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MethodologyTerm/Variable                                Definition and/or Formula Used                                    ...
Countrywide Auto                                                                     *CAGR = Compound Annual Growth Rate  ...
Countrywide Homeowners                                                                  *CAGR = Compound Annual Growth Rat...
Arizona Auto                                                                       *CAGR = Compound Annual Growth Rate    ...
Arizona Homeowners                                                                        *CAGR = Compound Annual Growth R...
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Performance ratio sample

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Sample analysis of financial performance of insurance industry and top 20.

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Transcript of "Performance ratio sample"

  1. 1. MethodologyTerm/Variable Definition and/or Formula Used (Commissions, broker expenses) + (taxes, licenses, fees) + (other acquisition, field supervision and collection expenses) incurred/directAcquisition (ACQ) Ratio premiums writtenAdministration (ADMIN) Ratio General expenses incurred/direct premiums earnedAllocated Loss Adjustment Expense (ALAE) Defense and cost containment expenses incurred/direct premiums earnedRatioCombined Ratio Loss Ratio + Expense RatioCompound Annual Growth Rate (CAGR) The year-over-year growth rate of a number over a specified period of time.Expense Ratio Loss Adjustment Expense (LAE) ratio + General Expense (GE) RatioGeneral Expense (GE) Ratio Acquisition Ratio + Administration RatioLoss Ratio Incurred losses/direct premiums earnedPremium Tax Ratio Taxes license & fees incurred/direct premiums writtenTotal Industry Calculated using the sum of all AM Best Groups and Affiliated Single Companies per variableUnallocated Loss Adjustment Expense (ULAE) Adjustment and other expenses incurred/direct premiums earnedRatioSources:Countrywide Data A.M. Best Insurance Expense Exhibit (IEE) - P/C, U.S. Part 3. 2008 data retrieved June 29, 2009.State Level Data A.M. Best State Line (P/C Lines - U.S.). 2008 data retrieved June 29, 2009File Last Updated: July 2, 2009
  2. 2. Countrywide Auto *CAGR = Compound Annual Growth Rate Premium in Millions Market Share Direct Written Premium Loss Ratio Combined Ratio Chg Since 5 YR 06 to 08 Rel toCompany 08 MS 04 05 06 07 08 08/07 04 05 06 07 08 08/07 5 Yr Chg 04 05 06 07 08 04 CAGR* LR IndState Farm 18.4% -0.2% 30,225 29,473 29,583 29,480 30,057 2.0% -0.1% 60.1% 64.2% 61.0% 67.0% 72.1% 5.1% 11.9% 66.7% 1.09 94.6% 98.7% 97.0% 103.0% 109.3%Allstate 10.8% 0.3% 17,065 18,132 18,294 18,329 17,691 -3.5% 0.9% 55.4% 55.2% 50.3% 54.0% 56.4% 2.4% 1.0% 53.5% 0.88 91.1% 91.8% 87.4% 91.4% 93.4%GEICO 7.7% 2.1% 8,966 10,102 11,106 11,732 12,518 6.7% 8.7% 62.1% 62.7% 60.8% 63.2% 65.4% 2.2% 3.3% 63.2% 1.04 89.9% 89.5% 87.9% 92.1% 94.1%Progressive 7.1% -0.1% 11,695 12,110 12,077 11,747 11,679 -0.6% 0.0% 52.8% 54.8% 54.6% 59.9% 61.6% 1.7% 8.7% 58.6% 0.96 86.8% 88.5% 87.8% 93.5% 95.1%Farmers 5.4% 0.0% 8,684 8,509 8,574 8,787 8,763 -0.3% 0.2% 60.6% 59.7% 60.4% 61.8% 60.5% -1.3% -0.1% 60.9% 1.00 97.4% 96.3% 99.0% 99.8% 99.1%Nationwide 4.6% 0.0% 7,541 7,597 7,611 7,630 7,590 -0.5% 0.2% 59.3% 64.2% 53.7% 59.5% 60.9% 1.4% 1.6% 58.0% 0.95 97.0% 103.2% 96.3% 103.1% 102.2%Liberty Mutual 4.4% 1.4% 4,873 4,539 4,507 4,627 7,231 56.3% 10.4% 60.1% 56.5% 54.4% 56.9% 63.3% 6.4% 3.2% 59.0% 0.97 99.9% 96.4% 97.8% 96.9% 101.7%USAA 3.8% 0.3% 5,681 5,763 5,964 5,968 6,251 4.7% 2.4% 59.2% 66.0% 65.7% 70.5% 70.4% -0.1% 11.2% 68.9% 1.13 83.1% 89.8% 88.6% 94.9% 91.2%AIG 2.7% -0.3% 4,864 5,005 5,003 4,779 4,437 -7.2% -2.3% 62.6% 57.5% 60.1% 63.9% 66.1% 2.3% 3.5% 63.3% 1.04 93.3% 111.5% 89.2% 97.3% 100.5%American Family 2.1% -0.1% 3,596 3,589 3,537 3,560 3,441 -3.3% -1.1% 63.0% 58.9% 66.4% 66.6% 66.8% 0.2% 3.7% 66.6% 1.09 96.6% 93.4% 102.7% 101.9% 102.6%Travelers 2.1% 0.1% 3,214 3,196 3,304 3,345 3,387 1.3% 1.3% 58.7% 51.9% 51.0% 54.4% 57.2% 2.8% -1.5% 54.3% 0.89 92.6% 87.5% 91.3% 94.1% 100.4%Hartford 1.6% 0.1% 2,450 2,543 2,653 2,703 2,652 -1.9% 2.0% 58.6% 59.4% 57.3% 63.5% 59.9% -3.6% 1.3% 60.3% 0.99 95.5% 98.9% 95.5% 98.1% 93.0%Mercury 1.4% 0.0% 2,284 2,509 2,561 2,495 2,303 -7.7% 0.2% 52.2% 55.1% 58.5% 57.5% 59.6% 2.1% 7.4% 58.5% 0.96 90.4% 92.8% 97.1% 96.5% 102.0%ACSC 1.3% 0.1% 1,960 2,092 2,174 2,134 2,119 -0.7% 2.0% 51.3% 53.7% 55.3% 58.0% 54.9% -3.1% 3.6% 56.1% 0.92 82.2% 84.6% 87.6% 89.0% 87.1%MetLife Auto & Home Grp 1.3% -0.1% 2,175 2,140 2,111 2,118 2,085 -1.6% -1.1% 57.3% 54.9% 49.6% 51.8% 51.5% -0.3% -5.8% 50.9% 0.84 96.8% 94.3% 87.6% 90.0% 87.3%Erie Insurance Group 1.1% -0.1% 1,987 1,924 1,812 1,802 1,826 1.3% -2.1% 65.5% 64.8% 58.5% 53.7% 56.0% 2.3% -9.4% 56.1% 0.92 100.9% 102.0% 96.3% 91.3% 94.4%AAA NCNU 1.1% 0.0% 1,767 1,822 1,857 1,891 1,786 -5.6% 0.3% 56.5% 53.0% 56.8% 57.1% 54.7% -2.4% -1.8% 56.2% 0.92 95.6% 91.8% 98.7% 98.8% 100.5%Commerce Grp 0.9% -0.1% 1,570 1,590 1,553 1,506 1,392 -7.6% -3.0% 53.8% 53.7% 52.6% 56.6% 58.0% 1.4% 4.2% 55.7% 0.91 86.1% 88.5% 89.1% 93.8% 96.6%GMAC 0.8% -0.2% 1,634 1,677 1,599 1,485 1,377 -7.3% -4.2% 68.9% 64.2% 65.5% 60.5% 67.4% 6.9% -1.5% 64.4% 1.06 105.8% 104.9% 103.5% 98.4% 108.7%Unitrin Grp 0.8% 0.0% 1,272 1,248 1,198 1,235 1,359 10.1% 1.7% 60.9% 59.5% 59.8% 63.8% 62.7% -1.1% 1.8% 62.1% 1.02 110.5% 100.5% 100.3% 104.1% 103.8%Top Twenty 79.5% 3.4% 123,504 125,561 127,077 127,353 129,945 2.0% 1.3% 58.7% 59.7% 57.6% 61.4% 63.7% 2.3% 5.0% 60.9% 1.00 93.1% 95.2% 93.1% 97.1% 99.5%Rest of Industry 20.5% -3.4% 38,819 37,990 37,038 36,628 33,481 -8.6% -3.6% 58.5% 60.5% 58.7% 60.8% 63.3% 2.5% 4.8% 60.9% 1.00 94.6% 97.3% 95.5% 98.1% 100.9%Total Industry 100.0% 0.0% 162,323 163,551 164,115 163,981 163,426 -0.3% 0.2% 58.7% 59.9% 57.9% 61.3% 63.6% 2.4% 5.0% 60.9% 1.00 93.5% 95.7% 93.6% 97.3% 99.8% Year by Year Growth DWP Year by Year Growth DEP Chart Data Compound Annual Growth Rate and Loss Ratio Performance 05/04 06/05 07/06 08/07 05/04 06/05 07/06 08/07 Company MS 5 YR CAGR 3 YR LRState Farm -2.5% 0.4% -0.4% 2.0% -2.7% -0.1% 0.5% 0.3% State Farm 18.4% -0.1% 61.0%Allstate 6.3% 0.9% 0.2% -3.5% 6.8% 2.8% 0.1% -2.0% Allstate 14.0% 7.7% 0.9% 50.3% Top Ten Carriers IndustryGEICO 12.7% 9.9% 5.6% 6.7% 14.1% 9.7% 6.9% 5.7% GEICO 7.1% 8.7% 60.8%Progressive 3.5% -0.3% -2.7% -0.6% 3.8% 1.0% -2.3% -1.7% Progressive 12.0% 5.4% 0.0% 54.6%Farmers -2.0% 0.8% 2.5% -0.3% 0.4% -0.2% 1.5% 0.6% Farmers 4.6% 0.2% 60.4%Nationwide 0.7% 0.2% 0.3% -0.5% 2.1% -0.1% -0.1% -0.7% 10.0% Nationwide 4.4% 0.2% 53.7%Liberty Mutual -6.8% -0.7% 2.7% 56.3% -2.9% -2.5% 1.2% 56.9% Liberty Mutual 3.8% 10.4% 54.4% 8.0%USAA 1.4% 3.5% 0.1% 4.7% 0.4% 4.1% 0.1% 3.6% USAA 5 Year DWP CAGR 2.7% 2.4% 65.7%AIG 2.9% 0.0% -4.5% -7.2% 6.5% -1.6% -3.6% -5.2% AIG 6.0% 2.1% -2.3% 60.1%American Family -0.2% -1.5% 0.6% -3.3% 1.3% -2.0% 0.3% -2.1% American Family 2.1% -1.1% 66.4%Travelers -0.5% 3.4% 1.3% 1.3% 1.8% 4.0% 3.2% 0.8% Total Industry 4.0% 100.0% 0.2% 57.9%Hartford 3.8% 4.3% 1.9% -1.9% 4.9% 3.2% 3.8% -1.1%Mercury 9.8% 2.0% -2.6% -7.7% 11.4% 3.5% -1.4% -6.8% 2.0%ACSC 6.7% 3.9% -1.8% -0.7% 6.5% 4.6% 1.5% -2.1% 0.0%MetLife Auto & Home Grp -1.7% -1.3% 0.3% -1.6% -1.1% -2.0% 0.2% -0.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%Erie Insurance Group -3.2% -5.8% -0.5% 1.3% 1.3% -4.8% -3.5% 0.6% -2.0%AAA NCNU 3.1% 1.9% 1.8% -5.6% 3.4% 2.8% 2.0% -2.1%Commerce Grp 1.3% -2.4% -3.0% -7.6% 4.8% -1.3% -0.2% -6.8% -4.0%GMAC 2.6% -4.6% -7.1% -7.3% 5.0% -4.4% -6.5% -6.2%Unitrin Grp -1.9% -4.0% 3.1% 10.1% 2.4% -0.6% 0.7% 6.1% -6.0%Top Twenty 1.7% 1.2% 0.2% 2.0% 2.6% 1.3% 0.6% 1.8% 3 Year (06 to 08) DLRRest of Industry -2.1% -2.5% -1.1% -8.6% -1.3% -3.0% -1.1% -8.6%Total Industry 0.8% 0.3% -0.1% -0.3% 1.7% 0.3% 0.2% -0.5%
  3. 3. Countrywide Homeowners *CAGR = Compound Annual Growth Rate Premium in Millions Market Share Direct Written Premium Loss Ratio Combined Ratio Chg Since 5 YR 06 to 08Company 08 MS 04 05 06 07 08 08/07 04 05 06 07 08 08/07 5 Yr Chg Rel to Ind 04 05 06 07 08 04 CAGR* LRState Farm 22.1% -0.6% 12,178 12,836 13,580 14,057 14,032 -0.2% 3.6% 64.3% 77.3% 50.7% 54.5% 81.2% 26.7% 17.0% 62.4% 1.08 102.7% 114.1% 87.2% 90.6% 121.5%Allstate 11.0% -0.7% 6,245 7,054 7,310 7,190 6,970 -3.1% 2.8% 69.8% 93.4% 39.7% 47.5% 72.2% 24.7% 2.4% 53.0% 0.92 102.7% 134.7% 73.6% 81.2% 109.1%Farmers 7.4% 0.1% 3,887 4,050 4,330 4,527 4,692 3.6% 4.8% 43.6% 51.0% 48.3% 56.7% 89.3% 32.6% 45.7% 65.4% 1.13 84.4% 92.5% 89.1% 99.1% 135.6%Liberty Mutual 5.1% 1.8% 1,756 1,873 2,033 2,229 3,211 44.1% 16.3% 61.3% 70.3% 52.5% 45.3% 68.6% 23.3% 7.3% 57.3% 0.99 99.0% 109.9% 89.4% 83.7% 109.0%Travelers 4.6% 0.6% 2,153 2,417 2,660 2,821 2,906 3.0% 7.8% 35.4% 66.5% 33.0% 40.6% 52.3% 11.7% 17.0% 42.4% 0.73 72.0% 104.1% 72.2% 81.5% 94.7%Nationwide 4.5% -0.2% 2,515 2,704 2,854 2,883 2,861 -0.8% 3.3% 65.3% 61.7% 42.0% 49.5% 74.4% 24.8% 9.1% 55.4% 0.96 105.1% 103.4% 82.3% 90.3% 115.0%USAA 4.2% 0.3% 2,083 2,277 2,505 2,656 2,665 0.4% 6.4% 64.7% 72.1% 40.6% 48.4% 69.2% 20.8% 4.5% 53.2% 0.92 93.8% 100.4% 65.9% 72.9% 96.5%Chubb 2.9% 0.1% 1,492 1,611 1,745 1,837 1,842 0.3% 5.4% 56.1% 47.3% 39.5% 40.9% 44.9% 4.0% -11.2% 41.9% 0.72 92.3% 81.7% 72.3% 74.3% 78.5%American Family 2.2% -0.5% 1,438 1,435 1,431 1,426 1,414 -0.8% -0.4% 51.1% 51.1% 93.0% 81.7% 91.4% 9.7% 40.3% 88.7% 1.54 83.6% 85.9% 132.5% 118.8% 129.4%Hartford 1.7% 0.1% 868 944 1,048 1,115 1,102 -1.2% 6.1% 79.8% 75.8% 47.3% 49.2% 65.1% 15.9% -14.7% 54.1% 0.94 131.3% 107.6% 77.0% 74.7% 90.2%AIG 1.6% 0.8% 432 782 727 822 1,016 23.6% 23.9% 68.2% 128.5% 34.9% 66.8% 65.1% -1.7% -3.1% 56.5% 0.98 101.5% 165.2% 77.9% 109.8% 106.7%MetLife Auto & Home Grp 1.3% -0.1% 755 799 835 860 847 -1.6% 2.9% 52.7% 74.9% 48.8% 45.8% 59.8% 14.0% 7.1% 51.5% 0.89 91.1% 118.2% 86.4% 81.1% 94.6%Auto-Owners Grp 1.3% -0.2% 796 840 836 828 829 0.2% 1.0% 93.5% 60.5% 62.4% 71.7% 100.2% 28.5% 6.6% 78.0% 1.35 129.0% 90.0% 96.3% 105.7% 134.5%Erie Insurance 1.2% -0.2% 736 736 725 733 743 1.4% 0.3% 45.6% 41.0% 55.3% 51.1% 62.1% 11.0% 16.5% 56.2% 0.97 81.4% 77.7% 91.8% 89.0% 99.6%Allianz 1.1% 0.1% 503 542 606 667 675 1.2% 7.6% 56.6% 70.3% 45.5% 53.6% 49.9% -3.7% -6.8% 49.8% 0.86 94.6% 105.9% 88.1% 88.2% 84.8%Country Financial 0.9% 0.1% 407 454 479 521 547 4.9% 7.7% 67.4% 52.9% 63.6% 61.6% 80.7% 19.1% 13.3% 69.0% 1.19 117.5% 99.6% 106.0% 105.7% 123.1%AAA NCNU 0.8% 0.1% 352 409 457 490 490 -0.1% 8.6% 31.6% 36.0% 33.8% 46.6% 47.3% 0.7% 15.7% 42.9% 0.74 64.9% 73.4% 70.4% 81.9% 89.1%Universal P&C Co. 0.7% 0.7% 39 78 - - 460 0.0% 85.9% 462.8% 114.8% 0.0% 0.0% 27.2% 27.2% -435.6% 27.2% 0.47 529.0% 159.3% 0.0% 0.0% 56.7%Hanover Insurance Grp 0.7% -0.1% 435 423 440 457 456 -0.2% 1.2% 57.2% 69.7% 46.7% 46.0% 60.6% 14.6% 3.4% 51.2% 0.89 93.4% 104.8% 83.6% 84.2% 99.2%ACSC 0.7% 0.1% 304 336 379 400 422 5.4% 8.5% 40.8% 91.0% 65.0% 87.3% 79.8% -7.5% 38.9% 77.8% 1.35 67.6% 120.6% 100.6% 115.3% 115.4%Top Twenty 76.0% 2.5% 39,373 42,599 44,980 46,520 48,179 3.6% 5.2% 60.8% 72.1% 47.5% 52.4% 73.4% 21.1% 12.6% 58.1% 1.01 97.9% 109.8% 83.8% 88.5% 112.1%Rest of Industry 24.0% -2.5% 14,173 14,655 15,196 15,512 15,191 -2.1% 1.8% 78.0% 75.0% 50.9% 48.8% 70.1% 21.3% -7.9% 56.6% 0.98 117.7% 114.9% 87.6% 85.8% 108.9%Total Industry 100.0% 0.0% 53,546 57,254 60,175 62,032 63,370 2.2% 4.3% 65.4% 72.8% 48.3% 51.5% 72.6% 21.2% 7.2% 57.7% 1.00 103.2% 111.1% 84.7% 87.8% 111.4% Year by Year Growth DWP Year by Year Growth DEP Chart Data Compound Annual Growth Rate and Loss Ratio PerformanceCompany 05/04 06/05 07/06 08/07 05/04 06/05 07/06 08/07 Company MS 5 YR CAGR 3 YR LRState Farm 5.4% 5.8% 3.5% -0.2% 7.4% 5.0% 6.1% 0.1% State Farm 22.1% 3.6% 62.4%Allstate 13.0% 3.6% -1.6% -3.1% 15.1% 7.4% 1.6% -2.6% Allstate20.0% 11.0% 2.8% 53.0% Top Ten Carriers IndustryFarmers 4.2% 6.9% 4.6% 3.6% 4.6% 5.0% 6.7% 3.4% Farmers 7.4% 4.8% 65.4%Liberty Mutual 6.7% 8.6% 9.6% 44.1% 8.7% 7.1% 9.7% 46.0% Liberty Mutual 5.1% 16.3% 57.3%Travelers 12.2% 10.1% 6.1% 3.0% 16.9% 11.4% 8.2% 4.2% Travelers 4.6% 7.8% 42.4%Nationwide 7.5% 5.5% 1.0% -0.8% 9.3% 6.9% 3.5% -1.3% 15.0% Nationwide 4.5% 3.3% 55.4%USAA 9.3% 10.0% 6.0% 0.4% 12.0% 9.8% 8.3% 2.6% USAA 4.2% 6.4% 53.2%Chubb 8.0% 8.3% 5.3% 0.3% 8.7% 7.9% 7.0% 2.5% Chubb 2.9% 5.4% 41.9%American Family -0.2% -0.3% -0.4% -0.8% 7.2% -0.7% 0.5% -1.6% 5 Year DWP CAGR American Family 2.2% -0.4% 88.7% 10.0%Hartford 8.7% 11.0% 6.4% -1.2% 10.1% 10.3% 9.5% 1.7% Hartford 1.7% 6.1% 54.1%AIG 81.1% -7.1% 13.1% 23.6% 28.5% 15.8% 8.9% 11.7% Total Industry 100.0% 4.3% 57.7%MetLife Auto & Home Grp 5.7% 4.5% 3.0% -1.6% 4.6% 5.5% 4.2% 0.4%Auto-Owners Grp 5.6% -0.4% -1.0% 0.2% 9.5% 2.5% -0.2% -1.8% 5.0%Erie Insurance 0.0% -1.5% 1.1% 1.4% 8.9% -1.2% -0.4% 1.3%Allianz 7.8% 11.8% 10.0% 1.2% 6.0% 10.2% 11.0% 5.6%Country Financial 11.5% 5.6% 8.8% 4.9% 17.2% 7.0% 8.5% 5.9% 0.0%AAA NCNU 16.2% 11.7% 7.3% -0.1% 16.3% 14.4% 9.7% 3.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%Universal P&C Co. 101.6% -100.0% 0.0% 0.0% 76.6% -100.0% 0.0% 0.0%Hanover Insurance Grp -2.7% 3.9% 4.0% -0.2% -0.1% 0.5% 3.8% 1.2%ACSC 10.5% 12.8% 5.5% 5.4% 12.8% 11.5% 9.2% 5.2% -5.0%Top Twenty 8.2% 5.6% 3.4% 3.6% 9.7% 6.3% 5.5% 3.9% 3 Year (06 to 08) DLRRest of Industry 3.4% 3.7% 2.1% -2.1% 3.9% 3.0% 4.6% -2.3%Total Industry 6.9% 5.1% 3.1% 2.2% 8.2% 5.4% 5.2% 2.4%
  4. 4. Arizona Auto *CAGR = Compound Annual Growth Rate Premium in Millions Market Share Direct Written Premium Loss Ratio Combined Ratio Chg Since 5 YR 06 to 08 Rel toCompany 08 MS 04 05 06 07 08 08/07 04 05 06 07 08 08/07 5 Yr Chg 04 05 06 07 08 04 CAGR* LR IndState Farm 16.1% -0.2% 529 537 555 559 573 2.5% 2.0% 56.8% 59.9% 58.6% 65.2% 68.6% 3.4% 11.8% 64.2% 1.07 91.3% 94.3% 94.6% 101.2% 105.8%Farmers 12.3% -0.6% 419 429 448 451 438 -2.9% 1.1% 62.5% 60.1% 56.5% 63.1% 56.9% -6.3% -5.6% 58.8% 0.98 99.3% 96.7% 95.1% 101.2% 95.4%Allstate 10.7% -1.3% 391 402 406 408 382 -6.2% -0.6% 50.7% 53.3% 50.4% 51.8% 50.0% -1.8% -0.7% 50.8% 0.85 86.4% 89.9% 87.5% 89.3% 87.0%Progressive 8.2% -0.1% 268 288 299 297 292 -1.8% 2.1% 51.6% 57.5% 55.7% 56.7% 55.8% -0.9% 4.2% 56.1% 0.94 85.6% 91.1% 88.9% 90.3% 89.3%American Family 8.0% -2.3% 333 332 323 312 285 -8.6% -3.8% 62.0% 60.6% 68.3% 70.4% 62.3% -8.1% 0.4% 67.1% 1.12 95.6% 95.1% 104.6% 105.8% 98.2%GEICO 7.7% 2.0% 184 218 253 267 274 2.7% 10.4% 59.2% 68.8% 67.9% 62.4% 57.2% -5.2% -2.0% 62.3% 1.04 86.9% 95.7% 95.1% 91.3% 85.9%USAA 5.0% -0.3% 169 180 184 162 176 9.2% 1.0% 61.3% 65.2% 66.1% 85.2% 78.6% -6.6% 17.3% 76.2% 1.27 85.1% 88.9% 89.1% 109.5% 99.3%Hartford 3.7% -0.2% 126 127 135 134 132 -1.2% 1.4% 50.3% 58.9% 54.9% 54.8% 51.4% -3.4% 1.1% 53.7% 0.90 87.1% 98.4% 93.1% 89.4% 84.4%Liberty Mutual 3.6% 1.3% 74 62 68 82 128 55.3% 14.9% 57.4% 48.9% 55.4% 62.3% 67.1% 4.8% 9.7% 62.8% 1.05 97.2% 88.8% 98.8% 102.4% 105.5%Nationwide 2.5% -0.3% 91 99 104 99 88 -11.1% -0.9% 54.0% 43.3% 54.0% 60.0% 53.5% -6.5% -0.5% 55.9% 0.93 91.8% 82.3% 96.6% 103.7% 94.8%AIG 2.1% -0.9% 100 111 108 85 76 -10.5% -6.5% 68.7% 66.0% 64.8% 59.6% 52.3% -7.3% -16.4% 59.6% 0.99 99.5% 120.0% 93.9% 93.0% 86.7%AAA NCNU 2.0% 1.9% 5 24 49 61 71 16.7% 99.1% 45.0% 68.7% 68.3% 83.6% 61.4% -22.1% 16.5% 70.7% 1.18 84.1% 107.6% 110.2% 125.4% 107.3%MetLife Auto & Home 1.7% 0.3% 44 49 55 60 60 -0.9% 7.7% 58.2% 56.5% 62.3% 58.6% 51.9% -6.7% -6.4% 57.3% 0.96 97.8% 95.9% 100.3% 96.8% 87.6%Country Financial 1.2% -0.4% 53 54 52 48 44 -9.9% -4.9% 53.5% 62.8% 55.9% 61.1% 63.0% 1.9% 9.5% 59.8% 1.00 90.5% 100.8% 93.2% 99.0% 100.9%Sentry Insurance 1.1% 0.5% 21 27 38 38 40 6.0% 17.4% 46.6% 53.4% 52.2% 49.7% 50.0% 0.3% 3.3% 50.6% 0.84 85.5% 93.1% 96.3% 95.2% 93.6%Infinity P&C Grp 0.9% 0.6% 10 19 29 36 31 -14.0% 32.0% 48.6% 61.7% 47.5% 51.4% 50.1% -1.3% 1.5% 50.0% 0.83 88.5% 96.1% 84.7% 92.3% 87.9%Travelers 0.9% 0.3% 19 23 27 28 31 8.5% 12.2% 47.1% 60.6% 53.1% 61.9% 47.2% -14.7% 0.1% 53.9% 0.90 81.0% 96.2% 93.4% 101.6% 90.4%Unitrin 0.7% 0.1% 19 20 17 19 26 42.5% 7.9% 60.0% 57.7% 59.8% 67.0% 61.0% -6.0% 1.1% 62.5% 1.04 109.6% 98.8% 100.3% 107.3% 102.2%Farm Bureau Mutual Grp 0.7% 0.0% 22 22 23 25 25 1.1% 3.9% 66.4% 61.4% 65.8% 61.2% 59.8% -1.4% -6.6% 62.1% 1.04 103.4% 101.7% 107.2% 100.2% 97.4%GMAC 0.7% -0.1% 23 22 22 24 23 -1.3% 0.3% 55.1% 54.1% 55.6% 50.6% 61.0% 10.4% 5.9% 55.7% 0.93 92.0% 94.8% 93.6% 88.5% 102.3%Top Twenty 89.7% 0.3% 2,901 3,044 3,196 3,194 3,196 0.1% 2.5% 57.3% 59.2% 59.0% 62.5% 59.6% -3.0% 2.3% 60.4% 1.01 91.6% 94.5% 94.4% 98.2% 95.2%Rest of Industry 10.3% -0.3% 347 357 371 400 369 -7.8% 1.6% 45.0% 54.3% 55.0% 56.7% 57.9% 1.2% 12.9% 56.5% 0.94 83.6% 93.8% 93.7% 96.0% 99.2%Total Industry 100.0% 0.0% 3,247 3,401 3,566 3,594 3,565 -0.8% 2.4% 55.9% 58.7% 58.6% 61.9% 59.4% -2.5% 3.5% 60.0% 1.00 90.7% 94.5% 94.3% 97.9% 95.6% Year by Year Growth DWP Year by Year Growth DEP Chart Data Compound Annual Growth Rate and Loss Ratio PerformanceCompany 05/04 06/05 07/06 08/07 05/04 06/05 07/06 08/07 Company MS 5 YR CAGR 3 YR LRState Farm 1.6% 3.4% 0.6% 2.5% -0.2% 3.1% 2.2% 1.4% State Farm 16.1% 2.0% 64.2%Farmers 2.5% 4.5% 0.6% -2.9% 1.7% 4.4% 0.5% -2.2% Farmers 20.0% 12.3% 1.1% 58.8% Top Ten Carriers IndustryAllstate 2.8% 1.1% 0.3% -6.2% 8.2% 1.4% 0.2% -3.4% Allstate 10.7% -0.6% 50.8%Progressive 7.3% 3.9% -0.7% -1.8% 6.6% 5.4% 0.3% -2.3% Progressive 8.2% 2.1% 56.1%American Family -0.3% -2.6% -3.6% -8.6% 0.1% -2.2% -3.5% -6.6% American Family 15.0% 8.0% -3.8% 67.1%GEICO 18.1% 16.4% 5.2% 2.7% 18.0% 18.0% 7.3% 2.8% GEICO 7.7% 10.4% 62.3%USAA 6.5% 1.8% -12.0% 9.2% 5.2% 5.1% -11.7% 3.8% USAA 5.0% 1.0% 76.2%Hartford 1.5% 6.0% -0.7% -1.2% 1.9% 3.7% 1.6% -1.6% Hartford10.0% 3.7% 1.4% 53.7%Liberty Mutual -15.2% 8.5% 21.9% 55.3% -6.5% 1.8% 17.3% 61.0% 5 Year DWP CAGR Liberty Mutual 3.6% 14.9% 62.8%Nationwide 8.6% 4.5% -4.5% -11.1% 9.7% 5.6% -5.6% -6.9% Nationwide 2.5% -0.9% 55.9%AIG 11.0% -2.5% -21.1% -10.5% 19.6% 0.4% -20.2% -10.5% Total Industry 5.0% 100.0% 2.4% 60.0%AAA NCNU 422.4% 106.9% 24.6% 16.7% 326.9% 193.2% 29.2% 20.4%MetLife Auto & Home 9.5% 14.0% 8.6% -0.9% 9.8% 10.8% 12.7% 2.0%Country Financial 0.5% -3.5% -6.6% -9.9% 3.1% -2.1% -6.9% -8.9% 0.0%Sentry Insurance 25.8% 44.3% -1.3% 6.0% 11.0% 57.0% 1.4% 5.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%Infinity P&C Grp 86.4% 49.9% 26.5% -14.0% 164.4% 25.0% 72.0% -14.2%Travelers 17.3% 16.5% 7.0% 8.5% 16.1% 19.8% 10.6% 7.4% -5.0%Unitrin 2.9% -14.6% 8.1% 42.5% 2.7% 0.3% -3.0% 22.4%Farm Bureau Mutual Grp -0.9% 6.2% 9.5% 1.1% -1.8% 3.4% 7.3% 6.7%GMAC -4.8% 2.0% 5.7% -1.3% -2.4% -0.2% 5.4% 0.8% -10.0%Top Twenty 4.9% 5.0% 0.0% 0.1% 5.4% 5.4% 0.7% 0.3% 3 Year (06 to 08) DLRRest of Industry 3.1% 3.8% 7.8% -7.8% -2.5% 2.2% 7.4% -6.7%Total Industry 4.7% 4.9% 0.8% -0.8% 4.5% 5.1% 1.4% -0.4%
  5. 5. Arizona Homeowners *CAGR = Compound Annual Growth Rate Premium in Millions Market Share Direct Written Premium Loss Ratio Combined Ratio Chg Since 5 YR 06 to 08 Rel toCompany 08 MS 04 05 06 07 08 08/07 04 05 06 07 08 08/07 5 Yr Chg 04 05 06 07 08 04 CAGR* LR IndState Farm 19.4% -0.9% 207 217 222 225 225 -0.2% 2.0% 29.6% 34.0% 39.3% 45.9% 49.5% 3.6% 19.9% 45.0% 1.01 68.0% 70.8% 75.8% 82.0% 89.8%Farmers 16.5% -0.5% 174 184 191 191 191 0.0% 2.4% 32.3% 41.8% 41.8% 46.4% 47.6% 1.2% 15.3% 45.3% 1.02 73.1% 83.3% 82.6% 88.8% 93.9%Allstate 14.6% 0.9% 139 160 177 180 169 -6.4% 4.9% 32.9% 34.4% 31.4% 44.0% 43.1% -0.9% 10.3% 39.7% 0.89 65.8% 75.7% 65.4% 77.7% 80.0%American Family 7.9% -3.2% 113 108 104 96 91 -5.3% -5.2% 36.6% 29.8% 39.8% 52.0% 55.3% 3.3% 18.7% 48.7% 1.10 69.2% 64.6% 79.2% 89.1% 93.3%USAA 4.7% -0.1% 49 53 54 49 54 9.2% 2.7% 36.3% 44.5% 46.6% 64.7% 65.5% 0.8% 29.2% 58.7% 1.32 65.3% 72.9% 71.9% 89.2% 92.7%Hartford 4.5% -0.3% 49 51 52 53 53 0.1% 1.8% 38.4% 38.0% 44.8% 48.5% 55.5% 7.0% 17.1% 49.7% 1.12 89.9% 69.8% 74.5% 74.1% 80.6%Liberty Mutual 4.0% 1.4% 26 25 27 31 46 51.1% 15.5% 39.2% 15.4% 23.8% 38.4% 36.7% -1.7% -2.5% 33.8% 0.76 76.9% 55.0% 60.7% 76.8% 77.1%Travelers 2.8% 0.8% 20 24 27 30 32 6.0% 12.0% 21.3% 36.1% 28.0% 34.3% 46.9% 12.6% 25.6% 37.1% 0.83 57.9% 73.6% 67.2% 75.2% 89.2%MetLife Auto & Home Grp 2.4% 0.9% 15 19 24 27 28 3.5% 16.5% 40.4% 24.2% 32.8% 39.2% 46.7% 7.5% 6.3% 40.1% 0.90 78.8% 67.4% 70.4% 74.6% 81.5%Chubb 2.2% 0.0% 22 22 25 26 25 -3.2% 3.7% 29.7% 31.9% 47.8% 22.6% 32.8% 10.2% 3.1% 34.1% 0.77 66.0% 66.3% 80.6% 56.0% 66.4%Nationwide 1.7% 0.1% 17 19 20 21 20 -2.6% 4.4% 31.2% 36.8% 36.7% 44.5% 50.1% 5.6% 18.9% 43.8% 0.99 71.0% 78.6% 76.9% 85.2% 90.7%Country Financial 1.5% 0.0% 16 18 18 19 18 -4.5% 2.5% 32.5% 32.7% 44.9% 54.6% 55.5% 0.8% 23.0% 51.7% 1.16 82.6% 79.4% 87.4% 98.7% 97.8%AAA NCNU 1.5% 1.4% 1 6 11 15 17 18.4% 105.8% 54.5% 42.4% 39.1% 63.8% 66.6% 2.8% 12.1% 59.1% 1.33 87.9% 79.9% 75.8% 99.1% 108.5%Assurant Solutions 1.5% 0.3% 11 13 14 16 17 6.0% 10.4% 49.8% 34.6% 41.5% 37.6% 39.4% 1.8% -10.4% 39.4% 0.89 103.4% 87.3% 90.6% 83.5% 84.5%Allianz of America 1.1% 0.3% 8 9 11 12 13 1.6% 12.4% 40.0% 39.4% 20.5% 38.4% 43.6% 5.3% 3.7% 35.1% 0.79 78.0% 75.0% 63.1% 73.0% 78.6%Farm Bureau Mutual Grp 1.0% 0.1% 9 9 10 11 11 1.7% 7.4% 37.4% 25.7% 36.7% 56.0% 59.7% 3.7% 22.2% 51.5% 1.16 71.9% 62.0% 75.8% 94.6% 98.2%NLASCO Grp 0.9% -0.5% 14 14 13 11 11 -7.3% -7.3% 26.2% 39.0% 49.3% 36.0% 43.4% 7.4% 17.2% 43.1% 0.97 65.6% 82.1% 88.7% 76.4% 86.8%Auto-Owners Ins Grp 0.9% -0.1% 10 11 11 11 10 -0.7% 0.8% 42.6% 66.8% 55.0% 70.8% 61.5% -9.3% 18.9% 62.4% 1.40 78.1% 96.4% 88.9% 104.8% 95.8%Fidelity National Grp 0.9% 0.3% 6 12 16 12 10 -18.6% 14.3% 35.9% 55.1% 33.4% 43.8% 59.9% 16.0% 24.0% 44.6% 1.00 70.1% 90.7% 70.0% 79.6% 100.6%Munich Re/American Modern Grp 0.9% 0.4% 5 5 6 7 10 51.3% 19.2% 40.5% 23.8% 34.5% 39.9% 37.8% -2.2% -2.7% 37.6% 0.85 92.5% 75.8% 85.9% 92.9% 88.9%Top Twenty 90.8% 1.3% 911 982 1,031 1,043 1,050 0.8% 3.6% 33.2% 35.8% 38.6% 46.4% 49.0% 2.6% 15.7% 44.7% 1.01 71.1% 73.9% 75.4% 82.8% 88.0%Rest of Industry 9.2% -1.3% 107 113 114 103 106 3.1% -0.2% 37.8% 40.2% 37.2% 43.5% 44.0% 0.5% 6.2% 41.6% 0.94 74.8% 79.6% 70.3% 78.9% 79.3%Total Industry 100.0% 0.0% 1,019 1,094 1,146 1,146 1,157 1.0% 3.2% 33.8% 36.2% 38.5% 46.1% 48.5% 2.4% 14.7% 44.4% 1.00 71.5% 74.5% 74.9% 82.5% 87.2% Year by Year Growth DWP Year by Year Growth DEP Chart Data Compound Annual Growth Rate and Loss Ratio PerformanceCompany 05/04 06/05 07/06 08/07 05/04 06/05 07/06 08/07 Company MS 5 YR CAGR 3 YR LRState Farm 4.5% 2.4% 1.4% -0.2% 3.9% 5.1% 2.2% -1.2% State Farm 19.4% 2.0% 45.0% Top Ten Carriers IndustryFarmers 5.6% 4.0% 0.0% 0.0% 4.1% 5.3% 2.3% -0.4% Farmers25.0% 16.5% 2.4% 45.3%Allstate 15.0% 10.1% 2.0% -6.4% 23.8% 12.5% 6.9% -2.5% Allstate 14.6% 4.9% 39.7%American Family -4.5% -3.8% -7.3% -5.3% 5.0% -4.0% -4.7% -7.2% American Family 7.9% -5.2% 48.7% 20.0%USAA 9.2% 1.9% -8.5% 9.2% 11.9% 6.9% -6.5% 1.0% USAA 4.7% 2.7% 58.7%Hartford 5.1% 1.1% 0.9% 0.1% 8.9% 3.4% 1.0% 0.5% Hartford 4.5% 1.8% 49.7%Liberty Mutual -1.6% 4.7% 14.5% 51.1% 4.9% 0.8% 10.2% 51.9% Liberty Mutual 15.0% 4.0% 15.5% 33.8%Travelers 15.8% 16.1% 10.6% 6.0% 14.7% 16.7% 12.9% 9.2% Travelers 2.8% 12.0% 37.1% 5 Year DWP CAGRMetLife Auto & Home Grp 28.2% 22.8% 13.3% 3.5% 29.4% 25.4% 19.6% 7.4% MetLife Auto & Home G 2.4% 16.5% 40.1% 10.0%Chubb 3.5% 9.1% 5.8% -3.2% 8.2% 5.9% 7.6% 2.1% Chubb 2.2% 3.7% 34.1%Nationwide 14.4% 5.5% 1.2% -2.6% 19.4% 10.1% 4.3% -1.4% Total Industry 100.0% 3.2% 44.4%Country Financial 12.7% 1.7% 1.1% -4.5% 14.5% 7.0% 2.0% -1.4% 5.0%AAA NCNU 573.0% 74.2% 29.2% 18.4% 645.5% 210.0% 40.6% 24.2%Assurant Solutions 18.6% 6.5% 11.0% 6.0% 16.0% 8.8% 11.0% 3.7%Allianz of America 18.9% 14.0% 16.0% 1.6% 14.9% 15.5% 15.2% 8.1% 0.0%Farm Bureau Mutual Grp 3.3% 11.4% 13.7% 1.7% 5.0% 9.7% 12.5% 7.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%NLASCO Grp -5.4% -7.5% -9.1% -7.3% -5.2% -6.7% -8.8% -8.0% -5.0%Auto-Owners Ins Grp 7.5% -1.9% -1.5% -0.7% 12.6% 2.9% -2.1% -1.3%Fidelity National Grp 109.0% 26.3% -20.7% -18.6% 146.9% 62.3% -1.0% -20.0%Munich Re/American Modern Grp 0.9% 14.5% 15.6% 51.3% 4.7% 8.0% 14.9% 34.8% -10.0%Top Twenty 7.7% 5.1% 1.1% 0.8% 9.9% 7.1% 3.3% 0.8% 3 Year (06 to 08) DLRRest of Industry 5.1% 1.4% -9.9% 3.1% 0.1% 0.1% 4.6% -8.8%Total Industry 7.4% 4.7% 0.0% 1.0% 8.8% 6.4% 3.4% -0.2%

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