than invested assets...............................................................................................................................0 20...................0 15......................0 ............................. PAUL FIRE AND MARINE INSURANCE COMPANY EXHIBIT OF NONADMITTED ASSETS 1 Current Year Total Nonadmitted Assets 2 Prior Year Total Nonadmitted Assets 3 Change in Total Nonadmitted Assets (Col............ .......0 .(1.............................................................96....................3.....................0 ...........682 ........................................................................0 ...0 2598..........0 1198.....................................................................................................................................................................Annual Statement for the year 2013 of the ST..........0 14.......0 ...............................0 4..............0 .........703........ Furniture and equipment........... .................0 .. Receivables from parent........0 ...................................... ...........................................................................................289) 26..............................................................0 18............. ............................................................................................................................................ cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA).................................................................909 ............................................................................................................................................... ...........................0 ........................................537 DETAILS OF WRITE-INS 1101.................................0 .......................891 ....1 Uncollected premiums and agents' balances in the course of collection.........................................650 .......2 Other than first liens................... .....2 Funds held by or deposited with reinsured companies...................................696 .........0 2..........................................................0 Real estate (Schedule A): 4....................................0 .................0 .............................................13......................................................0 10..........0 16............................................................0 17...................................686............0 .................. ............................................................................................ Electronic data processing equipment and software.. .....................0 ..............................0 .................0 1102...3 Accrued retrospective premiums.................................0 . ......................................0 ...............................0 1103..

except bonds that are defined by the NAIC as non-investment grade (NAIC Class 36) which are stated at the lower of amortized cost or NAIC fair value.000. The Company reflects adjustments to loss and LAE reserves in the period in which the estimates are changed.284 $ 6.344 2012 $ 594. The Company continually refines its loss and LAE reserve estimates in a regular ongoing process as historical loss experience develops and additional claims are reported and settled. Common stocks of non-affiliates are stated at NAIC fair value. The Company’s investments in partnerships. Deferred federal income taxes arise from changes during the year in cumulative temporary differences between the statutory basis and tax basis of assets and liabilities. Such changes in estimates could occur in a 14 .761. which are obtained from a nationally recognized securities data provider. Paul Fire and Marine Insurance Company state basis 2. State prescribed practices that increase/(decrease) NAIC SAP 7. Reserves for losses.680 $ 6.Annual Statement for the year 2013 of the ST. Paul Fire and Marine Insurance Company state basis 6. Actual results could differ from those estimates. The loss and LAE reserves are reviewed regularly by qualified actuaries employed by the Company.914. Investments in subsidiaries and affiliated entities are based on the net worth of the entity. State permitted practices that increase/(decrease) NAIC SAP 8. current income taxes and deferred income taxes.000. reinsurance. Because establishment of loss and LAE reserves is an inherently uncertain process involving estimates. currently established reserves may change. excluding those investments classified as cash equivalents. unauthorized reinsurance and overdue authorized reinsurance recoverables. adjusted for unamortized premium or discount.907. St. NAIC SAP (5-6-7=8) CT 2013 $ 883.697. St. State prescribed practices that increase/(decrease) NAIC SAP 3. Distributions of accumulated earnings received from these investments are recorded as net investment income and undistributed net income is recorded as net unrealized capital gains (losses). Premiums are recognized as revenues pro rata over the policy period. The effective yield used to determine amortization is calculated based on actual historical and projected future cash flows. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 1. In establishing loss and LAE reserves.761. Dividends received from subsidiaries are recorded as net investment income and undistributed net income is recorded as net unrealized capital gains (losses). Certain assets designated as nonadmitted are excluded from the statutory balance sheet and changes in such amounts are charged or credited directly to unassigned funds. The change in this account is charged or credited directly to unassigned surplus. The costs of acquiring both new and renewal insurance business are charged to income as incurred. loss adjustment expenses (LAE) and unearned premiums ceded to reinsurers have been reported as reductions of the related reserves. Real estate is stated at depreciated cost. salvage and subrogation. net of encumbrances and specific impairments. or NAIC fair value. determined in accordance with statutory accounting valuation methods.697. Bonds are generally stated at amortized cost.907. joint ventures and limited liability companies are reported using the equity method of accounting. see Note 8. highly liquid investments with original maturities of three months or less. Unearned premium reserves represent the unexpired portion of policy premiums.S. A liability is established for unsecured. For accounting policy in regards to derivative instruments. Loan-backed and structured securities are amortized using the retrospective method.914. net of reinsurance. St. a component of surplus as regards policyholders (policyholders’ surplus). dollars is reflected as a separate asset or liability in the Company’s balance sheet. NAIC SAP (1-2-3=4) State of Domicile CT Surplus 5. Amounts recoverable from reinsurers are estimated in a manner consistent with the loss liability associated with the reinsured business.195 $ 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Cash equivalents consist of short-term. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and losses and expenses during the reporting period.195 $ 594. the Company also takes into account estimated recoveries. liabilities. amortized cost.284 $ 5. Canadian dollar denominated assets. net of encumbrances and specific impairments. The Company has not applied for and does not believe that it employs any statutory accounting practices that would be considered a permitted practice in its financial statements. Net Income 1. C. while NAIC Class 3-6 are stated at the lower of cost or NAIC fair value. revenues and expenses of the Company’s Canadian operations are included in the financial statements at the Canadian currency amounts.663. Redeemable preferred stocks (NAIC Class 1 and 2) are generally stated at amortized cost. subject to any deviations prescribed or permitted by the Connecticut Insurance Commissioner. State permitted practices that increase/(decrease) NAIC SAP 4. The net assets of the Canadian operations are translated at the year-end exchange rate and the adjustment into U. Mortgage loans are stated at the amount of principal outstanding.680 B. Invested assets are valued according to statutory requirements and the bases of valuation adopted by the NAIC. The Company utilizes anticipated investment income as a factor in the premium deficiency calculation. whereas NAIC Class 3-6 are stated at the lower of cost. Paul Fire and Marine Insurance Company (the Company) prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Connecticut. Property-casualty reserves are established for loss and LAE and represent management’s estimate of the ultimate cost of all unpaid reported and unreported claims incurred and related expenses.344 $ 883. The State of Connecticut requires that insurance companies domiciled in Connecticut prepare their statutory basis financial statements in accordance with the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual. Short-term investments are stated at amortized cost and consist of investments with remaining maturities of one year or less at the time of acquisition. except for securities that have incurred a decline in fair value that is other-than-temporary are amortized using the prospective method. Amortization is calculated using the constant yield method.663. Perpetual preferred stocks (NAIC Class 1 and 2) generally are stated at NAIC fair value. determined in accordance with statutory accounting valuation methods. The provision for federal income taxes is comprised of two components.

requiring that a “more likely than not” rather than a “probable” standard to be applied in determining federal and foreign income tax loss contingencies. Interest Reduced (a) Recorded Investment - - - - - - - (b) Number of Loans - - - - - - - (c) Percent Reduced - - - - - - - 14. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS future period and may be material to the Company’s net income in such period. The guidance also rejects the GAAP guidance from Financial Interpretation No. 3. 3. 2. 109 (ASC 740 in codification) and instead modifies SSAP No.113. Liabilities. and $12. INVESTMENTS A. Current Year 1. The maximum percentage of any one loan-to-value of security at the time the loan was made. 4.000 $ - $ 42. exclusive of any purchase money or insured or guaranteed mortgages was 72%. 5. an error in the reporting of “Taxes. For a discussion of loss and LAE reserves related to asbestos and environmental reserves. DISCONTINUED OPERATIONS Not applicable. Accounting Changes and Corrections of Errors. the Company reported a cumulative effect adjustment that resulted in an increase in its liability for current tax liabilities of $6. The Company adopted SSAP No. 101 revises the guidance for current and deferred federal and foreign income taxes.293. Mortgage Loans: 1. Accruing Interest 180 + Days Past Due (a) Recorded Investment - - - - - - - (b) Interest Accrued - - - - - - - 4. Not applicable. ACCOUNTING CHANGES AND CORRECTIONS OF ERRORS 1. Contingencies and Impairments of Assets – Revised. The error resulted in paid TL&F associated with business not covered by an affiliated reinsurance agreement not being allocated to the Company. subsidiaries and affiliates. 48: Accounting for Uncertainty in Income Taxes. SSAP No. an interpretation of FASB Statement No. 2012. 3. In accordance with SSAP No. Not applicable.Annual Statement for the year 2013 of the ST.496. The correction resulted in an additional $13. Accruing Interest 90-179 Days Past Due (a) Recorded Investment - - - - - - - (b) Interest Accrued - - - - - - - 3. Recorded Investment (a) Current $ - $ - $ - $ - $ 42. see Note 33.722. 4. “Payable to parent. At adoption.789. Accounting Changes and Corrections of Errors.488 to TL&F.900.249 in Amounts withheld or retained by company for account of others. BUSINESS COMBINATIONS AND GOODWILL Not applicable. offset by both a reduction of $1. and a corresponding decrease in unassigned funds in accordance with SSAP No. licenses and fees” (TL&F). 2013 statutory financial statement.1 .000 (b) 30-59 Days Past Due - - - - - - - (c) 60-89 Days Past Due - - - - - - - (d) 90-179 Days Past Due - - - - - - - (e) 180 + Days Past Due - - - - - - - 2. 5R. During the first quarter of 2013. 2. causing an understatement of the reported amount in the TL&F payable account. 3. the Company corrected this error on the March 31. subsidiaries and affiliates” and “Amounts withheld or retained by company for account of others” was detected. The new guidance limits the admissibility of deferred tax assets (DTAs) based on an insurer’s RBC and the ratio of its adjusted DTAs to adjusted capital and surplus. The Company has not modified its accounting policy regarding the capitalization of fixed assets from the prior period. Age analysis of mortgage loans: Residential Farm Insured Commercial Other Insured Other Mezzanine Total a.900. This error did not impact net income or policyholders’ surplus.239 to Payable to parent. 2. 101 effective January 1.

900. 14.000 (b) 30-59 Days Past Due - - - - - - - (c) 60-89 Days Past Due - - - - - - - (d) 90-179 Days Past Due - - - - - - - (e) 180 + Days Past Due - - - - - - - 2. Not applicable. Amount of Interest Income Regognized using a Cash-Basis Method of Accounting - - - - 2. if any. (a) Recorded Investment - - - - - - - (b) Number of Loans - - - - - - - (c) Percent Reduced - - - - - - - Investment in impaired loans with or without allowance for credit loss: Residential Farm Insured Commercial Other Insured Other Mezzanine Total a. The Company’s loan-backed securities are revalued quarterly using the constant effective yield method which includes an adjustment for estimated principal repayments. Prior Year 1.186. Loan-Backed Securities: 1. recorded investment on nonaccrual status and amount of interest income recognized using a cash-basis method of accounting: Residential Farm Insured Commercial Other Insured Other Mezzanine Total a. Reverse Mortgages: Not applicable. With Allowance for Credit Losses $ - 2.190.725 - 2.669 3. Accruing Interest 180 + Days Past Due (a) Recorded Investment - - - - - - - (b) Interest Accrued - - - - - - - 4. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Residential Farm Insured Commercial Other Insured Other Mezzanine Total b. Average Recorded Investment $ - $ - $ - $ - $ 43. No Allowance for Credit Losses $ - - $ - - $ - - $ - - $ - 43.000 Investment in impaired loans – average recorded investment. Recorded Investment (a) Current $ - $ - $ - $ - $ 45. D. Prior Year 1.900.333 $ - $ 43. With Allowance for Credit Losses $ - 2. 43.669 - 2. Recorded Investment on a Nonaccrual status - - - - - - - 4.186.900. For collateralized mortgage obligations.900.Annual Statement for the year 2013 of the ST. Accruing Interest 90-179 Days Past Due (a) Recorded Investment - - - - - - - (b) Interest Accrued - - - - - - - 3.297 b. Prior Year 1.025.233.000 $ - $ - - - - 2.297 - 2.000 $ - - 43.900. Amount of Interest Income Regognized using a Cash-Basis Method of Accounting - - - - 2. B.000 $ - - 42. interest income recognized.725 6. Debt Restructuring: Not applicable.000 2. No Allowance for Credit Losses $ - - $ - - $ - - $ - - $ - 42.248.964 - 2. 7. The company continues to accrue income on this loan as it is deemed collectible.025.248.964 3. Current Year 1.2 . Interest Income Recognized The Company applies the retrospective method of revaluing loan-backed securities.000 b. Average Recorded Investment $ - $ - $ - $ - $ 43. The effective yield used to determine amortization for these securities is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows.000 $ - $ 45. Current Year 1. The Company changes from the retrospective to prospective method for valuing the securities when an other-than-temporary impairment has been recorded.900.234. Interest Income Recognized - - - - 2.190. C. asset-backed securities and pass-through certificates prepayment assumptions are adjusted periodically. Interest Reduced 5.333 2.234. Recorded Investment on a Nonaccrual status - - - - - - - 4.233.

Annual Statement for the year 2013 of the ST.2013 Q2 .111 19.173 21.936 7. The Company incorporates levels of delinquencies.692 2.505.800 7.955 466.2013 Q1 .518. The aggregate related fair values of securities with unrealized losses: 5.297 2.176.687 514.2013 Q1 .2013 Q2 .2013 Q4 .512.360 Fair Value $ 17.927.581.051. The following table provides aggregated information on structured securities classified on the basis for the recognized 2013 otherthan-temporary impairments: Amortized cost basis before other-thantemporary impairment Other-than temporary impairment recognized in loss Fair value $150.753 76.176. The aggregate amount of unrealized losses: b.986 $ 487.3 .614.693.340 519. and determining the present value of the cash flows using the effective yield of the security at the date of acquisition (or the most recent implied rate used to accrete the security if the implied rate has changed as a result of a previous impairment or changes in expected cash flows). 2013) Present value of Cash flows is less than Amortized cost $ 519.174.887.653 4.591 2.936 7.077 Amortized cost basis after otherthantemporary impairment $ 15. 2013) Present value of Cash flows is less than Amortized cost $ 4.689 7.756 $ 4.011 30. to arrive at its best estimate of the parameters applied to the assets underlying the securitization. 14.029.2013 Q1 .184 $56.800 2.411 454.962.820 $ 79.438. 2013) Present value of Cash flows is less than Amortized cost $50.931.949 28.781 1. the difference is considered a credit loss and recognized in net realized investment gains (losses).232 2. 2013) Present value of Cash flows is less than Amortized cost $19.730 2.437 Projected Cash Flow $ 15.667 487.637. 12 Months or Longer $ $ 9.030 23.S. Less than 12 Months 2.081 23.125 19. Less than 12 Months 2.125 19.404.814.S. Repurchase Agreements and/or Securities Lending Transactions: The Company requires collateral equal to at least 102% of the market value of the loaned security plus accrued interest. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS When unit prices published by the Securities Valuation Office were not available.839 (OTTI recognized in the quarter ending June 30. along with other economic data. The gross unrealized investment losses and related fair value for impaired securities for which an other-than-temporary impairment has not been recognized as a realized loss were as follows: a.505. 2.2013 Q1 .138 1.963.430 461.676 8.930 2.013 Loan-backed and structured securities with other-than-temporary impairments recognized in 2013 are as follows: Cusip 52521RAE1 36298BAG5 94984EAD4 36228FEC6 36242DUQ4 225458FE3 36242DUQ4 22541SCC0 36298BAG5 Amortized cost basis before other-thantemporary impairment $ 15.102.435 2. The Company estimates the present value of the security by projecting future cash flows of the assets underlying the securitization.498.2013 4.898.544 12.431 27.675 (OTTI recognized in the quarter ending September 30.070.178.931.214 The Company determines an other-than-temporary impairment by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security.437 3. allocating the flows to the various tranches based on the structure of the securitization.2013 Q3 . The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested to U.467 (OTTI recognized in the quarter ending March 31. Treasury securities and U. the Company uses a nationally recognized pricing service.297 2.232 2.898. E.438. 1.687 514.111 $ 4. defaults and severities as well as credit attributes of the remaining assets in the securitization.029.103 72.930 2. Treasury repurchase agreements.081 23.360 Other-thantemporary impairment recognized in loss $ 30.281. $ 233. as well as broker quotes in determining the fair value of its loan-backed securities.986 233.411 454.637.077 $21. If the amortized cost is greater than the present value of the expected cash flows.173 (OTTI recognized in the quarter ending December 31.404. 12 Months or Longer $ 271.013 Impairment Quarter Q1 .887.626.335 2.833 $ 665.461.

706.947. subject to testing for possible impairment.451. and limited liability companies are recorded on a lag basis with changes in the Company’s proportional share of equity recorded as an unrealized gain (loss).502.0% $ - $ - $ - $ - $ - $ - $ - $ - 0. Subject to reverse repurchase agreement e.078.706.909 440.036.290 1. On December 20.489 A.4% 0.623.3 Wood Tempe Owner. JOINT VENTURES. Subject to repurchase agreement d.624) $ - $ - 32. Real Estate: (1) On December 31.022.900.398) $ Total 601.071 536. As part of the impairment testing process.494. 1990.022. These futures contracts require a daily mark-to-market and settlement with the counterparty/broker.159 (5.895 352.289.289. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Collateral Reinvestment Aggregate Cash Collateral Reinvested Securities Lending 30 Days or Less Amortized Cost $ 32. Subject to dollar reverse repurchase agreement g. Restricted Assets: Gross Restricted 1 Restricted Asset Category a.426 14.290 1.0% 8. 2013 1. or limited liability company. Placed under options contract h. Dallas.761 65.923 152.0% (5. There was no impact to policyholders’ surplus as the change in net unrealized capital gains or (losses) was offset by the realized loss of the same amount.068 $ $ $ $ 70. j. B. Other restricted assets m. The Company concluded that some of the aforementioned assets.013.2% 0. The Company utilized Treasury futures contracts during 2013.0% 0.495.171.290 1.702 $ $ - $ $ - $ $ - $ $ 1.0% 8. B.495.4 $ $ Capital 65.533. the Company evaluates those assets for other-than-temporary impairments using financial information that is received from the respective joint venture.952 - 0.083. 7.4% 0. resulting in a gain of $5. Treasury note futures contracts to modify the effective duration of specific assets within the investment portfolio.083. Total restricted assets Total General Account (G/A) $ $ - 32. 9. the real estate was sold to WDF . the Company acquired commercial office properties at 12720 Hillcrest Road.098.900. Admitted Restricted to Total Admitted Assets a) Gross deferred tax assets b) Statutory valuation allowance adjustment c) Adjusted gross deferred tax assets d) Deferred tax assets nonadmitted e) Subtotal (net deferred tax assets) f) Deferred tax liabilities g) Net admitted deferred tax asset (liability) $ $ Ordinary 536.600.779 $ $ $ $ (150. Subject to contractual obligation for which liability is shown b.736 358.278) $ 70. resulting in a gain of $4. 2013.576 $ - $ $ - (35.952 F.451.157. The Company does not hold or issue derivative instruments for trading purposes.0% 0.557 0.600. 8.0% $ - $ - $ - $ - $ - $ - $ - $ - 0.832 601.0% 0.495. Investments in Low-Income Housing Tax Credits (LIHTC): Not applicable.2% 0.0% 0.761 70.0% 8. Collateral held under securities lending agreement c.700.083.0% 8.0% $ - $ - $ - $ - $ - $ - $ - $ - 0.949 with an offsetting entry to change in net unrealized capital gains or (losses).071 96. G.0% 0. 2013.761 $ 65. Arizona.7% $ $ 1. as a result of deteriorating economic conditions. 0.0% 0. 2013. partnership.6% 0.702 0.212.583. the Company had no accrued investment income over 90 days past due. On deposit with states On deposit with other regulatory bodies k.162 82.422.900.952 Fair Value $ 32.098.702 $ $ 1. Not applicable.677.600.501 0.909 505.022.0% 6.663.289. Letter stock or securities restricted as to sale i.564. On November 4. 2013. the Company acquired 1100 University Drive. Tempe.760. but had no open positions at December 31.022.501 $ 75.311.097. 1995.0% 0.433.733.022. Policyholders’ surplus excludes due and accrued investment income if amounts are over 180 days past due for mortgage loans and over 90 days past due for all other invested assets.646. LLC.623. LLC. Texas.028 .S.978 $ $ $ 2. H.557 $ - $ - $ - $ 2.311. Subject to dollar repurchase agreement f. Pledged as collateral not captured in other categories l. INVESTMENT INCOME A. partnerships.832 96.157 $ 1.952 - 7 8 10 9 Total From Prior Year Increase / (Decrease) Gross Total Current Year Restricted to Admitted Restricted Total Assets $ $ $ $ - 67.254.0% $ - $ - $ - $ - $ - $ - $ - $ - 0. (2) On March 27.311.501 $ $ $ - $ $ $ - $ $ $ - $ $ $ 70. INCOME TAXES The components of the net deferred tax asset/(liability) at December 31 are as follows: December 31.1% $ 2. the real estate was sold to CIP II Hillcrest. had other-than-temporary impairments and recorded a realized loss of $13. PARTNERSHIPS AND LIMITED LIABILITY COMPANIES A. DERIVATIVE INSTRUMENTS The Company may use U.Annual Statement for the year 2013 of the ST.557 $ 2.952 $ Current Year 3 2 - 4 G/A Total Protected Cell Supporting Protected Account Protected Cell Account Assets Cell Account Restricted Supporting Activity (a) Assets G/A (b) $ - $ Precentage 5 - 6 Total (1 plus 3) $ - $ $ - $ - $ - $ $ - $ - $ - $ - 32.098.867) $ $ (191.747. Joint ventures.0% 1.791. At December 31.0% 0.276) $ 1.

403 505.900 (10. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS December 31.659.895 440.860.325.253 $ 169.045.157.637 117.902) (13.917 46. 101: December 31.612) 2.592 51.074) - (120.844 46.398) 505.734.890.640 Change a) Gross deferred tax assets b) Statutory valuation allowance adjustment c) Adjusted gross deferred tax assets d) Deferred tax assets nonadmitted e) Subtotal (net deferred tax assets) f) Deferred tax liabilities g) Net admitted deferred tax asset (liability) $ $ Ordinary (34.074) .355.148.254.792 (28.844 24. (The lesser of 2(b)1 and 2(b)2 Below) 1.659.788.982 Capital 72.494) 74.541.637 571.103 454.180 28.914.513.521.613.535.481.513.031.031.760.248.622 $ Total 3.747.148.227 - 302. 2013 Ordinary a) Federal income taxes paid in prior years recoverable through loss carrybacks b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.153 - 182. Adjusted gross deferred tax assets expected to be realized following the balance sheet date 2.067.748) $ (7.413 302.387 61.521. (The lesser of 2(b)1 and 2(b)2 Below) 1.566) (21.029.277.826 77.914.103 380.985.559.146 644.180.823.314) (42.314) (42.056) $ Total (42.914.162 82.755 $ Total 4.541. Adjusted gross deferred tax assets allowed per limitation threshold c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities d) Deferred tax assets admitted as the result of application of SSAP No. 2012 a) Gross deferred tax assets b) Statutory valuation allowance adjustment c) Adjusted gross deferred tax assets d) Deferred tax assets nonadmitted e) Subtotal (net deferred tax assets) f) Deferred tax liabilities g) Net admitted deferred tax asset (liability) $ $ Ordinary 571.045.895 352.985.844 376.405) $ 92.979. 101: Change Ordinary a) Federal income taxes paid in prior years recoverable through loss carrybacks b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.027.074) - (120.153 182.888.083.227 302.153 xxxx xxxx 834.615.743 124.934.535. 101 Total (2(a) + 2(b)+ 2(c)) DTLs netted against deferred tax assets Total $ $ Capital 73.811 454. Adjusted gross deferred tax assets expected to be realized following the balance sheet date 2.180.923 152.559.917 46.613.566) (34.867 Capital $ Total (1.937.227 xxxx xxxx 842.146 139.259 124.159 (5.844 376.509 72.934.535.559.658 $ $ $ $ Total 644.355.189.875 182.892 (17.131.640 $ $ Admission Calculation Components SSAP No. Adjusted gross deferred tax assets allowed per limitation threshold c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities d) Deferred tax assets admitted as the result of application of SSAP No.165. 2012 Ordinary a) Federal income taxes paid in prior years recoverable through loss carrybacks b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.107 77.663.592) 13.462 (120.355.074) (120.736 358.171.826 77.227 - 302.585.013.658 $ 77.259 4.982 51.760.650. 101: December 31.664) 4. Admission Calculation Components SSAP No.028 $ $ Admission Calculation Components SSAP No.743 124.656.355.556) $ $ Capital (7.153 - 182.146.248.745.650.211.103 380.890.521. (The lesser of 2(b)1 and 2(b)2 Below) 1.467. Adjusted gross deferred tax assets expected to be realized following the balance sheet date $ 14.985.239.761 70.914.259 4.352 90.658 505.613. 101 Total (2(a) + 2(b)+ 2(c)) DTLs netted against deferred tax assets Total $ $ Capital 166.494.748) (21.426 65.509 21.508 152.Annual Statement for the year 2013 of the ST.734.585.559.5 93.

917 0% 0% Change Ordinary a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets. Net admitted adjusted gross deferred tax assets amounts from Note 9A1(e) 4.277. Capital 571. Adjusted gross deferred tax assets amounts from Note 9A1(c) 2.083. Net admitted adjusted gross deferred tax assets amounts from Note 9A1(e) 4. by tax character.860.056) 74. Adjusted gross deferred tax assets amounts from Note 9A1(c) 2.748) 0% 13.761 0% 0% December 31. Net admitted adjusted gross deferred tax assets amounts from Note 9A1(e) 4. 543% 2012 554% 5.509 0% 0% 454.792 (28.Annual Statement for the year 2013 of the ST. 14.165.171.154 $ 4. 3.239.844 24. The Company does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future.562.934.6 .612) $ 2013 3.239.792 (13. Percentage of adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies.619.890. Percentage of adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies.888. by tax character.513. b) Amount of Adjusted Capital and Surplus Used to Determine Recovery Period and Threshold Limitation in 2(b)2 Above. as a percentage. as a percentage.556) 13.734.637 72.027.860. 1.543 15.716 (8.653. Impact of Tax Planning Strategies: Ordinary a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets. Adjusted gross deferred tax assets allowed per limitation threshold c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities d) Deferred tax assets admitted as the result of application of SSAP No.934. 101 Total (2(a) + 2(b)+ 2(c)) DTLs netted against deferred tax assets Total $ xxxx xxxx 12.031.664) 0% (7.826 51.900 (10.211.148. a) Ratio Percentage Used to Determine Recovery Period and Threshold Limitation Amount. Adjusted gross deferred tax assets amounts from Note 9A1(c) 2. DTL not recognized for the following amounts: 5% threshold assets 5% threshold liabilities $26. Percentage of net admitted adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies. Capital 536.162 65.180 28.844 0% b) Does the Company’s tax-planning strategies include the use of reinsurance? Yes___ No_X_ B. 2013.761 0% 0% 440.169. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 2. 1. 2012 Ordinary a) Determination of adjusted gross deferred tax assets and net admitted deferred tax assets.831.387.402. as a percentage. Capital (34.013 5.071 65.756) $ December 31. 3.664) 4.860.100. 3.626. Percentage of adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies.623.687 At December 31.249 28. 1. 2013 4. Percentage of net admitted adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies.837.892 (17.566) 0% (13. the Company had undistributed earnings in certain foreign subsidiaries of $3. Percentage of net admitted adjusted gross deferred tax assets by tax character attributable to the impact of tax planning strategies.083.650. by tax character.

442.470.251 8.180.774 10.299.714) (34.805.811 $ 454.743 $ $ 67.999.718) 141.029.986 99.692 12.703.248.937 December 31.592 51.705.761 65.494.300 536.326.171.314) 28.826 $ (22.509 72.028 $ 380.945.247.921.234 $ 395.664) $ 65. 14.254.251) 3.043 Change $ (42. The significant items causing this difference are as follows: Rate Reconciliation: Pretax net income (loss) Taxes at statutory rate December 31.259 $ Total DTL Net admitted DTA/(DTL) 152.724 12. 2013 $ 601.761 $ 505. Deferred income taxes do not include any benefit from investment tax credits.736 $ 63.575.054 (135.468.165.895 $ 448. 5.639.727.612) 3. available for recoupment in the event of future losses.050 (1.932 2.083.767 77.637 117.061.786. Deferred income taxes include a benefit of $8.040 and $39.535.429 40.659.923 $ 72. $127.458.996.806.211 Increase (decrease) attributable to: Nontaxable investment income Other Federal and foreign taxes incurred Change in net deferred taxes Total statutory income tax Effective tax rate $ $ 246.890 43.146 124.521. The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate before income tax.509 21.876 102.748) (21.158 244.795) (5.191 from net operating losses.826 5.890.792 (70.781.013.611.211.085) 4.832 152.592) 13.212.665.331. The Company has a net operating loss carryforward of $25.305 8.029.162 $ 231.849.430.795.852 (6.699 156.007) (9.391.895 124.350.985.747.321 290.996.566) (21.106) 26.748) (7.623.040.7% E.521.7 .326. 6.811 8.644.706.469.761 65.103 $ 352. 4.209.600 24.223 955.071 96.018.760.846.250) $ 118. The tax effects of temporary differences that give rise to significant portions of the DTA and DTL are as follows: DTA: Ordinary: Discounting of unpaid losses Unearned premium reserve Investments Fixed assets Net operating loss carry-forward Other Total DTA .405 that expire in 2018.934. There are no adjustments to a DTA or DTL for enacted changes in tax laws or rates or a change in the tax status of the Company.604.902) $ (13. 2013 $ 233. 2013 December 31. The Company has $244. 2013 $ 1.211 25.844 $ $ 70.892 24.208 $ 127. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS C.031.541.292.958 $ 246.595 of federal income tax from the current and prior tax years respectively.586.792 $ (28.817 31.130.535.640 Change (7.513.920.332 (22.844 $ 74. There are no adjustments to gross DTA because of change in circumstances that causes a change in judgment about the realizability of the related DTA.785 $ (43.650.760.083.211.083. 2.687. 2012 $ 90.934.027.014 571.646.103 $ 519.159 $ 46.391.650.749 5. The change in net deferred income taxes is comprised of the following: Total DTA Total DTL Net DTA/(DTL) Tax effect of unrealized gains (losses) Change in net deferred income tax December 31.860.917 $ 505. 1.351.585.934.239.669 24.448 159.734.930. Federal Foreign Subtotal Federal income taxes on net capital gains Federal and foreign income taxes incurred December 31.Annual Statement for the year 2013 of the ST.923 161.881) (3.321) D.732 $ (95.900 28.148.ordinary Statutory valuation allowance adjustment Nonadmitted DTA Admitted ordinary DTA Capital: Investments Total DTA – capital Statutory valuation allowance adjustment Nonadmitted DTA Admitted capital DTA Total admitted DTA DTL: Ordinary: Investments Fixed assets Other Total ordinary DTL Capital: Investments Total capital DTL December 31. The provisions for incurred tax on earnings are as follows: 1.682 82.747.481.808 Change $ 142.259 46. 2012 $ 644.947. 2012 $ 208.159 70.514) 290.909 $ 440.180 4.686.082 2.652 41.900 24.747.180.853.001.561.239.191 93.451.734.890 December 31.585.291.

the Company indirectly owns 22. 1.292 59. Settlements between the companies are made at least monthly. 2. 2013. United States Fidelity and Guaranty Company (USF&G). including the company and any affiliates: The Company is party to various guarantees with affiliates. This pool is managed by Indemnity. F.950 63.737.5 billion and $3. Canada Inc.203. respectively. The principal banking functions for the property-casualty operations of TRV and some or all of its affiliated property-casualty insurance companies are handled by Indemnity. on October 31. respectively. The reporting entity has no protective tax deposits with the Internal Revenue Service under Section 6603 of the Internal Revenue Service Code. 2013 through October 31. Member companies included in the TRV consolidated return are allocated taxes annually based upon their separate taxable income.Part 2 summarizes the net flow of funds among affiliates for various types of transactions between affiliates.5% ownership interest in the subsidiary.622 318.534. The Company is included in a consolidated federal income tax return with its ultimate parent company. 10. Canada Inc. Each company may convert its position in the pool into cash at any time and may also use its position in the pool to settle transactions with other affiliated participants in the pool.302 These balances were settled net through the intercompany settlement process during January 2014 and January 2013. 14.209.969. On November 1. Any items open at the end of the month are settled in the following month. (1) Travelers Casualty and Surety Company (TCS) is party to a Shareholder Declaration dated May 31.759 common shares representing the majority of the issued and outstanding shares of Canada. SUBSIDIARIES. At December 31. Inc.Annual Statement for the year 2013 of the ST. A list of the entities included with the Company in a consolidated federal income tax return filing is attached.293. (2) The Company participates in an intercompany reinsurance pooling agreement as described in Note 26. As a result of this transaction.4 billion. Accounts between and among the Company and its affiliates are settled on a daily basis through the TRVMMLP or cash. Material management or service contracts and cost sharing arrangements. the Company sold $351. TCS owns 77. See note 14F for additional detail. 2012 $ 235. (TRV). TCS became the registered holder of 82. (Canada Inc. the Company purchased $111 million of securities from Travelers Casualty and Surety Company of America (America). Member companies are reimbursed by TRV in the event the Internal Revenue Service levies upon a member's assets for unpaid taxes in excess of the amount specifically allocated to a member. Schedule Y .684. Inc. in which affiliated companies may participate. Each participating insurance company carries its share of the pool as a short-term investment in Schedule DA. 2. Settlement of the AMT will be made in the same manner and timing as the regular federal income tax. The position of each company in the pool is calculated and adjusted daily. AFFILIATES AND OTHER RELATED PARTIES A-C. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 3. 2013 and 2012. 2013. However. Regulatory prior approval and/or prior notification has been satisfied for any transaction requiring such action.3 million of securities to The Travelers Indemnity Company (Indemnity). other than cost allocation arrangements: 1 TYPE OF CONTRACT AND DESCRIPTION SERVICING COMPANY OTHER PARTY Expense Allocation The Travelers Indemnity Company Travelers P&C Reinsurance Allocation The Travelers Indemnity Company Travelers P&C 1 1 “Travelers P&C” includes The Travelers Indemnity Company and some or all of its insurance subsidiaries and affiliates. INFORMATION CONCERNING PARENT. (3) In December 2013. G. The Company believes it is reasonably possible that the liability related to any federal or foreign tax loss contingencies may significantly increase within the next 12 months. the Company received a return of capital in the amount of $357 million from its subsidiary. D. an estimate of the reasonably possible increase cannot be made at this time. 2013 $ 269. The following represents the unsettled balances resulting from affiliated reinsurance that are reported in the respective balance sheet accounts: Uncollected premiums and agents’ balances in course of collection Amounts recoverable from reinsurers Reinsurance payable on paid losses and loss adjustment expenses December 31. the Company had $20.261 December 31. FM Branch owns the remaining 22.949 and $24. known as the Travelers Money Market Liquidity Pool (TRVMMLP). at a cost of $792. each company with an AMT on a separate company basis will be allocated a portion of the consolidated AMT. whereby it became the sole shareholder of its newly formed subsidiary 8527512 Canada Inc. 2013. 2013.5% of Dominion. the TRVMMLP totaled $3. TRV maintains a private short-term investment pool. As a result of the transactions above.8 million. From May 31. (2) In June 2013.287 payable to affiliates. (4) In December 2013.696 274.8 . (1) At December 31.000 common shares to the Company’s Canadian Branch (FM Branch) at a cost of $240. In addition. issued 24. Companies with a current federal income tax receivable from TRV will receive settlement to the extent that such receivables are for tax benefits that have been utilized in the consolidated federal income tax return. In the event that the consolidated group develops an Alternative Minimum Tax (AMT). 2013 and 2012. E. Guarantees or undertakings. respectively. The Travelers Companies.0 million CAD.5% of the outstanding shares of Canada Inc.). The following are general business arrangements that result in or are used for transactions with affiliates in the normal course of business: 1. acquired The Dominion of Canada General Insurance Company (Dominion) from E-L Financial Corporation Limited. F. involving the Company or any affiliate.302. The Company is a party to a tax allocation agreement that sets forth the manner in which total consolidated federal income tax is allocated among companies included in the consolidated return.

2013 was $4.588 for 2013 and 2012. The Company’s allocated share of the postretirement benefit expense was $1.0 million for a total of $1. In addition the Company participates in nonqualified defined benefit pension plans sponsored by TRV which cover certain highlycompensated employees of the Company and its property-casualty affiliates. 3. The statement value of USF&G assets and liabilities as of December 31. The Company has no legal obligation for benefits under this plan. 13. The Company has not obtained an audit of Northbrook’s financial statements. DEFERRED COMPENSATION. The Company owns 100% of USF&G. H. A Replacement of SSAP No. K. 2. primarily under a cash balance formula. Inc. respectively. G.0 million and extraordinary dividends of $300. The maximum amount of dividends which can be paid by Connecticut insurance companies to shareholders without prior approval of the 14. The Travelers Companies.Annual Statement for the year 2013 of the ST. Deferred Compensation Plans: The Company participates in a 401(k) savings plan sponsored by TRV for substantially all employees of the Company and its property-casualty affiliates.602 and $20.9 . respectively. Northbrook does not have any material direct liabilities. The Company has no legal obligation for benefits under these plans. The Company has limited the carrying value of its investment in Northbrook to the value contained in the statutory audited financial statements of DPCIC and SPPIC. Northbrook does not have any material assets other than the ownership of its insurance subsidiaries.170. The Company is charged for its allocable share of expense for this plan based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. Paul Protective Insurance Company (SPPIC). I.269 and $2. USF&G’s net income was $224.0 to The Travelers Companies. and St. commitments. Defined Benefit Plans: Not applicable.921. Controlled and Affiliated Entities. to its parent company.764. Postemployment Benefits and Compensated Absences: Not applicable.115 billion in 2013. the Company paid ordinary dividends of $258. The Company’s allocated share of the pension expense was $34. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS G. F.2 million for the year ended December 31.202. a Connecticut domiciled insurance company. Employee Retirement Plans: The Company participates in a qualified noncontributory defined benefit pension plan sponsored by TRV that provides benefits.0 million and extraordinary dividends of $865. All of the issued and outstanding common stock of the Company is owned by TRV. respectively.105 at December 31.Part 1. 11. The Company carries its investment in USF&G at USF&G’s statutory equity. respectively.751 for 2013 and 2012. J. the organization of which is shown in Schedule Y . Consolidated/Holding Company Plans: 1. including any adjustments required by SSAP No. a publicly traded insurance holding company. Defined Contribution Plans: Not applicable. whose carrying value exceeds 10% of the admitted assets of the Company. issued and outstanding with a par value of $100 per share. a Connecticut domiciled insurer.2 billion.226.105 and $34. Dividends to shareholders and the proportion of the profits of the Company that may be paid to shareholders are not limited by charter. Not applicable. Inc. The Company’s allocated share of the 401(k) savings plan expense was $22.000 shares of common capital stock authorized. The Company has no legal obligation for benefits under this plan. In 2012. (1) (2) (3) (4) The carrying value of the Company’s investment in Northbrook was $292. 88. The Company paid ordinary dividends of $250.626. H. E.371. a downstream noninsurance holding company.0 million for a total of $558. Investments in Subsidiary.088 for 2013 and 2012. 12. Not applicable. Northbrook directly owns Discover Property & Casualty Insurance Company (DPCIC). DEBT Not applicable. Impact of Medicare Modernization Act on Postretirement Benefits: Not applicable. Inc. DIVIDEND RESTRICTIONS AND QUASI-REORGANIZATIONS The Company has 200. L. I. for substantially all employees of the Company and its property-casualty affiliates. The Company directly owns Northbrook Holdings. 97.7 billion and $2. Not applicable. (Northbrook). POSTEMPLOYMENT BENEFITS AND COMPENSATED ABSENCES AND OTHER POSTRETIREMENT BENEFIT PLANS A-D. The Company is charged for its allocable share of pension expense for these plans based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. 2013. Multiemployer Plans: Not applicable. RETIREMENT PLANS. contingencies. Postretirement Benefit Plan: The Company participates in a postretirement health and life insurance benefit plan sponsored by TRV for employees of the Company and its property-casualty affiliates that satisfy certain age and service requirements and for certain retirees. The Company is charged for its allocable share of postretirement benefit expense for this plan based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. CAPITAL AND SURPLUS. 2013. guarantees or obligations that are required to be reported.

any amounts recoverable from this claim are subject to participation percentages of the TRV Pool (See Note 26). a. the reinsurers filed a motion with the Appellate Division seeking permission to appeal its decision to the New York Court of Appeals. Contingencies and Impairment of Assets . 2012. N.106 93. 2012. On March 27. The Company’s respective Pool participation share of the interest that would be received as part of any judgment ultimately entered in favor of USF&G is treated for accounting purposes as a gain contingency in accordance with SSAP No. was appealed by the reinsurers to the New York Supreme Court. USF&G entered into a settlement agreement with one of the reinsurers. the Company had commitments to fund investments of $422. the Court of Appeals denied a motion by reinsurers to reconsider the February 7. First Department.S. comprising the $238 million of reinsurance recoverable plus interest amounting to $228 million as of that date. the Company’s respective TRV Pool participation share of the $91 million receipt is reported as an aggregate write-in for miscellaneous income in the Company’s Statement of Income. B. At December 31.907. In November 2013. 2010 order. 2013.509 $ 327. Inc.114 C. On December 21. resulted in a net gain of $91 million. the Appellate Division granted the reinsurers’ motion. The judgment. 5R. Decreases current year: Premium tax offset charged off Premium tax offset applied Premium tax offset refund 429.128 c. the court entered an order granting final approval of the settlement. 2. its settlement amount is subject to participation percentages of the TRV Pool (See Note 26). American International Group. the Seventh Circuit issued its mandate returning the case to the district court for administration of the settlement. On November 11.10 . The Company has accrued liabilities of $64. 2010.S. all parties. Contingent Commitments: At December 31. 2013. Liabilities. Contingencies and Impairment of Assets . the Company accounted for its anticipated allocation from the settlement fund as a gain contingency in accordance with SSAP No. and accordingly has not been recognized in the Company’s statutory financial statements. in a reinsurance dispute in New York state court captioned United States Fidelity & Guaranty Company v.D. CONTINGENCIES A. three parties who objected to the settlement appealed the court’s orders approving the settlement to the U. On April 16.2 million. the district court issued a written opinion approving the settlement. On January 30. The assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers’ compensation claimants and the recoverables are expected to occur over the same period of time. comprising $251 million ceded under the terms of the disputed reinsurance contract plus interest of 9% amounting to $169 million as of that date. See Note 23F for additional detail.8 million for guaranty fund and other insurance-related assessments and related recoverables of $1. Unassigned funds have been increased by cumulative net unrealized gains of $1. 2013. Accordingly. 2013.000. On January 24. The maximum amount of There are no restrictions on the use of the Company's unassigned funds and such funds are held for the benefit of the shareholder. including the three parties who had objected to the settlement. 2013. Assessments: 1. The change in the balance of special surplus from retroactive reinsurance is a result of ongoing activity occurring in 2013. the trial court corrected certain clerical errors and made certain clarifications to the August 17. 2012.Annual Statement for the year 2013 of the ST. 2010.Revised. Indemnity received payment of approximately $2 million. On March 25. Interest will continue to accrue at 9% until the claim is paid. 2011. On May 2.391.. 14. In an unrelated action. American Re-Insurance Company. Indemnity received payment of approximately $91 million. Gain Contingencies: On August 17. the claim totaled $466 million. 2013. As Indemnity is a participant in the TRV Pool. District Court. 2013 806. comprising the remaining 2% to be paid from the settlement fund. including the award of interest. Court of Appeals for the Seventh Circuit. judgment was entered against American Re and the other three insurers.385. Prior to the receipt. (U. comprising 98% of its allocation from the settlement fund. the Appellate Division affirmed the judgment. 2013. On June 26. et al. 14. On February 7. except for the dividend restrictions indicated above. 2013. On July 26. and on February 28. 5R. the Company’s respective TRV Pool participation share of the $251 million awarded by the court represents the amounts owed to and reported by the Company under the terms of the disputed reinsurance contract. less approximately $2 million remitted to another insurer.346. the court granted preliminary approval of a class settlement pursuant to which the defendants agreed to pay $450 million to the class. 2013 opinion. dividends to shareholders that can be made during 2014 without prior approval is $883. On January 11. Appellate Division. By order dated October 22.373 143. On October 25. while modifying in part the summary judgment with respect to two discrete issues and remanding the case to the trial court for determination of those issues. the Court of Appeals issued an opinion that largely affirmed the summary judgment in USF&G’s favor. Liabilities. The combination of the payments received in June and November 2013 totaling $93 million.Revised. As USF&G is a participant in the Travelers Reinsurance Pool (TRV Pool). Increases current year: Premium tax offset accrued d. USF&G believes it has a meritorious position on each of these issues and intends to pursue its claim vigorously.0 million at December 31. 2012. filed a Stipulation of Dismissal indicating that there were no longer any objections to the settlement.) in which the defendants are alleged to have engaged in the under-reporting of workers’ compensation premium in connection with a workers’ compensation reinsurance pool in which several members of the TRV Pool participate. 2011. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS domiciliary Insurance Commissioner is subject to restrictions relating to statutory surplus or net income. Ill. Accordingly. and on March 12. 2012. et al. Assets recognized from paid and accrued premium tax offsets December 31. 2012 $ b. the trial court granted summary judgment for United States Fidelity and Guaranty Company (USF&G) and denied summary judgment for American Re-Insurance Company (American Re) and three other reinsurers. the Seventh Circuit dismissed the appeals. awarding USF&G $420 million. Indemnity is one of the Settlement Class plaintiffs and a class member in a class action lawsuit captioned Safeco Insurance Company of America. v. et al. 2013. 2010. 2013. Assets recognized from paid and accrued premium tax offsets December 31.

were transferred to Unionamerica Insurance Company Limited (Unionamerica).. 2010. Seaboard Surety Company (Seaboard). In December 2008. E. Paul (Bermuda) Ltd. The Company guaranteed the timely payment of Discover Reinsurance Company’s (Discover Re) obligations with respect to all insurance policies and reinsurance policies issued by Discover Re. The guarantee was amended on June 30. f. 2011. j. The terms of the guarantee remain in effect. the Company entered into an unconditional guaranty that Travelers Constitution State Insurance Company (formerly known as St. The Company has an invested interest in an unaffiliated real estate joint venture. 2007. the Company continues to guarantee to Indemnity all obligations of Discover Re incurred before the termination date. In a guaranty agreement dated August 31. Effective May 15. The Company. The Company entered into a separate payment guarantee with the lender for the mortgage and provided several indemnifications. The merger resulted in the automatic termination of the guarantee with respect to any future claims. On November 22. made on December 31. along with a third party joint venture investor. Product Warranties: Not applicable. Seaboard was merged into America. including the environmental guarantees. under Part VII of the Financial Services & Markets Act. the Company guarantees the payment of USF&G’s obligations under insurance and reinsurance contracts issued by USF&G on or after the date of the agreement. a New York domiciled insurance company. The Company has a contingent obligation for a guarantee related to certain insurance policy obligations of a former insurance subsidiary. are not limited. 14. d. the Company entered into a contribution agreement with the third party joint venture investor to allow the Company to recover its share of the indemnities and guarantees. Claims Related Extra Contractual Obligation and Bad Faith Losses Stemming from Lawsuits: The Company paid the following amounts in the reporting period to settle claims related extra contractual obligations or bad faith claims stemming from lawsuits: Claims related ECO and bad faith losses paid during the reporting period Direct $3. covenants and obligations of the Company and/or its subsidiaries following the close. that existed prior to the amalgamation. these guarantees were amended whereby the Company may terminate them at any time upon twelve months prior notice. is joint and severally liable for these indemnities and guarantees. g. obligations relating to certain business as of December 31. 2007. the Company has guaranteed the performance by Travelers Insurance Company Limited (Travelers Limited). Paul Medical Liability Insurance Company).922 Number of claims where amounts were paid to settle claims related extra contractual obligations or bad faith claims resulting from lawsuits during the reporting period: 0-25 Claims X Claim count information provided herein is disclosed on a per claim basis. with respect to policies of insurance issued to clients of Marsh USA Inc. an affiliate of Travelers Limited. The other indemnifications for each mortgage. the Company has agreed to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the business entities being sold. The Company entered into a separate payment guarantee with the lender for each mortgage and provided several indemnifications for each mortgage. 2000. 2010. Effective March 1. Effective May 27. Paul Re (Bermuda) Ltd and Travelers (Bermuda) Limited at the time of the amalgamation have been paid in full. if required. On October 1. 1996. Concurrent with assuming the mortgage. 2010 to limit the Company’s guarantee to only those obligations of St. pursuant to the order of English Court. Effective September 30. In a guaranty agreement dated July 1. of all Travelers Limited’s obligations arising out of its insurance or reinsurance contracts. a wholly-owned subsidiary. Effective October 21. all of which is indemnified by a third party. is joint and severally liable for these indemnities and guarantees. St. 1993. The company may terminate this guaranty at any time upon 90 days prior notice or other specified circumstances. 2007. The Company has an invested interest in an unaffiliated real estate joint venture. Paul (Bermuda) Ltd. 2006. an affiliate incorporated in England.. in certain cases obligations arising from unrecognized liabilities and imposition of additional taxes due to either a change in the tax law or an adverse interpretation of the tax law. the Company provided a guaranty of the performance by its wholly-owned subsidiary. 1997. no term or in some cases agreed upon term limitations. Paul (Bermuda) Ltd. up to a maximum of $50 million. Concurrently with assuming each mortgage. and Travelers (Bermuda) Limited were amalgamated into one Bermuda company under the name Travelers (Bermuda) Limited. St. including indemnifications for environmental liabilities should the lender be held responsible. the Company entered into a contribution agreement with the third party joint venture investor to allow the Company to recover its share of the indemnities and guarantees. 2013. the real estate joint venture assumed a mortgage secured by property it owns. for the obligations arising out of insurance or reinsurance contracts not transferred to Unionamerica and for business subsequently written by Travelers Limited. The combined maximum principal for the mortgages is $105 million and is secured by the property. each in the amount of $2. Unionamerica was sold to an unaffiliated entity. Discover Re was merged into Indemnity. the real estate joint venture assumed a mortgage secured by property it owns. Certain of these contingent obligations are subject to deductibles which have to be incurred by the obligee before the Company is obligated to make payments. as a condition of becoming licensed in the State of Maine. Effective December 10. The guarantees will remain in force. b. 2000. Effective December 31. F. including an environmental guarantee. c. of all Seaboard’s financial obligations arising out of its insurance or reinsurance contracts. Such indemnification provisions generally survive for periods ranging from the applicable closing date to the expiration of the relevant statutes of limitations. if required. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS D. along with a third party joint venture investor. are not limited.898. In the process of selling business entities to third parties. including indemnifications for environmental liabilities should the lender be held responsible. The maximum principal for the mortgage is $45 million and is secured by the property. 2009. All Other Contingencies: 1a. the joint venture assumed a second mortgage secured by the same property. however. 2007. The Company. On January 2. The other indemnifications for the mortgage. This resulted in those obligations no longer being covered by the guarantees. the Company guarantees the timely payment of all obligations of St. h. i. On July 1. e. The maximum amount of the Company’s obligation related to the guarantee was $480 million at December 31. would maintain required capital and surplus.5 million. The guaranty may be amended at any time upon three months’ prior notice. However.Annual Statement for the year 2013 of the ST. Paul Re (Bermuda) Ltd. The Company also waived certain rights in the amended guarantee until all creditors of St. 2012.11 .

Travelers Constitution State Insurance Company No initial recognition as guarantee is made on behalf of a whollyowned subsidiary h. Aggregate write-ins for miscellaneous income Assets . the Company is unable to develop an estimate of the maximum potential payments for such arrangements Guarantee has no stated amount or limitation to the maximum potential future payments and accordingly. document exception allowed under SSAP No. In a guarantee agreement dated February 9. irrevocably and unconditionally guaranteed all of the trusts obligations under the capital securities including principal of $254 million and interest.2 Common Stock Surplus . The guarantee is not limited in amount and expires once all obligations have been met. Ultimate financial statement impact if action under the guarantee is required Maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee.Line 35. Also provide additional discussion as warranted $343.266.Other Invested Assets or Line 3 . The Company is the owner of all the beneficial interests represented by common securities of three business trusts.000 The fair value of guarantees described are minimal and immaterial to the financial statements taken as a whole The fair value of guarantees described are minimal and immaterial to the financial statements taken as a whole e.Statement of Income . i.000 The Company has assessed the performance risk as remote under this guarantee Assets . Dividend to stockholders 14. The AM Best current claimspaying rating of the former subsidiary is “B++” $45. 5R) The fair value of guarantee liabilities as described are minimal and immaterial to the financial statements taken as a whole Fair value initial recognition was $19.000 The Company has assessed the performance risk as remote under these guarantees Surplus . a wholly-owned subsidiary. Real estate joint venture Liability recognition of guarantee. including date and duration of agreement a. l.Other Invested Assets or Line 3 . If no initial recognition.000 The Company has assessed the performance risk as remote under this guarantee Expense .Line 8 .000 The Company has assessed the performance risk as remote under these guarantees $480.Line 35.Mortgage Loans on Real Estate. Dividend to stockholders Surplus .Mortgage Loans on Real Estate.000. the Company has guaranteed certain pension obligations of Travelers Special Services Limited.Annual Statement for the year 2013 of the ST. Travelers (Bermuda) The fair value of guarantee liabilities as described are minimal and immaterial to the financial statements taken as a whole f.000 The Company has assessed the performance risk as remote under this guarantee. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS k. USF&G’s obligations No initial recognition as guarantee is made on behalf of a whollyowned subsidiary and is considered unlimited in amount. Either a capital contribution or loan to joint venture Assets .Line 2. 2009. Aggregate write-ins for miscellaneous income Expense . Sale of Business b. which are held by TRV. this should be noted specifically Current status of payment or performance risk of guarantee.000. The trusts exist for the sole purpose of issuing capital securities and common securities and investing the proceeds thereof in deferrable interest junior subordinated debentures. Real estate joint venture d. The Company and TRV are both jointly and severally responsible for the payment obligation of the subordinated debentures. Seaboard Surety Company No initial recognition as guarantee is made on behalf of a related party and is considered unlimited in amount.000. Dividend to stockholders $50.Line 8 .120.Line 2. The Company fully. Nature and circumstances of guarantee and key attributes.Line 35.Line 14.Line 14.12 Guarantee has no stated amount or limitation to the maximum potential future payments and accordingly. If unable to develop an estimate. the Company is unable to develop an estimate of the maximum potential payments for such arrangements The Company has assessed the performance risk as remote under this guarantee $5. g. Either a capital contribution or loan to joint venture Assets .000 The Company has assessed the performance risk as remote under these guarantees $105. (include amt recognized at inception. the Company is unable to develop an estimate of the maximum potential payments for such arrangements The Company has assessed the performance risk as remote under this guarantee The Company has assessed the performance risk as remote under this guarantee .000.Statement of Income .2 Common Stock Guarantee has no stated amount or limitation to the maximum potential future payments and accordingly. Former subsidiary c.000. Travelers Insurance Company Limited No initial recognition as guarantee is made on behalf of a related party and is considered unlimited in amount.

282. respectively.000.626 53.Annual Statement for the year 2013 of the ST.000 $ 1. LEASES A. The buildings are depreciated on a straight-line basis over a period of up to 39 years. For a discussion of the Company’s contingent liabilities for structured settlements.Line 2. 3.2 Common Stock See below – subject to the same maximum Subordinated debentures by its parent to the respective trusts Fair value initial recognition for debenture guarantees was $24. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Surplus .000 304. Dividend to stockholders Guarantee has no stated amount or limitation to the maximum potential future payments and accordingly. the Company is unable to develop an estimate of the maximum potential payments for such arrangements l. the Company believes.Line 35. as of December 31. TRV is current in all debenture obligations.000. 2010 from a “bbb” to a “bbb+” and remains unchanged 43.000 150. a wholly-owned subsidiary No initial recognition as guarantee is made on behalf of a whollyowned subsidiary and is considered unlimited in amount.000 Current liability recognized in financial statements: Noncontingent liabilities Contingent liabilities Ultimate financial statement impact if action under the guarantee is required: Investment in SCA Joint venture Dividends to stockholders Expense Other Total $254.Line 35.266. financial condition or liquidity. B. the Company is a defendant or codefendant in various litigation matters.274 $ 312. Discover Reinsurance Company No initial recognition as guarantee is made on behalf of a related party and is considered unlimited in amount. Certain pension obligations of Travelers Special Services Limited.873 as of December 31.761.000. Trust obligations of three whollyowned subsidiaries No initial recognition as guarantee is made on behalf of a whollyowned subsidiary Assets . 2013 and 2012.282. The accumulated depreciation on real estate held for the production of income was $360.039.000 The Company has assessed the performance risk as remote under these guarantees.000 - 5.Line 2.366 27. that the ultimate resolution of these legal proceedings would not be likely to have a material adverse effect on its net income.070 14. Although there can be no assurances.13 .502 and $343. the Company has minimum annual lease payments receivable under noncancelable leasing arrangements as follows: Year Ending December 31 2014 2015 2016 2017 2018 2019 and later years Total Operating Leases $ 79. 2013.266. In the ordinary course of business.322 38. based on information currently available. Assets .771.504.937. The land is carried at cost and the buildings at cost less accumulated depreciation and related encumbrances.499. 2013. The debentures were upgraded by AM Best on June 8.000 Surplus .000 823. For a discussion of contingencies related to asbestos and environmental reserves.120. The Company has purchased annuities from life insurance companies to fund structured settlements. see Note 27.708.314 42. k.000 2.000.170.2 Common Stock Guarantee has no stated amount or limitation to the maximum potential future payments and accordingly.000. On December 31.168 70. 4. the Company is unable to develop an estimate of the maximum potential payments for such arrangements The Company has assessed the performance risk as remote under this guarantee The Company has assessed the performance risk as remote under this guarantee The Company has assessed the performance risk as remote under these guarantees j. Lessor’s Business Activities: The Company maintains investments in commercial real estate.495. Lessee Leasing Arrangements: Not applicable.266. Dividend to stockholders Aggregate maximum potential of future payments of all guarantees (undiscounted) the guarantor could be required to make under guarantees $ 1. 15. see Note 33.

236) $ (216. B. and requires that observable inputs be used in the valuations when available.786 $ (127. Transfers of Receivables Reported as Sales: Not applicable.899.865. A. The three levels of the hierarchy are as follows: • Level 1 .042.Valuations based on models where significant inputs are not observable.g.248) - $ 20.773. • Level 3 . Treasury securities and U. These securities typically have a duration of 1 day.Quoted prices for similar assets or liabilities in active markets. This collateral is held by a third party custodian. Market fluctuations cause securities to change from being held at cost to fair value or vice versa.773. The Company transfers securities out of level 3 when it is able to obtain market observable data.248) $ 20. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. These changes result in a transfer in or out of level 3. INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK AND FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK In the normal course of business. GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED PLANS AND THE UNINSURED PORTION OF PARTIALLY INSURED PLANS Not applicable. (1) Securities measured and reported at fair value as of December 31. 14.389.473) - $ (371) 7. or valuations based on models where the significant inputs are observable (e. and Sales Settlements Ending Balance at 12/31/2013 1.205 20. 26.691 414.287 There were no significant transfers between level 1 and level 2. default rates.) or can be corroborated by observable market data. prepayment speeds. Issuances.596 - - $ 414. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use. excluding Loan-backed and Structured Securities. and venture capital entities. • Level 2 .865.2 million at December 31.Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access.899.S. the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable.596 $ 460. Transfer and Servicing of Financial Assets: The Company engages in securities lending activities from which it generates net investment income from the lending of certain of its investments to other institutions for short periods of time.882 - $ (127. interest rates.764. The Company accepts only cash as collateral for securities on loan and restricts the manner in which that cash is invested to U.046.486 414.486 $ 45. TRANSFER AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS OF LIABILITIES A. loss severities.046. FAIR VALUE MEASUREMENTS The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance.S.042. DIRECT PREMIUMS WRITTEN/PRODUCED BY MANAGING GENERAL AGENTS/THIRD PARTY ADMINISTRATORS The Company did not have any direct premiums written through managing general agents (as defined in Appendix A-225 of the NAIC Accounting Practices and Procedures Manual) or third party administrators.899.080 $ 20. and the Company has the right to access the collateral only in the event that the institution borrowing the Company’s securities is in default under the lending agreement. 2013. C. 18.899. 19.205 $ 20. (2) Securities measured at fair value using significant unobservable inputs (Level 3): Beginning Balance at 1/1/2013 Description Bonds Common stocks Total Transfers into Level 3 Transfers out of Level 3 Total gains & (losses) included in Net Income $ 343.. gives the highest priority to quoted prices in active markets.773. The off-balance-sheet risks of these financial instruments were $422. 17. limited liability companies. yield curves. 20. In determining the level of the hierarchy in which the estimate is disclosed.236 $ 1. The Company recognizes these transfers at the end of the period.170) $ (7. See Schedule D – Part 1 for identification and description of securities on loan.898.045. quoted prices for identical or similar assets or liabilities in inactive markets.962 $ 20.236) $ (216. The framework is based on the inputs used in valuation. Wash Sales: Not applicable.786 1. 2013: Description Bonds Industrial and miscellaneous Common stock Total securities at fair value Level 1 $ Level 2 Level 3 $ Total - $ 24.041. The loaned securities remain a recorded asset of the Company.882) (7.538.712 $ (1.042. the Company has unfunded commitments to partnerships. etc. SALE.486 $ - $ (1.865 Total gains & (losses) included in Surplus $ Purchases. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 16.14 .898. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety.596 $ 24.473) $ 7.486 (3) The Company holds NAIC designation 3 -6 securities at the lower of cost or market as defined in SSAP No.Annual Statement for the year 2013 of the ST. Bonds. Treasury repurchase agreements.

Section 1 Part 1F .569.200 414. Column 24.Section 2 Part 1M Part 1N Part 1O Part 1P Part 1R .224 957.868 636 346.122 - Admitted Assets $ 249. 21.166 22.773.614.900.738 10.Section 1 Part 1R .336 - Level 2 $ 107.063.877 3. B. The Company feels that obtaining a fair value would not be cost effective due to the nature of the loan and in order to obtain a fair value. Other Disclosures and Unusual Items: The Company elected to use rounding in reporting amounts in this statement.025.000 Level 3 $ $ D.951 845 7.351 363.738 10.551 363. Not Practicable to Estimate Fair Value Carrying Value (At December 31.000 Level 1 $ 109.15 $ 2000 293 46 2.654.920 38.562 (17) 1. (5) Not applicable.689.137 95.043. B. 2012) Description Short term bonds Cash equivalents Long term bonds Preferred stock Common stock Mortgage loans Aggregate Fair Value $ 249.Section 1 Part 1H .668 - 41.611 31.966 - Not Practicable (Carrying Value) $ 42.624 1 161 378 4.269.999 9.944 71.738 10.368 725 463 671 26.714 159.468.000 Admitted Assets $ 179.882 - Not Practicable (Carrying Value) $ 45.344.122 45.596 - Aggregate Fair Value $ 179.632 100. Extraordinary Items: Not applicable.131 96.845.298.200 414.283 12.549.521 4.900.872 5. Not applicable.920 38.720 1.316. OTHER ITEMS A.479 (131) 1.028 193 16.095 2002 14. Troubled Debt Restructuring: Not applicable.817 1.0% Maturity Date 2/28/15 It is not practicable for the Company to estimate the fair value of this mortgage loan.290 10. C.516 23.223 11.076 314 1999 & Prior $ 990 51.856.338 591.046.773.025.612.369.189.689.344.744.607 12.223 10. 2013) Description Short term bonds Cash equivalents Long term bonds Preferred stock Common stock Mortgage loans (At December 31.549.090.351.655 7.240 - Level 2 $ 140. IL Effective Interest Rate $ 42.613 976 2.024 1.114 .425 1.244 2. The following table provides the aggregate fair value and reported aggregate admitted asset value by type of financial instrument.171 863.795 1.316.797 3.000 414.649.695 6 120 2.239 193 12.681 260 5. and the hierarchy level in which the fair values fall.458 15. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (4) Bonds were carried at fair value in accordance with NAIC guidance.841 88.344.652.195. C.124 7.Part 1.Section 2 2003 $ 125 267 4.223 10.823.190 2.Annual Statement for the year 2013 of the ST.458 15.576 15.935 3.648.993 441 Accident Years 2001 $ 85 $ 101 186 94 2.351 362. 2013) Description Mortgage loan Oak Brook.942 1.494.200 20.839 563.270 143 2.948 13.043.418 1.649.596 - Level 1 $ 71.425.Section 2 Part 1G Part 1H .900.126 486 510 6.582 38.207 13.987 2.710.596 42.773.689.807 6. 2013 Schedule P: The 2003 and prior “Total Net Losses and Expenses Unpaid” (Schedule P .000 Level 3 511.480 15.109 28. (At December 31. the Company would have to reunderwrite the loan.623 11.362 3.864.710.041. Line 1) is separately reported to accident year as follows (in thousands): Schedule P Part 1A Part 1B Part 1C Part 1D Part 1E Part 1F .861 1.000 4. These bonds were generally priced by the SVO or by a third party organization.

or Other characteristics that are inconsistent with conventional underwriting standards employed by government sponsored mortgage entities. as well as in its analysis of subprime mortgage-backed bonds for purchase. Low loan documentation (e. including subprime mortgage-backed securities. 2014.E. H. were as follows: Reinsurance balances ceded to affiliates and recoverable by The Travelers Indemnity Company (06-0566050): F. because of their high loan-to-value ratios. Business Interruption Insurance Recoveries: Not applicable.Annual Statement for the year 2013 of the ST.941. Offsetting and Netting of Assets and Liabilities: Not Applicable. 41-0406690 06-6033504 Company St. defaults and loss severity to estimate any expected losses.929 G. 22.044) .110 Actual Cost $ 23.459.483.N. 23.349. Subprime Mortgage-Related Risk Exposure: The Company defines subprime mortgage-backed securities as investments which generally contain a majority of loans to borrowers that exhibit one or more of the following characteristics at the time of issuance:       Low FICO scores.393) (356) (12. ongoing review of its existing subprime mortgage portfolio. REINSURANCE A. Based upon the credit performance of mortgages within each securitization. 2013. in connection with reinsurance agreements among affiliated insurers.(2.g. regardless of the credit characteristics of the borrower on the underlying mortgage. EVENTS SUBSEQUENT The Company had no material subsequent events through February 17.494) (1) (156) (1.663 . The Company utilizes discounted cash flow valuation analysis in its regular. The unsecured aggregate recoverables for ceded losses. E. loss adjustment expenses and unearned premiums at December 31. F.232) - $ 1998 - $ 1997 (199) - $ 1996 - $ 1995 - $ 1994 - D. In addition. In applying this philosophy to structured securities. limited or no verification of income and assets).16 Amount $ 11. The Company reviews the credit characteristics of the loans that back these mortgage-backed securities when making the determination to categorize them as subprime exposure. Joint and Several Liabilities: Not applicable. Affiliated Company Recoverables: The Company participates in the TRV Pool and/or other reinsurance programs with affiliates and takes credit for reinsurance ceded directly and indirectly to these companies. State Transferable and Non-transferable Tax Credits: Not applicable.305) (505) (2) (243) (4. Overall exposure to subprime mortgage-backed securities is sufficiently small in that the Company would likely have other securities available for liquidity needs. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS The following loss and/or LAE reserves have been assumed / (ceded) under retroactive reinsurance agreements. Paul Fire and Marine Insurance Company Travelers Casualty and Surety Company 14. Above prime interest rates.281. They are reported here by line of business and accident year to facilitate loss discounting under Internal Revenue Code Section 846 (in thousands): Commercial Auto Workers’ Compensation Commercial Multiple Peril Medical Malpractice – CM Special Liability Other Liability – Occ Other Liability – CM Special Property Other Reinsurance A Reinsurance B $ 2002 2001 2000 1999 (255) $ (395) $ (34) $ (1. the Company employs a conservative investment philosophy. Unsecured Reinsurance Recoverables: 1.730. Since the primary purpose of the investment portfolio is to fund future claim payments.981 9. the Company has categorized second-lien mortgage-backed securities as subprime. Direct exposure through other investments: Residential mortgage-backed securities: Book/Adjusted Carrying Value (excluding interest) $ 24. the Company favors the purchase of senior credit tranches over junior or leveraged credit tranches. the Company projects voluntary prepayments. High loan-to-value ratios.630) (1.I. High debt-to-income ratios.193 Fair Value $ 27.289 $ Other Than Temporary Impairment Losses Recognized 262.430.

394.134.523.686 2.266 719. Paul Guardian Insurance Company Travelers Excess and Surplus Lines Company Travelers Personal Security Insurance Company St.759 356.630 1.286.525 633.127.444.712.670.452.17 .225 134.292 1.091.554 2.865 134.380 102.051.136 124.655.313.998 217. Inc.964 150.136 124.442.743.136 124.459 1.260.605 217. Paul Surplus Lines Insurance Company TravCo Insurance Company Travelers Property Casualty Insurance Company Northfield Insurance Company St. loss adjustment expenses and unearned premiums recoverable from any unaffiliated reinsurer at December 31. Paul Surplus Lines Insurance Company The Travelers Indemnity Company of America St. 36-2719165 41-0406690 06-6033504 58-6020487 06-0291290 06-0336212 35-1838079 52-0515280 06-0303275 06-6033509 41-0881659 06-0876835 06-1067463 06-0848755 52-0616768 36-2999370 41-6009967 06-1286268 41-1230819 35-1838077 06-1286274 41-0983992 41-0963301 06-1203698 06-1286264 36-2542404 95-3634110 06-1286266 36-3703200 94-6051964 41-1435765 52-1925132 41-1435766 86-0868106 Amount $ 10.406 46.377.797.903.200.764.654.466 604.578 46. 14.406 46.282.534 64.764. Connecticut Fidelity and Guaranty Insurance Underwriters. Discover Property & Casualty Insurance Company Northland Insurance Company Travelers Commercial Insurance Company St.903.137.956.767.611.520 2.515 175.266 134.260.540.042 564.155.316 2.554.550 268.683 2.966 513.369.192 648.071.209 217.262.324.966 3.528 40. Inc. Reinsurance Recoverable in Dispute: Not applicable.529.536.554.673 407. were as follows: NONE Additional detail on reinsurance recoverable balances by reinsurer is shown in Schedule F .425. Paul Fire and Marine Insurance Company Travelers Casualty and Surety Company The Travelers Indemnity Company of America The Charter Oak Fire Insurance Company The Travelers Indemnity Company of Connecticut The Travelers Home and Marine Insurance Company United States Fidelity and Guaranty Company The Phoenix Insurance Company The Standard Fire Insurance Company St.345.737 147. Connecticut The Charter Oak Fire Insurance Company Northland Insurance Company St.N.095 138.982 202.899 11.978 292.930.748.805 1.469 418. 2013.406 $ 35.761 2.594.980.524 10. Paul Mercury Insurance Company Travelers Property Casualty Company of America Travelers Property Casualty Insurance Company The Travelers Casualty Company Travelers Constitution State Insurance Company Travelers Excess and Surplus Lines Company Travelers Personal Insurance Company The Travelers Home and Marine Insurance Company TravCo Insurance Company Travelers Personal Security Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company Northland Casualty Company Fidelity and Guaranty Insurance Underwriters.155.674.950 20.903.423.225 124.331 634.730.Annual Statement for the year 2013 of the ST.554.782 1.627.093.283.998.422 5.903.762 55.327. Unaffiliated Company Recoverables: The unsecured aggregate recoverables for ceded losses.299.865.645 $ 44.728.633.849.718 201.665 684.260.143 2.380 Reinsurance balances assumed by The Travelers Indemnity Company and recoverable by the following affiliated insurers: Company Travelers Property Casualty Company of America St.251. B.551 160.561 699.672 2.861.578 64.477.107.860 589. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS The Phoenix Insurance Company The Standard Fire Insurance Company United States Fidelity and Guaranty Company Travelers Casualty Insurance Company of America Farmington Casualty Company The Travelers Indemnity Company of Connecticut The Automobile Insurance Company of Hartford.046.706.903.521.447.063. Paul Guardian Insurance Company American Equity Specialty Insurance Company Total 06-0303275 06-6033509 52-0515280 06-0876835 06-1067463 06-0336212 06-0848755 06-0291290 41-6009967 41-1230819 58-6020487 36-2542404 41-0983992 95-3634110 06-1286268 06-1286266 41-0881659 36-2719165 06-1286274 41-1435765 41-1435766 06-1203698 36-3703200 35-1838079 35-1838077 06-1286264 36-2999370 52-1925132 94-6051964 52-0616768 41-0963301 86-0868106 2.423. Paul Protective Insurance Company Northfield Insurance Company Travelers Commercial Casualty Company Travelers Commercial Insurance Company Travelers Casualty Company of Connecticut St.Part 3.489 240. Paul Protective Insurance Company Travelers Commercial Casualty Company Travelers Casualty Company of Connecticut Travelers Personal Insurance Company Northland Casualty Company The Travelers Casualty Company Discover Specialty Insurance Company Travelers Constitution State Insurance Company American Equity Specialty Insurance Company Total F.943.E.154.136 124.704.136 64.781. St.998 189.I.464 5.813 344.570.855 634.662.982. Paul Mercury Insurance Company Travelers Casualty Insurance Company of America Farmington Casualty Company The Automobile Insurance Company of Hartford.260.555.076. that exceeded 3% of the Company's surplus as regards policyholders.

683 2.005.Prior Year(s) (3) Adjustments .848. Total Paid/Loss/LAE Recoverable $ 44.336.513 $ 1. Reserves Transferred: (1) Initial Reserves (2) Adjustments . Reinsurance Assumed and Ceded: 1.041.414 D.261 $ 261.321.472 2. This balance represents the Company's 24.506 $ 12.260 (743.028.090 46.993 $ $ 1.79% pro rata share of the net amount of the TRV Pool (see Note 26): a.414 at December 31. 2013. E.Annual Statement for the year 2013 of the ST.700 1.702.767 Net $ 48. Accruals for contingent.889.259 41.522.560 $ 124.934 1.816 $ 2.833.943 1.330. (10227) Commercial Risk Re-Insurance Co.964.964) 23.134.074.Current Year (4) Current Total $ 2. List the other insurers included in the above transactions: Company Munich Reinsurance America.960 3.000 19.173.966 $ - d.332 1.556 743.023.794 372.120 74. Assumed $ 1.324 3.038. Other Profit Commission Arrangements d.736 Total Paid/Loss/LAE Recoverable $ 15.633.586.578 $ 145.414 $ 48. net of reinsurance assumed and ceded.801 $ 15.917.586.873 $ 45.134.600. Paid Losses Reimbursed or Recovered: (1) Prior Year(s) (2) Current Year (3) Current Total $ 1.591. F. (10357) General Reinsurance Corporation (22039) Various Total 2.849.837 $ 142.265.586.025.531 311.492 $ Net Premium Reserve 50. (10357) Various Total f.207.697.921 27.308 Assumed $ 45. Retroactive Reinsurance: Assumed Ceded a.139 $ 120. sliding scale adjustment and other profit sharing commissions.506 Unauthorized Reinsurers Company nSpire Re Limited (AA-178412) Various Total 14.239 10.776 $ 45.767 $ 2.522.964.370.Current Year (4) Current Year Restricted Surplus (5) Cumulative Total Transferred to Unassigned Funds $ 27.Current Year (4) Current Total $ 2.884 e.18 Collateral Held $ 6.292.560 $ 1.050 52.222. amounted to $48.336.801 Amount Over 90 Days Past Due $ 12.210.936 47. Consideration Paid or Received: (1) Initial Consideration (2) Adjustments . Assumed Reinsurance Premium Commission Reserve Equity Affiliates All Other Total $ 2.109.560 Ceded $ 3.651.Prior Year(s) (3) Adjustments . Uncollectible Reinsurance: Not applicable.033 $ 424. Special Surplus From Retroactive Reinsurance: (1) Initial Surplus Gain or Loss (2) Adjustments .893.061.700) $ 1.784 $ 170.186 Commission Equity $ $ 259.849.997.682. Contingent Commission b. Authorized Reinsurers Company Platinum Underwriters Reinsurance Inc.915 b.Prior Year(s) (3) Adjustments .873 Ceded $ 2.648 $ 2.591.915 Paid Loss/LAE Recoverable: 1.594. Commutation of Ceded Reinsurance: Not applicable.076.320.065 c.061.534.964) $ 170.977 $ 6. Sliding Scale Adjustments c.215.778.219 $ $ 309.948. Inc.320.151 $ 112.991 265.926 8. (27955) General Reinsurance Corporation (22039) nSpire Re Limited (AA-1784124) Platinum Underwriters Reinsurance Inc. Total Direct $ 5.816 $ 111.504.336.656.308 $ 5.766.010 38. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS C.256 $ 13.854 $ 1.465 Direct Unearned Premium Reserve Ceded Reinsurance Premium Commission Reserve Equity $ $ 362.587.571 12.960 26.370 Amount Over 90 Days Past Due $ 41.977 .432.804 (852.943 (852.055.481 259.

Admitted amount (1) . 2013 to December 31. and from lower estimates for adjusting and other expenses. resulting from better than expected loss and defense and cost containment (DCC) development primarily in the other liability – occurrence. The deterioration in the commercial multi-peril line was driven primarily by worse than expected development for the liability coverage for accident years 2008 – 2011. Due to the immaterial nature of these balances the Company accounts for them at their estimated ultimate remaining recoverables on an undiscounted basis. Under the terms of the arrangement. including all of those relating to bulk IBNR. the Company had one assumed reinsurance contract accounted for as a deposit with a non-zero balance.84 4.79 23. This contract has been in runoff since 2001 and has a deposit balance of $600. C.543 $ 23. 3. The pool of net underwriting risks remaining after reinsurance is transacted with third parties by Indemnity is then retroceded to the pool participants based on pool participation percentages.000. 66.279 393.(4) $ 24.00 4.267. the property-casualty underwriting risks for substantially all lines of business of the intercompany pool participants are reinsured with Indemnity. 2013. The amount shown in Part E below is the Company’s proportionate share of the accrued retrospective premiums of the TRV Pool (see Note 26). NAIC company codes and intercompany pool percentages of the companies participating in the TRV Pool are as follows: TRV Pool Participant St.41 2. H.249 at year-end. The improvement in the homeowners line was driven primarily by better than expected development for catastrophe and non-catastrophe claims for accident years 2011 and 2012. an intercompany pooling arrangement. and workers’ compensation lines. or collateral as permitted by SSAP No. Paul Fire and Marine Insurance Company The Travelers Indemnity Company Travelers Casualty and Surety Company The Phoenix Insurance Company The Standard Fire Insurance Company United States Fidelity and Guaranty Company Travelers Casualty Insurance Company of America Farmington Casualty Company NAIC Company Code 24767 25658 19038 25623 19070 25887 19046 41483 14. 26. Reinsurance Accounted for as a Deposit: As of December 31. Ten percent of the amount not offset by retrospective return premiums. A portion of the change from prior year effects relates to retrospectively rated policies which are subject to premium adjustments. 24. The improvement in the other liability – occurrence line was concentrated in the excess coverages for accident years 2004 – 2012 and reflected more favorable legal and judicial environments than what the Company previously expected. have been determined by or allocated to individual policyholder accounts. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS G.163 3.102.(3) . partially offset by loss and DCC deterioration primarily in the products liability – occurrence and commercial multi-peril lines. The remaining changes are generally the result of ongoing analyses of recent loss data and trends.341 25.73 1. the prior year-end total loss and loss adjustment expense reserves developed favorably by $187.48 .19 Pool Participation % 24. 2. Disclosures for the Transfer of Property and Casualty Run-off Agreements: Not applicable.36 5. These contracts have been in runoff since 2002 and have a combined balance of $405. 2013. CHANGES IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES During the period from January 1. As of December 31.29 20. other liabilities to the same party (other than loss and loss expense reserves). The lead company of the TRV Pool is Indemnity. The improvement in the special property line was driven primarily by better than expected development for catastrophe and noncatastrophe claims for accident years 2010 – 2012. Accrued retrospective premiums (Page 2. Not applicable. has been nonadmitted. Certified Reinsurer Rating Downgraded or Status Subject to Revocation: Not applicable.Annual Statement for the year 2013 of the ST. Retrospectively Rated Contracts. The provision for reinsurance and the writeoff of uncollectible reinsurance are reported in the statutory financial statements of Indemnity and are not allocated to the other pool participants. D. See Schedule P . E. The improvement in the workers’ compensation line was concentrated in accident years 2008 and prior. Calculation of nonadmitted retrospective premium: 1. Lastly.321 at year-end. 4.785 310. the Company had two ceded reinsurance contracts accounted for as a deposit with non-zero balances. special property.3) have been determined based upon loss experience on business subject to such experience rating adjustment. Accrued retrospectively rated premiums. INTERCOMPANY POOLING ARRANGEMENTS The Company is a participant in the TRV Pool.292. homeowners. B. Due to the immaterial nature of the deposit balance the Company accounts for it at the estimated ultimate remaining payments on an undiscounted basis. the improvement in adjusting and other expense reserves was driven by improvement in the underlying loss and DCC reserves and by the allocation of adjusting and other expense reserves by year as disclosed in the Schedule P Interrogatories of the Company. Line 15. This improvement was partially offset by unfavorable development in asbestos and environmental reserves for “Prior” accident years. The names.Part 7A. Total accrued retrospective premium Unsecured amount Less: Nonadmitted amount (10%) Less: Nonadmitted for any person for whom agents’ balances or uncollected premiums are nonadmitted 5.588. The Company records accrued retrospective premium as an adjustment to earned premium. Also contributing to the improvement was a reallocation of IBNR to products liability – occurrence for recent accident years. 2013. The deterioration in the products liability – occurrence line was primarily caused by unfavorable development in asbestos reserves for “Prior” accident years and by a reallocation of IBNR from the other liability – occurrence line for recent accident years. RETROSPECTIVELY RATED CONTRACTS AND CONTRACTS SUBJECT TO REDETERMINATION A. and reflected lower than expected medical inflation. I.

generally using the following United States Life Tables: Non-Fatal Cases: United States Life Tables Total Population 1969-71 – MI United States Life Tables Total Population 1979-81 – TX United States Life Tables Total Population 1999 – FL. 29.36 0. Bellevue.10 0.937 335.328.29 0. 2013 Yes 31.29 0.37 1. 2013. Life Insurance Company and Location Fidelity & Guaranty Life Insurance Company.88 0.256 Unrecorded Loss Contingencies $771.927.Annual Statement for the year 2013 of the ST. 30.5% or as specified by state requirements. PARTICIPATING POLICIES Not applicable.27 0. Liability carried for premium deficiency reserves 2. Inc. under which the claimant is the payee and the Company is the owner of the annuity contract. VA Symetra Life Insurance Company. tabular workers' compensation case reserves have been discounted in accordance with the various state laws under which the benefits are paid. NJ & NY United States Life Tables Total Male or Total Female 1989-91 – CA United States Life Tables Total Male or Total Female 2006 – MA United States Life Tables Total Male or Total Female 2000 – MN United States Life Tables Total Male or Total Female 1999 – all other states 14. HIGH DEDUCTIBLES At December 31.782. DISCOUNTING OF LIABILITIES FOR UNPAID LOSSES OR UNPAID LOSS ADJUSTMENT EXPENSES A.30 0.432. Paul Guardian Insurance Company 19062 25682 25615 24015 30481 25666 19224 27987 36170 40282 36137 24791 25674 36161 41769 41750 28188 29696 27998 36145 38130 36463 10213 24031 10819 25879 24775 1. the amount of reserve credit recorded by the Company for high deductible policies on unpaid claims was $1. Baltimore. WA All other companies Licensed in Company’s State of Domicile Yes Yes Yes Yes Statement Value of Annuities $ 229. to fund structured settlements.384.27 0. as included in Schedule P. These amounts represent the Company’s proportionate share of the TRV Pool (see Note 26). These annuity contracts are now the direct responsibility of the life insurance companies from whom they have been purchased and claims settled by the purchase of such annuity contracts are treated as closed claims. Was anticipated investment income utilized in the calculation? $ 0 December 31.27 0.40 0.727 receivable from affiliates as a result of its intercompany reinsurance transactions which settled in January 2014.927. The tabular case reserves. As of December 31. 32. St. Loss Reserves Eliminated by Annuities $771. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS The Automobile Insurance Company of Hartford.377 28. 27. reflect a discount rate of 3.14 0. PREMIUM DEFICIENCY RESERVES 1.538.256 B. Paul Mercury Insurance Company Travelers Property Casualty Company of America Travelers Property Casualty Insurance Company The Travelers Casualty Company Travelers Constitution State Insurance Company TravCo Insurance Company Travelers Excess and Surplus Lines Company The Travelers Home and Marine Insurance Company Travelers Personal Security Insurance Company Travelers Personal Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company Northland Casualty Company American Equity Specialty Insurance Company Fidelity and Guaranty Insurance Underwriters.47 0. Except for certain third party administered claims.22 0.47 0. Paul Protective Insurance Company Northfield Insurance Company Travelers Casualty Company of Connecticut Travelers Commercial Casualty Company Travelers Commercial Insurance Company St.20 . Bloomfield.800.820 and the amount billed and outstanding on paid claims was $13. CT Genworth Life and Annuity Insurance Company.198 59.106. MD MetLife Insurance Company of Connecticut.52 0.58 0. HEALTH CARE RECEIVABLES Not applicable. Date of the most recent evaluation of this liability 3.77 0. The following data represents the Company’s proportionate share of structured settlement annuities purchased by members of the TRV Pool (see Note 26): A.10 0. Connecticut The Travelers Indemnity Company of Connecticut The Charter Oak Fire Insurance Company Northland Insurance Company St.982 90. the Company would be required to make such payments if and to the extent not paid by state guaranty associations. Richmond.908. 2013 the Company had $54. In the event that the life insurance company fails to make the required annuity payments.14 0. Paul Surplus Lines Insurance Company The Travelers Indemnity Company of America St.27 0.37 1.47 0.762 56.27 1. STRUCTURED SETTLEMENTS The Company has purchased annuities from life insurance companies.14 0.505.10 All of the above TRV Pool companies are party to reinsurance agreements with non-affiliated reinsurers covering business subject to the pooling agreement and have contractual rights of direct recovery from the non-affiliated reinsurers under the terms of such reinsurance agreements.191.27 0.

IBNR amounts for claims yet to be identified as tabular.270.Annual Statement for the year 2013 of the ST.000 61. as well as recent settlements. 2013 liabilities of the Company included $460. fluctuations. and applicable coverage defenses or determinations.21 2012 2013 633.949 41.000 Calendar year payments for losses and LAE: 87.163. Conventional actuarial methods are not utilized to establish asbestos reserves nor have the Company’s evaluations resulted in any way of determining a meaningful average asbestos defense or indemnity payment.547. Workers’ Compensation Other Liability-Occurrence Total IBNR $93. It is difficult to predict whether these policyholders will be successful on both issues. The total reserves and the corresponding discount that the Company has established for these claims reflects these multiple estimation methods.000 $ 590.548 * Excludes medical loss reserves and all loss adjustment expense reserves B. No changes in the rates or other key assumptions used to discount prior accident year reserves have been made.559. past settlement values of similar claims. policyholder bankruptcies.046 $96. past and anticipated future claim activity and loss development on pending claims.000 .000 $ 608.504. Does the Company have on the books or has it ever written an insured for which you have identified a potential for the existence of a liability due to asbestos losses? Yes (X) No ( ) Exposure for asbestos losses arises from liability coverage written many years ago.135. The amount of discount for case and IBNR reserves at December 31. respectively.823.000 $ 721. To the extent both issues are resolved in a policyholder’s favor and other Company defenses are not successful.000 $ 678.085. if any. for that claim. This includes estimates of payment patterns reflecting actual mortality.180 and $28. d. The Company also analyzes developing payment patterns among various policyholders as well as projected reinsurance billings and recoveries. Among the factors which the Company may consider in the course of this review are: available insurance coverage.934. an analysis of the policyholder’s potential liability.805. of non-asbestos claims or potential non-asbestos claims in any resolution process. The Company continues to be involved in coverage litigation concerning a number of policyholders. or characteristics suggested by the aggregate paid activity.513. C.004. The December 31. the Company generally reviews the exposure presented by each policyholder at least annually. 2009 2010 2011 Beginning reserves: $ 769. limits and deductibles. b.Asbestos: a. The exposures include bodily injury and property damage losses. policyholders also may assert that each individual bodily injury claim should be treated as a separate occurrence under the policy. potential role of other insurance.480. the case vs. The liabilities and discount amounts shown below reflect estimates of the ultimate liability for tabular claims. Non-tabular reserves have not been discounted. morbidity and settlement history that relate both to claims currently identified as tabular as well as claims not yet identified as tabular ("IBNR" tabular). Because each policyholder presents different liability and coverage issues. IBNR discount amounts shown below each reflects estimates of the ultimate resolution costs for these claims: case amounts for claims already identified as tabular.000 43. if any.652.114.624. ASBESTOS/ENVIRONMENTAL RESERVES The following represents the Company’s allocable share of the pooled property-casualty business of the TRV Pool.823. allocated claim adjustment expense. the jurisdictions involved.000 $ 14. 2013 is as follows: Tabular Discount Tabular Discount Included in Schedule P.000 34.098 of such discounted liabilities related to workers’ compensation and other liability-occurrence reserves. it remains difficult to predict the ultimate cost of these claims. the Company reviews its historical gross and net loss and expense paid experience. Exposure for asbestos losses arises from liability coverage written many years ago. some of whom have filed for bankruptcy. Although the Company has seen a moderation in the overall risk associated with these lawsuits. The Company develops loss reserve estimates for workers' compensation tabular claims that are expectations of what the ultimate settlement costs for these claims will be upon final resolution in the future. The exposures include bodily injury and property damage losses. using Company experience. 3. including the role of any umbrella or excess insurance the Company has issued to the policyholder.000 $ Incurred losses and LAE: 39.243.706. 2. c. judicial rulings and legislative actions.480.591. Part 1* Schedule P Lines of Business Case 1.000 608.315.000 31. payment patterns and a discount rate of 5%.664. Direct Basis .591. A. The Company’s quarterly asbestos reserve review includes an analysis of exposure and claim payment patterns by policyholder category. who in some instances have asserted that all or a portion of their asbestos-related claims are not subject to aggregate limits on coverage.000 Ending reserves: $ 721.000 79. if any. based on its pro rata participation percentage of 24. These estimates are based on the Company's assessment of facts and circumstances currently known and.904 $104.858 3. 1.000 $ 678.000 57.171.000 51.114.000 $ 633. Furthermore. multiple actuarial estimation methods.79%. to assess any emerging trends. year-by-year. In addition. the role. including the determination as to whether or not an asbestos claim is a products/completed operation claim subject to an aggregate limit and the available coverage.106. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Fatal Cases: United States Life Tables Total Female 1969-71 – MI * United States Life Tables Total Female 1979-81 – TX * United States Life Tables Total Female 1989-91 – CA * United States Life Tables Total Female 2006 – MA * * and the 1979 NCCI Remarriage Table New York Mandated Mortality & Remarriage Table – NY United States Life Tables Total Female 2000 – MN ** United States Life Tables Total Female 1999 – all other states ** ** and the Railroad Retirement Board Remarriage Table Other liability reserves related to annuity obligations from structured settlements are discounted using a discount rate of 5% and reflect the 1983 Individual Annuity Mortality table adjusted for impairment and future mortality improvement.000 94. In these instances. the Company’s coverage obligations under the policies at issue would be materially increased and bounded only by the applicable per-occurrence limits and the number of asbestos bodily injury claims against the policyholders.817.599 $146. 33.

changing judicial and legislative trends.000 $ 1.694.000 70.000 22.171.Annual Statement for the year 2013 of the ST.859.000 Where appropriate. Where appropriate.496.423.290. This form of settlement is commonly referred to as a “buy-back” of policies for future environmental liability. The Company’s general purpose in executing these agreements is to reduce the Company’s potential environmental exposure and eliminate the risks presented by coverage litigation with the policyholder and related costs.000 3.866.677. Direct Basis .000 $ 683.304.000 20. d. d. such as: the nature of the alleged activities of the policyholder at each site. The balance of the net environmental reserve consists of case reserves.036.000 2012 2013 604.000 $ 2010 2011 50.333.231.000 19.889.102.000 $ 631.005.000 $ 2010 13.000 34.706. these agreements also include indemnities and hold harmless provisions to protect the Company.000 82.000 4. Assumed Reinsurance Basis: 3.742.862.467.000 8.Environmental: a. Generally. c.163. c.373. Beginning reserves: $ Incurred losses and LAE: Calendar year payments for losses and LAE: Ending reserves: $ 3.000 86.000 13. B.102. b. d.000 $ 2009 15. Assumed Reinsurance Basis .568.000 C.313.Asbestos: a. The majority of the net environmental reserve is carried in a bulk reserve which includes unresolved environmental claims. the overall nature of the insurance relationship between the Company and the policyholder.080. Net of Ceded Reinsurance Basis .801.395.000 71.845.455. 2009 Beginning reserves: $ Incurred losses and LAE: Calendar year payments for losses and LAE: Ending reserves: $ 3.237.000 $ 53.000 140.069.000 9.096.455. the Company considers: past settlement payments.620.000 $ 579.000 2012 2013 14.597.000 8.000 $ 8.130.595.000 Calendar year payments for losses and LAE: 22.000 53. Assumed Reinsurance Basis: 3. 1. The exposures include bodily injury and property damage losses.000 47.000 2012 2013 84.000 19. The bulk reserve the Company carries is established and adjusted based upon the aggregate volume of in-process environmental claims and the Company’s experience in resolving those claims.000 $ 81.969.171.267.354.825.225. In addition. Direct Basis: 2.000 2.840.969. c. In addition. Ending LAE reserves for reported and unreported claims included in Part A above: 1.029.000 58.285.000 $ 70. available coverage. Beginning reserves: $ Incurred losses and LAE: Calendar year payments for losses and LAE: Ending reserves: $ 2.995. Net of Ceded Reinsurance Basis: $ $ $ 492. the nature of the alleged environmental harm and the corresponding remedy at each site. b.192.656. b.000 19.000 $ 586. b. incurred but not reported environmental claims and the anticipated cost of coverage litigation disputes relating to these claims.and off-site waste disposal activities.000 17.656. if any.706.000 $ 20.000 $ 2010 97.000 86.000 $ 2009 2010 45. c.706.000 74. if any.779. The Company and its policyholders may also agree to settlements which extinguish any liability arising from known specified sites or claims. the potential for policyholders with smaller exposures to be named in new clean-up actions for both on.000 $ 16. the involvement of other insurers. the Company evaluates the exposure presented by each policyholder and the anticipated cost of resolution.895.000 1.000 $ 18. In the course of this analysis.000 $ 2012 2013 55. In its review of environmental reserves.496.895. the Company considers the many variables presented. its reserves for the costs of litigating environmental coverage matters.383.Asbestos: a.231.917.000 13.000 21.000 $ Incurred losses and LAE: 17.000 70.361. many of the agreements have also extinguished any insurance obligation which the Company may have for other claims.000 6.813. b.000 $ 3.995.000 .000 $ 67.192.078.000 $ 13.341.578. Direct Basis: 2.000 $ 247.000 14. Net of Ceded Reinsurance Basis. the potential for adverse development.000 84.080. Conventional actuarial techniques are not used to estimate these reserves. of non-environmental claims or potential non-environmental claims in any resolution process.000 $ 17.587.000 19.000 $ 2012 2013 71.000 8.621.000 392. the Company generally considers the probable liability. the potential for other available coverage.000 43. and the potential higher costs for new settlements.000 17.294. 2009 83.005.635.294. including the role of any umbrella or excess insurance the Company has issued to the policyholder.000 45.000 470.055.000 $ Incurred losses and LAE: 45. the nature of government enforcement activities at each site. the ownership and general use of each site. The evaluation of the exposure presented by a policyholder can change as information concerning that policyholder and the many variables presented is developed. these agreements also include indemnities and hold harmless provisions to protect the Company.000 Ending reserves: $ 97.055.078.713.000 2. the number of sites. Assumed Reinsurance Basis. d.000 $ 2011 74. the Company strives to extinguish any obligations it may have under any policy issued to the policyholder for past.198.000 Ending reserves: $ 683.000 $ 2011 86.000 50.Environmental: a.000 55.895.713.000 7.000 $ 15. Does the Company have on the books or has it ever written an insured for which you have identified a potential for the existence of a liability due to environmental losses? Yes (X) No ( ) Exposure for environmental losses arises from liability coverage written many years ago.553. including the number of years of coverage.000 55. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 2.000 $ 86.000 2.000 21.000 $ 55.000 487.688. present and future environmental liabilities and extinguish any pending coverage litigation dispute with the policyholder.325.000 $ 2009 Beginning reserves: $ 102.308.620. and the applicable law in each jurisdiction.000 $ 631.000 16.000 $ 6. the role. Ending loss and LAE reserves for unreported claims included in Part A above: 1.096. including but not limited to asbestos and other cumulative injury claims.000 22. c.000 586.927.000 $ 604.000 $ 13. 48. the total number of potentially responsible parties at each site.204. In establishing environmental reserves.633.132.790.000 $ 2011 13.000 $ 9.132.479. the potential for additional new claims beyond previous expectations.583.000 17.267. The resolution of environmental exposures by the Company generally occurs through settlements with policyholders as opposed to claimants.115.470.Environmental: a. d.000 $ 14. Net of Ceded Reinsurance Basis $ $ $ 148.000 $ 2011 Beginning reserves: $ 721.488.22 2010 82.000 86.824.000 20.000 40.000 21.742. relevant judicial interpretations and historical value of similar exposures.000 D.000 Calendar year payments for losses and LAE: 84.103.573.000 2.

any impact from the bankruptcy protection sought by various asbestos producers and other asbestos defendants. As part of its continuing analysis of asbestos and environmental reserves.819. It is also difficult to predict the ultimate outcome of complex coverage disputes until settlement negotiations near completion and significant legal questions are resolved or.000 16. the uncertainties surrounding the final resolution of these claims continue. Direct Basis: 2. This is particularly the case with policyholders in bankruptcy where negotiations often involve a large number of claimants and other parties and require court approval to be effective. the role of any umbrella or excess policies the Company has issued. 35.000 9. the Company continues to study the implications of these and other developments. Net of Ceded Reinsurance Basis $ $ $ 67. the risks and lack of predictability inherent in complex litigation. 34.950. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS E. 36. management believes that the reserves carried for asbestos and environmental claims at December 31. current law and management’s judgment. Ending loss and LAE reserves for unreported claims included in Part D above: 1. cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s operating results in future periods. In addition.000 As a result of the processes and procedures discussed above. the resolution or adjudication of disputes pertaining to the amount of available coverage for asbestos and environmental claims in a manner inconsistent with the Company’s previous assessment of these claims.000 F. Ending LAE reserves for reported and unreported claims included in Part D above: 1.003. whether through exhaustion of policy limits or through the insolvency of other participating insurers. the number and outcome of direct actions against the Company. However. and it is difficult to determine the ultimate exposure for asbestos and environmental claims and related litigation. The continuing uncertainties include. This environment could be affected by changes in applicable legislation and future court and regulatory decisions and interpretations. without limitation. 14. including the outcome of legal challenges to legislative and/or judicial reforms establishing medical criteria for the pursuit of asbestos claims. regulatory and legislative environment and their impact on the future development of asbestos and environmental claims. and/or the number of. As a result.550. future developments pertaining to the Company’s ability to recover reinsurance for asbestos and environmental claims and the unavailability of other insurance sources potentially available to policyholders. a further increase or decrease in the cost to resolve. It is also not possible to predict changes in the legal.533. 2013 are appropriately established based upon known facts. Net of Ceded Reinsurance Basis $ $ $ 12. In addition. Because of the uncertainties set forth above. SUBSCRIBER SAVINGS ACCOUNTS Not applicable. Assumed Reinsurance Basis: 3. the Company’s estimate of claims and claim adjustment expenses may change.23 . These additional liabilities or increases in estimates. MULTIPLE PERIL CROP INSURANCE Not applicable. FINANCIAL GUARANTY INSURANCE Not applicable.Annual Statement for the year 2013 of the ST. Direct Basis: 2.000 12. or a range of either. uncertainties arise from the insolvency or bankruptcy of policyholders and other defendants. the emergence of a greater number of asbestos claims than anticipated as a result of extended life expectancies resulting from medical advances and lifestyle improvements. failing settlement. until the dispute is adjudicated. asbestos and environmental claims beyond that which is anticipated. additional liabilities may arise for amounts in excess of the Company’s current reserves. Assumed Reinsurance Basis: 3.000 75. these reserves are subject to revision as new information becomes available and as claims develop.

(TRV) & Subsidiaries Company Name FEIN AMERICAN EQUITY INSURANCE COMPANY 86-0703220 AMERICAN EQUITY SPECIALTY INSURANCE COMPANY 86-0868106 BMR SPORTS PROPERTIES. INC. INC. INC. Inc. INC. 52-1965525 THE AUTOMOBILE INSURANCE COMPANY OF HARTFORD. PAUL SURPLUS LINES INSURANCE COMPANY 41-1230819 TCI GLOBAL SERVICES.Annual Statement for the year 2013 of the ST. INC. INC. PAUL LONDON PROPERTIES. INC. 41-1720288 SELECT INSURANCE COMPANY 75-6013697 SPC INSURANCE AGENCY. PAUL FIRE & MARINE INSURANCE COMPANY 41-0406690 ST. Note 9 – Part F: Names of the companies included with TRV in the December 31. 52-1466734 ENGLISH TURN REALTY MANAGEMENT. 52-1735211 COMMERCIAL GUARANTY INSRUANCE COMPANY 75-1679830 CONSTITUTION PLAZA INC 06-0566030 COUNTERSIGNATURE AGENCY. INC. INC. 41-1880024 ST. PAUL GUARDIAN INSURANCE COMPANY 41-0963301 ST. PAUL PROTECTIVE INSURANCE COMPANY 36-2542404 ST. TRAVELERS PERSONAL INSURANCE COMPANY TRAVELERS PERSONAL SECURITY INSURANCE COMPANY TRAVELERS PROPERTY CASUALTY INSURANCE COMPANY TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA TRAVELERS PROPERTY CASUALTY CORP. YONKERS FINANCING CORPORATION 14. INC. PAUL FIRE & CASUALTY INSURANCE COMPANY 41-1419276 ST. PAUL FIRE AND MARINE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Attachment to the 2013 Annual Statement – Notes to Financial Statements. consolidated Federal income tax return filing The Travelers Companies. 52-1852190 CAMPERDOWN CORPORATION 41-1762781 CASTLE PINES FIDELITY REALTY. INC. 2013. INC. PAUL MERCURY INSURANCE COMPANY 41-0881659 ST. 52-1551225 NORTHBROOK HOLDINGS. 06-1345091 DISCOVER PROPERTY & CASUALTY INSURANCE COMPANY 36-2999370 DISCOVER SPECIALTY INSURANCE COMPANY 52-1925131 ENGLISH TURN FIDELITY REALTY. 41-1888760 ST. INC. UNITED STATES FIDELITY & GUARANTY COMPANY USF&G RETAIL ASSOCIATES GP. INC. 41-1769846 LAUREL VILLAGE FIDELITY REALTY. TRAVELERS TEXAS MGA. TRAVELERS CASUALTY AND SURETY COMPANY TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA TRAVELERS CASUALTY COMPANY OF CONNECTICUT TRAVELERS CASUALTY INSURANCE COMPANY OF AMERICA TRAVELERS COMMERCIAL CASUALTY COMPANY TRAVELERS COMMERCIAL INSURANCE COMPANY TRAVELERS CONSTITUTION STATE INSURANCE COMPANY TRAVELERS DISTRIBUTION ALLIANCE. INC.24 FEIN 06-0291290 06-0303275 04-3175569 06-6033509 41-1435765 35-1838079 06-0566050 58-6020487 06-0336212 76-0002592 20-4403403 06-1534005 35-1838077 75-1732040 98-0190863 06-6033504 06-0907370 06-1286266 06-0876835 95-3634110 06-1286268 41-1435766 62-1657094 06-1203698 06-1445591 20-4312440 75-2676034 36-3703200 06-1286264 06-1286274 36-2719165 06-1008174 27-4469564 52-0515280 52-1704255 20-3033027 . 52-1715225 FARMINGTON CASUALTY COMPANY 06-1067463 FIDELITY AND GUARANTY INSURANCE COMPANY 42-1091525 FIDELITY AND GUARANTY INSURANCE UNDERWRITERS. TRAVELERS LLOYDS MANAGEMENT COMPANY TRAVELERS MGA. INC. TRAVCO INSURANCE COMPANY TRAVELERS LLOYDS OF TEXAS INSURANCE COMPANY TRAVELERS (BERMUDA) LTD. CT 06-0848755 Company Name THE CHARTER OAK FIRE INSURANCE COMPANY THE PHOENIX INSURANCE COMPANY THE PREMIER INSURANCE COMPANY OF MASSACHUSETTS THE STANDARD FIRE INSURANCE COMPANY THE TRAVELERS CASUALTY COMPANY THE TRAVELERS HOME AND MARINE INSURANCE COMPANY THE TRAVELERS INDEMNITY COMPANY THE TRAVELERS INDEMNITY COMPANY OF AMERICA THE TRAVELERS INDEMNITY COMPANY OF CONNECTICUT THE TRAVELERS LLOYDS INSURANCE COMPANY TINDY FOREIGN. INC. 52-0616768 FIRST FLORIDIAN AUTO AND HOME INSURANCE COMPANY 59-3372141 FIRST TRENTON INDEMNITY COMPANY 22-3129711 GULF UNDERWRITERS INSURANCE COMPANY 56-1371361 JUPITER HOLDINGS. TRAVELERS EXCESS AND SURPLUS LINES COMPANY TRAVELERS INSURANCE GROUP HOLDINGS INC. TPC INVESTMENTS. INC. 51-0375653 NORTHFIELD INSURANCE COMPANY 41-0983992 NORTHLAND CASUALTY COMPANY 94-6051964 NORTHLAND INSURANCE COMPANY 41-6009967 NORTHLAND RISK MANAGEMENT SERVICES. INC.

. sales representative.2 Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? If response to 8... the Office of the Comptroller of the Currency (OCC)..21 sales of new business? 4.COMMON INTERROGATORIES . Yes [ ] No [ X ] 8. provide information related to this exemption: 10. 12/31/2009 State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity.. did any sales/service organization owned in whole or in part by the reporting entity or an affiliate. CT 06103 Yes [ ] No [ X ] Yes [ ] No [ X ] 10.1 6... please provide the names and locations (city and state of the main office) of any affiliates regulated by a federal financial regulatory services agency [i.1 is yes. licenses or registrations (including corporate registration..2 3.1 8.1 Has the insurer been granted any exemptions to the prohibited non-audit services provided by the certified independent public accountant requirements as allowed in Section 7H of the Annual Financial Reporting Model Regulation (Model Audit Rule).1 2. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date).. the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator....22 State the nationality(ies) of the foreign person(s) or entity(ies). If yes.1 5.. did the reporting entity register and file with its domiciliary State Insurance Commissioner. 12/31/2009 State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. corporation.2 3.2 7.4 Is the company affiliated with one or more banks.11 sales of new business? 4.3 Has the insurer been granted any exemptions related to the other requirements of the Annual Financial Reporting Model Regulation as allowed for in Section 17A of the Model Regulation.2 Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons.22 renewals? Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? If yes. 03/24/2011 By what department or departments? Minnesota Department of Commerce Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial statement filed with departments? Yes [ ] Have all of the recommendations within the latest financial examination report been complied with? Yes [ X ] During the period covered by this statement.. complete Schedule Y. the nationality of its manager or attorney-in-fact and identify the type of entity(ies) (e.0.Annual Statement for the year 2013 of the ST. Code State of Domicile Has the reporting entity had any Certificates of Authority..12 renewals? During the period covered by this statement.3 3. articles of incorporation.4 If the response to 10.1 3. please identify the name of the bank holding company.5 3.2 If the response to 10.. provide the name of the entity. broker.6 4.. or is the reporting entity subject to standards and disclosure requirements substantially similar to those required by such Act and regulations? Yes [ X ] No [ ] State regulating? Connecticut Has any change been made during the year of this statement in the charter.GENERAL 1.. State) FRB OCC FDIC SEC Yes [ ] No [ X ] 9. or deed of settlement of the reporting entity? Yes [ ] If yes. government. individual. receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4. by-laws.. NAIC company code.4 3.3 is yes. 1A and 2.. manager or attorney-in-fact) 1 2 Nationality Type of Entity No [ ] N/A [ ] No [ X ] No [ ] No [ ] N/A [ X ] N/A [ ] Yes [ ] Yes [ ] No [ X ] No [ X ] Yes [ ] Yes [ ] Yes [ ] No [ X ] No [ X ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] .. PAUL FIRE AND MARINE INSURANCE COMPANY GENERAL INTERROGATORIES PART 1 . Parts 1. thrifts or securities firms? If response to 8.2 6..3 8. One Financial Plaza.1 1. the Federal Reserve Board (FRB). or substantially similar state law or regulation? 10. date of change: State as of what date the latest financial examination of the reporting entity was made or is being made.1 4. 755 Main St. or substantially similar state law or regulation? 10. Director or Superintendent or with such regulatory official of the state of domicile of the principal insurer in the Holding Company System. give full information: Does any foreign (non-United States) person or entity directly or indirectly control 10% or more of the reporting entity? If yes. one or more of which is an insurer? Yes [ X ] If yes. a registration statement providing disclosure substantially similar to the standards adopted by the National Association of Insurance Commissioners (NAIC) in its Model Insurance Holding Company System Regulatory Act and model regulations pertaining thereto.1 7. if applicable) suspended or revoked by any governmental entity during the reporting period? If yes.21 State the percentage of foreign control 7. Hartford. 1 2 3 4 5 6 Affiliate Name Location (City.000 % 8.. What is the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit? KPMG LLP.. This date should be the date of the examined balance sheet and not the date the report was completed or released. and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.. 1 2 3 Name of Entity NAIC Co..g.. did any agent. provide information related to this exemption: 15 .2 5..e.. non-affiliated sales/service organization or any combination thereof under common control (other than salaried employees of the reporting entity) receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4. 7. or if the entity is a mutual or reciprocal.3 is yes.2 1.1 is yes..3 2...

.. principal accounting officer or controller... please explain: 15. The prompt internal reporting of violations to an appropriate person or persons identified in the code.. English Turn Realty Management.. provide explanation.13 Total book/adjusted carrying value 12....500 10..... Paul...0 $. Promenade Partners: Holds a strip mall center in Oakbrook.1 Total amount loaned during the year (inclusive of Separate Accounts.3 12..3 Have there been any changes made to any of the trust indentures during the year? Yes [ ] No [ ] No [ ] N/A [ ] Yes [ X ] No [ ] 14...2 Does this statement contain all business transacted for the reporting entity through its United States Branch on risks wherever located? Yes [ ] 13......4 If answer to (13.6 If the answer to 10.... 12..000 80.. 18.. trustees or responsible employees that is in conflict or is likely to conflict with the official duties of such person? Yes [ X ] Yes [ X ] No [ ] No [ ] Yes [ X ] No [ ] PART 1 ..2 below...1 is no...0 $.........11 Name of real estate holding company See 12.... Accountability for adherence to the code.......5 is no or n/a.529 13.... Full....21 If the response to 14.. accurate.: A residential golf course development in New Orleans...821.1 Is the reporting entity the beneficiary of a Letter of Credit that is unrelated to reinsurance where the issuing or confirming bank is not on the SVO Bank List? 15. principal financial officer..000 25.. provide the nature of any waiver(s)....... Inc. Yes [ X ] No [ ] N/A [ ] Yes [ X ] No [ ] What is the name......000 1. FCAS & MAAA (Vice President and Chief Corporate Actuary). 1 2 3 American Bankers Association (ABA) Issuing or Confirming Circumstances That Can Trigger Routing Number Bank Name the Letter of Credit 051403041 First National Bank Failure to comply with contract 062106256 Merchants Bank Failure to comply with contract 065301883 United Mississippi Bank Failure to comply with contract 073902151 First Whitney Bank and Trust Failure to comply with contract 081918425 First State Community Bank Failure to comply with contract 082900319 First National Bank of Fort Smith Failure to comply with contract 091913216 Peoples Bank of Commerce Failure to comply with contract 092901683 First Interstate Bank Failure to comply with contract 101114109 First Option Bank Failure to comply with contract 104000854 American National Bank Failure to comply with contract 322070381 East West Bank Failure to comply with contract ICI Finance PlcFailure to comply with contract Southwest Georgia Farm Credit Failure to comply with contract 4 Amount 100... provide information related to amendment(s)...... 350 Market Street: Holds a 254 room hotel in St. has the domiciliary or entry state approved the changes? Yes [ ] No [ ] 14.000 125. 17.2 is yes..FINANCIAL 19...... PAUL FIRE AND MARINE INSURANCE COMPANY GENERAL INTERROGATORIES PART 1 .. One Tower Square...... timely and understandable disclosure in the periodic reports required to be filed by the reporting entity.000 16. Generally Accepted Accounting Principles)? 20......... IL...21 To directors or other officers 20...1 is yes.......BOARD OF DIRECTORS 16.Annual Statement for the year 2013 of the ST.....11 If the response to 14.. Yes [ ] No [ X ] Yes [ X ] No [ ] 13... FOR UNITED STATES BRANCHES OF ALIEN REPORTING ENTITIES ONLY: 13...23 Trustees......2 Total amount of loans outstanding at the end of year (inclusive of Separate Accounts.. Honest and ethical conduct........000 4..g.052.5 Has the reporting entity established an Audit Committee in compliance with the domiciliary state insurance laws? 10....2 If yes.COMMON INTERROGATORIES ..0 ..0 $.. address and affiliation (officer/employee of the reporting entity or actuary/consultant associated with an actuarial consulting firm) of the individual providing the statement of actuarial opinion/certification? Smitesh Davé.... d. $......... The Travelers Companies.. CT 06183 12....31 If the response to 14.... Inc. c.......... indicate the American Bankers Association (ABA) Routing Number and the name of the issuing or confirming bank of the Letter of Credit and describe the circumstances in which the Letter of Credit is triggered. Hartford........1 What changes have been made during the year in the United States manager or the United States trustees of the reporting entity? 13...000 300.. exclusive of policy loans): 20........0 $.... supreme or grand (Fraternal only) 20..3) is yes....12 Number of parcels involved ......000 40.. please explain......... exclusive of policy loans): 20...2 If the response to 15............11 To directors or other officers 20. LA........000 12... supreme or grand (Fraternal only) 15..1 Does the reporting entity own any securities of a real estate holding company or otherwise hold real estate indirectly? 12.000 1. 14...0 $. Is the purchase or sale of all investments of the reporting entity passed upon either by the Board of Directors or a subordinate committee thereof? Does the reporting entity keep a complete permanent record of the proceedings of its Board of Directors and all subordinate committees thereof? Has the reporting entity an established procedure for disclosure to its Board of Directors or trustees of any material interest or affiliation on the part of any of its officers..000 100...... Compliance with applicable governmental laws..... fair...3 Have any provisions of the code of ethics been waived for any of the specified officers? 14. which includes the following standards? a...... 11.. or persons performing similar functions) of the reporting entity subject to a code of ethics.. and e.22.000 PART 1 ...COMMON INTERROGATORIES ..GENERAL 10..... Has this statement been prepared using a basis of accounting other than Statutory Accounting Principles (e..1 Are the senior officers (principal executive officer...3 is yes..... Yes [ ] No [ X ] 14... directors.12 To stockholders not officers 20..22 To stockholders not officers 20......1 Yes [ ] No [ X ] $........COMMON INTERROGATORIES ... b.. Inc and English Turn Fidelity...13 Trustees...2 Has the code of ethics for senior managers been amended? 14. rules and regulations. MN.890. including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships.

....101 Total fair value of reinvested collateral assets reported on Schedule DL...........022...........1.......... See Note 17................... state the amount thereof at December 31 of the current year: 21............32.....07 Does your securities lending program require 102% (domestic securities) and 105% (foreign securities) from the counterparty at the outset of the contract? 24......... Parts 1 and 2......... report amount of collateral for other programs.2 If yes....28 On deposit with state or other regulatory body 25.. New York. III .. complete the following: 1 2 Name of Custodian(s) Custodian's Address JPMorgan Chase 270 Park Avenue.......... F. 24.......0 $....1 Were any preferred stocks or bonds owned as of December 31 of the current year mandatorily convertible into equity.01 Were all the stocks...290 $...0 PART 1 ....022...........04 is yes...1 Were any assets reported in this statement subject to a contractual obligation to transfer to another party without the liability for such obligation being reported in the statement? 21.....29 Other 25... state the amount of the following as of December 31 of the current year: 24.. 24. Parts 1 and 2................ bonds or other assets of the reporting entity owned at December 31 of the current year not exclusively under the control of the reporting entity or has the reporting entity sold or transferred any assets subject to a put option contract that is currently in force? (Exclude securities subject to Interrogatory 21.2 If yes.................................. NY 10286 28..FINANCIAL 21..... in the custodian(s) identified in 28.....COMMON INTERROGATORIES ..........952 Yes [ X ] No [ ] $.....0 $.0 Yes [ X ] Yes [ X ] No [ ] No [ ] N/A [ ] N/A [ ] Yes [ X ] No [ ] N/A [ ] $.......098..........0 $. and whether collateral is carried on or off-balance sheet (an alternative is to reference Note 17 where this information is also provided)..02 If no...........0 Yes [ ] No [ X ] $..0 $...........289... were all stocks.26 Placed under option agreements 25.. ON M5V 3L3 28..1 Were any of the stocks..70.....702 $.. PAUL FIRE AND MARINE INSURANCE COMPANY PART 1 .952 $.......... New York........... Yes [ X ] No [ ] 24.27) provide the following: 1 2 Nature of Restriction Description 26......0 $.. 24.....022.............0 $..............1 Does this statement include payments for assessments as described in the Annual Statement Instructions other than guaranty fund or guaranty association assessments? 22.... 25...... bonds and other securities owned December 31 of current year.....1 and 24..... 24..495.. owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 1... at the option of the issuer... location and a complete explanation: 1 2 3 Name(s) Location(s) Complete Explanation(s) RBC Dexia 155 Wellington Street W Custodial account for Canadian Branch Toronto...................24 Other 22...04 Does the company's security lending program meet the requirements for a conforming program as outlined in the Risk-Based Capital Instructions? 24......0 $..... Outsourcing of Critical Functions Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook? Yes [ X ] No [ ] 28.03 For security lending programs.......0 $..3 For category (25. provide a description of the program including value for collateral and amount of loaned securities...General Examination Considerations.27 Letter stock or securities restricted as to sale 25.03) 25....Annual Statement for the year 2013 of the ST...24 Subject to reverse dollar repurchase agreements 25..0 $....2... report amount of collateral for conforming programs. attach a description with this statement.....32......23 Subject to dollar repurchase agreements 25..... has a comprehensive description of the hedging program been made available to the domiciliary state? If no...21 Subject to repurchase agreements 25......22 Subject to reverse repurchase agreements 25.....2 If yes..05 If answer to 24. in the actual possession of the reporting entity on said date (other than securities lending programs addressed in 24..04 If yes...INVESTMENT 24.............32....2 If yes..0 $...103 Total payable for securities lending reported on the liability page... subsidiaries or affiliates on Page 2 of this statement? 23.......1 Does the reporting entity have any hedging transactions reported on Schedule DB? 26..... This company is a party to a security lending agreement......900..... state the amount thereof at December 31 of the current year: $...............22 Amount paid as expenses 22... real estate...... mortgage loans and investments held physically in the reporting entity's offices. state the amount thereof at December 31 of the current year: 25..........0 Yes [ ] No [ X ] $........22 Borrowed from others 21.. indicate any amounts receivable from parent included in the Page 2 amount....2 4 Reason ........ including name changes.......2 If yes...........23 Other amounts paid 23.32......08 Does the reporting entity non-admit when the collateral received from the counterparty falls below 100%? 24.....102 Total book adjusted/carrying value of reinvested collateral assets reported on Schedule DL.1 Does the reporting entity report any amounts due from parent...... Yes [ X ] No [ ] N/A [ ] $........... Yes [ ] No [ X ] $......................... vaults or safety deposit boxes... over which the reporting entity has exclusive control......2 If answer is yes: 22.....02 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook.022...0 28.557 3 Amount Yes [ X ] Yes [ X ] No [ ] No [ ] N/A [ ] 27...25 Pledged as collateral 25.. 24..09 Does the reporting entity or the reporting entity's securities lending agent utilize the Master Securities Lending Agreement (MSLA) to conduct securities lending? 24.. Excluding items in Schedule E-Part 3-Special Deposits........ bonds and other securities..........952 $.... convertible into equity? Yes [ ] No [ X ] 27...............21 Rented from others 21..0 $....01 For agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook..04 is no..10 For the reporting entity's security lending program.03)? 24.21 Amount paid as losses or risk adjustment 22........ give full and complete information relating thereto: 1 Old Custodian 2 New Custodian 3 Date of Change 15.06 If answer to 24...01 during the current year? Yes [ ] No [ X ] 28........ NY 10017-2070 The Bank of New York Mellon One Wall Street......03 Have there been any changes...23 Leased from others 21.......... or...952 $.. provide the name.. give full and complete information relating thereto.........COMMON INTERROGATORIES .

...3 If the answer to 31.... list exceptions: Yes [ X ] No [ ] Yes [ X ] No [ ] Yes [ X ] No [ ] PART 1 ................11. If this unit price is not available..2 Preferred stocks....308... 1 Name $..1 is yes....859 30....... Inc 31....1...........195.3 Totals.638 2 Amount Paid 0 35..............12..05 Identify all investment advisors....................... 1 Name INSURANCE SERVICES OFFICE.................000 .... or Fair Value over Statement (+) 30......... INC..... the fair value is based upon quoted market prices or dealer quotes.578 . describe the reporting entity's process for determining a reliable pricing source for purposes of disclosure of fair value for Schedule D...956 2 Amount Paid 5..1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? 32.................. brokers/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts. ..... 34............200 30..2 If yes.. complete the following schedule: 1 CUSIP # Yes [ ] 2 3 Name of Mutual Fund Book/Adjusted Carrying Value 29......11..... PA 19087 29.................111.2999....3 .INVESTMENT 28.......519 .. if any? 34.....059 30..782.......... TOTAL No [ X ] 0 29..10........112..2 List the name of the organization and the amount paid if any such payment represented 25% or more of the total payments to trade associations....... officers or departments of government.... if any? 35...OTHER 33..COMMON INTERROGATORIES .1 Amount of payments for expenditures in connection with matters before legislative bodies.....1 Was the rate used to calculate fair value determined by a broker or custodian for any of the securities in Schedule D? 31.783.4 Describe the sources or methods utilized in determining the fair values: Fair values of bonds and preferred stocks are based on prices published in the NAIC Valuations of Securities.......... does the reporting entity have a copy of the broker's or custodian's pricing policy (hard copy or electronic copy) for all brokers or custodians used as a pricing source? 31...844. if any? 33....................328...24..492..2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payments for legal expenses during the period covered by this statement. Do not substitute amortized value or statement value for fair value...3 For each mutual fund listed in the table above...... Carrying Value Attributable to Holding Date of Valuation Provide the following information for all short-term and long-term bonds and all preferred stocks....10....1 Amount of payments to trade associations. ......Annual Statement for the year 2013 of the ST..1 Amount of payments for legal expenses. based on valuation determined.....378 ........ in good faith....1........634..200 .......2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payment expenditures in connection with matters before legislative bodies.371.1 Does the reporting entity have any diversified mutual funds reported in Schedule D-Part 2 (diversified according to the Securities and Exchange Commission (SEC) in the Investment Company Act of 1940 [Section 5 (b) (1)])? 29.272 $.........2 If the answer to 31.649....549........... service organizations and statistical or rating bureaus...... 1 Name $. service organizations and statistical or rating bureaus during the period covered by this statement.. or if prices are unavailable..........COMMON INTERROGATORIES ........ .. 1 2 3 Statement (Admitted) Value Fair Value Excess of Statement over Fair Value (-).. handle securities and have authority to make investments on behalf of the reporting entity: 1 2 Central Registration Depository Number(s) N/A CBRE Clarion Securities 3 Name Address 201 King of Prussia Road Suite 600 Radnor.....790.. officers or departments of government during the period covered by this statement......... by The Travelers Companies........ PAUL FIRE AND MARINE INSURANCE COMPANY PART 1 ..2 If no......435.354..182 2 Amount Paid 0 15.....709.328......085.1 Bonds........ 32........519 ..... complete the following schedule: 1 2 Name of Mutual Fund (from the above table) Name of Significant Holding of the Mutual Fund 3 Amount of Mutual 4 Fund's Book/Adjusted 30.2 is no.

......................0 .......5).....0 $...2 4............309................ give full information: 16 Yes [ ] Yes [ ] No [ ] Yes [ ] No [ ] No [ ] No [ ] N/A [ ] N/A [ ] Yes [ ] No [ ] ...0......0 % $..........76 Number of covered lives $.....1 2................ PAUL FIRE AND MARINE INSURANCE COMPANY GENERAL INTERROGATORIES PART 2 ..........2 5..................74 Total premium earned 1......................6 3..2) above......5.21 Participating policies 3............................ Health test: 2...............................64 Total premium earned 1..996..............0......... Reserve Numerator.. Yes [ ] No [ ] Yes [ ] No [ ] .....63 Number of covered lives All years prior to most current three years: 1........4 2.......855 $.PROPERTY AND CASUALTY INTERROGATORIES 1..3 4..........0 $.....6 Indicate amount of earned premium attributable to Canadian and/or Other Alien not included in Item (1............501.. what is the extent of the contingent liability of the policyholders? Total amount of assessments paid or ordered to be paid during the year on deposit notes or contingent premiums....387 ...........1 3.............0 5....................0 $..................0...............................Annual Statement for the year 2013 of the ST...............7 2..0........872...2 Premium Numerator....65 Total incurred claims 1.0 1..............0.......21 Out of Attorney's-in-fact compensation 5.....................0 $....... indicate premium earned on U........160 ......0 1................601 . $..................................................11.......... Premium Ratio (2...........5 1...4 1.................S.....4.....61 Total premium earned 1.....1 1.............079..................0 $..........0 ......3 2......................................0 $..........0 $............ 5............71 Total premium earned 1...0 2 Prior Year $......2) is not reported on the Medicare Supplement Insurance Experience Exhibit? 1..... been deferred? If yes...22 As a direct expense of the exchange What expenses of the exchange are not paid out of the compensation of the Attorney-in-fact? 5... Individual policies: Most current three years: 1.....4 5.....967.....0 $......0 ..0 $...........0 $...72 Total incurred claims 1...0 .2)..........75 Total incurred claims 1... state the amount of calendar year premiums written on: 3.......4/2..........0 $....76..............22 Non-participating policies Yes [ X ] $................0 $.......0 $.......... Premium Denominator.........714.. business only.............. Reserve Ratio (2.................. Reserve Denominator........0 $.2 1....665 ........5 Has any Attorney-in-fact compensation.................................31 Reason for excluding: Yes [ ] No [ X ] $......................054...............................3 FOR RECIPROCAL EXCHANGES ONLY: Does the exchange appoint local agents? If yes.......62 Total incurred claims 1.......... Indicate total incurred claims on all Medicare Supplement insurance.. contingent on fulfillment of certain conditions..5...66 Number of covered lives Group policies: Most current three years: 1......4 FOR MUTUAL REPORTING ENTITIES AND RECIPROCAL EXCHANGES ONLY: Does the reporting entity issue assessable policies? Does the reporting entity issue non-assessable policies? If assessable policies are issued....675..2 2.......................................................................683................................358 4.920...............0 1 Current Year $.0 Does the reporting entity issue both participating and non-participating policies? If yes...... What portion of item (1.................. 4.......................73 Number of covered lives All years prior to most current three years: 1..1 4.....1 5. is the commission paid: 5......3 Does the reporting entity have any direct Medicare Supplement Insurance in force? If yes.......1/2.5 2................11...0 $..

indicate the number of reinsurance contracts containing such provisions.. Spanning the U. Except for transactions meeting the requirements of paragraph 31 of SSAP No..3 6. The Company's loss estimates for terrorism reflect U.6 What provision has this reporting entity made to protect itself from an excessive loss in the event of a catastrophe under a workers' compensation contract issued without limit of loss? The Company's risk managemnt practices include active monitoring of insured employee local-based concentrations. including proprietary and third party computer modeling processes. during the period covered by the statement.15 Yes [ X ] No [ ] Yes [ ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] Yes [ ] No [ X ] . and the Mid-Atlantic States.g. If yes. 62R. has the reporting entity ceded any risk under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement. and (iii) the contract(s) contain one or more of the following features or other features that would have similar results: (a) A contract term longer than two years and the contract is noncancellable by the reporting entity during the contract term. PAUL FIRE AND MARINE INSURANCE COMPANY GENERAL INTERROGATORIES PART 2 . or (c) The entity has no external cessions and only participates in an intercompany pool and the affiliated or lead company has filed an attestation supplement. a deductible. in whole or in part.2 9... used in the estimation process: The Company uses various analyses and methods. The Company’s loss estimates are based on the Company's catastrophe risk model estimates and include loss from the hurricane hazards of wind and storm surge.. reinsured? If yes. The Company's hurricane loss estimates reflect U.. the locations of concentrations of those exposures and the external resources (such as consulting firms or computer software models).1 9.S. Property and Casualty Reinsurance. or portion thereof.. a loss ratio corridor.4 6..Annual Statement for the year 2013 of the ST. for which. Describe the method used to estimate this reporting entity's probable maximum insurance loss.. The reporting entity is exempt from the Reinsurance Attestation Supplement under one or more of the following criteria: (a) The entity does not utilize reinsurance..3 9. to enter into a new reinsurance contract with the reinsurer. or payment of losses.2....1 or 9... The Company uses these analyses and methods to make underwriting and reinsurance decisions designed to manage its exposure to catastrophic events. except for such provisions which are only triggered by a decline in the credit status of the other party. controlled by. it recorded a positive or negative underwriting result greater than 5% of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss and loss expense reserves ceded greater than 5% of prior year-end surplus as regards policyholders. Does the reporting entity carry catastrophe reinsurance protection for at least one reinstatement.S.. exposures and include property exposures. if any.1 6. the Northeast. or (b) Twenty-five percent (25%) or more of the written premium ceded to the reinsurer has been retroceded back to the reporting entity or its affiliates in a separate reinsurance contract? If yes to 9. please provide the following information in the Reinsurance Summary Supplemental Filing for General Interrogatory 9: (a) The aggregate financial statement impact gross of all such ceded reinsurance contracts on the balance sheet and statement of income..4 9.5 9. accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding entity? Has the reporting entity during the period covered by the statement ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates). give full information: Has the reporting entity ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates) for which during the period covered by the statement: (i) it recorded a positive or negative underwriting result greater than 5% of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss and loss expense reserves ceded greater than 5% of prior year-end surplus as regards policyholders. excluding cessions to approved pooling arrangements or to captive insurance companies that are directly or indirectly controlling.1 or 9. or (ii) an association of which one or more unaffiliated policyholders of the reporting entity is a member where: (a) The written premium ceded to the reinsurer by the reporting entity or its affiliates represents fifty percent (50%) or more of the entire direct and assumed premium written by the reinsurer based on its most recently available financial statement. in an amount sufficient to cover its estimated probable maximum loss attributable to a single loss event or occurrence? If no. property residual market exposures and an adjustment for certain non-property exposures. does the amount of reinsurance credit taken reflect the reduction in quota share coverage caused by any applicable limiting provision(s)? Has this reporting entity reinsured any risk with any other entity and agreed to release such entity from liability.2 9. (ii) it accounted for that contract as reinsurance and not as a deposit.4.1 8. What provision has this reporting entity made (such as a catastrophic reinsurance program) to protect itself from an excessive loss arising from the types and concentrations of insured exposures comprising its probable maximum property insurance loss? The Company purchases both excess of loss and proportional reinsurance to protect itself from an excessive catastrophe loss.. and Canadian exposures and include property exposures and workers' compensation exposures.1 Yes [ X ] No [ ] Yes [ X ] No [ ] .2.5 7.3 8. whether conditional or not.PROPERTY AND CASUALTY INTERROGATORIES 6. describe any arrangements or mechanisms employed by the reporting entity to supplement its catastrophe reinsurance program or to hedge its exposure to unreinsured catastrophic loss: Has the reporting entity reinsured any risk with any other entity under a quota share reinsurance contract that includes a provision that would limit the reinsurer's losses below the stated quota share percentage (e. or an affiliate of the reinsurer. less frequently than on a quarterly basis (unless there is no activity during the period).1 7. and (c) A brief discussion of management's principle objectives in entering into the reinsurance contract including the economic purpose to be achieved.2 7. or (f) Payment schedule..S. Property exposures are analyzed to determine locations of concentration. to analyze catastrophic events and the associated risks to arrive at loss estimates.. To best assess risk. the Company reviews available treaty reinsurance coverages periodically and makes purchase decisions as it deems appropriate.2 6.S. or (b) The entity only engages in a 100% quota share contract with an affiliate and the affiliated or lead company has filed an attestation supplement. (d) A unilateral right by either party (or both parties) to commute the reinsurance contract. (c) Aggregate stop loss reinsurance coverage. the Company conducts site engineering analyses on buildings with large exposures.... Although the Company currently has no significant workers' compensation treaty reinsurance. or under control with (i) one or more unaffiliated policyholders of the reporting entity.. an aggregate limit or any similar provisions)? If yes. or an affiliate of the reporting entity. 16. (b) A limited or conditional cancellation provision under which cancellation triggers an obligation by the reporting entity. The Company's loss estimates for earthquakes reflect U.. The Company also develops conventional attack loss estimates for combined property and workers' compensation exposures for comparison and adherence with aggregate enterprise guidelines. the Gulf States. Facultative reinsurance purchases are also made as deemed appropriate. (e) A provision permitting reporting of losses. this includes California.. exposures and include property exposures.. New Madrid. from any loss that may occur on this risk.. and identify the type of insured exposures comprising that probable maximum loss....... (b) A summary of the reinsurance contract terms and indicate whether it applies to the contracts meeting the criteria in 9. or (b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP? If yes to 9. explain in the Reinsurance Summary Supplemental Filing for General Interrogatory 9 (Section D) why the contract(s) is treated differently for GAAP and SAP. Florida. and either: (a) Accounted for that contract as reinsurance (either prospective or retroactive) under statutory accounting principles ("SAP") and as a deposit under generally accepted accounting principles ("GAAP").. a loss cap.

are the methods described in item 14.................61 Letters of credit 12.......... 16.... Has this been done? Yes [ X ] 11.2 Of the amount on Line 15....0...................... are all the methods described in 14...........................................................3 State the number of reinsurance contracts (excluding individual facultative risk certificates............12 Unfunded portion of Interrogatory 17... Do you act as an administrator for health savings accounts? If yes.........12 Unpaid underwriting expenses (including loss adjustment expenses) 12..........................1 18................18 Gross amount of unauthorized reinsurance in Schedule F-Part 3 excluded from Schedule F-Part 5 17...22 Incurred but not reported portion of Interrogatory 17.................................... please describe the method of allocating and recording reinsurance among the cedants: Per the Company's Reinsurance Allocation Agreement and Pooling Agreement...........3 18.................. state the amount thereof at December 31 of current year: 12................42 To 12............................................ .................424.........................................3 14.11 17...... No [ ] N/A [ ] Yes [ X ] No [ ] $... ......614. ...2 If yes. state the amount that is secured by letters of credit. ...............................14 Case reserves portion of Interrogatory 17.....18 17.................2 If yes..........18 18.......4 If yes.......13 Automobile......... ....2 ..0 $.........0 $....... collateral and other funds: 12.....0 Yes [ ] No [ X ] $.......... state the amount of corresponding liabilities recorded for: 12...... ................................... 16...............6 If yes.......... are premium notes or promissory notes accepted from its insureds covering unpaid premiums and/or unpaid losses? Yes [ ] 12..0 $...........................5 Are letters of credit or collateral and other funds received from insureds being utilized by the reporting entity to secure premium notes or promissory notes taken by a reporting entity..11 Unpaid losses 12.........................3..................18 17..........23 Unearned premium portion of Interrogatory 17...11 Gross amount of unauthorized reinsurance in Schedule F-Part 3 excluded from Schedule F-Part 5 17.......... disclose the following information for each of the following types of warranty coverage: 1 2 3 Direct Losses Direct Losses Direct Written Incurred Unpaid Premium 16.. Provide the following information for this exemption: 17................0 $........................ automatic facilities or facultative obligatory contracts) considered in the calculation of the amount.........20 Paid losses and loss adjustment expenses portion of Interrogatory 17..............................3 of the assets schedule..................... including unpaid losses under loss deductible features of commercial policies? 12.......3 If the answer to 14... 1984....18 17.1 Largest net aggregate amount insured in any one risk (excluding workers' compensation): 13.....607....... please provide the balance of the funds administered as of the reporting date.... 5 Direct Premium Earned .............2 entirely contained in written agreements? 14...11 17....17 Contingent commission portion of Interrogatory 17................496 $.........18..0 $...... not included above: 17.....................8................. please explain: Yes [ ] Yes [ X ] No [ X ] No [ ] 15...4 If the answer to 14.0 $........... ..............19 Unfunded portion of Interrogatory 17....525 Yes [ ] No [ X ] ................. Page 2.. Yes [ ] No [ X ] Yes [ ] No [ X ] 4 Direct Premium Unearned ..............62 Collateral and other funds 13........................1 Has this reporting entity guaranteed policies issued by any other reporting entity and now in force? 11.....3 is no....13 Paid losses and loss adjustment expenses portion of Interrogatory 17.957 $..................232..............1. ...................................3 If the reporting entity underwrites commercial insurance risks.. .......327 No [ X ] N/A [ ] ..... .....1 Is the company a cedant in a multiple cedant reinsurance contract? 14.......................... but including facultative programs.0 $...303..0 % ....11 Provide the following information for all other amounts included in Schedule F-Part 3 and excluded from Schedule F-Part 5... . .. If the reporting entity has assumed risks from another entity......3.........4 Do you act as a custodian for health savings account? If yes................. 12..1 Has the reporting entity guaranteed any financed premium accounts? 15..............24 Contingent commission portion of Interrogatory 17................. provide the range of interest rates charged under such notes during the period covered by this statement: 12.................21 Case reserves portion of Interrogatory 17.....PROPERTY AND CASUALTY INTERROGATORIES 10....................2 18. ........... PAUL FIRE AND MARINE INSURANCE COMPANY GENERAL INTERROGATORIES PART 2 .............0 $.................... * Disclose type of coverage: ..... give full information: The company guarantees the policies of several of its subsidiaries..0 $........ there should be charged on account of such reinsurance a reserve equal to that which the original entity would have been required to charge had it retained the risks............... 16..11 17......0.............. ......................1 is yes.11 Home........ ....... Page 2........0 % Yes [ X ] No [ ] $.................617 $.....18.......0 $................ please provide the amount of custodial funds held as of the reporting date... and not subsequently renewed are exempt from inclusion in Schedule F-Part 5............11 17........ such as workers' compensation.0 16........18 17.16 Unearned premium portion of Interrogatory 17......................... 17......2 entirely contained in the respective multiple cedant reinsurance contracts? 14.......720..........12 Products...................18 17.4 is no. or to secure any of the reporting entity's reported direct unpaid loss reserves.............1 Does the reporting entity include amounts recoverable on unauthorized reinsurance in Schedule F-Part 3 that it excludes from Schedule F-Part 5? Incurred but not reported losses on contracts in force prior to July 1...........41 From 12..........................921............ give full information: Yes [ ] No [ X ] 16.467 $.....0 Yes [ ] No [ X ] $.2 Does any reinsurance contract considered in the calculation of this amount include an aggregate limit of recovery without also including a reinstatement provision? 13......0 $......... ...........11 17...5 If the answer to 14..................................586........... ...15 Incurred but not reported portion of Interrogatory 17....0 $................ $......................0 $.... See Note 14F..2 If yes..Annual Statement for the year 2013 of the ST.............................................. ......1 If the reporting entity recorded accrued retrospective premiums on insurance contracts on Line 15......14 Other*..........1 Does the reporting entity write any warranty business? If yes....... Yes [ X ] No [ ] 14......

....119.......2 & 19....277.....149..506 .. 23... 32 & 33)................258.....330 ...........497 ... 5...722 .......881..............2............ cash equivalents and short-term investments (Line 5)............718....3..........423 ............2 ............21................693.......1.12............ 15... ........................968...537 .................(0.........20........993.....254 ................................848 .676.....800..............622.................0 Bonds (Line 1)...........721...... 23......... 17................................778.......49.......637...... 1 2013 2 2012 3 2011 4 2010 5 2009 Gross Premiums Written (Page 8......503..074 .....1.0.939 ..... show percentages to one decimal place......... 19.935 ............ 2..714.. Total investment in parent included in Lines 42 to 47 above..3.... 39..668.897............349 ...666 ............... 3.........................5.......................22.............444 .050 .............729 . 3) (Item divided by Page 2............. Total other income (Line 15)......0 ...58......0 ....1..................0 .............. Col.....0 ..................... Property and liability combined lines (Lines 3.2 & 19.436....3 .........722.................557..697....................74................125..868...........354......2...... Cash...........591.670 ....0).......343 .....524............485 ... 19............ 9........... cash equivalents and invested assets (Line 12)..292.........295. 16..... 42.0.................... Affiliated short-term investments (subtotals included in Schedule DA........6.............603........... Line 37).....776............... Net cash from operations (Line 11)....... 49............... 48.........601 ...............................20.........289........0....063.910 ..153......... 19.. 12.3............3 .... ......... 1)......... Total admitted assets excluding protected cell business (Page 2........6..........036 ..1..168.............627 .........................907.267.............197.2.....2...............0 ..........1.....28..............874.....436.. 25......... ..........................151.0 ...........462.424 ..... 50..... 26................244........778 ............. Receivable for securities (Line 9).......072.759... Line 1)..536......5.......0 ............0....930.................4 .855 ..........................68....000.58. .855.................1. 14......680 .....000. 4.979 ...783 ...........2)................638 ..103...367..600 ..2.........5..........3 ................329 .. 17......1.930 ............225... 19.. .... 38.................. 47.0 ....975..48......2........14..362 ..0 ....5...........8 .707.919.. 15..655 ..621...... 21............. Surplus as regards policyholders (Page 3....996.537..................753.....313 ........222 ............... 34..000 .. 12.......000...238....(0....213.......3.082..... 4.0 ..7.......................4 ..................721...5...992...........516 ....0.000 .735......460......1.2.2.........650.............1...0 ............ Unearned premiums (Page 3...736 .................12....4......390.................0.................574 .681 .......3........................ Net investment gain (loss) (Line 11).................2........678 .4...000...........0.162 ...490.....................5..908.. 20....1 .........728..2......000 ........050....880.........................868.............905.... Line 26......................277...........909 ...944..999...431 .........13..................................053............455 ....3.413...134 ..........796.....3......3 ..... 21 & 26)............. Losses (Page 3...........3.568..227 ....830.....128.... Line 12....096 ............ 18......100...............0 ..700. 17....8.... 3) x 100..414.. 3).................3 ...........488........6......656 Net Premiums Written (Page 8.........0..894 Statement of Income (Page 4) Net underwriting gain (loss) (Line 8)......... Aggregate write-ins for invested assets (Line 11).435 .....................310 ..........................166..........0.....104....12.........006....333. Summary...0....................................663.....432 ...3.......166...........838.................50...716..................2...768. Cols...668.......2.................710.......564.................783 ..........................983 ......................223..........892.....356 ..........483......177 .382...0 ................0 ...248 .820..... Line 18.....639 .2.... 24....... Contract loans (Line 6)....269 .........895.....................754 .......................................... 4..12.20.. 6. Col.....................1....618 ......273 ......................154....................7.. All other lines (Lines 6............5................1.....464.......2 Deferred and not yet due (Line 15.....647.....0........468....964............3.135 .........1..........28....3 Accrued retrospective premiums (Line 15....................67..........................886............. Summary.932 . 1.....5........190........6 ...... Line 12..696 ..670.....2 ....22. 44................. 12....645 .....0.. Liability lines (Lines 11. Cash Equivalents and Invested Assets (Page 2............ 30 & 34).104 Authorized control level risk-based capital...... 29.................594 ...... 33..0 ....................149 ......2........0 ........................976....18.......39.157......471 .638. 2............. 11..........808 .........354....975..................2....... 2 & 3) Liability lines (Lines 11................. 11.326.............142 ... Affiliated common stocks (Sch......XXX.....058...923.............809.........0 .754...3...448. D........704 ...024.4...................352.......277 ...... Nonproportional reinsurance lines (Lines 31.....619...260....837.3 .....090... 13....000 ............65.....1 & 3...................0 .............917.... 14........0 .......594......993..... 9.942...3..........32.0 ...................1......195 .......0 ......... Capital paid up (Page 3...0) ....0 .................681 .................623 ...............20.519 ...0 .....768..348...............968 ........6 .208..................19.............912....025 . 16......566.787 ...........981 ........................0 ......554 ..7.443.4)...... .470....... Property and liability combined lines (Lines 3..............................................0... Summary.... All other affiliated.............. 43...1......0 ................102......850...0 ..... Line 9).4..293 ............363....1.......316................914.769 .028 ......898....1.635............... Cash..284 .2.5...19..........0 .......099.... Line 10).303.28........570 ..............061 ...........................1......1 ...759...............135....273......014.... Premiums and considerations (Page 2..0..082........ 35...453...772) ....66........4.. ...944 ...764..... 17..................................... 29..111....0 ....................000 .... 9..823 .....XXX.281 ...1. 45....445.459 ............. Column 5.23..651..0 .........7...59..................5....4...................557......786... 32 & 33).1 & 2............075 ..........213 ..............0 .......435. Col...274.483 ......3..............4 ..385 ...........177.....914.794 30........0 17 ... Line 26)..... 14.........4 .............341 ...................0 ....750......(5...........858 ......3..631.................................1 ......100..1..5........5.....251 .......................497....... 28............7...............084.....926...827 ..............084 ....64.......020...............104 Cash Flow (Page 5) 27..............213 ....0 ........... All other lines (Lines 6....100.....89....... Loss adjustment expenses (Page 3.481 ....................3 ..........594..................628......782.......725.261 ......891.........388 ...486 .........................799 .. Derivatives (Line 7)......... 10........ 28....944......................0 ....388....0 .........468 ........ Line 3).......4 ..... Col.....0 .........0 ......... Part 1B.....868.754 ..18......... Securities lending reinvested collateral assets (Line 10)..12...603.....645.0....014 ..924............883........... PAUL FIRE AND MARINE INSURANCE COMPANY FIVE-YEAR HISTORICAL DATA Show amounts in whole dollars only.......8 .874............148.....663......... 20.......... Other invested assets (Line 8)...............0 ...........907............. Total (Line 35)... 24.........................000... Real estate (Lines 4..........697....527....1.......343 ................0...............421..........................0..1............ 22.. 36..792.............000........65...128..1 ...............7 .0 .......................426...................31....(0...0 ..1.......0 ............................. 8.483 .337......22......... 1..................977 ..............1..................0 ............723.............475 .................975.779............741. 46...........46...... Stocks (Lines 2....6....... Col........ ............. Property lines (Lines 1...4............................. Col................... D..........128..0.2.........320 ................... 4.........................................................5.......494.................... 30 & 34)...931 ............... 11.............. 41.481....1.. Part 1B.......... Federal and foreign income taxes incurred (Line 19)........................... 19.......210 ..6... 13........384....674 ......1.....336.... Col....... 1).....0 .....901...149 .........(394.3)........134........632 .................28.........725.......1.. Mortgage loans on real estate (Lines 3... 5......734........................011.. 1)...100.....701.............0 .........368.......114 28.......3...................479 ..770 ....1...............20.............715 1........4..........443 ..................356.487) . Line 24...........881 .. 17.............737........18............. Verification...13..............................329.812.................1 ......817 .........................0 .......171 ......921 .....283.............822 .. 23.............7... Affiliated preferred stocks (Sch........ no cents....0 ........9 .........585.............455 ..........948................Annual Statement for the year 2013 of the ST.156................. 18.....693............1. 8........ i.. Line 37 x 100........................713................................0.137......591........0.......0. .. 13........4..0 .......................179.................421 ..761...............2 ...831...........1..................5 ............. Percentage Distribution of Cash.... 37.....283 ..................761................152 ....... 20.....840 ..0 ..559............761.......6......680 ...23...........028..646 ..........516 ..........700...274.8 ....036...3... Property lines (Lines 1.. subsidiaries and affiliates to surplus as regards policyholders (Line 48 above divided by Page 3..648...131..406 .700..............5...061 ....20. 6) 7............................422.............977 ......4.............4 ............... D.............065....898...485. 21 & 26)..............426..820 .000..779.868..3)...............588........... 18...2....381.912.58.2).......875.........0 ..8 ....401................. 17.....820.......5... 19....................333 ......... Total (Line 35)...5...1)..... .....979 .. Total of above lines 42 to 47.. Percentage of investments in parent......125 ......9... 16..682......26............ 10................. Net income (Line 20)........284 ................. Lines 30 & 31).....935... Total liabilities excluding protected cell business (Page 3.......................... 17.562 ....................0) ..360...987 ...........231.1.......100.....713..274. 31........ 40.................326.....415.......593.316.......524.......1.. Dividends to policyholders (Line 17)..5...................728 ....774.......0) ........ 18..431.. 2..... 22 & 27)........... 29............0 ......................852 ...989.1 In course of collection (Line 15.................540 ....18.......6.......... 15........58..243....1....2.......23...7..............626.........923.945.......61....020...350.....1...8..................069.................996 .025.0........3.978 ...738.....2 ..237...31......75...0 . 5.....4)..... Investments in Parent....... 17..1 ...0........639...........100....100...........0 ..026 ........0 .................854...................0...430.......... Col..........983............ 18................e...........941...........12............. 3): 20.............1...668 .. 10....0....2 & 4.....3...........722................930.4 . Nonproportional reinsurance lines (Lines 31........... Affiliated mortgage loans on real estate.. Balance Sheet Lines (Pages 2 and 3) 19........ Subsidiaries and Affiliates Affiliated bonds (Sch...........986............2.. Col.69.................... Risk-Based Capital Analysis Total adjusted capital....747 .... 32..6.728...............18. 22 & 27).....................2)..833.....388 ... 24................28.... 8...........

..............925....... 12)...373............................ Line 35...565.........1...081........................................ Part 2-Summary.. Col.000................71....... 2 x 100.... 17.......808.(1.............................. Nonproportional reinsurance lines (Lines 31......(1............(1..112 ......3.100....145 .9 ...............................(5..........254 ..........643 . 1 & 2) 54.. 24.....3.........523..966..........1 ................387 .......666 ....2.353..... Premiums earned (Line 1)...................8) If a party to a merger..... Total (Line 35)....8..820.....617 ...........237) ....................846...........534 ...678.0)......124 ......0 66.......3) ................... Col....3............2.61..... ..... 1 x 100).467..33..... 21 & 26)..........................539.............. 5... 28. Development in estimated losses and loss expenses incurred prior to current year (Schedule P..................................611......(2.....45.. Other underwriting expenses incurred (Line 4)..32.........................061 .. Line 12.800......490 ...... .. Line 1) x 100..........034.....3...........138 64......071 .......821) ..3..............0.....082 52.................... All other lines (Lines 6....4)..... 19. 3.............. 13........... .16.......349.(107..759 ..833......905.............343................651 61........799) .. Loss expenses incurred (Line 3).................. 15...... 17.32.....936....753........... 17...31.. Part 2. 5.....025......467......470..........2....809 .627 56......790....2) ..487. 6...250..........916 ...411 .2. Property and liability combined lines (Lines 3.........586.....661................7 .. 8... 23..498...776 .695........0 .(677.............0 ..051.....1.871 65..... Line 12.......516......770.........(4.......5 . 4............060.......398..... Percent of development of losses and loss expenses incurred to policyholders' surplus of prior year end (Line 74 above divided by Page 4..5 .102........1...............1..100...347.....22..........................054.....11........ Net underwriting gain (loss) (Line 8)....31..... 11.......58....126....67...................................... 6.................................................63.............6 .....1 70. 2.......1.....204 .....(535.........792..701 .202 .2............... .(344..929..043......8 ......3.. 23........ Line 37. Property lines (Lines 1..........1....753 63.............438.. Nonproportional reinsurance lines (Lines 31..... 4) 60.................1.516........... divided by Page 3..........090................2. 29....855 ........ ........ 19........870....... .......2..43..(9............. All other lines (Lines 6.... 14.... 10..1) ...040...129..261.... PAUL FIRE AND MARINE INSURANCE COMPANY FIVE-YEAR HISTORICAL DATA (Continued) 1 2 3 4 5 2013 2012 2011 2010 2009 Capital and Surplus Accounts (Page 4) 51..3 .................079) ......284 .. ..9 Other Percentages 71..6 ....282 ..........928.................... 11)......... 12...061...487........152..131....32............ 19....... Col.........269.........(558.217...000....839.......0).... .......170......775. 24..............0 73.........485.7 .......... 17............321.........485........970) ..... 16....0).........752 .......50.................(2........ Liability lines (Lines 11.580 .2......................(479..................25......22.25....506..059......... ...0 72....38.... Losses and loss expenses incurred to premiums earned (Page 4....416 62........086 .........150....386.........78................1 ........15... 9.(770....115..........48.86...15 divided by Page 8. have the two most recent years of this exhibit been restated due to a merger in compliance with the disclosure requirements of SSAP No............734 ....... 16.2..............640....1.15........ ......(8....... ..........................11..4)..... ........529........(249...1...... Part 2.... .224....1) .581.. Change in surplus as regards policyholders for the year (Line 38)....1.927 ............1.....236 .. Lines 4 + 5 ......1 ..................131. 14................542.........82..894 ......595..............(298..86.... ....287....... Line 21.........................9....3 ..... Losses incurred (Line 2)....143 .... Part 1B.000) .........(7.... ..(500.....................541 57...397) .........1.....0 67....100.......180..5 ....2............. Col.861.............100...........1.014 58.....(85... 18............. Line 1 x 100.....513.........238) ..........788.286 55.....1 ................32........ 19.....(345....................... ... Line 21.. 32 & 33)....... Line 35 x 100...961 .. Liability lines (Lines 11...022 ......12.............176) ....533................3......................1..406 ... 18......... Col...3........ Lines 2 + 3 divided by Page 4..........1...........252) ....843...7) ... ..1..947..(164.. .......541.......... Property and liability combined lines (Lines 3..........263.30...051 ........692.................. 15.. 17....111. 1 x 100...3 ....... Net premiums written to policyholders' surplus (Page 8........16... 13............663.....5.............20............170 .....627 Gross Losses Paid (Page 9...8 ....724.Annual Statement for the year 2013 of the ST...598........8 ..1..........892..649.... ....................... 4.......056.. Cols......0 ...............549) .......758...83.. 18.......3 One Year Loss Development (000 omitted) 74. 11..2......577 ..1.....000) ..475......563) 53.829 Operating Percentages (Page 4) (Item divided by Page 4...............................264. 22 & 27)..(3..1.........(8.....0)..157...........0 .2 .......4 .........617 .. 19... 30 & 34)....2 & 19...........7) Two Year Loss Development (000 omitted) 76..923..................509 .. 2........639..0 ....1........ Col.........490..12...342... 10. ...31......103 ..916..35..........18.457......550.............658 ... 29....679 ....... Dividends to stockholders (Line 35)..................508 ...............(3.......722 Net Losses Paid (Page 9...........32... 9. Total (Line 35)..................9......31.... ...... Other underwriting expenses to net premiums written (Page 4..044 .......3 .......1 ......680.....788 ...... Part 1B................. Accounting Changes and Correction of Errors? Yes [ ] No [ ] If no..............(182.....9) . ......3) ...790. 30 & 34)....298..847..401 ........255 59....0 ............... ..014) 75...... ................... Percent of development of losses and loss expenses incurred to reported policyholders' surplus of second prior year end (Line 76 above divided by Page 4..........(134.059....669 ................. Part 2-Summary....76....303.. 8...480........60..4) ..........797.............1........... Col.........11... 12......................15.......... 19.. 28....534...8 .........000) ..........173 ..... 21 & 26)... 18............. 32 & 33). 17.....241 ...............173................ Property lines (Lines 1... 22 & 27)...000....... please explain: 18 .. ...........3....71.........2 & 19..........9...100..000) ......8) ....56.......4 69............ .........3 ..............015 ................... Col..........620) 77.. Development in estimated losses and loss expenses incurred 2 years before the current year and prior year (Schedule P.....399 ..461..........................551 ...........................000..(6..... ................8 ...............765...529) ........7 68.................2................ Net unrealized capital gains (losses) (Line 24)...716.....793...646..641...084 .....

......293.................190 ......110...121 ....603.213..694 .....6........394 .. ........3...494...112 .....453 ...113...3.555 10.79 ....635 .091 ....1..............25.20..........345 ............527 ....24...589 ...6 .65.... ..0 .775 ...781........12...544.010 ... 10...501 .... 2009..............209.......XXX.566.......54.422 .. 2004.807 .962...858 .24..... .....056 .......572 .....478....2....2...728 .665 ...... 2004..731 .29......775 . 2005.... is reported in the Notes to Financial Statements........461 ..175...........091 .226 .. which is reported in Columns 32 and 33 of Part 1.......472 ...53...77.075.244.XXX......807 .......290...9...2.436.....1......764 .956 5... 2005.879 .....328....... ...142...146..411 2. 3.......923 .365...927...........235.......135....830 .52..576... 2013.985 ........891 .....ST.649 .....26.....693...48...620.XXX...............149..........2....54.. 2006..2...989 .202.......149 ...XXX.2.....182 ...480 ..145...4.112. 11...4.....478.XXX..746..012 ..51.......598..991..75. .160....506 .988 ....761 .....1.1........2................247.78..............269.22...4....6 .......138 ...7 ..............420............... ......224......119 .XXX...3 ........262...772 ....889....409 ...0 ...4.....16......87......546 ...31.1.......359.16......... Totals ..4....219.648...112......101..307 .916 .XXX........ 2009.198 .......843 ........XXX......61...764 ...56.........3...............0 ..14. .....229...304 .........XXX................ 4............79 ......6 .......872 .269 ..126........456... .................2..0 ....114.....XXX............... 2011..968 ..674.53..057 . 2011..248.2..4 ..126.....0 .272 ..83 ......3. including tabular discounting......435...854 ..543 .....527...0 ....011 ...471 .......102 ...2....34........478 .......... 8.745 .. 12...206........7...359....1 ......... 5.937 .. 33 ..198...................479 ........100 ..............XXX...........550.....173......50..... ....010 .......216..........49..126.4 .....................707 .709 ...370..........642........291......2.........052 ..24 ..... 2004............247 ......2...259...64..........4.185.209 ...............718 ........2.............................0 ...351 ..5.......20...........8......4.679 . 2................346 ....631....24.245 ........797 ...............799 ...1......47.446.0 ......XXX... 2006.257.............336... . 2006...5......981 .............. 2011.....857..XXX.......229 .0 .547 .....514 ........97 ..6 ......... 2013.... 2012.........288..156 ........125 ....1...........14......211 ......71..............771.441.758 .............087 ...79....216.675......(3) ......976 ..........103..0 ... 11................11.......1...79 .............4.........2....................2 .....936..375..52...79 .........24....34..847 .2.415....0 ........331 ....XXX...0 ............200 9.2...721 .....107 ..821 ....606 .......SUMMARY ($000 Omitted) Years in Which Premiums Were Earned and Losses Were Incurred Premiums Earned 2 1 Direct and Assumed 3 Net (Cols..0 ...8.......951 ...5.....60..375 ....530 ... 8.634 .........522 ...131 .415.....281......XXX..546 .......56 .68.102. 7..XXX.....844..........485 ......191 .2..588..788. ...30......005 . 9...XXX.541 .(680) ..59.....63.......013 ...412 .....337 6...... 2013...3.. ......6............812 ..............718 Note: Parts 2 and 4 are gross of all discounting.............4.200........442 .......................... .. ...706 11...0 ...770.....329 ..... ........132.....195.....516 3.0 ...064 ...31.030 .......655 ....68......5..12..............748 ...850 ....2........913 ... .624..258 ...51.......665 ... if any...841 ... The tabular discount...............5...5.3...........5..................172...............037 .....(516) ..... ....250....17..........0 .........2........159....52.497 .983 ..3 ..022 .........14........077 ...486 . 5.........888 .. Totals....806 ........002... Losses Unpaid Case Basis 13 14 Direct and Assumed Ceded Bulk + IBNR 15 16 Direct and Assumed Ceded Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded Adjusting and Other Unpaid 21 22 Direct and Assumed Ceded 23 Salvage and Subrogation Anticipated 24 Total Net Losses and Expenses Unpaid 25 Number of Claims OutstandingDirect and Assumed 1...695 .......1......124.......3........ ..............661 .......6..9....683 ... 4 ... .. 2012...2...2......756 .148........791 .XXX.4..XXX.ANALYSIS OF LOSSES AND LOSS EXPENSES SCHEDULE P ..................59....835 ..79 .............808 ..224 ....177 .594..002 .........671 ..3.........027 .3..528 .......................299......716 .34....9...23...4...547...460 ...............025 .251.712 .213.... 2010.290.XXX...............234 .....832 ..985 .2...254.. ....951............5............340. .701 ....5.69...............246 ...852 ..3.....421.167...43.........129..........284 ..57..24.5..448..268.......172.................107 ..4 ... 2008....13............ ..636 ..61........474.221...............301 .3..346 ...............166 . .....530..396 .363 .......4....2 ..855.. Prior.512........945 ....1.. .......7 ......7.......338 ..XXX....866 .......641 ....................................398... Prior.......177 ...222...........166 .....200.........245 ..1........553 ......894 4......0 .........22.........721....95...52...091 .............1....3..571 ........2.....3.XXX....100 ......104 .......... 2010.24..............069 ...18...15.....585.......271.8 ......XXX.....021.189...1...2........300 ....798 .. 2010...XXX..37....625 .............0 ..........XXX..............0 ...0 .33.516........... ......... ........355 ....257.....176 12. 26 Direct and Assumed Total Losses and Loss Expenses Incurred 27 28 Ceded Net Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net 32 Loss Nontabular Discount 34 33 Loss Expense Inter-Company Pooling Participation Percentage Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid 1............... ...122 . .964 .624 ............ ......964.....972 .. which will reconcile Part 1 with Parts 2 and 4.....79 ................330 .......0 .3.XXX....5. 3...XXX............693 ...64 .2...........1.........2..826 .... ........207 .352......30......079........XXX..183...65...863 ......8 .....XXX... ..063 ............... .......585 ...............328.4......4... .....9 .........3. Prior.............222 .194....58......584 .XXX....5......296 ..518 .330..83.......682 ..691 ....379.....586 .......803 ............6..........155 .24... ..468 ....2........4.....79 .2.....2..605 ........298........2...42............421 ........ .............60...221 ..656.......40..30.683 ....5 ....863 .698 ...962 ...380 ....0 ..824 ..830 .... 2007...0 ..261 ... 2007. 2.......5..7 .172......608.4.9..........0 .....2.312....... Totals........154 ........263...XXX...109...........347...2.......774..XXX.......868 .. Part 1 is gross of only nontabular discounting. ...800 ..229......XXX...685 .................... ....180... ....141.0 ...270 .113.606 ..206 .2....820 ........887 ..........383 . ...032 .522... 1 ........236.26.........77.....629 ......904 .544..269...294 ...............2...........102 ......931 .......(366) ..... 2009..768 .852 ...16.... .............. .1........24... ..44.980 ..24.....801 ................................25.174.202...13 . 2012.....XXX.574 ..21..709 .....094 .982 .19...........193 ....28..724.545 ....428...129.................74......807 ........ ......796...352 .......192. .......45......005 .........XXX. 2008.........19..021 .387.629 ..XXX.........311.0 ......096 ..91..................200 ......24..............52.........0 ......181 ..... .351 ..255..529 ......971 8..010 ...79 .65.....2... 9....92 ...309.701..................9) 12 Number of Claims ReportedDirect and Assumed 1.........472 ......125..................157...255 .XXX.......424.975 .. 6.2....6 ......... PAUL FIRE AND MARINE INSURANCE COMPANY Annual Statement for the year 2013 of the SCHEDULE P .955 ...... ......217 .5 .............397..168 ...............1.... 6................232 ..................XXX.........24.397 ....189 .675 .....108...2.....747 . 4........ 2008..XXX..5 .046 ..47....281 ..460 ...67.494 ..100.......................2......795....598 ...891 ....858.734..XXX.295 .......4...7 + 8 .......109.......057.6 ..22..........79 .........0 .......511 ....43.625 .217.........2. . .24.........24...657 .......49..5 + 6 ... ...783 ............15....... .....966 .26.2) Ceded Loss Payments 4 5 Direct and Assumed Ceded Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded 10 11 Salvage and Subrogation Received Total Net Paid (Cols........308 ....49.6 .51........969...997 ..52.137..XXX.553 ...996 7..814............412........841 ....847 ...31....1 .. 7..250.....PART 1 ...758.243 .5...714 ....1..181 ..167 ...........864 ...6.........871 ................619 ..581 .............039 .............2.....7 ........675 ..741 . .....18.......... .....120.........79 ..236....732 .1... 2007.. .......22....................71.....122............5.758 .....XXX........966 . 12.......815 ...094 . ..107...944......131 ...8....791 .XXX..18..033 .....................856 ..........XXX.....2.....4...........................855 ...........362 .262.........795 .....378.... 2005. ........8.....487... 10......513..972.833 ..............461 ..

..... Totals...796 ........164 ......4..838 .XXX....XXX.XXX......212...XXX..........2..............XXX...............389..XXX. .. ....281... .538.1... .1....769 . .... ....XXX...XXX.745...20.. 2013..795 .......XXX..685 ......2..... Prior..777 ................(30.587 .004...2....2................2...221 ..................XXX...2........ .011... .. .... 2008....656 .XXX...232.1..XXX.. .1.2............XXX.......789 .....1........XXX............195.XXX..3.. 5......278.....502) 4...8.169....190 ..047 .....958) 5.......2............ ... ....XXX..336....101.73........891 .. ....240 ........... 4...635........2..775.. ......2.... .1.133........407....2...............XXX.XXX.....XXX.......571.. 2005.2.091..........805.....2...............XXX...........3.XXX. 2013.XXX.. ....361.944........232 4.. ......... ...XXX......009 ...2... ....XXX...1........125.....907 ..183 ........ .XXX.1.......XXX.. ... ....(30.....653 ......187 ...563 .. ..XXX......1......777 ..3..... 2006...................911 ...........XXX.. .. 2008........... ...........328.291...XXX......729 . ......1...........906..... ...XXX.........XXX......451 .........963 .2.. ... ....XXX..524.XXX........786 ..... . .....XXX... ..555 .XXX....Annual Statement for the year 2013 of the ST.2..414...XXX......132 .....252... .......XXX.196 .. ..........199 7...795....875 .....109. 2006............... ........XXX.... .........798 ....159.. Prior.....914 ...1..783 ........ 3..........XXX......331....1........ 2009.. ..143 ..XXX.........547 ........8........... ..XXX.........057..................... ............XXX........ .....XXX... ......860 .....032 ..785.......017 ....925...652.................. ...........3.....920) ...XXX........................(51...076...1.689........91........XXX...2..2....264 .535 . ...2..XXX....367 .... Prior. .877........133.....732 .XXX........875 .....................(345..425.........049.346 ................XXX.(23....XXX.974 ...3......446.......1.......668..524......XXX...8..........1.......676...017....159. ........... .......XXX......573 .........304...................927 ..2.......449 ...394....515........XXX..XXX............XXX.. ...8..........................2......XXX.......PART 4 ...........608 .343 ....989) 3....615 ....... .........XXX.743.......... 2006.......XXX..XXX...326..468 ......486 .. .. ..737 ...061) 7......289 ............ .723 . 2007.....516 6...2.632 ....738.....XXX........ ......2..........1...170.. .........XXX. .......056 ..... ...3....... .......XXX... ...110 ...... .......805.....489.........2... 12...... .692.....304) .......XXX.340..3......... .......XXX... SCHEDULE P .....2.... .1..660..279 .337 ....674 .026 .. ... .......2.120....495 .. ...188.318 .......120 .465 ..605 ... 2007..141....206.......230....1............. ...........3........ ....XXX..115 ..216) . ........... ........ ........XXX... ....... ..XXX....XXX.. .......XXX...... .SUMMARY Years in Which Losses Were Incurred Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1 2004 2005 2006 2007 2008 2009 2010 2011 DEVELOPMENT 11 12 10 2012 2013 One Year Two Year 1.. ... .....(12.....XXX..XXX.2.......000..398......3.093..3.412 ...1.......3.......1..XXX...1.XXX..8.........1..702 5......202.1.....721..XXX...................781......197 ......799) ....205.....286 ....348 .............024 ....... ...2..........225 ...1.............702.2..156....361 .....XXX.......144 10.............2...582..1. .2.. ..100..XXX.......047 ...941 ...XXX............XXX.816....2... ......664........2.343.369 . ..... 9........ .........2....516 ....3..1. ....XXX.........XXX..801..141 . 2008..2.......373... .1.726 .448.......909..........072.009............2...190.......550 ..........039 ..826) ......495........377. ......2......655...............802 .......XXX..495.. ......188.2. . ..593..... 2012.....299.....046...........1.XXX...104 .......XXX..XXX.400... ..............734.....XXX......7.683....689 . ...354.......................XXX.......2.XXX.......8...XXX............978 ...1..962... 2009.. .......449.780............452 ......418) 2. .535) ........ .....2..2.. 11..... 2004..190...803 9.....269..124 ....XXX... ....XXX..855.......985 .....(37..292..XXX...2..397.649) .2.. .. 2004.....652 .2.205...XXX............600 ....2..(18.......XXX...409 ..3.....972 .. 2013......508 ...137.........951......2......... ..(8. ........509 ..018 34 ...SUMMARY Years in Which Losses Were Incurred 1 2004 Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 2005 2006 2007 2008 2009 2010 2011 2012 10 2013 1........XXX....XXX......... ...863.770 ....924 ...........027 ............241 .....993......XXX.......760 ..........168.... ....708.199........2.XXX........ .XXX......... ........382 .............377..126.XXX......690.154..061....... .893 .039.087 ...XXX...283..... .....334 .....2...... 7...............392 ..XXX..213 ....... 11....289 ... .306 ................. 2005......1..1.......729 ....141.066...505. .....368 ...................XXX...XXX............. ...XXX.XXX..449.630 ...253 .832......SUMMARY Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1 Years in Which Losses Were Incurred 2004 2005 2006 2007 2008 2009 2010 2011 10 2012 2013 11 Number of Claims Closed With Loss Payment 12 Number of Claims Closed Without Loss Payment 1.423 3.. ...... .....XXX.........1.....500 10.. ......... .......... ..745 8.. ......... ........343... ... ...212 ....408.1..755 .349 .... PAUL FIRE AND MARINE INSURANCE COMPANY SCHEDULE P . ....XXX..751.........XXX.......XXX.1.(3...........431 .....589.............. ....523....2.XXX.....1..172....322 ...573...132.280...659 .. ..(24.....4.2............. 2005..................XXX.1..803.... 2011.678 ... ..337 ....XXX..4..2... ....PART 3 .104 ...........585 ..........777...... 2010........271. ..........756 ..XXX.468.XXX..080......203....XXX.298 ....... ..............805 .......2.......... 6.................XXX.. .XXX... ......752.....190 .(13.......PART 2 . ...........865..077....... .XXX..3.....040 ........XXX.... ........(39.2.8.605 ... .....678 ...... ... .......XXX.151.....8..XXX......343 ..... ......494 . 2010..409 . .XXX.. ...XXX...721........................97..........076......279 .......XXX..1........989 ...XXX.......................933 .........3..483 ....545 ...7...187 11.... 2010..2...893.....465..2.....1.....423 .. ..........1.. .XXX..........835) ........4.......XXX....114 .....953 ............ 2. ....112 ..........599 .................383....097 ... 2007..XXX..1.. ...XXX............XXX.2.XXX...844.........399...983....XXX.......373 .877....XXX.XXX.916) ...... .484 ....... ...046 2.996 .727 ..... ....874... ...702) ..635........095.2........940...XXX...146............. .....479 ...........915. .......... 2004.258.2. .....2.....123.. ......539) 9...... ........... 2011...........1.........XXX.250) 6.....073... .927 . ..........XXX.......(164.............970) SCHEDULE P ... ..739 ...617.....673 ..2.......550 ................(12...242...XXX....266.............XXX...... ...................XXX...........663 ...650..062 .XXX....... ....329 ..5. .......... ...640...895) ..362..... ...... ....363.XXX...161........936 ... ..036.........2....... ...036.119....XXX.2....2.............XXX.... ..492..... .....750 .068 ..XXX........397) 8...........511.....222 .......(64...427 ...074.. ....1....... .......273 .(50....516 .. ......892 ..647...110 ...280 ........ ...768 ....045..XXX....2.746 ....327..409 .677...XXX..........671 ..036 .2.... .552.469.XXX............958 ........XXX..169 ......XXX. 10.(15. .. 8.....XXX...........644 ..... ... ...................953......XXX............ .....261...963.. ..2........................304...870....... 2012...XXX..........1............XXX.... ....2...... 2011.2.... ............XXX.... ......XXX..XXX.3....737 ......015 ......... .......594 ......... 2009. ...............(32...XXX...... ....... ..XXX. ........ ...939..2..... .... 2012..(59.. .....1.......................067 ..145 ........XXX.326...2. .233......782 .........................847 .XXX. ..

..428 .073 .....022 ....149...232...11..916 ..887...11. ...................257 ..............0 (a) Insert the number of "L" responses except for Canada and Other Alien.........821 ..........370 .892 ..948 ..........143..........372 ...............1..0 ..L....0 .....230 .......327.8............................PR US Virgin Islands. ...........L.... ALLIED LINES.......810 .... .....AL Alaska.216 ......L....080............6...611......312 .......................... 56...L.................101. PRODUCTS LIABILITY-LOCATION OF RISK.....15.....097 ..........655 SGP Singapore...944..2.....................064.......734........IN Iowa.....54 Allocated by States and Territories 4 5 Dividends Paid or Credited Direct Losses 3 to Policyholders Paid Direct Premiums on Direct (Deducting Earned Business Salvage) .........25.883 ............................468 ......... 37... .................908) .(514...............845...293) .... ....77.15............... 3..0 ..308...823 .357........4........068....666 ............. Active Status ..481.................. 25........... .793 ...................... ..............451 ........ ..552.... .830....1.................................38.528 ........... .170....216 .170) .............2..136..960) .... ...861...179.901 .L...........696.............22........973 ......L.. 36..965 ..VT Virginia.............775 ..290 .... .0 ...655.571...455.29...850 .6......................0 .....758 .............218.......Qualified .....976 ..106.................43....4......2...MT Nebraska. ...............571.........1.....530 .....668.338 .. Including Policy and Membership Fees Less Return Premiums and Premiums on Policies Not Taken 2 Direct Premiums Written ..... ..............L..1....................811 ...... ALL OTHER FIDELITY-LOCATION OF EMPLOYER...687.............531...260..608..88 ........875 ...ND Ohio..... ............Licensed or Chartered .CT Delaware.......8... ..355.........0 .....(1......(818............1.689) ...330 ....CA Colorado.........094........1...16..........AS Guam...NY North Carolina..0 .349.599.. 15.....060 ............58 .....006...236...............377 ........MA Michigan.......269 ......488.....(896................565.......554 .669 ...275.5.447 .....L..........455....833..............1 .824.......745...XXX...(106...261...4......490.......0 ......... .....0 ...............077.... SURETY...3..15........082 .....785 .878.7..........3.508........................753...0 ...... 46...172.1...639 ..........354.......903 ..324.........25....981.............0 .608.........300...........141..(1.......538 ..51............0 ...............980......5.......Non-domiciled RRGs...510.. ....797 .....745 ....721 ..242 ...L...........322........128.....042.462..L..........811...2..390 ......2 .................1.......L.(4..................27....0 .7.297) ........924............159........................672.......EXHIBIT OF PREMIUMS WRITTEN 1 1....318..249.. 51.... BURGLARY & THEFT............ 54..426............12.(1.........(859................1.13...... PAUL FIRE AND MARINE INSURANCE COMPANY SCHEDULE T ......861 .. 4..0 ......................2............863.692.960........6..0 .....24......475...0 .L.746 ....058 ..L........40....011......... INLAND MARINE-ADDRESS OF INSURED OR STATE OF PRINCIPAL EXPOSURE.........707...068 ............L.354 .....................074 ...... 45............. ....5...239 . 32..5.............8.....928 .......785..........850...................5......363 .454 ............................ 28..317 ..317 ...96...286.....052 ...............279) ......5.......0 .7...596 ....... 13...622 ....21....ME Maryland.7....... .685 ....31...639 ......(5......889....... ...........704...202 .RI South Carolina............898 ... 23....165 ..............156............L..0 ... 58001.........XXX.............168 .8....89..15............2.... Etc.........3....399 ...................0 ....XXX.... 58...FL Georgia.789....779 ....403 ....12..........150. (a)..L...................837.... GROUP ACCIDENT & HEALTH....0 ......451..221 .....396 ..........213.129. 42.092) ....... 39.......346 ................305......029 ..4..797...CONTRACT-LOCATION OF PROJECT.......................269 .......686....29.IA Kansas.......NC North Dakota....................0 ...26..770 ..800) ................ .(7........12........16........417 ..............0 .917 .........................21....L...581 .......IL Indiana.. .....106 ............................LA Maine...........727.........3.L....378 ......24.........761...........337.................L..(1..............1..........494..XXX.949 Line 58 from overflow page 58999........2....813...8...............156...........053 ......9............L..176 .. WORKERS COMPENSATION.......809.416..284...........765.................................................883..730 ...........WY American Samoa.Registered .............181 .........830 .....694 ..................789..........3.856 .....476 ....5....... ......199............668 .....245 .0 .... ........(45..520....648) ...................835...........90...................821...........L..........576.1..........856 ...WA West Virginia................239.....672 ..682 .....304) ...0 ..... 22...........L....1.........12.567 ..7..........760 .824 ...0 ..............0 ...............428 ...015 .........................890) ...768......(3..086 .........517.....404 .140..........912 .........283 .N.......................959.597 ..303.14. 29.....196......37........................729 .348............... ..............2.................835..313......208 ...NM New York.........680 ... EARTHQUAKE..... 10. 20.488..368 ......224 .0 .....................UT Vermont........671. 17...256....4......417) .883 ........853....862 .75........326) .....6.........868....935 ....16................(2..17......878......608 ......670) .511 ....907.......880 ..........364 ..318 .1................3...394.....27.....4..L....818 ..677.....(2.....018 .......762 .823 .....419 ...0 ..4.............442) ..... ..............L.....L..968.................856.........12.959...24... ....... 24...3..L.......1.....144..063 ................. AUTO PHYSICAL DAMAGE-LOCATION OF PRINCIPAL GARAGE OF INSURED....23...................635 ..6... 59.............. 2.....949.306 ..........909..............7.......0 ...646 .223 .........267 .315 ..........842 ...................681 ..........348 ......31.422..........918.1...683...3........0 ......................................612....16....173 .552.........634 ...264) ........(5....724 .3.........574 .......28....... ............644 ..063 .......10...... 34..0 .............143 ......898 ...(1..823 ..889 ............1.... ............689 ....318...... .. ...............0 ......318......5.........264 ..................... 41...........6....12......426...317 ........611.672 .. 21... ................8.............521.104 ........175 ........................ID Illinois......248 ...........671..345.....2... ............0 ...OK Oregon....40...78........072 ..841................678..983 .......... 58002...TN Texas.........801.........527. AIRCRAFT (ALL PERILS)-LOCATION OF AIRPORT FROM WHICH INSURED AIRCRAFT PRINCIPALLY OPERATE.... Explanation of Basis of Allocation of Premiums by States.....3...L...761....251.........533....115...167 .......570 .066....607..461....................313.......330.050 .491 ...29.............................1........1... ...........821 .....34.....016.........................2.966) .......18..355 .........7............3....559 .1...........5.836 ..105 ....41.............892.....9.......34............4.L..4..0 ...... Alabama........... ....246......641... (N) .......706 ....852..............2.0 .24.0 .. EXCEPT BUILDERS RISKS WHICH ARE ALLOCATED ON LOCATIONS OF RISK..730 .......1... 55........474 .... ...........159.........462....941 ....................................342 ..............AZ Arkansas...............104.............882 ..........17...............143 ...........079.904...........34..(4......................076........259..5................535 ............................436 ...923.........108 ......24.729...0 .....XXX..........1.345.....18.896 ..630 ..644..726 ........................ 31...................(331..............049 ..........................4.83..8..199.........................085 .DE District of Columbia...............L...3...7.518) ...........L.....464 .................................823 ... BRIDGES & TUNNELS-LOCATION OF PROPERTY.693 .....096 ...1....... ...........023 ...L.......4.............0 ......702.......(596.........385 .......220 .KY Louisiana..0 ..910 ......................429 .743 ..281..088.868 .... 19........695 ..............826.....197. FIRE..906 ....978....577 ....L.....944) ..2........829..953 ...L........... .........28...46....145..004 .. 30......(933...........L......325 .......12..... ......260 ....L......... 2) ...143 ...622............................67..............PA Rhode Island..................531 ..6................................109 ... 58003.........................822) .....888 ... BOILER & MACHINERY-LOCATION OF PROPERTY INSURED................850 ...................2......496 .... HOMEOWNERS MULTI PERIL...................... .........367. ...4..2..85...14.....................634......................812 .......378.115.......0 ..405..20.8....428.....037 ..............0 ..55 .19..Not allowed to write business in the state....11...........NJ New Mexico.......................0 ... ......295 ... FARMOWNERS MULTI PERIL..... .............. 14.......... 26.. .828 DETAILS OF WRITE-INS ...773 .GU Puerto Rico.938) .............498 .........644 .............................(1....792 ............................. ....19...................394...L...........77........................878 ....................10.928..697 ........... (E) ........72.839 .........881 .604 ...... 18....................8..6..110.7.894 .....6.....17..........92.....21 ......3..849 .(8...... 44.......615.....60.........9.929 ............288....807 ....68...680.....45........0 ...........2..478 .....674.884.....0 .......63.....240........XXX.(2....... ..340......................76.....463...................795 ...249.1...916 ...........992.. ...........27........1..152...351 .............364 ........460 ......69....................621...175...........2..........26.............820.....Annual Statement for the year 2013 of the ST.........Reporting Entities eligible or approved to write Surplus Lines in the state..AR California.........94.5..421 . (Q) .......25...24..............947 .929.....22...........60..........345.....976 .270.872......873..363....270 ....417 .753 ..........389..866 .287 ............475............501......220 .............857....665.....................(3..........................403.625 ...655 ...........L.95.0 ......946 ....9.........1.......L. 27..776....182 .... 58998.....435 ............ ...811..........872....707.840 ..544.......0 ......32..........884........0 .....924......945 ......13.......640 ...............................094 ...374) .....(1.. OTHER ACCIDENT & HEALTH......477 ........Eligible .........0 ....................491 ........776........ 52....563 .......... ......MP Canada...... FIDELITY-FORGERY-LOCATION OF INSURED. etc...679....680...912.....CO Connecticut.87.929 .....7........2.555 .849................OT Totals...........19.311 ......MO Montana.......860 ....571 .......28....291) .978 ..............039 .... 12...........1.....166) .365 .. ...672...............7........739 ....772.925..NV New Hampshire........NH New Jersey..N.412... FINANCIAL GUARANTY...................929 .453...698 ...........075 ....35......L......138 ......8..1........415....405 ....L..................45...27. CREDIT-LOCATION OF INSURED..584 .........L.511....971 .....275 ..405 ...............785....609........19..........................267 ......019 .877.1.860 .L...673 .52...770.....812.016) .713..........2...44.L....... 49..............26.0 ......163........194 ......96 ....949 ....3..758 ........ 7................ PUBLIC & FEDERAL OFFICIAL-LOCATION OF OFFICIAL.. 57..697 .....8..7.. COMMERCIAL MULTI PERIL.........11..892 .......299 BMU Bermuda...353 Other Alien Combined........618) ....473 .355.......476 8 Finance and Service Charges not Included in Premiums ...0 .....390 ..............642 .....None of the above ... States...........5.464 ...............811 ......24..................457..........(2.. 8.....2.....973 .......54.............2.....2... ...WI Wyoming..604 .. .(7.8...0 .......849 . 16.151 ...............................205 ............537 ....18......(580..073..0 ...........5..301.....20......986.0 ..7.4...800.............758... AUTO LIABILITY..........102 .....0 .............44...29.....433 .........................6........SC South Dakota.SD Tennessee.............................6................311 ....42...........135......9.........387 .............(195...0 .L.688...951 ..............716.096 ......384.621 .................(13.851...........(1............596..MI Minnesota.....083.......158....223 ........250...776 .176) ...........................023 .0 ..981 ....................983 .....5..2...098 ...1...256 .....2.........29................101 ....1.. in Col...........737...0 ....5.347...........571 .......918.56.477.....566 ......... 9..463) .......182...663 ...........22...........................551..........5..0 ......532 ....083.156 .48...041 ..........79.........12...280 ....674 ....418.3....13....792..... 50....................................1....17...............452 .281...905 ...28.282.90........TX Utah........152.........603) ....622) ..891....6.714 ..............32.............7............ Totals (Lines 58001 thru 58003+ .......521 .849 ...327 .799.. .20.944 ........... 38.....190 .. 53............L.............172..647 ..945... (R) .........143.7.....17..........................................46..548.........146.L.931 ..1....................487 .........................830 Direct Losses Unpaid ............L.........778 Summary of remaining write-ins for ....4.623...646 ......518) .....811 Line 58998) (Line 58 above) 6 7 Direct Losses Incurred .900 .......0 ...........950) ....768 ..... .... 48......69.................022. ..035..1.........277 ..HI Idaho..517.........329 ................L..........303..............(288........281 ....7... ......405.220.745..984..846 ....622 ........676 .....307.775.155...............257.......4.837.552...............Licensed Insurance Carrier or Domicilied RRG.....808 ..................3....714.......641...261 .............10. ..618 .........846 .309. 33...........10.....514..........498......................7.............21.0 ..063 .840...9..........979.257 ..........319....725 ... 47..........075 ........L.OR Pennsylvania...3..615 .33.7...896 .3.2................5...........0 ..MN Mississippi.........419........................464 .................................592 ............5.757....949..AK Arizona...............L...375 .677........................533..470 ....205 ..874...........799 ... OCEAN MARINE-LOCATION WHERE CONTRACT OF INSURANCE IS NEGOTIATED..DC Florida.........496 ..750................117 .198........6...........768 ............294 ...56.....MD Massachusetts..051 ..14............263.............3..........294) .3........... ...............381 ...................8.......511..687) .......818 ....OH Oklahoma........3.0 ..........731 ......CAN Aggregate Other Alien..516 .....715 .......860 Gross Premiums.249 ....3..855...273.. ............(12..Qualified or Accredited Reinsurer... 5........11.............. ......27.L.(2. 35..74. 6.946 ...............137 ....VI Northern Mariana Islands...........834.....596.....7............662 ...0 .601 ..........407..L....2........008 ....MS Missouri...........881.......VA Washington........................................121 ...........17....167........(1........666) ......WV Wisconsin..................583 ....180 .....3......852...........088 ................................................170.........5....NE Nevada......... 40.............L.768.............L.35.........1....966 .....388...........3...........5........6.0 . ALL OTHER: LOCATION OF OBLIGEE 94 9 Direct Premiums Written for Federal Purchasing Groups (Incl......20..............0 ......212 ......2.......... OTHER LIABILITY.......052 ..L..23..852 .265 ...979 ........859 ...2......8.........169....3........ 11....813 ......... ..633.258 .140 .4...410 ..KS Kentucky.......577......532 ....35..487 ...... .0 ..131 ............223 ....108..........971) ................ 43.......674........207 .....927 ......425........371 ......099 ......1... (L) .....933.110 ...699....653... .. MEDICAL MALPRACTICE....513 ....973 .......GA Hawaii.....144 ...5...405..............258 ..505 ..645 ....... .

Inc. LLC … … … … The Automobile Insurance Company of Hartford. LLC (75%) … … … Travelers (Bermuda) Limited * … … … Travelers Lloyds Management Company … … … TPC Investments Inc. (22. … Travelers Management Limited … Travelers Insurance Company Limited * … … Travelers Professional Risks Limited … Travelers Property Casualty Corp. LLC … … USF&G Capital I … … USF&G Capital III … … 350 Market Street. LLC (90. Connecticut (19062) * … … … … … Auto Hartford Investments. Paul Mercury Insurance Company (24791) * … … St. Paul Fire and Casualty Insurance Company (40967) * … … St.4%) … … Windamere II. Inc. Inc. (77. Paul Protective Insurance Company (19224) * … … Discover Specialty Insurance Company (10213) * … … United States Fidelity and Guaranty Company (25887) * … … … Fidelity and Guaranty Insurance Underwriters. Inc. … St. Inc. LLC … … Upper Lake Growth Capital. Inc.52%) Maryland Canada Canada Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Delaware Minnesota United Kingdom United Kingdom United Kingdom United Kingdom Singapore United Kingdom United Kingdom United Kingdom United Kingdom Minnesota Delaware United Kingdom United Kingdom United Kingdom Connecticut Connecticut Delaware Connecticut Delaware California Delaware Connecticut Delaware Connecticut Connecticut Connecticut Texas Delaware Delaware Bermuda Texas Connecticut Connecticut Connecticut Canada 59-2709441 41-1985480 76-0753165 41-1927945 20-1222630 41-1963936 41-2007089 41-1926305 41-1762781 41-1888760 41-1880024 52-1965525 AA-1121375 06-1008174 06-0566030 06-1445591 06-6033509 06-6033509 94-3097171 06-6033509 06-0848755 06-0848755 06-1286264 06-1286274 36-3703200 27-4469564 06-6033509 61-1639956 98-0190863 20-4312440 06-1534005 06-6033504 06-1067463 . … … Castle Pines Fidelity Realty. Paul Fire and Marine Insurance Company (24767) * … … St. … St. subsidiaries listed above are 100% owned by respective parent Minnesota Connecticut Connecticut Connecticut Wisconsin Delaware Connecticut Connecticut Delaware Connecticut Connecticut Connecticut Connecticut Wisconsin Iowa Maryland Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Minnesota Maryland Maryland Maryland Maryland Maryland Maryland Delaware Delaware Delaware Delaware Delaware United Kingdom Delaware Maryland Maryland Maryland Maryland Maryland Maryland Maryland Maryland Maryland 41-0518860 41-0406690 41-0881659 41-0963301 41-1419276 41-1230819 41-1435765 41-1435766 51-0375653 36-2999370 36-2542404 52-1925132 52-0515280 52-0616768 42-1091525 52-1551225 41-1616702 41-1542260 41-1542261 41-1542263 41-1542264 41-1542266 41-1593312 41-1542267 41-1542255 52-1704255 52-1704256 52-1704256 52-1852190 52-1573778 52-1573778 52-2073764 41-0406690 52-1953822 52-2044075 41-0406690 20-3033027 52-1735211 52-1735213 52-1631820 52-1735213 52-1466734 59-2635727 59-2709441 59-2635727 52-1715225 … … … Fidelity English Turn Club General Partnership (1%) … … 8527512 Canada Inc. Paul Guardian Insurance Company (24775) * … … St.9%) … … Windamere III. Inc. Paul Surplus Lines Insurance Company (30481) * … … The Travelers Casualty Company (41769) * … … Travelers Constitution State Insurance Company (41750) * … … Northbrook Holdings. LLC (98. LLC … … … … … Lone Rock Timber Investments I. (25879) * … … … Fidelity and Guaranty Insurance Company (35386) * … … … Laurel Village Fidelity Realty.ORGANIZATIONAL CHART 96 The Travelers Companies. Notes: * Denotes affiliated insurer Unless otherwise stated. LLC (99%) … … Symmetry Growth Capital II. Underwriters Limited … Travelers Underwriting Agency Limited … Travelers Syndicate Management Limited … … Travelers Asia Pte. … … … … USF&G/Fidelity Retail Associates Limited Partnership (1%) … … … USF&G/Fidelity Retail Associates Limited Partnership (83. … … … … Laurel Village Joint Venture Partnership (50%) … … … … … Laurel Village I Limited Partnership (99%) … … … … … Laurel Village II Limited Partnership (99%) … … … … … Laurel Village III Limited Partnership (99%) … … … … … Laurel Village IV Limited Partnership (99%) … … … … … Laurel Village Tower A Limited Partnership (99%) … … … … … Laurel Village Tower B Limited Partnership (99%) … … … … … Laurel Village Tower C Limited Partnership (99%) … … … … … Laurel Village Swinford Limited Partnership (99%) … … … USF&G Retail Associates GP. Inc. … … Travelers Insurance Group Holdings Inc. LLC (99.INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 .95%) … … … BMR Sports Properties.1%) … … Vesbridge Partners. Paul London Properties. … … … The Standard Fire Insurance Company (19070) * … … … … Standard Fire Properties. … … … English Turn Limited Partnership (99%) … … … Fidelity English Turn Club General Partnership (99%) … … English Turn Limited Partnership (1%) … … English Turn Realty Management. Inc. PAUL FIRE AND MARINE INSURANCE COMPANY SCHEDULE Y .Annual Statement for the year 2013 of the ST.K. LLC … … Travelers Special Services Limited … … Yonkers Financing Corp. … … … … Oregon Evergreen Investor I. … … … Discover Property & Casualty Insurance Company (36463) * … … … St.48%) … … … The Dominion of Canada General Insurance Company * … … Fog City Fund. … … … … Black Mountain Ranch Limited Partnership (1%) … … Black Mountain Ranch Limited Partnership (85%) … … MMI Capital Trust I … … Promenade Partners. … TCI Global Services. Paul Surety Europe Limited … Travelers Corporate Trustee Ltd. LLC … … … … Travelers Personal Security Insurance Company (36145) * … … … … Travelers Property Casualty Insurance Company (36161) * … … … … Travelers Personal Insurance Company (38130) * … … … … Travelers Texas MGA. Ltd. … Aprilgrange Limited … F&G U. Inc. … Travelers London Limited … … Solicitors Professional Indemnity Limited (49%) … St. Inc. Inc. LLC … … … … … Bayhill Restaurant II Associates (50%) … … … … Standard Fire UK Investments. … … … Travelers Casualty and Surety Company (19038) * … … … … Farmington Casualty Company (41483) * … … … … 8527512 Canada Inc. Inc.2%) … Camperdown Corporation … SPC Insurance Agency. … … Constitution Plaza. Inc. LLC (99%) … … Windamere. … … … Castle Pines Fidelity Associates Limited Partnership (1%) … … … … Fidelity Castle Pines Limited Partnership (50%) … … Castle Pines Fidelity Associates Limited Partnership (99%) … … English Turn Fidelity Realty. LP (88.

LLC … … Cadet Limited.A. Inc Travelers Commercial Casualty Company (40282) * Travelers Distribution Alliance. LLC The Travelers Home and Marine Insurance Company (27998) * The Travelers Lloyds Insurance Company (41262) * Travelers Marine. LLC … First Floridian Auto and Home Insurance Company (10647) * … Gulf Underwriters Insurance Company (42811) * … Select Insurance Company (22233) * … Travelers Casualty and Surety Company of Europe.99%) … … … … … J. … … Constitution State Services.1 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … The Dominion of Canada General Insurance Company * … Travelers Insurance Company of Canada * … Travelers Casualty and Surety Company of America (31194) * … … Travelers Brazil Holding.01%) … … … … … J. * … Travelers Casualty Insurance Company of America (19046) * … Travelers Casualty Company of Connecticut (36170) * … Travelers Casualty UK Investments LLC … Travelers Commercial Insurance Company (36137) * … Travelers Excess and Surplus Lines Company (29696) * … Travelers Lloyds of Texas Insurance Company (41564) * … Travelers MGA.5%) … … … … American Marine Claims & Adjusting Services.INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP PART 1 . Malucelli Participações em Seguros e Resseguros S. LLC … … Durham Holding. (47. Malucelli Seguradora S. LLC … … Phoenix UK Investments LLC Notes: * Denotes affiliated insurer Unless otherwise stated. Malucelli Resseguradora S. Malucelli Controle de Riscos Ltda. Inc. LLC … Sutton Holdco. Inc. (“Holdco”) (49.5%) … … … … … J. Limited * … Commercial Guaranty Insurance Company (38385) * … Crystal Brook.Annual Statement for the year 2013 of the ST. Investments LLC … TPC U. * … … … … … … J. LLC … … Eastern Asset. Travelers TLD. (99. * … … … … … … J. (0. PAUL FIRE AND MARINE INSURANCE COMPANY SCHEDULE Y . subsidiaries listed above are 100% owned by respective parent Canada Canada Connecticut Delaware Delaware Brazil Brazil Brazil Brazil Brazil Brazil Connecticut Connecticut Delaware Connecticut Connecticut Texas Texas Connecticut Delaware Connecticut Delaware Florida Connecticut Texas United Kingdom Delaware Delaware Delaware Delaware Delaware Delaware Delaware Minnesota Arizona Connecticut Connecticut Iowa Connecticut Connecticut Delaware Connecticut Connecticut Connecticut Connecticut New York New York Delaware Delaware 06-0907370 06-0907370 06-0907370 06-0876835 06-1286266 06-6033504 06-1286268 06-1203698 75-1732040 75-2676034 06-0566050 06-0566050 06-0291290 06-0566050 59-3372141 56-1371361 75-6013697 75-1679830 06-0566050 06-0566050 06-0566050 06-0566050 06-0566050 06-0566050 41-1769846 86-0703220 86-0868106 41-6009967 41-0983992 94-6051964 06-0566050 06-0566050 06-0303275 58-6020487 06-0336212 36-2719165 13-2743602 30-0510298 06-1501229 06-0303275 … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … The Premier Insurance Company of Massachusetts (12850) * TravCo Insurance Company (28188) * TINDY Foreign. The Travelers Indemnity Company (25658) * … Arch Street North LLC … The Charter Oak Fire Insurance Company (25615) * … Travelers Real Estate. Inc. LLC … Redstart. LLC Massachusetts Connecticut Delaware Connecticut Delaware Delaware Delaware Delaware Connecticut Texas Delaware 04-3175569 35-1838077 20-4403403 95-3634110 62-1657094 06-0566050 06-0566050 06-0566050 35-1838079 76-0002592 06-0566050 .A. Inc.K. Malucelli Seguros S.ORGANIZATIONAL CHART 96.A. Malucelli Controle de Riscos Ltda. Investments LLC … The Phoenix Insurance Company (25623) * … … The Travelers Indemnity Company of America (25666) * … … The Travelers Indemnity Company of Connecticut (25682) * … … Travelers Property Casualty Company of America (25674) * … … … American Marine Management Services. LLC … Arrowhead Company. LLC … Jupiter Holdings. … … American Equity Insurance Company (43117) * … … … American Equity Specialty Insurance Company (10819) * … … Northland Insurance Company (24015) * … … … Northfield Insurance Company (27987) * … … … Northland Casualty Company (24031) * … Travelers Indemnity U. LLC Tiercel. LLC … … … Travelers Brazil Acquisition LLC … … … … J.K.A. Inc.

PROPERTY & CASUALTY ANNUAL STATEMENT BLANK Assets Cash Flow Exhibit of Capital Gains (Losses) Exhibit of Net Investment Income Exhibit of Nonadmitted Assets Exhibit of Premiums and Losses (State Page) Five-Year Historical Data General Interrogatories Jurat Page Liabilities. Allied Lines. (Fire. Burglary & Theft) Schedule P–Part 4J–Auto Physical Damage Schedule P–Part 4K–Fidelity/Surety Schedule P–Part 4L–Other (Including Credit. Boiler & Machinery) Schedule P–Part 3H–Section 1–Other Liability–Occurrence Schedule P–Part 3H–Section 2–Other Liability–Claims-Made Schedule P–Part 3I–Spec. Theft) Schedule P–Part 3J–Auto Physical Damage Schedule P–Part 3K–Fidelity/Surety Schedule P–Part 3L–Other (Including Credit. Prop. Prop. Burglary & Theft) Schedule P–Part 1J–Auto Physical Damage Schedule P–Part 1K–Fidelity/Surety Schedule P–Part 1L–Other (Including Credit. Accident and Health) Schedule P-Part 1M-International Schedule P–Part 1N–Reinsurance – Nonproportional Assumed Property Schedule P–Part 1O–Reinsurance – Nonproportional Assumed Liability Schedule P–Part 1P–Reinsurance – Nonproportional Assumed Financial Lines Schedule P–Part 1R–Section 1–Products Liability–Occurrence Schedule P–Part 1R–Section 2–Products Liability–Claims–Made Schedule P–Part 1S–Financial Guaranty/Mortgage Guaranty Schedule P–Part 1T–Warranty Schedule P–Part 2. Accident and Health) Schedule P–Part 4M–International Schedule P–Part 4N–Reinsurance – Nonproportional Assumed Property Schedule P–Part 4O–Reinsurance – Nonproportional Assumed Liability Schedule P–Part 4P–Reinsurance – Nonproportional Assumed Financial Lines Schedule P–Part 4R–Section 1–Products Liability–Occurrence Schedule P–Part 4R–Section 2–Products Liability–Claims-Made Schedule P–Part 4S–Financial Guaranty/Mortgage Guaranty Schedule P–Part 4T–Warranty Schedule P–Part 5A–Homeowners/Farmowners Schedule P–Part 5B–Private Passenger Auto Liability/Medical Schedule P–Part 5C–Commercial Auto/Truck Liability/Medical Schedule P–Part 5D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 5E–Commercial Multiple Peril Schedule P–Part 5F–Medical Professional Liability–Claims-Made Schedule P–Part 5F–Medical Professional Liability–Occurrence Schedule P–Part 5H–Other Liability–Claims-Made Schedule P–Part 5H–Other Liability–Occurrence Schedule P–Part 5R–Products Liability–Claims-Made Schedule P–Part 5R–Products Liability–Occurrence Schedule P–Part 5T–Warranty Schedule P–Part 6C–Commercial Auto/Truck Liability/Medical Schedule P–Part 6D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 6E–Commercial Multiple Peril Schedule P–Part 6H–Other Liability–Claims-Made Schedule P–Part 6H–Other Liability–Occurrence Schedule P–Part 6M–International Schedule P–Part 6N–Reinsurance – Nonproportional Assumed Property Schedule P–Part 6O–Reinsurance – Nonproportional Assumed Liability Schedule P–Part 6R–Products Liability–Claims-Made Schedule P–Part 6R–Products Liability–Occurrence Schedule P–Part 7A–Primary Loss Sensitive Contracts Schedule P–Part 7B–Reinsurance Loss Sensitive Contracts Schedule P Interrogatories Schedule T–Exhibit of Premiums Written Schedule T–Part 2–Interstate Compact Schedule Y–Information Concerning Activities of Insurer Members of a Holding Company Group Schedule Y–Detail of Insurance Holding Company System Schedule Y–Part 2–Summary of Insurer’s Transactions With Any Affiliates Statement of Income Summary Investment Schedule Supplemental Exhibits and Schedules Interrogatories Underwriting and Investment Exhibit Part 1 Underwriting and Investment Exhibit Part 1A Underwriting and Investment Exhibit Part 1B Underwriting and Investment Exhibit Part 2 Underwriting and Investment Exhibit Part 2A Underwriting and Investment Exhibit Part 3 INDEX 58 58 58 59 59 59 59 59 60 60 60 61 61 61 61 62 62 62 62 62 63 63 63 63 63 64 64 64 64 64 65 65 65 66 66 66 66 67 67 67 67 67 68 68 68 68 68 69 69 69 69 69 70 70 70 71 71 71 71 72 73 74 75 76 78 77 80 79 82 81 83 84 84 85 86 85 86 87 87 88 88 89 91 93 94 95 96 97 98 4 SI01 99 6 7 8 9 10 11 . Prop. Boiler & Machinery) Schedule P–Part 4H–Section 1–Other Liability–Occurrence Schedule P–Part 4H–Section 2–Other Liability–Claims-Made Schedule P–Part 4I–Spec. Surety Schedule P–Part 2L–Other (Including Credit. Part 3 and Part 4 Schedule H–Part 5–Health Claims Schedule P–Part 1–Summary Schedule P–Part 1A–Homeowners/Farmowners Schedule P–Part 1B–Private Passenger Auto Liability/Medical Schedule P–Part 1C–Commercial Auto/Truck Liability/Medical Schedule P–Part 1D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 1E–Commercial Multiple Peril Schedule P–Part 1F–Section 1–Medical Professional Liability–Occurrence Schedule P–Part 1F–Section 2–Medical Professional Liability–Claims-Made Schedule P–Part 1G-Special Liability (Ocean. Earthquake. Inland Marine. (Fire. Aircraft (All Perils). Burglary. Theft) Schedule P–Part 2J–Auto Physical Damage Schedule P–Part 2K–Fidelity. Marine. Inland Marine.Summary Schedule P–Part 2A–Homeowners/Farmowners Schedule P–Part 2B–Private Passenger Auto Liability/Medical Schedule P–Part 2C–Commercial Auto/Truck Liability/Medical Schedule P–Part 2D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 2E–Commercial Multiple Peril Schedule P–Part 2F–Section 1–Medical Professional Liability–Occurrence Schedule P–Part 2F–Section 2–Medical Professional Liability–Claims–Made 2 5 12 12 13 19 17 15 1 3 14 100 E01 E02 E03 SI02 E04 E05 E06 SI02 E07 E08 E09 SI03 E10 SI05 SI08 E11 E12 E13 E14 E15 E16 E16 SI04 SI03 E17 SI10 E18 E19 SI11 E20 E21 SI11 SI12 SI13 E22 E23 SI14 E24 E25 E26 E27 E28 SI15 20 21 22 23 24 25 26 27 28 29 30 31 32 33 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 34 57 57 57 57 57 58 58 Schedule P–Part 2G–Special Liability (Ocean Marine. (Fire. Inland Marine.2013 ALPHABETICAL INDEX -. Surplus and Other Funds Notes To Financial Statements Overflow Page For Write-ins Schedule A–Part 1 Schedule A–Part 2 Schedule A–Part 3 Schedule A–Verification Between Years Schedule B–Part 1 Schedule B–Part 2 Schedule B–Part 3 Schedule B–Verification Between Years Schedule BA–Part 1 Schedule BA–Part 2 Schedule BA–Part 3 Schedule BA–Verification Between Years Schedule D–Part 1 Schedule D–Part 1A–Section 1 Schedule D–Part 1A–Section 2 Schedule D–Part 2–Section 1 Schedule D–Part 2–Section 2 Schedule D–Part 3 Schedule D–Part 4 Schedule D–Part 5 Schedule D–Part 6–Section 1 Schedule D–Part 6–Section 2 Schedule D–Summary By Country Schedule D–Verification Between Years Schedule DA–Part 1 Schedule DA–Verification Between Years Schedule DB–Part A–Section 1 Schedule DB–Part A–Section 2 Schedule DB–Part A–Verification Between Years Schedule DB–Part B–Section 1 Schedule DB–Part B–Section 2 Schedule DB–Part B–Verification Between Years Schedule DB–Part C–Section 1 Schedule DB–Part C–Section 2 Schedule DB–Part D-Section 1 Schedule DB–Part D-Section 2 Schedule DB–Verification Schedule DL–Part 1 Schedule DL–Part 2 Schedule E–Part 1–Cash Schedule E–Part 2–Cash Equivalents Schedule E–Part 3–Special Deposits Schedule E–Verification Between Years Schedule F–Part 1 Schedule F–Part 2 Schedule F–Part 3 Schedule F–Part 4 Schedule F–Part 5 Schedule F–Part 6-Section 1 Schedule F–Part 6-Section 2 Schedule F–Part 7 Schedule F–Part 8 Schedule F–Part 9 Schedule H–Accident and Health Exhibit–Part 1 Schedule H–Part 2. Prop. Boiler & Machinery) Schedule P–Part 2H–Section 1–Other Liability–Occurrence Schedule P–Part 2H–Section 2–Other Liability–Claims–Made Schedule P–Part 2I–Spec. Earthquake. Burglary. Accident and Health) Schedule P–Part 2M–International Schedule P–Part 2N–Reinsurance – Nonproportional Assumed Property Schedule P–Part 2O–Reinsurance – Nonproportional Assumed Liability Schedule P–Part 2P–Reinsurance – Nonproportional Assumed Financial Lines Schedule P–Part 2R–Section 1–Products Liability–Occurrence Schedule P–Part 2R–Section 2–Products Liability–Claims-Made Schedule P–Part 2S–Financial Guaranty/Mortgage Guaranty Schedule P–Part 2T–Warranty Schedule P–Part 3A–Homeowners/Farmowners Schedule P–Part 3B–Private Passenger Auto Liability/Medical Schedule P–Part 3C–Commercial Auto/Truck Liability/Medical Schedule P–Part 3D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 3E–Commercial Multiple Peril Schedule P–Part 3F–Section 1 –Medical Professional Liability–Occurrence Schedule P–Part 3F–Section 2–Medical Professional Liability–Claims-Made Schedule P–Part 3G–Special Liability (Ocean Marine. Earthquake. Allied Lines. Accident and Health) Schedule P–Part 3M–International Schedule P–Part 3N–Reinsurance – Nonproportional Assumed Property Schedule P–Part 3O–Reinsurance – Nonproportional Assumed Liability Schedule P–Part 3P–Reinsurance – Nonproportional Assumed Financial Lines Schedule P–Part 3R–Section 1–Products Liability–Occurrence Schedule P–Part 3R–Section 2–Products Liability–Claims-Made Schedule P–Part 3S–Financial Guaranty/Mortgage Guaranty Schedule P–Part 3T–Warranty Schedule P–Part 4A–Homeowners/Farmowners Schedule P–Part 4B–Private Passenger Auto Liability/Medical Schedule P–Part 4C–Commercial Auto/Truck Liability/Medical Schedule P–Part 4D–Workers’ Compensation (Excluding Excess Workers Compensation) Schedule P–Part 4E–Commercial Multiple Peril Schedule P–Part 4F–Section 1–Medical Professional Liability–Occurrence Schedule P–Part 4F–Section 2–Medical Professional Liability–Claims-Made Schedule P–Part 4G–Special Liability (Ocean Marine. Inland Marine. Allied Lines. Boiler & Machinery) Schedule P–Part 1H–Section 1–Other Liability–Occurrence Schedule P–Part 1H–Section 2–Other Liability–Claims-Made Schedule P–Part 1I–Spec. Aircraft (All Perils). Allied Lines. Part 3 and Part 4 . Aircraft (All Perils). Aircraft (All Perils). (Fire. Earthquake.