OCI_FIN_Exam_Report - 7/20/2022 - American Family Mutual Insurance Company, S.I. - 2021 -

Combined Report of the Examination of

American Family Mutual Insurance company, S.I. and its Wisconsin-Domiciled Property and Casualty

Subsidiaries

As of December 31, 2021

TABLE OF CONTENTS

Page

I. INTRODUCTION ..........................................................................................................................2

II. HISTORY AND PLAN OF OPERATION......................................................................................5

III. MANAGEMENT AND CONTROL.............................................................................................14

IV. AFFILIATED COMPANIES ......................................................................................................17

V. REINSURANCE ........................................................................................................................25

VI. FINANCIAL DATA…………………………………………………………………………………….29

VII. SUMMARY OF EXAMINATION RESULTS.............................................................................40

VIII. CONCLUSION .......................................................................................................................42

IX. SUMMARY OF COMMENTS AND RECOMMENDATIONS ....................................................43

X. ACKNOWLEDGMENT ..............................................................................................................44

XI. APPENDIX A: MANAGEMENT AND CONTROL.....................................................................45

AMERICAN FAMILY CONNECT INSURANCE COMPANY.......................................................................45

AMERICAN FAMILY CONNECT PROPERTY AND CASUALTY INSURANCE COMPANY ..............................46

AMERICAN FAMILY INSURANCE COMPANY ......................................................................................47

AMERICAN FAMILY MUTUAL INSURANCE COMPANY, S.I...................................................................48

AMERICAN STANDARD INSURANCE COMPANY OF OHIO ...................................................................50

AMERICAN STANDARD INSURANCE COMPANY OF WISCONSIN..........................................................51

HOMESITE INDEMNITY COMPANY ...................................................................................................52

HOMESITE INSURANCE COMPANY ..................................................................................................53

HOMESITE INSURANCE COMPANY OF THE MIDWEST........................................................................54

MIDVALE INDEMNITY COMPANY .....................................................................................................55

PERMANENT GENERAL ASSURANCE CORPORATION........................................................................56

PERMANENT GENERAL ASSURANCE CORPORATION OF OHIO ..........................................................57

THE GENERAL AUTOMOBILE INSURANCE COMPANY INC. .................................................................58

XII. APPENDIX B: FINANCIAL DATA ...........................................................................................59

AMERICAN FAMILY CONNECT INSURANCE COMPANY.......................................................................59

AMERICAN FAMILY CONNECT PROPERTY AND CASUALTY INSURANCE COMPANY ..............................61

AMERICAN FAMILY INSURANCE COMPANY ......................................................................................65

AMERICAN STANDARD INSURANCE COMPANY OF OHIO ...................................................................68

AMERICAN STANDARD INSURANCE COMPANY OF WISCONSIN..........................................................71

HOMESITE INDEMNITY COMPANY ...................................................................................................75

HOMESITE INSURANCE COMPANY ..................................................................................................79

HOMESITE INSURANCE COMPANY OF THE MIDWEST........................................................................83

MIDVALE INDEMNITY COMPANY .....................................................................................................87

PERMANENT GENERAL ASSURANCE CORPORATION........................................................................91

PERMANENT GENERAL ASSURANCE CORPORATION OF OHIO ..........................................................95

THE GENERAL AUTOMOBILE INSURANCE COMPANY INC. .................................................................99

Tony Evers, Governor of Wisconsin

Nathan Houdek, Commissioner of Insurance

125 South Webster Street, P.O. Box 7873 | Madison, WI 53707-7873

p: 608-266-3585 | 1-800-236-8517 | f: 608-264-6237

ocifinancial@wisconsin.gov | oci.wi.gov

May 10, 2023

Honorable Nathan D. Houdek

Commissioner of Insurance

State of Wisconsin

125 South Webster Street

Madison, Wisconsin 53703

Commissioner:

In accordance with your instructions, a compliance examination has been made of the affairs

and financial condition of the following Wisconsin-domiciled, multi-state property and casualty insurance

companies, hereinafter referred to as the “Group”:

AMERICAN FAMILY CONNECT INSURANCE COMPANY

AMERICAN FAMILY CONNECT PROPERTY AND CASUALTY INSURANCE COMPANY

De Pere, Wisconsin

AMERICAN FAMILY INSURANCE COMPANY

AMERICAN FAMILY MUTUAL INSURANCE COMPANY S.I.

AMERICAN STANDARD INSURANCE COMPANY OF OHIO

AMERICAN STANDARD INSURANCE COMPANY OF WISCONSIN

MIDVALE INDEMNITY COMPANY

Madison, Wisconsin

HOMESITE INDEMNITY COMPANY

HOMESITE INSURANCE COMPANY

HOMESITE INSURANCE COMPANY OF THE MIDWEST

Boston, Massachusetts

PERMANENT GENERAL ASSURANCE CORPORATION

PERMANENT GENERAL ASSURANCE CORPORATION OF OHIO

THE GENERAL AUTOMOBILE INSURANCE COMPANY, INC.

Nashville, Tennessee

and this report is respectfully submitted.

I. INTRODUCTION

The previous examination of the Group was conducted in 2017 as of December 31, 2016.

The current examination covered the intervening period ending December 31, 2021, and included a

review of such subsequent transactions as deemed necessary to complete the examination.

The Group examination includes the examination of the following companies:

Company State

American Family Connect Insurance Company (AFCIC) Wisconsin

American Family Connect Property and Casualty Insurance Company (AFCPCIC) Wisconsin

American Family Insurance Company (AFIC) Wisconsin

American Family Life Insurance Company (AFLIC) Wisconsin

American Family Mutual Insurance Company, S.I. (AFMICSI) Wisconsin

American Standard Insurance Company of Ohio (ASICOH) Wisconsin

American Standard Insurance Company of Wisconsin (ASICW) Wisconsin

Austin Mutual Insurance Company (AMIC) Minnesota

Grain Dealers Mutual Insurance Company (GDMIC) Indiana

Homesite Indemnity Company (HIC) Wisconsin

Homesite Insurance Company (HCT) Wisconsin

Homesite Insurance Company of California (HICCA) California

Homesite Insurance Company of Florida (HICFL) Illinois

Homesite Insurance Company of Georgia (HICGA) Georgia

Homesite Insurance Company of Illinois (HICIL) Illinois

Homesite Insurance Company of New York (HICNY) New York

Homesite Insurance Company of the Midwest (HICMW) Wisconsin

Homesite Lloyds of Texas (HLT) Texas

Main Street America Assurance Company (MSAAC) Florida

Main Street America Protection Insurance Company (MSAPIC) Florida

Midvale Indemnity Company (MIC) Wisconsin

NGM Insurance Company (NGM) Florida

Old Dominion Insurance Company (ODIC) Florida

Permanent General Assurance Corporation (PGAC) Wisconsin

Permanent General Assurance Corporation of Ohio (PGACO) Wisconsin

Spring Valley Mutual Insurance Company (SVMIC) Minnesota

The General Automobile Insurance Company Inc. (GAIC) Wisconsin

Trusted Resource Underwriters Exchange (TRUE) Florida

Representatives of all states that have domestic companies in the Group except South

Carolina, participated in the examination, with Wisconsin acting in the capacity as the lead state for the

coordinated examination.

The examination was conducted using a risk-focused approach in accordance with the

National Association of Insurance Commissioners (NAIC) Financial Condition Examiners Handbook. This

approach sets forth guidance for planning and performing the examination of an insurance company to

evaluate the financial condition, assess corporate governance, identify current and prospective risks

(including those that might materially affect the financial condition, either currently or prospectively), and

evaluate system controls and procedures used to mitigate those risks.

All accounts and activities of the companies were considered in accordance with the risk-

focused examination process. This may include assessing significant estimates made by management

and evaluating management’s compliance with statutory accounting principles, annual statement

instructions, and Wisconsin laws and regulations. The examination does not attest to the fair presentation

of the financial statements included herein. If during the course of the examination an adjustment is

identified, the impact of such adjustment will be documented separately at the end of the “Financial Data”

section in the area captioned "Reconciliation of Surplus per Examination."

Emphasis was placed on those areas of the Group's operations accorded a high priority by

the examiner-in-charge when planning the examination. Special attention was given to the actions taken

by the Group to satisfy the recommendations and comments made in the previous examination reports.

The Group is annually audited by an independent public accounting firm as prescribed by s.

Ins 50.05, Wis. Adm. Code. The Group is approved to file consolidated audited financial statements that

include AFMICSI and all of its wholly owned and affiliated property and casualty insurance companies

except HICNY, pursuant to s. Ins. 50.09, Wis. Adm. Code. All of the property and casualty subsidiaries

and affiliates included in the consolidated audited financial statements of the Group are participants in

100% reinsurance arrangements with AFMICSI. An integral part of this compliance examination was the

review of the independent accountant's work papers. Based on the results of the review of these work

papers, alternative or additional examination steps deemed necessary for the completion of this

examination were performed. The examination work papers contain documentation concerning the

alternative or additional examination steps performed during the examination.

Certain financial data in this report is rounded to the nearest thousand which may cause

slight rounding differences for the totals. The report discloses which numbers are rounded.

Independent Actuary's Review

An independent actuarial firm was engaged under a contract with the Wisconsin Office of the

Commissioner of Insurance. The actuary reviewed the adequacy of the Group’s loss and loss adjustment

expense reserves. The actuary’s results were reported to the examiner-in-charge. As deemed

appropriate, reference is made in this report to the actuary’s conclusion.

Investment Review

The Capital Markets Bureau of the NAIC was engaged by the Office of the Commissioner of

Insurance to perform a review of the AFMICSI’s invested assets portfolio as of December 31, 2021. The

results of that review were reported to the examiner-in-charge. As deemed appropriate, reference is

made in this report to the findings of the review.

II. HISTORY AND PLAN OF OPERATION

American Family Mutual Insurance Company, S.I. owns 100% interest in property and

casualty insurance subsidiaries through a downstream holding company, AmFam, Inc. AFMICSI was

organized in 1927 as Farmers’ Mutual Automobile Insurance Company (Farmers’ Mutual). In 1963,

Farmers’ Mutual changed its name to American Family Mutual Insurance Company (AFMIC). Effective

January 1, 2017, AFMIC converted into a stock insurance company owned by a newly organized mutual

insurance holding company and changed its name to American Family Mutual Insurance Company, S.I.

ASICW was incorporated on April 5, 1961, under the provisions of ch. 611, Wis. Stat., as

American Standard Insurance Company. In 1962, American Standard Insurance Company adopted the

name American Standard Insurance Company of Wisconsin. ASICOH was incorporated on

November 21, 1995 under the laws of the state of Ohio and commenced business on January 1, 1996.

Effective September 30, 2016, ASICOH redomiciled from Ohio to Wisconsin. Midvale Indemnity Company

was incorporated in 1970. It was acquired by AFMICSI in 2012 under its former name, Lumberman’s

Casualty Insurance Company (LCIC). LCIC changed its name to Midvale Indemnity Company in 2013.

MIC redomiciled from Illinois to Wisconsin effective November 16, 2017.

On December 31, 2012, AFMIC, through its wholly owned subsidiary AmFam, Inc., acquired

100% of the ownership in PGC Holdings Corp (PGC Holdings), a Delaware corporation. PGC Holdings

directly and indirectly owns three insurance companies: GAIC, PGAC, and PGACO. The three insurance

companies are referred to as Permanent General Companies (PGC). In August 2017 all three companies

redomiciled to Wisconsin from Ohio.

On December 31, 2013, AFMIC, through AmFam, Inc., acquired 100% ownership in

Homesite Group Incorporated (HGI), a Delaware corporation. HGI directly and indirectly owns nine

insurance companies: HIC, HCT, HICCA, HICFL, HICGA, HICIL, HICNY, HICMW, and HLT. Collectively,

these nine insurance companies are referred to as the “Homesite” Group. In September 2016, HIC, HCT,

and HICMW redomiciled to Wisconsin from Kansas, Connecticut, and North Dakota, respectively.

Effective January 1, 2017, the Group’s corporate structure was reorganized as a mutual

insurance holding company. As part of the reorganization, AFMIC formed two new holding company

entities: a mutual holding company, American Family Insurance Mutual Holding Company (AFIMHC), and

a wholly owned subsidiary of AFIMHC, AmFam Holdings, Inc. (AmFam Holdings). AFMIC then converted

to a stock insurer, changed its name to AFMICSI, and issued three million shares of $1 par common stock

to AmFam Holdings. AmFam Holdings issued 100% of its voting securities to AFIMHC, which became the

ultimate controlling party of the Group which includes all insurance and non-insurance entities in the

holding company group. Existing and future mutual policyholders’ membership interests in AFMIC were

replaced with membership interests in AFIMHC. Policyholders of American Family Insurance Company

and American Standard Insurance Company of Ohio were also granted membership rights in AFIMHC.

There are no plans for AFMICSI to sell stock publicly.

On October 31, 2018, Main Street America Group Mutual Holdings, Inc. (MSA Holdings), a

mutual insurance holding company organized under the laws of the State of Florida, merged with and into

AFIMHC, with AFIMHC being the surviving corporation. MSA Holdings was the ultimate owner of Main

Street America Group, Inc. (MSAGI), a Florida corporation, which directly and indirectly owns 100%

interest in five insurance companies and is affiliated with three mutual insurance companies through

common management and affiliation agreements. The MSA Group insurance companies are NGM,

MSAAC, ODIC, and MSAPIC, all domiciled in Florida, MSA Insurance Company (MSAIC), domiciled in

South Carolina, affiliates GDMIC domiciled in Indiana, and SVMIC and AMIC both domiciled in

Minnesota. Collectively, these companies are referred to as “the MSA Group”. All insurance companies

except MSAIC are included in the current financial examination. The MSA Group entities participated in a

separate financial examination for the period of January 1, 2016, through December 31, 2020, with

Florida, South Carolina, Minnesota, and Indiana. MSAIC Insurance Company was included in that exam,

and South Carolina issued a final examination report with no adverse findings on September 4, 2021. As

a result of the merger, all policyholders that had membership interest in MSA Holdings prior to the merger

were converted into and granted membership interest in AFIMHC. Subsequent to the merger, AFIMHC

contributed 100% of the issued and outstanding capital stock of MSAGI to AFMICSI.

On October 1, 2019, AFIMHC, through its indirect, wholly owned subsidiary AmFam, Inc.,

acquired 100% ownership of IDS Property Casualty Insurance Company and its wholly owned affiliate,

Ameriprise Insurance Company from Ameriprise Financial, Inc. IDS Property Casualty Insurance

Company’s name was subsequently changed to American Family Connect Property and Casualty

Insurance Company, and Ameriprise Insurance Company’s name was changed to American Family

Connect Insurance Company.

The primary operating company brands in the Group are: American Family, Connect,

Homesite, Permanent General Companies, and Main Street America (collectively the “Opcos”.) The

Opcos cede their business to AFMICSI, either directly, or through the lead companies in their respective

subgroups, which then retrocede all business to AMFICSI. The only exception is HICNY which retains

20% of its business. Included below are the descriptions of the product offerings and distribution channels

by each Opco. The descriptions include a general overview of each Opco and detailed information for

each company included in this report. The MSA Group does not have a company domiciled in Wisconsin,

however, a description of MSAGI is included to provide a holistic overview of the Group.

American Family Brand Entities

The American Family brand’s property and casualty book of business is offered by five

companies – AFMICSI, AFIC, ASICOH, ASICW, and MIC. The major products are primarily marketed

through a captive agency force of approximately 2,500 agents operating in 19 predominantly non-coastal

states with a primary focus on the Midwest. The American Family brand products include personal

automobile, homeowners, farm owners, mobile homeowners, and commercial multiple peril. In 2021, the

companies in the American Family subgroup wrote direct premium in the following states:

American Family Mutual Insurance Company S.I.

Wisconsin

$ 756,173,798

19.4%

Minnesota

637,965,268

16.4

Missouri

600,421,667

15.4

Illinois

320,658,900

8.2

Colorado

293,390,694

7.5

Kansas

277,800,976

7.1

Arizona

158,819,484

4.1

All others

852,988,313

21.9

Total

$3,898,219,103

100.0%

AFMICSI is licensed in 27 states and wrote business in 19 states in 2021. The major lines of

business written by the AFMICSI are homeowners multiple peril, auto physical damage, private

passenger auto liability, and commercial multiple peril.

American Family Insurance Company

Colorado

$ 360,288,685

13.9%

Missouri

339,168,590

13.1

Wisconsin

243,302,967

9.4

Illinois

223,170,414

8.6

Arizona

195,686,335

7.6

Minnesota

188,932,861

7.3

Kansas

170,681,506

6.6

All others

866,090,833

33.5

Total

$2,587,322,191

100.0%

AFIC is licensed in 19 states and wrote business in all 19 states. The major lines of business

written by AFIC are private passenger auto liability, homeowners multiple peril, auto physical damage,

and commercial multiple peril.

American Standard Insurance Company of Ohio

Georgia

$ 121,433,055

98.7%

Ohio

1,626,785

1.3

Total

$123,059,840

100.0%

ASICOH is licensed in three states and wrote business in two states, but predominantly in

Georgia. The major lines of business written by the ASICOH are private passenger auto liability, auto

physical damage, and homeowners multiple peril.

American Standard Insurance Company of Wisconsin

Wisconsin

$14,971,194

30.7%

Missouri

6,768,924

13.9

Minnesota

6,383,599

13.1

Kansas

4,045,858

8.3

Illinois

2,699,963

5.5

Iowa

2,636,189

5.4

Colorado

2,125,846

4.4

All others

9,143,466

18.7

Total

$48,775,039

100.0%

ASICW is licensed in 23 states and wrote business in 17 states. The major lines of business

written by the ASICW are private passenger auto liability and auto physical damage. Prior to 2021,

ASICW offered reinsurance products to third party clients in various property and casualty lines, including

international business. Starting in 2021, all new and renewed reinsurance business is underwritten by

AFCPCIC.

Midvale Indemnity Company

MIC writes small account commercial direct policies, direct personal auto business and

personal umbrella insurance that support multiple personal lines auto and home products.

New York

$ 25,466,151

10.3%

Massachusetts

23,129,885

9.4

Arizona

20,843,092

8.4

Colorado

20,192,479

8.2

Illinois

19,995,199

8.1

Missouri

13,968,002

5.7

Wisconsin

12,034,380

4.9

All others

111,289,170

45.1

Total

$246,918,358

100.0%

MIC is licensed in 50 states and the District of Columbia and wrote business in all 50 states

and the District of Columbia. The major lines of business written by MIC include commercial multiple peril,

other liability, workers compensation, commercial auto liability, auto physical damage, and private

passenger auto liability.

Connect Entities

The Connect operating companies offer personal lines products including personal auto,

homeowners, and umbrella insurance products and are marketed through non-related affinity

partnerships, the largest of which is Costco Wholesale Corporation. AFCPCIC also markets personal

lines products to its affiliated company clients at Ameriprise Financial Advisors and on the internet.

Starting in 2021, AFCPCIC began offering reinsurance products which was previously offered by ASICW.

American Family Connect Property and Casualty Insurance Company

California

$ 546,493,739

47.4%

Washington

96,576,660

8.4

Texas

61,955,058

5.4

Arizona

42,669,114

3.7

Michigan

32,891,903

2.9

Colorado

31,619,934

2.7

Oregon

31,146,644

2.7

All others

309,957,516

26.9

Total

$1,153,310,568

100.0%

AFCPCIC is licensed in 50 states and the District of Columbia and wrote premium in 43

states and the District of Columbia. The major lines of business written by AFCPCIC include private

passenger auto liability, auto physical damage, and homeowners multiple peril.

American Family Connect Insurance Company

New York

$11,309,801

48.0%

Georgia

10,994,177

46.7

South Carolina

1,241,481

5.3

Total

$23,545,459

100.0%

AFCIC is licensed in 38 states and the District of Columbia and wrote business in three

states. AFCIC writes three lines of business - private passenger auto liability, auto physical damage, and

homeowners multiple peril.

Homesite Entities

The Homesite Group of companies offers home, condominium, and renter insurance and

writes most of its business through the direct online channel and through partnerships with other insurers

and financial services companies.

Homesite Insurance Company of the Midwest

New Jersey

$120,226,557

12.5%

Michigan

112,219,095

11.6

Ohio

110,102,355

11.4

California

75,955,958

7.9

Pennsylvania

54,877,175

5.7

Virginia

51,308,304

5.3

Maryland

48,146,799

5.0

All others

390,784,251

40.6

Total

$963,620,494

100.0%

HICMW is licensed in 36 states and the District of Columbia and wrote business in 34 states

and the District of Columbia. The major line written by HICMW is homeowners multiple peril.

Homesite Insurance Company

Texas

$ 126,865,633

12.6%

California

92,175,366

9.2

Arizona

63,640,427

6.3

New Jersey

60,016,297

6.0

Indiana

56,542,988

5.6

Washington

56,440,745

5.6

Maryland

54,292,151

5.4

All others

497,002,487

49.4

Total

$1,006,976,094

100.0%

HCT is licensed in 44 states and the District of Columbia and wrote business in all 44 states.

The major lines written by the HCT are homeowners multiple peril, other liability, inland marine, allied

lines, medical professional liability, and commercial multiple peril.

Homesite Indemnity Company

Oklahoma

$ 36,692,422

34.4%

Kansas

19,568,285

18.4

Colorado

10,254,141

9.6

Arizona

9,816,480

9.2

Nevada

7,918,222

7.4

Missouri

6,443,906

6.0

Texas

5,169,928

4.9

All others

10,689,518

10.1

Total

$106,552,902

100.0%

HIC is licensed in 15 states and wrote business in 13 states. The major line written by the

company is homeowners multiple peril.

PGC Entities

Permanent General Companies offer non-standard automobile insurance distributed through

a multi-channel distribution system which includes the agency channel, retail channel, and internet. The

companies operate as one brand, “The General”.

Permanent General Assurance Corporation

Florida

$ 150,759,398

27.3%

California

73,023,593

13.2

Washington

24,861,267

4.5

Indiana

22,398,845

4.1

Alabama

22,064,428

4.0

Arizona

20,840,814

3.8

Pennsylvania

17,851,648

3.2

All others

220,864,441

40.0

Total

$552,664,434

100.0%

PGAC is licensed in 49 states and the District of Columbia and wrote business in 43 states

and the District of Columbia. PGAC writes two lines of business – private passenger auto liability and

auto physical damage.

Permanent General Assurance Corporation of Ohio

Pennsylvania

$ 47,457,677

19.0%

Ohio

42,588,664

17.1

Tennessee

41,752,005

16.7

North Carolina

27,760,494

11.1

Georgia

21,783,667

8.7

Colorado

20,987,103

8.4

Massachusetts

19,187,214

7.7

All others

27,958,475

11.2

Total

$249,475,299

100.0%

PGACO is licensed in 39 states and wrote business in 16 states. PGACO writes two lines of

business – private passenger auto liability and auto physical damage.

The General Automobile Insurance Company, Inc.

Virginia

$26,072,511

39.6%

Ohio

10,239,726

15.5

Oregon

8,554,100

13.0

Pennsylvania

6,743,400

10.2

Alabama

5,315,464

8.1

Texas

3,510,243

5.3

South Carolina

2,288,535

3.5

All others

3,189,491

4.8

Total

$65,913,470

100.0%

GAIC is licensed in 34 states and wrote business in 11 states. GAIC writes two lines of

business – private passenger auto liability and auto physical damage.

MSA Entities

Companies in the MSA Group offer small business, personal insurance and fidelity and

surety bonds through independent agents. None of the companies in the MSA Group domicile in

Wisconsin.

The following table is a summary of the net insurance premiums written by the Group in

2021. AFMICSI assumes 100% of the business of all of its property and casualty subsidiaries and

affiliates on a quota share basis. The only exception is HICNY which retains 20% of its business. As

such, substantially all of the Group net property and casualty results ultimately reside with AFMICSI. The

growth of the Group is discussed in the “Financial Data” section of this report.

Line of

Business

Direct

Premium

Reinsurance

Assumed

Reinsurance

Ceded

Net

Premium

Fire

$ 1,796,599

$ 114,214,243

$ 1,537,757

$ 114,473,085

Allied lines

12,878,513

19,934,402

11,329,902

21,483,013

Farmowners

multiple peril

113,290,389

46,586,251

13,373,399

146,503,241

Homeowners

multiple peril

1,538,244,896

3,549,178,851

160,318,374

4,927,105,373

Commercial

multiple peril

267,115,952

573,720,550

36,738,211

804,098,291

Mortgage guaranty

5,342,306

Inland marine

2,894,340

48,547,405

4,088

51,437,657

Medical

professional

liability - claims

made

16,636,019

14,845,756

1,790,263

Earthquake

17,377,277

10,557,529

4,108,271

23,826,535

Other accident and

health

22,020,475

4,427,271

14,234,013

12,213,733

Workers’

compensation

15,043,643

73,820,977

(77,495)

88,942,115

Other liability –

occurrence

141,211,201

223,078,653

97,622,083

266,667,771

Other liability –

claims made

2,964,542

119,993,976

111,880,816

11,077,702

Products liability –

occurrence

173,113

8,295,969

8,469,082

Private passenger

auto liability

912,489,479

2,572,790,923

3,485,280,402

Commercial auto

liability

42,428,648

170,285,146

47,373

212,666,421

Auto physical

damage

807,078,607

1,554,152,422

12,085,158

2,349,145,871

Fidelity

1,765,615

43,925

1,721,690

Surety

40,375,443

2,886,666

37,488,777

Burglary and theft

1,211,428

444,592

1,656,020

Boiler and

machinery

4,072

(4,059)

Reinsurance –

non-proportional

assumed

property

72,931,214

8,078,580

64,852,634

Reinsurance –

non-proportional

assumed liability

5,233,110

Reinsurance –

non-proportional

assumed

financial lines

2,732,157

Total All Lines

$3,898,219,102

$9,235,045,037

$494,294,059

$12,638,970,080

III. MANAGEMENT AND CONTROL

Board of Directors

The board of directors of AFIMHC, the ultimate parent of American Family Mutual Insurance

Company, S.I., consists of 16 members. There are three classes of directors, each class is elected

annually to serve a three-year term. Officers are elected at the board's annual meetings to serve one-year

terms. Directors serving on the boards of AFIMHC’s insurance subsidiaries are elected at the annual

meetings of shareholders for a term of one year.

Currently, the AFIMHC board of directors consists of the people listed in the table below.

Appendix A lists directors comprising the boards of all insurance companies included in the report.

Name and Residence

Principal Occupation

Term

Expires

Christine M. Cumming

Brooklyn, New York

Retired First Vice President and Chief Operating Officer

Federal Reserve Bank

2024

Londa J. Dewey

Madison, Wisconsin

Chief Executive Officer

The QTI Group

2025

Fabian J. Fondriest

Boston, Massachusetts

Retired Chief Executive Officer

Homesite Group Incorporated

2024

Leslie Ann Howard

Madison, Wisconsin

United Way Independent Consultant

United Way Worldwide

2026

Idalene F. Kesner

Bloomington, Indiana

Dean Emeritus of Indiana University

Kelley School of Business

2025

Rakesh Khurana

Newton, Massachusetts

Danoff Dean

Harvard College

2026

Michael M. Knetter

Madison, Wisconsin

President & CEO

University of Wisconsin Foundation

2024

Antoinette (Tonie) Leatherberry

Chadds Ford, Pennsylvania

Retired Partner, Deloitte Partner; Chief Executive

Officer, Amplify Advisors, LLC

2024

Rosa G. Rios

Danville, California

Former United States Treasurer; Chief Executive

Officer

Red River Associates

2026

Jack C. Salzwedel

Madison, Wisconsin

Executive Chair

AFIMHC

2025

Paul S. Shain

Verona, Wisconsin

President, Chief Executive Officer

Singlewire Software, LLC

2025

Name and Residence

Principal Occupation

Term

Expires

Thomas M. Tefft

Dellwood, Minnesota

Former Executive

Medtronic, Inc.

2024

William B. Westrate

Lake Mills, Wisconsin

Chief Executive Officer

AFIMHC

2026

Scott A. Wrobbel

Oconomowoc, Wisconsin

Retired Central Region Market Leader, Milwaukee

Managing Partner, Deloitte LLP

2026

Telisa L. Yancy

Middleton, Wisconsin

Enterprise President

AFIMHC

2024

Thomas J. Zimbrick

Madison, Wisconsin

Chief Executive Officer

Zimbrick, Inc.

2024

Officers of AFIMHC

The principal officers currently serving are as follows:

Name

Office

Jack Salzwedel

Executive Chair

William B. Westrate

Chief Executive Officer

Telisa L. Yancy

Enterprise President

Troy P. Van Beek

Enterprise Chief Financial Officer; Treasurer

David C. Holman

Chief Administration Officer; Secretary

Michael D. Lorion

AmFam Direct President

Jeffrey J. Swalve

Agency President

Elicia L. Azali

Enterprise Chief Marketing Officer

Timothy D. Constien

Chief Claims Officer

David A. Graham

Chief Investment Officer

Daniel J. Kelly

Anthony M. Scavongelli

Jessica J. Stauffacher

Tracy L. Schweitzer

Enterprise Chief Underwriting Officer

Enterprise Chief Partnerships Officer

Enterprise Chief People Officer

Enterprise Chief Transformation Officer

Peter B. Settel

Enterprise Chief Strategy and Technology Officer

Rondale L. Dunn

Chief Sales Officer

Candy S. Embray

Commercial & Farm Ranch President

William Todd Fancher

Life President

Richard M. Steffen

Personal Lines President

Theresa K. Sztuczko

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

Committees of the Board

The AFIMHC bylaws allow for the formation of certain committees by the AFIMHC board of

directors. The committees currently serving are listed below:

Audit Committee

Nominating & Governance

Committee

Thomas M. Tefft, Chair

Idalene F. Kesner, Chair

Idalene F. Kesner

Jack C. Salzwedel

Michael M. Knetter

Thomas J. Zimbrick

Rosa G. Rios

Scott A. Wrobbel

Leslie Ann Howard

Rakesh Khurana

William B. Westrate

Risk Committee

People, Culture, and Reward

Committee

Christine M. Cumming, Chair

Londa J. Dewey, Chair

Fabian J. Fondriest

Jack C. Salzwedel

Antoinette Leatherberry

Leslie Ann Howard

Thomas M. Tefft

Antoinette Leatherberry

Scott A. Wrobbel

Jack C. Salzwedel

Rakesh Khurana

Paul S. Shain

William B. Westrate

Thomas J. Zimbrick

William B. Westrate

Finance and Investment Committee

Executive Committee

Michael M. Knetter, Chair

Jack C. Salzwedel, Chair

Jack C. Salzwedel

William B. Westrate

Christine M. Cumming

Londa J. Dewey

Rosa G. Rios

Londa J. Dewey

Idalene F. Kesner

Paul S. Shain

Michael M. Knetter

Fabian J. Fondriest

William B. Westrate

Troy Van Beek (ex officio)

Paul S. Shain

Thomas M. Tefft

IV. AFFILIATED COMPANIES

The ultimate parent of the American Family Insurance Mutual Group is American Family

Insurance Mutual Holding Company. The simplified organizational chart below depicts the relationships

among the affiliates in the Group. A brief description of the significant affiliates follows the organizational

chart.

Organizational Chart

As of December 31, 2021

American Standard

Insurance Company

of Wisconsin

AmFam, Inc.

American Family

Mutual Insurance

Company, S.I.

New Ventures,

LLC

AmFam Holdings, Inc.

American Family

Insurance Mutual

Holding Company

American Standard

Insurance Company

of Ohio

PGC Holdings Corp.

American Family

Life Insurance

Company

Homesite Insurance

Company

Homesite Group

Incorporated

Homesite Indemnity

Company

Homesite

Underwriting

Managers LLC

Permanent General

Companies, Inc.

Midvale Indemnity

Company

American Family

Insurance Company

Homesite Insurance

Company of

Georgia

Homesite Insurance

Company of Florida

Homesite Insurance

Company of

California

Homesite Insurance

Company of Illinois

Homesite Insurance

Company of the

Midwest

Homesite Lloyd’s of

Texas

Texas-South of

Homesite, Inc.

Homesite Insurance

Company of New

York

The General

Automobile

Insurance

Company, Inc.

Permanent General

Assurance

Corporation of Ohio

Permanent General

Assurance

Corporation

Main Street America

Group Inc.

Adjacency Holdings,

Inc.

Main Street America

Financial Corporation

American Family Connect

Property and Casualty

Insurance Company

American Family Connect

Insurance Company

Midvale Life

Insurance Company

of New York

Old Dominion

Insurance Company

Main Street America

Assurance Company

MSA Insurance

Company

Main Street America

Protection Insurance

Company

NGM Insurance

Company

Bowhead Insurance

Holdings LP

(30% owned by

AFMICSI)

Bold Penguin, Inc.

Spring Valley Mutual

Insurance Company

Austin Mutual

Insurance Company

Grain Dealers Mutual

Insurance Company

Bowhead Holdings Inc

Bowhead Insurance

Company, Inc.

Bowhead Specialty

Underwriters, Inc.

Trusted Resource

Underwriters, LLC

(50% owned by

HICGA)

Trusted Resource

Underwriters

Exchange

Homesite Group Inc. acquired the remaining 50%

of Trusted Resource Underwriters LLC on

8/31/2022. HGI acquired HICGA’s 50% eff.

12/1/2022.

American Family Insurance Mutual Holding Company

AFIMHC was incorporated on January 1, 2017, under the provisions of ch. 644, Wis. Stat.

Membership of AFIMHC consists of policyholders of AFMICSI, AFIC, ASICOH, and NGM. AFIMHC’s

business is owning the stock and other equity interests of its subsidiaries. As of December 31, 2021, the

consolidated GAAP audited financial statements of AFIMHC and subsidiaries reported assets of

$36,852,585,000, liabilities of $25,443,731,000, and members’ equity of $11,408,854,000. Operations for

2021 produced a net income of $898,090,000.

AmFam Holdings, Inc.

AmFam Holdings, Inc. was incorporated on January 1, 2017, under the provisions of ch. 180,

Wis. Stat. AmFam Holdings is a Wisconsin intermediary stock holding company wholly owned by

AFIMHC.

AmFam Inc.

AmFam, Inc., was incorporated in 1981 to serve as a downstream holding company for the

Group.

Bowhead Insurance Holdings LP (Bowhead Holdings)

Bowhead Holdings is a Delaware limited partnership which owns, through Bowhead

Holdings Inc, all the issued and outstanding shares of Bowhead Insurance Company, Inc. The limited

partnership interests in Bowhead Holdings are divided among three parties as follows: 68.34% interest

held by GPC Partners Investments (SPV III) LP, a Delaware limited partnership; 29.29% interest held by

AFMICSI; and 2.37% interest is held by individuals.

Bowhead Insurance Company, Inc. (BICI)

BICI was incorporated in Wisconsin on October 12, 2020. On December 18, 2020, Bowhead

Holdings, Inc, a Delaware corporation, acquired 100% interest in BICI. BICI is licensed in Wisconsin only.

BICI provides reinsurance for its affiliates, including MIC, HCT, and HICFL on professional, casualty, and

medical professional business produced, and managed by Bowhead Specialty Underwriters, Inc. As of

December 31, 2021, the statutory audited financial statements of BICI reported total admitted assets of

$228,611,563, liabilities of $168,115,288, and policyholders’ surplus of $60,496,275. Operations for 2021

produced a net loss of $19,620,787.

Bowhead Specialty Underwriters, Inc. (BSU)

BSU is a Delaware corporation serving as a producer and a managing general agent. BSU

acts as the managing general agent for MIC, HCT, and HICFL to produce, and manage professional,

casualty, and medical professional insurance business.

New Ventures, LLC

New Ventures, LLC (New Ventures), a Wisconsin limited liability company, was formed in

2010 and is a direct, wholly owned subsidiary of AmFam Holdings, Inc. New Ventures owns 100% of

three downstream subsidiaries and is a partial owner of four affiliate companies. Through New Ventures

and its subsidiaries, the Group conducts minority venture capital investments in certain technology

companies, focusing on insurance and financial sectors.

Adjacency Holdings, Inc.

Adjacency Holdings, Inc., is a Wisconsin stock corporation formed in 2019, and is a direct,

wholly owned subsidiary of AmFam Holdings. Adjacency Holdings, Inc., holds majority interests in a small

number of subsidiary entities that are involved in ancillary business providing complementary value to the

core insurance products of the Group.

Main Street America Group Inc. (MSAGI)

MSAGI is a Florida stock intermediate holding company and a wholly owned direct subsidiary

of AmFam, Inc. MSAGI became part of the Group on October 31, 2018. MSAGI owns 100% of NGM, a

Florida stock insurance company, which owns 100% of the outstanding stock of Main Street Financial

Corporation which in turn owns 100% of MSA Insurance Company, MSAAC, MASPIC, and ODIC.

MSAGI has affiliated agreements with AMIC, GDMIC, and SVMIC. Collectively, these companies are

referred to as “the MSA Group”. The MSA Group utilizes independent agents to write small business and

personal insurance in 37 states, and fidelity and surety bonds in 47 states and the District of Columbia.

NGM Insurance Company (NGM)

NGM is a stock insurance company domiciled in the State of Florida, and is a direct, wholly

owned subsidiary of MSAGI. NGM primarily writes homeowners multiple peril, commercial auto liability

and auto physical damage insurance business. NGM assumes 100% of the business from all insurance

subsidiaries and affiliates in the MSA Group. This business is then ceded to AFMICSI under a 100%

Quota Share Reinsurance Agreement. As of December 31, 2021, the statutory financial statements of

NGM reported total admitted assets of $846,361,216, liabilities of $278,366,014, and policyholders’

surplus of $567,995,202. Operations for 2021 produced net income of $19,277,828.

PGC Holdings Corp. (PGC Holdings)

PGC Holdings is a Delaware corporation that was acquired by the company through AmFam,

Inc., on December 31, 2012. PGC Holdings is the direct parent of PGACO, which in turn owns GAIC.

PGC Holdings is also the direct parent of Permanent General Companies, Inc., an intermediate holding

company which owns PGAC. PGAC, PGACO, and GAIC are collectively known as the “Permanent

General Group.”

The Permanent General Group specializes in private passenger non-standard automobile

insurance, primarily to consumers interested in acquiring an insurance policy to comply with state-level

minimum insurance requirements. The Permanent General Group writes in 48 states and the District of

Columbia and relies heavily on television advertising to promote the purchase of products through their

internet distribution channel and call centers. Effective August 31, 2017, the Permanent General Group

redomiciled from Ohio to Wisconsin.

Homesite Group Incorporated (HGI)

Homesite Group Incorporated is a Delaware corporation that was acquired by the company

through AmFam, Inc., on December 31, 2013.

The purpose of the HGI acquisition was to broaden AFMICSI’s distribution channels and to

expand its geographic footprint. HGI is an intermediate holding company which directly owns Homesite

Indemnity Company and Homesite Underwriting Mangers LLC, another intermediate holding company.

Homesite Underwriting Managers LLC is the direct owner of HICMW, HCT, HICIL, HICNY, HICCA,

HICFL, HICGA, and Texas-South of Homesite, Inc., which acts as the Attorney-in-Fact for Homesite

Lloyd’s of Texas. These nine insurance companies are collectively known as the “Homesite Group.” The

Homesite Group specializes in direct-to-consumer homeowners, renters, and condominium insurance. Its

products are marketed nationally through its website, call centers, and partnerships with large financial

institutions.

American Family Life Insurance Company (AFLIC)

American Family Life Insurance Company was incorporated in 1957. AFLIC is currently

licensed in 49 states and the District of Columbia and writes primarily whole life, term life, and fixed

universal life products. AFLIC markets its business through AFMICSI's agency force. As of December 31,

2021, the statutory audited financial statements for AFLIC reported total admitted assets of

$5,473,414,756, liabilities of $5,028,038,893 (both amounts include $392.7 million from separate

accounts), and surplus of $445,375,863. Operations for 2021 produced a net income of $39,581,179

million.

Bold Penguin, Inc. (Bold Penguin)

Bold Penguin is an Ohio-based technology company that aids in obtaining small business

insurance. The Bold Penguin digital exchange is used by insurance agents, brokers, and other

distributors to match, quote, and bind policies from a range of insurers to meet customer needs. Bold

Penguin was acquired by AFMIHC on February 16, 2021.

Agreements with Affiliates

Second Amended and Restated Intercompany Services and Cost Allocation Agreement

Effective July 1, 2020, AFMICSI and certain of its subsidiaries and affiliates entered into a

Second Amended and Restated Intercompany Services and Cost Allocation Agreement. Under this

agreement, AFMICSI may provide to the other parties and one or more of the other parties may provide

to AFMICSI goods, third party services, and management and other direct services, including executive,

corporate strategy, legal, corporate governance, product development, underwriting, marketing, customer

service, sales, policy administration, billing, claims, reserving, financial, treasury, investment, enterprise

risk, reinsurance, internal audit, and other services used by the parties in the conduct of their business

operations. The costs of services provided under this agreement are reimbursed based on the actual

costs of the services provided or on a pass-through basis for the services provided by third parties.

Settlement of all charges is done on a net basis and no less frequently than on a quarterly basis. This

agreement replaced an Amended and Restated Intercompany Services and Cost Allocation Agreement

between AFMICSI and certain of its affiliates that was effective January 1, 2017. Currently, all companies

included in this report are parties to this agreement.

Service and Cost Allocation Agreement between AFCIC and AFCPCIC

There is a Service and Cost Allocation Agreement between AFCIC and AFCPCIC effective

January 1, 2006. Under this agreement, AFCPCIC provides all services essential to the day-to-day

operation of AFCIC as requested by AFCIC. AFCIC reimburses AFCPCIC for expenses calculated to

reflect only the actual value and cost to AFCPCIC for providing such services. Settlement of fees and

expenses are made within 30 days of the end of each quarterly period of the fiscal year.

Second Restated Tax Allocation Agreement between AFMICSI and Subsidiaries and Affiliates

AFMICSI and certain of its subsidiaries and affiliates, including ASICW, AFIC, ASICOH, MIC,

AFCIC, PGC Holdings, and HGI, are parties to a tax allocation agreement executed in 2002 and later

amended multiple times to reflect the additions of various affiliated parties to the agreement. The

agreement was amended in 2023 to become the Second Amended and Restated Tax Allocation

Agreement. AFCPCIC was added to the agreement effective January 1, 2023.

The agreement provides the basis for computation and the method of settlement of federal

income tax payments and refunds within the Group. The method for allocation is the percentage method

under Treas. Reg. § 1.1502-33(d)(3) using the 100% allocation method. Under this agreement, AFMICSI

prepares and files a consolidated federal income tax return that includes all affiliates of the Group. Final

settlement is due within 90 days of the filing of the consolidated federal tax return.

Tax Allocation Agreement between Homesite Group Incorporated and Subsidiaries

Companies in the Homesite Group, including Homesite Group Incorporated, HCT, HICMW,

and HIC are parties to a Consolidated Federal Income Tax Liability Agreement effective January 1, 2013,

and amended effective December 31, 2014. Under the agreement, each party participates in a federal

income tax return filed on a consolidated basis. The method of allocation among the companies is based

upon the separate return calculation with current credit for net losses. Intercompany tax balances are

settled quarterly.

Tax Allocation Agreement between PGC Holdings Corp. and Subsidiaries

Companies in the Permanent General Group, including PGC Holdings, PGACO, PGAC, and

GAIC, are parties to a Tax Allocation Agreement effective October 1, 2010, and amended effective

January 1, 2021. Under the agreement, each party participates in a federal income tax return filed on a

consolidated basis. The method of allocation among the companies is based upon the separate return

calculation with current credit for net losses. Intercompany tax balances are settled no less frequently

than 30 days after the relevant filing or filing dates.

V. REINSURANCE

The company's reinsurance portfolio and strategy at the time of the examination are

described below. All reinsurance agreements were determined to have proper insolvency, entire contact,

arbitration, and intermediary clauses as required by the Statement of Statutory Accounting Principles

(SSAP) No. 62R. In addition, these agreements were found to include language that properly transfers

risk as required by SSAP No. 62R.

Affiliated Ceding Contracts

Effective July 1, 2010, AFMICSI entered into a 100% quota share agreement with AFLIC, under

which AFLIC assumed a closed long-term care book of business written by AFMICSI.

Effective November 1, 2020, AFMICSI entered into a 100% Quota Share Reinsurance Agreement

with its affiliate, Bowhead Insurance Company, Inc. (BICI). Under the agreement, BICI assumes 100% of

AFMICSI’s gross liability under all policies either 1) produced by Bowhead Specialty Underwriters, Inc.,

and issued by HCT, HICFL, and MIC pursuant to the terms of separate Managing General Agency

Agreements between Bowhead Underwriters and each of HCT, HICFL, and MIC, or 2) specified classes

and lines of business issued by certain affiliates of AFMICSI on or after November 1, 2020 and reinsured

by AFMICSI.

Nonaffiliated Ceding Contracts

The external catastrophe ceded reinsurance program is purchased for the entire Group. The

various layers of the non-catastrophe property per risk and casualty excess reinsurance programs are

utilized by the operating companies as appropriate for their risk and business needs.

Non-Catastrophe

AFMICSI purchases a non-catastrophe reinsurance program for property and casualty non-

catastrophe exposure for the American Family, Main Street America, and Connect operating companies.

The program consists of Excess of Loss treaties and automatic facultative coverage for limits exceeding

reinsurance coverage provided by the treaties. For casualty exposure, the Group retains the first $2

million per occurrence and purchases four layers of reinsurance. Reinsurance coverage provides a limit

of $48 million in excess of the Group’s retention, with some lines of business carrying a higher retention

and lower limit. All layers offer reinstatements, which vary depending on the layer, from free and unlimited

to one reinstatement per layer at full price.

For property, the Group retains the first $2 million and co-participates 17% and 35% in the next

two layers respectively, $4 million in excess of $2 million and $4 million in excess of $6 million, for the

total coverage of $8 million in excess of the initial retention of $2 million. The next two layers, fully ceded,

provide coverage of $15 million in excess of $10 million and $25 million in excess of $25 million, for total

reinsurance coverage of $48 million in excess of the Group’s initial retention of $2 million, with some lines

of business carrying a higher retention and lower limit. All four layers offer reinstatements which vary from

free and unlimited to one at full price.

The Group also buys supplemental facultative coverage for limits greater than $50 million.

Catastrophe

AFMICSI purchases a group property catastrophe reinsurance program for the American Family,

Homesite, Main Street America, Permanent General, and Connect operating companies. The current

structure provides a $2.375 billion limit excess of $500 million retained, with six traditional reinsurance

layers supplemented by three catastrophic bond issues. The traditional reinsurance layers provide

coverage against all-weather perils including named storms.

The first layer provides coverage of $150 million, excess of retention of $500 million, and is 50%

placed. The second and third layers cover $400 million excess of $650 million, and $450 million excess of

$1.05 billion, respectively, and are 95% placed. The fourth layer covers the next $600 million excess of

$1.5 billion and is 97.5% placed. The fifth layer covers $650 million excess of $2.1 billion and is 95%

placed. The final layer covers $125 million excess of $2.75 billion and is fully placed. AFMICSI sponsored

three catastrophe bonds issued through Four Lakes Re Ltd. which are supplemental to the Group’s

catastrophe program and considered in the calculation of the Group’s participation level at each layer of

reinsurance coverage. The first bond, $175 million, was issued in 2020, followed by a $125 million

issuance in 2021 and $100 million issued in December 2022. The catastrophe bond coverage provides

reinsurance protection against losses from named storms, earthquakes, severe thunderstorms, winter

storms, and wildfires across the United States. Coverage afforded by each issue runs for three years.

Affiliated Assuming Contracts

AFMICSI reinsures all subsidiary and affiliate business under 100% quota share agreements, with

the exception of HICNY which retains 20% of its business and TRUE and Bowhead which are not reinsured

by AFMICSI. Below is a description of the existing quota share arrangements.

Effective January 1, 2012, AFMICSI entered into separate Amended and Restated Quota

Share Reinsurance Agreements with ASICW, ASICOH, and AFIC, assuming 100% of each company’s

losses and claims expenses.

Effective January 1, 2013, AFMICSI entered into a 100% Quota Share Reinsurance

Agreement with MIC assuming 100% of losses and claims expenses. The agreement is applicable to

policies in runoff or in force on or after the effective date, as well as new and renewal policies.

Effective January 1, 2014, AFMICSI entered into a Loss Portfolio Transfer and 100% Quota

Share agreement with HICMW assuming 100% of in force, new, and renewal direct and assumed losses.

HICMW also has separate Loss Portfolio Transfer and 100% Quota Share Agreements in effect with each

of the remaining Homesite affiliates under which 100% of losses are ceded to HICMW, which are then

retroceded to AFMICSI. The only exception is HICNY which cedes 80% of losses to HICMW. The effect

of these agreements is that AFMICSI ultimately assumes all Homesite Group’s premiums and losses

other than the 20% retained by HICNY. Effective January 1, 2016, the Quota Share Agreement between

HICMWI and HICNY was amended to reduce HICMW’s quota share to 80%.

Effective January 1, 2017, AFMICSI entered into a Loss Portfolio Transfer and 100% Quota

Share agreement with PGAC assuming 100% of in force, new, and renewal direct and assumed losses.

PGAC also has separate Loss Portfolio Transfer and 100% Quota Share agreements in effect with

PGACO and GAIC under which 100% of losses are ceded to PGAC, which are then retroceded to

AFMICSI.

Effective January 1, 2019, AFMICSI entered into a Loss Portfolio Transfer and 100% Quota

Share agreement with NGM assuming 100% of runoff, in force, new, and renewal direct and assumed

business. NGM also has separate 100% Quota Share agreements in effect with each of its subsidiaries

and affiliates under which 100% of losses are ceded to NGM, which are then retroceded to AFMICSI.

Effective January 1, 2020, AFMICSI entered into a Loss Portfolio Transfer and 100% Quota

Share agreement with AFCPCIC assuming 100% of runoff, in force, new, and renewal direct and

assumed business. AFCPCIC also has a separate 100% Quota Share agreement in effect with its

subsidiary AFCIC under which 100% of losses are ceded to AFCPCIC, which are then retroceded to

AFMICSI.

Nonaffiliated Assuming Contracts

The companies in the Group assume business from unaffiliated parties with the main goal of

diversifying its risk profile. Historically, assumed reinsurance was primarily focused on property business

which has been written by ASICW since 2011. Starting in 2021, all new business is written by AFCPCIC

and reinsurance offerings were expanded into the casualty space. NGM also assumes business, primarily

non-standard auto on a quota share basis. After the acquisition of the MSA Group in 2019, this business

became a part of the Group’s assumed reinsurance portfolio. The companies write both pro rata and

excess-of-loss treaty business. All business assumed by any of the AFMICSI subsidiaries is ceded to

AFMICSI under the existing quota share agreements. The companies utilize primarily broker channels to

acquire business. The companies in the Group also assume business through various involuntary

reinsurance pools and programs.

VI. FINANCIAL DATA

The following financial statements reflect the financial condition of AFMICSI, the lead

company in the Group, as reported to the commissioner of insurance in the December 31, 2021, annual

statement. Also included in this section are schedules that reflect the growth of AFMICSI, NAIC Insurance

Regulatory Information System (IRIS) ratio results for the period under examination for AFMICSI, and the

compulsory and security surplus calculation for AFMICSI. The financial statements of the remaining

companies included in this report are included in Appendix B. All dollar figures are in thousands.

Adjustments made as a result of the examination are noted at the end of this section in the area

captioned "Reconciliation of Surplus per Examination."

American Family Mutual Insurance Company, S.I.

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$15,414,617

Stocks:

Common stocks

6,016,952

Mortgage loans on real estate:

First liens

237,271

Other than first liens

Real estate:

Occupied by the company

216,614

Properties held for sale

1,749

Cash, cash equivalents, and short-term

investments

494,836

Other invested assets

2,102,232

1,750

2,100,481

Receivables for securities

62,797

Securities lending reinvested collateral

assets

215,668

Investment income due and accrued

79,180

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

5,632

2,254

3,378

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

1,955,954

Accrued retrospective premiums and

contracts subject to redetermination

Reinsurance:

Amounts recoverable from reinsurers

18,103

Funds held by or deposited with

reinsured companies

25,183

Net deferred tax asset

160,253

Guaranty funds receivable or on deposit

5,289

Electronic data processing equipment

and software

333,988

324,614

9,374

Furniture and equipment, including

health care delivery assets

35,189

Receivable from parent, subsidiaries,

and affiliates

234,676

Write-ins for other than invested assets:

Overfunded plan asset

284,488

Advances

3,506

Prepaid expenses

62,012

Miscellaneous Receivables

21,665

Cash items

194

Total Assets

$27,988,045

$714,007

$27,274,038

American Family Mutual Insurance Company, S.I.

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Losses

$ 6,877,141

Reinsurance payable on paid loss and loss adjustment

expenses

401,678

Loss adjustment expenses

1,439,102

Commissions payable, contingent commissions, and other

similar charges

9,808

Other expenses (excluding taxes, licenses, and fees)

1,345,218

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

22,998

Current federal and foreign income taxes

12,968

Borrowed money and interest thereon

1,023,499

Unearned premiums

5,590,223

Advance premium

39,387

Dividends declared and unpaid:

Policyholders

520

Ceded reinsurance premiums payable (net of ceding

commissions)

59,226

Funds held by company under reinsurance treaties

306

Amounts withheld or retained by company for account of

others

35,866

Remittances and items not allocated

13,919

Provision for reinsurance

7,709

Payable to parent, subsidiaries, and affiliates

521,048

Derivatives

1,016

Payable for securities

169,082

Payable for securities lending

215,668

Write-ins for liabilities:

All other liabilities

28,406

Liability for agents’ program and pension &

postretirement plans

158,451

Retroactive reinsurance reserve

(77,141)

Total Liabilities

17,896,098

Write-ins for special surplus funds:

Non-assessable guaranty fund

1,250

Common capital stock

3,000

Gross paid in and contributed surplus

1,489,449

Unassigned funds (surplus)

7,884,240

Surplus as Regards Policyholders

9,377,940

Total Liabilities and Surplus

$27,274,038

American Family Mutual Insurance Company, S.I.

Summary of Operations (in thousands)

For the Year 2021

Underwriting Income

Premiums earned

$12,188,596

Deductions:

Losses incurred

$7,681,865

Loss adjustment expenses incurred

1,045,150

Other underwriting expenses incurred

3,975,028

Total underwriting deductions

12,702,043

Net underwriting gain (loss)

(513,447)

Investment Income

Net investment income earned

663,675

Net realized capital gains (losses)

178,049

Net investment gain (loss)

841,724

Other Income

Net gain (loss) from agents' or premium balances charged

off

(57,970)

Finance and service charges not included in premiums

126,728

Write-ins for miscellaneous income:

Miscellaneous income/(expense)

(35,122)

Retroactive reinsurance gain (loss)

(13,813)

Total other income

19,823

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

348,100

Dividends to policyholders

1,174

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

346,926

Federal and foreign income taxes incurred

(882)

Net Income (Loss)

$ 347,808

American Family Mutual Insurance Company, S.I.

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of reinsurance

$12,459,488

Net investment income

754,634

Miscellaneous income

13,103

Total

13,227,225

Benefit- and loss-related payments

$7,141,499

Commissions, expenses paid, and

aggregate write-ins for deductions

5,046,239

Dividends paid to policyholders

1,415

Federal and foreign income taxes paid

(recovered)

105,693

Total deductions

12,294,847

Net cash from operations

932,378

Proceeds from investments sold,

matured, or repaid:

Bonds

$14,860,131

Stocks

928,418

Mortgage loans

48,602

Real estate

12,057

Other invested assets

236,418

Net gains (losses) on cash, cash

equivalents, and short-term

investments

(11)

Miscellaneous proceeds

54,741

Total investment proceeds

16,140,355

Cost of investments acquired (long-

term only):

Bonds

16,591,131

Stocks

1,038,011

Mortgage loans

70,750

Real estate

4,900

Other invested assets

496,379

Miscellaneous applications

45,700

Total investments acquired

18,246,872

Net cash from investments

(2,106,517)

Cash from financing and miscellaneous

sources:

Capital and paid in surplus less

treasury stock

998,759

Borrowed funds

(191,000)

Dividends to stockholders

9,754

Other cash provided (applied)

506,774

Net cash from financing and

miscellaneous sources

1,304,779

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

130,641

Cash, cash equivalents, and short-term

investments:

Beginning of year

364,195

End of Year

$ 494,836

American Family Mutual Insurance Company, S.I.

Compulsory and Security Surplus Calculation (in thousands)

December 31, 2021

Assets

$27,274,038

Less security surplus of insurance

subsidiaries

(157,550)

Less liabilities

17,896,098

Adjusted surplus

9,220,390

Annual premium:

Individual accident and health

$ 12,214

Factor

15%

Total

$ 1,832

Medical Malpractice

$ 1,790

50%

$895

Lines other than accident and health

12,673,680

Factor

20%

Total

2,534,736

Compulsory surplus (subject to

a minimum of $2 million)

2,537,463

Compulsory Surplus Excess (Deficit)

$ 6,682,926

Adjusted surplus (from above)

$ 9,220,390

Security surplus (140% of compulsory

surplus, factor reduced 1% for each

$33 million in premium written in

excess of $10 million, with a minimum

factor of 110%)

2,791,210

Security Surplus Excess (Deficit)

$ 6,429,180

American Family Mutual Insurance Company, S.I.

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$7,628,412

$7,189,152

$6,335,532

$6,631,365

$6,866,974

Net income

347,808

846,183

286,298

771,232

103,336

Change in net unrealized

capital gains/losses

316,987

(392,195)

124,310

(830,075)

306,295

Change in net deferred

income tax

7,753

61,683

118,164

35,569

(315,559)

Change in nonadmitted

assets

(144,465)

(86,644)

147,353

(263,524)

(10,121)

Change in provision for

reinsurance

(1,771)

(2,858)

975

8,434

(11,808)

Capital changes:

Transferred from

surplus

3,000

Surplus adjustments:

Paid in

998,759

490,690

Transferred from

capital

(3,000)

Dividends to

stockholders

(9,754)

(20,793)

(89,051)

(30,223)

(257,716)

Change in treasury stock

Write-ins for gains and

(losses) in surplus:

SSAP 92 & 102

pension adjustment

134,148

109,894

(72,923)

10,581

(2,864)

SSAP 92 & 102

contract termination

payments adj

100,063

(72,352)

(152,197)

2,172

(47,172)

Pension plan merger

adjustment

(3,658)

Surplus, End of Year

$9,377,940

$7,628,412

$7,189,152

$6,335,532

$6,631,365

American Family Mutual Insurance Company, S.I.

Insurance Regulatory Information System

For the Five-Year Period Ending December 31, 2021

The AFMICSI’s NAIC Insurance Regulatory Information System (IRIS) results for the period

under examination are summarized below. Unusual IRIS results are denoted with asterisks and

discussed below the table.

Ratio

2021

2020

2019

2018

2017

Gross Premium to Surplus

140%

159%

158%

144%

133%

Net Premium to Surplus

135

156

157

142

130

Change in Net Premiums Written

Surplus Aid to Surplus

Ratio

2021

2020

2019

2018

2017

Two-Year Overall Operating Ratio

Investment Yield

3.0

6.6

3.3

7.0

2.2

Gross Change in Surplus

-4

-3

Change in Adjusted Surplus

-4

-3

Liabilities to Liquid Assets

#10

Agents’ Balances to Surplus

#11

One-Year Reserve Development

to Surplus

-6

-4

-1

#12

Two-Year Reserve Development

to Surplus

-9

-2

-0

-2

#13

Estimated Current Reserve

Deficiency to Surplus

-8

-15

-5

Ratio No. 6 measures the amount of the company’s net investment income as a percentage

of the average amount of cash and invested assets. The exceptional results in 2018 and 2020 were due

to the inclusion of extraordinary distributions from the affiliated companies (see narrative below) in the

investment income. The exceptional result in 2018 was due to the low interest rate environment as well

as the company’s reliance on tax-exempt bonds, which usually have a lower yield.

Growth of American Family Mutual Insurance Company, S.I. (in thousands)

Year

Admitted

Assets

Liabilities

Surplus as

Regards

Policyholders

Net

Income

2021

$27,274,038

$17,896,098

$9,377,940

$347,808

2020

24,745,786

17,117,374

7,628,412

846,183

2019

21,726,623

14,537,471

7,189,152

286,298

2018

17,182,310

10,846,778

6,335,532

771,232

2017

17,157,398

10,526,033

6,631,365

103,336

2016

16,193,740

9,326,766

6,866,974

211,707

Year

Gross Premium

Written

Net

Premium

Written

Premium

Earned

Loss and

LAE

Ratio

Expense

Ratio

Combined

Ratio

2021

$13,133,264

$12,638,970

$12,188,596

71.6%

31.3%

102.9%

2020

12,139,296

11,870,526

11,359,125

71.7

29.8

101.5

2019

11,377,526

11,268,782

10,424,948

76.0

27.1

103.1

2018

9,129,261

8,997,548

8,694,345

75.7

27.5

103.2

2017

8,794,376

8,605,162

8,190,801

77.2

28.6

105.8

2016

7,402,160

7,291,335

7,063,439

68.2

31.4

99.6

AFMICSI assumes 100% of underwriting activity (both written and assumed), except for

HICNY, which retains 20% of its business, and TRUE and Bowhead, which are not reinsured by

AFMICSI.

Gross and net premiums written increased 77% and 73%, respectively, over the period

subject to examination. Group net premium written grew both organically as well as through two

significant acquisitions. In addition, three intercompany reinsurance transactions have been executed

since 2017. On January 1, 2017, AFMICSI entered a loss portfolio transfer and 100% quota share

agreement with PGAC. Total premiums written and assumed by PGAC in 2021 were $837 million. On

January 1, 2019, AFMICSI entered a Loss Portfolio Transfer and 100% Quota Share Agreement with

NGM which contributed $1.3 billion to AFMICSI’s gross written premium. And finally, on January 1, 2020,

AFMICSI entered a Loss Portfolio Transfer and 100% Quota Share Agreement with AFCPCIC, which

added $1.1 billion to AFMICSI’s gross premium written. Overall, the acquisitions accounted for

approximately half of the total premium growth reported by AFMICSI over the examination period. In 2020

and 2021, AFMICSI provided policyholder premium relief of approximately $502 million and $112 million,

respectively, in response to the global COVID-19 pandemic.

Business operations produced an underwriting loss in each year under examination, which is

illustrated by the combined ratio ranging from 101.5% in 2020 to 105.8% in 2017. Underwriting losses

reported by the Group are predominantly attributed to higher-than-normal losses from natural catastrophe

perils, including Midwest convective storms, hurricane, and winter storms impacting homeowners and

commercial lines and from rising claim severity in auto and home lines. Severity rose rapidly with inflation

during late 2021 and early 2022 in all physical damage coverages, outpacing premium increases over

that period. The expense ratio in 2020 increased 2.7%, with approximately half of the change driven by

COVID-19 premium relief payments recognized as a reduction in premium written and earned.

Underwriting losses were offset by net investment income, resulting in AFMICSI reporting net income in

each year under examination. In 2018 net income included a $500 million extraordinary dividend from

AFLIC (via AmFam, Inc.) that was used for the purpose of funding AFMICSI’s non-contributory qualified

pension plan. In 2020, AFMICSI received extraordinary dividends of approximately $797 million from its

Wisconsin-domiciled subsidiaries. The purpose of the dividends aligns with the Group’s overall capital

management strategy to centrally manage capital at the AFMICSI level. The dividends were reported as

part of net investment income and unrealized losses on common stock of affiliates. Neither dividend

distribution had an impact on the surplus reported by AFMICSI.

Total admitted assets increased 68% during the period under examination. The increase was

driven primarily by the acquisitions of the MSA and Connect entities. Thus, in 2019, total admitted assets

increased 26% over the prior year due to an increase of $2.4 billion in bonds and an increase of $1.6

billion in affiliated common stock. The increase in bonds was mainly due to the Loss Portfolio Transfer

between AFMICSI and NGM that became effective on January 1, 2019. The increase in common stock

was primarily due to the investment in AFCPCIC. In 2020, total admitted assets increased 14%,

compared to the prior year. The increase was driven by an increase in long-term bonds, largely due to the

loss portfolio transfer with AFCPCIC executed on January 1, 2020.

Surplus increased 37% during the period covered by the current examination. The largest

increase of $1.7 million was reported in 2021. AFMICSI contributed approximately $514.2 million to

AmFam, Inc., to fund the acquisition of Bold Penguin, Inc., a technology company that simplifies the

process of obtaining small business insurance. AFMICSI funded this contribution by a loan of $510 million

from the Federal Home Loan Bank – Chicago (FHLB). In March 2021 AmFam Holdings, Inc. executed the

placement of $1 billion of senior unsecured notes in the private market and made a capital contribution of

$900 million to AFMICSI. A part of this contribution was used to repay a loan from FHLB.

Subsequent Events

As of December 31, 2022, AFMICSI reported a net underwriting loss of $1.6 billion and a net

loss of $1.4 billion. The combined ratio for 2022 was 110.2%. Primary factors driving underwriting results

were several significant catastrophe weather events and inflationary pressure. Net investment income in

2022 was reduced by $491 million of net realized capital losses, largely on bond dispositions. Surplus

decreased $2.0 billion, or 22%, compared to prior year end, and was $7.3 billion as of December 31,

2022. The decrease in surplus was driven by the net loss and by the increase in net unrealized capital

losses of $837 million.

Reconciliation of Surplus per Examination

No adjustments were made to surplus as a result of the examination. The amount of surplus

reported by the company as of December 31, 2021, is accepted.

VII. SUMMARY OF EXAMINATION RESULTS

Compliance with Prior Examination Report Recommendations

Specific comments and recommendations included in the previous examination reports are

listed below. Comments and recommendations contained in the last examination reports and actions

taken by the company are as follows:

AFMICSI, ASICOH, ASICW, AFIC, PGAC, PGACO, GAIC, HIC, HCT, HICMW

1. Investments—It is recommended that the company revise its custodial agreement to include the

guideline provisions contained in the NAIC’s Financial Condition Examiners Handbook.

Action—Compliance.

HIC, HCT, HICMW

1. Executive Compensation—It is recommended that the company properly complete the “Report of

Executive Compensation” as required by ss. 601.42 and 611.63 (4), Wis. Stat.

Action—Compliance.

2. Affiliated Agreements— It is recommended that the company amend its service agreement with HGI

to be in compliance with s. Ins 40.04 (2) (d) (10), Wis. Adm. Code.

Action—Compliance

HIC

1. Affiliated Agreements—It is recommended that the company amend its service agreement with HGI

to be in compliance with s. Ins 40.04 (2) (d) (3), Wis. Adm. Code

Action—Compliance

Summary of Current Examination Results

The current examination resulted in no recommendations. There were no adjustments or

reclassifications to the balance sheet amounts as a result of this examination.

VIII. CONCLUSION

American Family Mutual Group includes 29 property and casualty and two life insurance

companies domiciled in ten states. The current examination, which covered the period from January 1,

2017, to December 31, 2021, included 28 property and casualty and two life insurers. Representatives

from nine states participated in the examination. This examination report includes 13 Wisconsin-domiciled

property and casualty insurance companies.

Effective January 1, 2017, the company underwent a corporate reorganization and formed a

mutual holding company. There were two major acquisitions during the examination period. The MSA

Group was acquired in 2018, and the Connect entities were acquired in 2019. The acquisitions are part of

the company’s strategy to broaden its geographic footprint as well as its distribution channels.

Gross and net premiums written increased 77% and 73%, respectively, over the examination

period. Group writings grew both organically as well as through acquisitions.

The current examination determined that all companies included in this report complied with

the recommendations from the prior examination. The current examination resulted in no

recommendations.

IX. SUMMARY OF COMMENTS AND RECOMMENDATIONS

The current examination resulted in no recommendations. There were no adjustments or

reclassifications to the balance sheet amounts as a result of this examination.

P&CBLK_02-19.dotm

X. ACKNOWLEDGMENT

The courtesy and cooperation extended by the officers and employees of the

company during the course of the examination are acknowledged.

In addition to the undersigned, the following representatives of the Office of the

Commissioner of Insurance, State of Wisconsin, participated in the examination:

Name Title

Thomas Hilger, CFE

Insurance Financial Examiner

James Lindell

Insurance Financial Examiner

Gregory Mielke

Insurance Financial Examiner

Jonathan Mundschau

Insurance Financial Examiner

Nicholas Siskoff

Insurance Financial Examiner

James Vanden Branden

Principal Analyst

Pierce Varney

Insurance Financial Examiner

Yi Xu

Insurance Financial Examiner

Jerry DeArmond, CFE

Data Specialist

Eleanor Lu, CISA

IT Specialist

John Litweiler, AFE

Exam Supervisor and Quality Control

Specialist

Respectfully submitted,

Terry Lorenz, CFE

Examiner-in-Charge

P&CBLK_02-19.dotm

XI. Appendix A: Management and Control

American Family Connect Insurance Company

Board of Directors

The board of directors of AFCIC consists of three members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of AFCIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Michael D. Lorion, Chair

Millbury, Massachusetts

AmFam Direct President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Michael D. Lorion

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Sharena Z. Ali

Chief Operating Officer

Theresa K. Sztuczko

Mary A. Theilen

Lauren K. Powell

Assistant Treasurer

Assistant Secretary

P&CBLK_02-19.dotm

American Family Connect Property and Casualty Insurance Company

Board of Directors

The board of directors of AFCPCIC consists of six members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in Group.

Currently, the board of directors of AFCPCIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Daniel J. Kelly

Madison, Wisconsin

Enterprise Chief Underwriting Officer

AFMICSI

2024

Michael D. Lorion

Millbury, Massachusetts

AmFam Direct President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

William B. Westrate, Chair

Lake Mills, Wisconsin

Chief Executive Officer

AFMICSI

2024

Telisa L. Yancy

Middleton, Wisconsin

Enterprise President

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Michael D. Lorion

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Jeffrey N. Preston

Vice President

Sharena Z. Ali

Chief Operating Officer

Theresa K. Sztuczko

Mary A. Theilen

Lauren K. Powell

Assistant Treasurer

Assistant Secretary

P&CBLK_02-19.dotm

American Family Insurance Company

Board of Directors

The board of directors of AFIC consists of three members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of AFIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Jeffrey J. Swalve, Chair

Waunakee, Wisconsin

Agency President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Jeffrey J. Swalve

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Theresa K. Sztuczko

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

P&CBLK_02-19.dotm

American Family Mutual Insurance Company, S.I.

Board of Directors

The board of directors of AFMICSI consists of six members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of AFMICSI consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Jessica J. Stauffacher

Lake Mills, Wisconsin

Enterprise Chief People Officer

AFMICSI

2024

Jeffrey J. Swalve

Waunakee, Wisconsin

Agency President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

William B. Westrate, Chair

Lake Mills, Wisconsin

Chief Executive Officer

AFMICSI

2024

Telisa L. Yancy

Middleton, Wisconsin

Enterprise President

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Jack C. Salzwedel

Executive Chair

William B. Westrate

Chief Executive Officer

Telisa L. Yancy

Enterprise President

Troy P. Van Beek

Enterprise Chief Financial Officer, Treasurer

David C. Holman

Chief Administration Officer, Secretary

Michael D. Lorion

AmFam Direct President

Jeffrey J. Swalve

Agency President

Peter B. Settel

Enterprise Chief Strategy & Technology Officer

Janet S. Embray

Commercial & Farm Ranch President

Jessica J. Stauffacher

Enterprise Chief People Officer

Anthony M. Scavongelli

Enterprise Chief Partnership Officer

Rondale L. Dunn

Chief Sales Officer

William T. Fancher

Life President

Elicia L. Azali

Enterprise Chief Marketing Officer

P&CBLK_02-19.dotm

Name

Office

Daniel J. Kelly

Enterprise Chief Underwriting Officer

David A. Graham

Chief Investment Officer

Timothy D. Constien

Chief Claims Officer

Richard M. Steffen

Personal Lines President

Tracy L. Schweitzer

Enterprise Chief Transformation Officer

Theresa K. Sztuczko

Mary A. Theilen

Lauren K. Powell

Michael E. Silver

Assistant Treasurer

Assistant Secretary

P&CBLK_02-19.dotm

American Standard Insurance Company of Ohio

Board of Directors

The board of directors of ASICOH consists of three members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of ASICOH consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Jeffrey J. Swalve, Chair

Waunakee, Wisconsin

Agency President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Jeffrey J. Swalve

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Theresa K. Sztuczko

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

P&CBLK_02-19.dotm

American Standard Insurance Company of Wisconsin

Board of Directors

The board of directors of ASICW consists of three members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of ASICW consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Jeffrey J. Swalve, Chair

Waunakee, Wisconsin

Agency President

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Jeffrey J. Swalve

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Theresa K. Sztuczko

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

P&CBLK_02-19.dotm

Homesite Indemnity Company

Board of Directors

The board of directors of HIC consists of four members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of HIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Michael D. Lorion, Chair

Millbury, Massachusetts

AmFam Direct President

AFMICSI

2024

Ferdinando Montano

Saugus, Massachusetts

Vice President

AmFam Direct

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Susan G. Anderson

Assistant Secretary

Michael D. Lorion

President

Troy P. Van Beek

Treasurer

Rebecca S. Buchanan-Mackie

Assistant Secretary

David C. Holman

Secretary

Lauren K. Powell

Assistant Secretary

Anthony M. Scavongelli

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

P&CBLK_02-19.dotm

Homesite Insurance Company

Board of Directors

The board of directors of HCT consists of six members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of HCT consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Michael D. Lorion, Chair

Millbury, Massachusetts

AmFam Direct President

AFMICSI

2024

Sharena Z. Ali

Green Bay, Wisconsin

Chief Operating Officer

AFCIC

2024

Ferdinando Montano

Saugus, Massachusetts

Vice President

AmFam Direct

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Telisa L. Yancy

Enterprise President

2024

Middleton, Wisconsin

AFMICSI

Officers of the Company

The officers currently serving are as follows:

Name

Office

Susan G. Anderson

Assistant Secretary

Michael D. Lorion

President

Troy P. Van Beek

Treasurer

Rebecca S. Buchanan-Mackie

Assistant Secretary

David C. Holman

Secretary

Lauren K. Powell

Assistant Secretary

Anthony M. Scavongelli

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

P&CBLK_02-19.dotm

Homesite Insurance Company of the Midwest

Board of Directors

The board of directors of HICMW consists of four members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of HICMW consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Michael D. Lorion, Chair

Millbury, Massachusetts

AmFam Direct President

AFMICSI

2024

Ferdinando Montano

Saugus, Massachusetts

Vice President

AmFam Direct

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Susan G. Anderson

Assistant Secretary

Michael D. Lorion

President

Troy P. Van Beek

Treasurer

Rebecca S. Buchanan-Mackie

Assistant Secretary

David C. Holman

Secretary

Lauren K. Powell

Assistant Secretary

Anthony M. Scavongelli

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

P&CBLK_02-19.dotm

Midvale Indemnity Company

Board of Directors

The board of directors of MIC consists of three members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of MIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

David C. Holman

Verona, Wisconsin

Chief Administration Officer, Secretary

AFMICSI

2024

Daniel J. Kelly, Chair

Madison, Wisconsin

Enterprise Chief Underwriting Officer

AFMICSI

2024

Troy P. Van Beek

Waunakee, Wisconsin

Enterprise Chief Financial Officer, Treasurer

AFMICSI

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Anthony J. DeSantis

Chief Executive Officer, President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Anthony M. Scavongelli

Chief Legal Officer

Theresa K. Sztuczko

Mary A. Theilen

Lauren K. Powell

Assistant Treasurer

Assistant Secretary

P&CBLK_02-19.dotm

Permanent General Assurance Corporation

Board of Directors

The board of directors of PGAC consists of four members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of PGAC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Siddharth Jain

Alpharetta, Georgia

Senior Vice President Product Manager

Permanent General Companies, Inc.

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Kautilya N. Raval, Chair

Swedesboro, New Jersey

President

PGC Holdings Corp.

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Kautilya N. Raval

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Allison W. Garretson

Vice President

Steven C. Jay

Vice President

Eileen Manners

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

Susan G. Anderson

Assistant Secretary

P&CBLK_02-19.dotm

Permanent General Assurance Corporation of Ohio

Board of Directors

The board of directors of PGACO consists of four members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of PGACO consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Siddharth Jain

Alpharetta, Georgia

Senior Vice President Product Manager

Permanent General Companies, Inc.

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Kautilya N. Raval, Chair

Swedesboro, New Jersey

President

PGC Holdings Corp.

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Kautilya N. Raval

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Allison W. Garretson

Vice President

Steven C. Jay

Vice President

Eileen Manners

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

Susan G. Anderson

Assistant Secretary

P&CBLK_02-19.dotm

The General Automobile Insurance Company Inc.

Board of Directors

The board of directors of GAIC consists of four members. Directors are elected

annually by the shareholder to serve a one-year term. Officers are elected at the annual board

meeting. Members of the company's board of directors may also be members of other boards of

directors in the Group.

Currently, the board of directors of GAIC consists of the following persons:

Name and Residence

Principal Occupation

Term

Expires

Susan G. Anderson

Quincy, Massachusetts

General Counsel, Senior Vice President

AmFam Direct

2024

Siddharth Jain

Alpharetta, Georgia

Senior Vice President Product Manager

Permanent General Companies, Inc.

2024

Lauren K. Powell

Waunakee, Wisconsin

Governance & Licensing Vice President

AFMICSI

2024

Kautilya N. Raval, Chair

Swedesboro, New Jersey

President

PGC Holdings Corp.

2024

Officers of the Company

The officers currently serving are as follows:

Name

Office

Kautilya N. Raval

President

David C. Holman

Secretary

Troy P. Van Beek

Treasurer

Allison W. Garretson

Vice President

Steven C. Jay

Vice President

Eileen Manners

Vice President

Theresa K. Sztuczko

Assistant Treasurer

Mary A. Theilen

Assistant Treasurer

Lauren K. Powell

Assistant Secretary

Susan G. Anderson

Assistant Secretary

P&CBLK_02-19.dotm

XII. Appendix B: Financial Data

American Family Connect Insurance Company

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 5,240

Cash, cash equivalents, and short-term

investments

8,392

Investment income due and accrued

Receivable from parent, subsidiaries,

and affiliates

Total Assets

$13,688

American Family Connect Insurance Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Current federal and foreign income taxes

$ 1

Net deferred tax liability

Total Liabilities

Common capital stock

$ 8,000

Gross paid in and contributed surplus

37,726

Unassigned funds (surplus)

(32,126)

Surplus as Regards Policyholders

13,601

Total Liabilities and Surplus

$13,688

American Family Connect Insurance Company

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$135

Net realized capital gains (losses)

Net investment gain (loss)

137

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

137

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

137

Federal and foreign income taxes incurred

Net Income (Loss)

$135

P&CBLK_02-19.dotm

American Family Connect Insurance Company

Cash Flow (in thousands)

For the Year 2021

Net investment income

$ 163

Total

163

Commissions, expenses paid, and

aggregate write-ins for deductions

$ 39

Federal and foreign income taxes

paid (recovered)

Total deductions

Net cash from operations

Proceeds from investments sold,

matured, or repaid:

Bonds

$591

Total investment proceeds

591

Cost of investments acquired (long-

term only):

Bonds

566

Total investments acquired

566

Net cash from investments

Other cash provided (applied)

(8)

Cash from financing and

miscellaneous sources:

Net cash from financing and

miscellaneous sources

(8)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

104

Cash, cash equivalents, and short-

term investments:

Beginning of year

8,288

End of Year

$8,392

American Family Connect Insurance Company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$13,523

$52,608

$49,335

$48,347

$47,311

Net income

135

944

3,273

986

1,036

Change in net deferred

income tax

(57)

(90)

Change in nonadmitted

assets

(60)

(1)

Dividends to

stockholders

(40,000)

Surplus, End of Year

$13,601

$13,523

$52,608

$49,335

$48,347

American Family Connect Property and Casualty Insurance Company

P&CBLK_02-19.dotm

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$479,901

Stocks:

Common stocks

13,945

344

13,601

Real estate:

Occupied by the company

287

Cash, cash equivalents, and short-

term investments

32,716

Receivables for securities

1,937

Investment income due and accrued

1,428

1,418

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

589

587

Deferred premiums, agents'

balances, and installments

booked but deferred and not yet

due

142,427

Reinsurance:

Amounts recoverable from

reinsurers

90,316

Funds held by or deposited with

reinsured companies

3,110

Net deferred tax asset

30,926

22,034

8,892

Electronic data processing

equipment and software

4,403

Furniture and equipment, including

health care delivery assets

1,167

Net adjustments in assets and

liabilities due to foreign exchange

rates

(248)

Receivable from parent, subsidiaries,

and affiliates

20,667

Write-ins for other than invested

assets:

Advances

Prepaid expenses

667

Miscellaneous Receivables

7,925

Total Assets

$832,163

$28,617

$803,546

P&CBLK_02-19.dotm

American Family Connect Property and Casualty Insurance Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Reinsurance payable on paid loss and loss adjustment

expenses

$ 85

Commissions payable, contingent commissions, and other

similar charges

3,097

Other expenses (excluding taxes, licenses, and fees)

30,395

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

4,200

Current federal and foreign income taxes

Net deferred tax liability

Advance premium

7,002

Ceded reinsurance premiums payable (net of ceding

commissions)

156,310

Amounts withheld or retained by company for account of

others

1,899

Net adjustments in assets and liabilities due to foreign

exchange rates

(448)

Payable to parent, subsidiaries, and affiliates

27,468

Payable for securities

12,382

Write-ins for liabilities:

All other liabilities

2,454

Total Liabilities

244,872

Common capital stock

$ 5,000

Gross paid in and contributed surplus

706,506

Unassigned funds (surplus)

(152,832)

Surplus as Regards Policyholders

558,674

Total Liabilities and Surplus

$803,546

The American Family Connect Property & Casualty Insurance Company

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$9,004

Net realized capital gains (losses)

2,065

Net investment gain (loss)

$11,070

Other Income

Write-ins for miscellaneous income:

Miscellaneous income/(expenses)

5,399

Total other income

5,399

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

16,469

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

16,469

Federal and foreign income taxes incurred

(196)

Net Income (Loss)

$16,665

P&CBLK_02-19.dotm

The American Family Connect Property & Casualty Insurance Company

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$11,466

Net investment income

13,249

Miscellaneous income

2,289

Total

27,004

Benefit- and loss-related payments

$16,952

Commissions, expenses paid, and

aggregate write-ins for deductions

(7,302)

Federal and foreign income taxes

paid (recovered)

(20,889)

Total deductions

(11,238)

Net cash from operations

38,242

Proceeds from investments sold,

matured, or repaid:

Bonds

$546,816

Miscellaneous proceeds

5,792

Total investment proceeds

552,608

Cost of investments acquired (long-

term only):

Bonds

574,198

Total investments acquired

574,198

Net cash from investments

(21,591)

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

24,146

Net cash from financing and

miscellaneous sources

24,146

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

40,798

Cash, cash equivalents, and short-

term investments:

Beginning of year

(8,082)

End of Year

$32,716

P&CBLK_02-19.dotm

The American Family Connect Property & Casualty Insurance Company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$538,903

$808,035

$789,281

$780,638

$800,321

Net income

16,665

86,504

18,793

8,881

(9,711)

Net transfers (to) from

protected cell accounts

Change in net unrealized

capital gains/losses

(10,431)

(35,302)

5,819

2,614

2,569

Change in net unrealized

foreign exchange

capital gains/losses

158

Change in net deferred

income tax

(3,513)

(26,890)

40,146

(694)

(13,855)

Change in nonadmitted

assets

16,892

14,591

(46,004)

(30)

1,314

Surplus adjustments:

Paid in

75,666

Dividends to

stockholders

(308,034)

Write-ins for gains and

(losses) in surplus:

Surplus Account Move

(75,666)

(2,128)

Surplus, End of Year

$558,674

$538,903

$808,035

$789,281

$780,638

P&CBLK_02-19.dotm

American Family Insurance Company

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 9,673

Cash, cash equivalents, and

short-term investments

52,652

Investment income due and

accrued

150

Premiums and considerations:

Uncollected premiums and

agents' balances in course

of collection

(86)

Reinsurance:

Amounts recoverable from

reinsurers

300

Total Assets

$62,087

American Family Insurance Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

$14,884

Current federal and foreign income taxes

Net deferred tax liability

Advance premium

18,101

Ceded reinsurance premiums payable (net of ceding

commissions)

(46,020)

Amounts withheld or retained by company for account of

others

199

Remittances and items not allocated

(1)

Payable to parent, subsidiaries, and affiliates

43,403

Write-ins for liabilities:

4,344

Total Liabilities

34,931

Common capital stock

$3,000

Gross paid in and contributed surplus

7,241

Unassigned funds (surplus)

16,915

Surplus as Regards Policyholders

27,156

Total Liabilities and Surplus

$62,087

P&CBLK_02-19.dotm

American Family Insurance Company

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$167

Net realized capital gains (losses)

(3)

Net investment gain (loss)

$164

Other Income

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

164

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

164

Federal and foreign income taxes incurred

(1)

Net Income (Loss)

$165

American Family Insurance Company

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$14,255

Net investment income

278

Total

14,532

Benefit- and loss-related

payments

$ (2,230)

Commissions, expenses paid, and

aggregate write-ins for

deductions

(5,619)

Federal and foreign income taxes

paid (recovered)

(30)

Total deductions

(7,879)

Net cash from operations

22,411

Cost of investments acquired

(long-term only):

Bonds

$50

Total investments acquired

Net cash from investments

(50)

Other cash provided (applied)

(21,938)

Net cash from financing and

miscellaneous sources

(21,938)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

423

Cash, cash equivalents, and

short-term investments:

Beginning of year

52,229

End of Year

$52,652

P&CBLK_02-19.dotm

American Family Insurance Company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$26,994

$26,390

$25,313

$24,208

$23,617

Net income

165

608

1,132

1,057

589

Change in net deferred

income tax

(4)

(55)

Change in nonadmitted

assets

(1)

Surplus, End of Year

$27,156

$26,994

$26,390

$25,313

$24,208

P&CBLK_02-19.dotm

American Standard Insurance Company of Ohio

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 889

Cash, cash equivalents, and short-term

investments

12,505

Investment income due and accrued

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

Funds held by or deposited with

reinsured companies

(33)

Net deferred tax asset

Total Assets

$13,378

$13,377

American Standard Insurance Company of Ohio

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

$ 2,814

Unearned premiums

654

Ceded reinsurance premiums payable (net of ceding

commissions)

(3,603)

Payable to parent, subsidiaries, and affiliates

3,949

Write-ins for liabilities:

All Other Liabilities

371

Total Liabilities

4,184

Common capital stock

$1,000

Gross paid in and contributed surplus

1,825

Unassigned funds (surplus)

6,368

Surplus as Regards Policyholders

9,193

Total Liabilities and Surplus

$13,377

P&CBLK_02-19.dotm

American Standard Insurance Company of Ohio

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net realized capital gains (losses)

Net investment gain (loss)

Other Income

Total other income

Net Income (Loss)

American Standard Insurance Company of Ohio

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$ 938

Net investment income

Total

953

Benefit- and loss-related payments

$(2,979)

Commissions, expenses paid, and

aggregate write-ins for

deductions

(50)

Federal and foreign income taxes

paid (recovered)

(2)

Total deductions

(3,031)

Net cash from operations

3,984

Other cash provided (applied)

(3,936)

Net cash from financing and

miscellaneous sources

(3,936)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

Cash, cash equivalents, and short-

term investments:

Beginning of year

12,457

End of Year

$12,505

P&CBLK_02-19.dotm

American Standard Insurance Company of Ohio

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$9,187

$9,052

$8,845

$8,738

$8,262

Net income

135

210

105

476

Change in net deferred

income tax

(2)

Change in nonadmitted

assets

(1)

Surplus, End of Year

$9,193

$9,187

$9,052

$8,845

$8,738

P&CBLK_02-19.dotm

American Standard Insurance Company of Wisconsin

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$249,191

Cash, cash equivalents, and short-term

investments

15,312

Receivables for securities

1,443

Investment income due and accrued

1,269

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

35,876

Amounts recoverable from reinsurers

25,502

Funds held by or deposited with

reinsured companies

14,823

Current federal and foreign income tax

recoverable and interest thereon

Net deferred tax asset

Receivable from parent, subsidiaries,

and affiliates

17,820

Write-ins for other than invested assets:

164

Total Assets

$361,544

P&CBLK_02-19.dotm

American Standard Insurance Company of Wisconsin

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Reinsurance payable on paid loss and loss adjustment

expenses

$ 4,640

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

149

Advance premium

181

Ceded reinsurance premiums payable (net of ceding

commissions)

23,701

Amounts withheld or retained by company for account of

others

Net adjustments in assets and liabilities due to foreign

exchange rates

799

Payable to parent, subsidiaries, and affiliates

6,498

Derivatives

Payable for securities

6,560

Write-ins for liabilities:

All other liabilities

291

Total Liabilities

42,825

Common capital stock

$ 3,000

Gross paid in and contributed surplus

3,000

Unassigned funds (surplus)

312,719

Surplus as Regards Policyholders

318,719

Total Liabilities and Surplus

$361,544

American Standard Insurance Company of Wisconsin

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$5,254

Net realized capital gains (losses)

1,652

Net investment gain (loss)

$6,906

Other Income

Write-ins for miscellaneous income:

129

Total other income

129

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

7,036

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

7,036

Federal and foreign income taxes incurred

939

Net Income (Loss)

$6,096

P&CBLK_02-19.dotm

American Standard Insurance Company of Wisconsin

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$ 7,581

Net investment income

5,260

Miscellaneous income

(6,341)

Total

6,500

Benefit- and loss-related payments

$(10,125)

Commissions, expenses paid, and

aggregate write-ins for deductions

(20)

Federal and foreign income taxes

paid (recovered)

1,984

Total deductions

(8,160)

Net cash from operations

14,660

Proceeds from investments sold,

matured, or repaid:

Bonds

$419,518

Net gains (losses) on cash, cash

equivalents, and short-term

investments

(6)

Total investment proceeds

419,512

Cost of investments acquired (long-

term only):

Bonds

388,680

Miscellaneous applications

341

Total investments acquired

389,021

Net cash from investments

30,491

Other cash provided (applied)

(44,722)

Net cash from financing and

miscellaneous sources

(44,722)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

430

Cash, cash equivalents, and short-

term investments:

Beginning of year

14,882

End of Year

$15,312

P&CBLK_02-19.dotm

American Standard Insurance Company of Wisconsin

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$311,915

$362,238

$351,119

$347,635

$343,137

Net income

6,096

10,394

11,116

3,413

4,482

Change in net unrealized

capital gains/losses

(220)

Change in net unrealized

foreign exchange

capital gains/losses

926

(714)

(38)

(32)

Change in net deferred

income tax

(19)

(11)

(20)

Change in nonadmitted

assets

(1)

Dividends to

stockholders

(60,000)

Surplus, End of Year

$318,719

$311,915

$362,238

$351,119

$347,635

P&CBLK_02-19.dotm

Homesite Indemnity Company

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 3,033

Cash, cash equivalents, and short-term

investments

4,397

Investment income due and accrued

Uncollected premiums and agents'

balances in course of collection

1,649

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

8,578

Reinsurance:

Amounts recoverable from reinsurers

11,501

Receivable from parent, subsidiaries,

and affiliates

6,061

Total Assets

$35,228

Homesite Indemnity Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Commissions payable, contingent commissions, and other

similar charges

$ 1,349

Other expenses (excluding taxes, licenses, and fees)

227

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

554

Current federal and foreign income taxes

Borrowed money and interest thereon

Advance premium

3,136

Ceded reinsurance premiums payable (net of ceding

commissions)

16,922

Total Liabilities

22,191

Common capital stock

3,250

Gross paid in and contributed surplus

25,177

Unassigned funds (surplus)

(15,390)

Surplus as Regards Policyholders

13,037

Total Liabilities and Surplus

$35,228

P&CBLK_02-19.dotm

Homesite Indemnity company

Summary of Operations (in thousands)

For the Year 2021

Underwriting Income

Other underwriting expenses incurred

$(69)

Total underwriting deductions

(69)

Net underwriting gain (loss)

Investment Income

Net investment income earned

Net realized capital gains (losses)

(2)

Net investment gain (loss)

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

132

Federal and foreign income taxes incurred

Net Income (Loss)

$105

P&CBLK_02-19.dotm

Homesite Indemnity company

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$14,892

Net investment income

Total

14,959

Benefit- and loss-related

payments

$7,136

Commissions, expenses paid,

and aggregate write-ins for

deductions

(476)

Federal and foreign income

taxes paid (recovered)

255

Total deductions

6,915

Net cash from operations

8,044

Proceeds from investments

sold, matured, or repaid:

Bonds

$2,115

Total investment proceeds

2,115

Cost of investments acquired

(long-term only):

Bonds

2,203

Total investments acquired

2,203

Net cash from investments

(87)

Other cash provided

(applied)

(6,274)

Net cash from financing and

miscellaneous sources

(6,274)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

1,683

Cash, cash equivalents, and

short-term investments:

Beginning of year

2,714

End of Year

$ 4,397

P&CBLK_02-19.dotm

Homesite Indemnity company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$12,932

$41,594

$40,533

$40,378

$40,200

Net income

105

1,891

1,070

175

171

Change in net deferred

income tax

(9)

(21)

Dividends to

stockholders

(30,583)

Surplus, End of Year

$13,037

$12,932

$41,594

$40,533

$40,378

P&CBLK_02-19.dotm

Homesite Insurance Company

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 51,886

Cash, cash equivalents, and short-

term investments

12,093

Investment income due and accrued

155

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

33,108

Deferred premiums, agents'

balances, and installments booked

but deferred and not yet due

41,892

Reinsurance:

Funds held by or deposited with

reinsured companies

119,504

Current federal and foreign income tax

recoverable and interest thereon

Receivable from parent, subsidiaries,

and affiliates

43,171

Prepaid Expenses

995

Total Assets

$302,844

$995

$301,848

Homesite Insurance Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Commissions payable, contingent commissions, and other

similar charges

$ 15,616

Other expenses (excluding taxes, licenses, and fees)

2,060

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

5,374

Net deferred tax liability

Advance premium

29,003

Ceded reinsurance premiums payable (net of ceding

commissions)

169,415

Payable to parent, subsidiaries, and affiliates

595

Derivatives

Payable for securities

311

Total Liabilities

222,383

Common capital stock

$ 4,540

Gross paid in and contributed surplus

55,210

Unassigned funds (surplus)

19,715

Surplus as Regards Policyholders

79,465

Total Liabilities and Surplus

$301,848

P&CBLK_02-19.dotm

Homesite Insurance Company

Summary of Operations (in thousands)

For the Year 2021

Underwriting Income

Other underwriting expenses incurred

$(601)

Write-ins for underwriting deductions:

State income tax expense

Total underwriting deductions

$ (589)

Net underwriting gain (loss)

589

Investment Income

Net investment income earned

620

Net realized capital gains (losses)

243

Net investment gain (loss)

863

Other Income

State tax credit

(3)

Total other income

(3)

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

1,449

Federal and foreign income taxes incurred

316

Net Income (Loss)

$1,133

P&CBLK_02-19.dotm

Homesite Insurance company

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$124,555

Net investment income

(3,517)

Miscellaneous income

(3)

Total

121,035

Benefit- and loss-related payments

$84,518

Commissions, expenses paid, and

aggregate write-ins for deductions

(10,273)

Federal and foreign income taxes

paid (recovered)

611

Total deductions

74,857

Net cash from operations

46,178

Proceeds from investments sold,

matured, or repaid:

Bonds

$65,810

Net gains (losses) on cash, cash

equivalents, and short-term

investments

(2)

Total investment proceeds

65,809

Cost of investments acquired (long-

term only):

Bonds

59,745

Miscellaneous applications

677

Total investments acquired

60,423

Net cash from investments

5,386

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

(44,881)

Net cash from financing and

miscellaneous sources

(44,881)

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

6,683

Cash, cash equivalents, and short-

term investments:

Beginning of year

5,410

End of Year

$ 12,093

P&CBLK_02-19.dotm

Homesite Insurance Company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$79,321

$91,343

$88,706

$87,960

$87,047

Net income

1,133

3,531

2,659

741

954

Change in net deferred

income tax

(22)

(41)

Change in nonadmitted

assets

(995)

Dividends to

stockholders

(15,561)

Surplus, End of Year

$79,465

$79,321

$91,343

$88,706

$87,960

P&CBLK_02-19.dotm

Homesite Insurance Company of the Midwest

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 75,915

Cash, cash equivalents, and short-term

investments

91,110

Investment income due and accrued

173

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

244,080

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

46,257

Accrued retrospective premiums and

contracts subject to redetermination

Reinsurance:

Amounts recoverable from reinsurers

107,922

Current federal and foreign income tax

recoverable and interest thereon

Aggregate write-ins for other than

invested assets

Total Assets

$565,506

$36

$565,469

Homesite Insurance Company of the Midwest

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Reinsurance payable on paid loss and loss adjustment

expenses

$164,956

Commissions payable, contingent commissions, and other

similar charges

15,736

Other expenses (excluding taxes, licenses, and fees)

2,093

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

7,774

Net deferred tax liability

Advance premium

32,727

Ceded reinsurance premiums payable (net of ceding

commissions)

141,779

Payable to parent, subsidiaries, and affiliates

88,462

Derivatives

Payable for securities

488

Total Liabilities

454,017

Common capital stock

$ 3,500

Gross paid in and contributed surplus

64,592

Unassigned funds (surplus)

43,360

Surplus as Regards Policyholders

111,452

Total Liabilities and Surplus

$565,469

P&CBLK_02-19.dotm

Homesite Insurance Company of the Midwest

Summary of Operations (in thousands)

For the Year 2021

Underwriting Income

Other underwriting expenses incurred

$(278)

Write-ins for underwriting deductions:

Total underwriting deductions

$ (225)

Net underwriting gain (loss)

225

Investment Income

Net investment income earned

689

Net realized capital gains (losses)

179

Net investment gain (loss)

868

Other Income

Write-ins for miscellaneous income:

Miscellaneous expense

(10)

Total other income

(10)

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

1,082

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

1,082

Federal and foreign income taxes incurred

205

Net Income (Loss)

$ 877

P&CBLK_02-19.dotm

Homesite Insurance Company of the Midwest

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$(121,331)

Net investment income

672

Miscellaneous income

(10)

Total

(120,669)

Benefit- and loss-related payments

$(104,834)

Commissions, expenses paid, and

aggregate write-ins for deductions

124

Federal and foreign income taxes

paid (recovered)

272

Total deductions

(104,438)

Net cash from operations

(16,232)

Proceeds from investments sold,

matured, or repaid:

Bonds

$94,504

Net gains (losses) on cash, cash

equivalents, and short-term

investments

(3)

Total investment proceeds

94,501

Cost of investments acquired (long-

term only):

Bonds

86,295

Miscellaneous applications

1,069

Total investments acquired

87,365

Net cash from investments

7,136

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

86,025

Net cash from financing and

miscellaneous sources

86,025

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

76,930

Cash, cash equivalents, and short-

term investments:

Beginning of year

14,180

End of Year

$ 91,110

P&CBLK_02-19.dotm

Homesite Insurance Company of the Midwest

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$110,598

$106,270

$103,422

$102,938

$102,592

Net income

877

4,301

2,856

425

129

Change in net deferred

income tax

(8)

(7)

188

Change in nonadmitted

assets

(36)

Change in provision for

reinsurance

Surplus, End of Year

$111,452

$110,598

$106,270

$103,422

$102,938

P&CBLK_02-19.dotm

Midvale Indemnity Company

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 9,701

Cash, cash equivalents, and short-term

investments

2,715

Investment income due and accrued

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

11,199

5,412

5,787

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

51,881

Reinsurance:

Amounts recoverable from reinsurers

14,745

Current federal and foreign income tax

recoverable and interest thereon

141

Net deferred tax asset

1,231

1,179

Receivable from parent, subsidiaries,

and affiliates

33,319

Write-ins for other than invested assets:

Miscellaneous receivables

Total Assets

$124,995

$6,591

$118,405

P&CBLK_02-19.dotm

Midvale Indemnity Company

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Reinsurance payable on paid loss and loss adjustment

expenses

$ 76

Commissions payable, contingent commissions, and other

similar charges

1,963

Other expenses (excluding taxes, licenses, and fees)

318

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

1,839

Advance premium

3,913

Ceded reinsurance premiums payable (net of ceding

commissions)

32,277

Amounts withheld or retained by company for account of

others

1,025

Payable to parent, subsidiaries, and affiliates

67,674

Write-ins for liabilities:

All other Liabilities

Total Liabilities

109,094

Common capital stock

$ 3,500

Gross paid in and contributed surplus

174,898

Unassigned funds (surplus)

(169,087)

Surplus as Regards Policyholders

9,311

Total Liabilities and Surplus

$118,405

Midvale Indemnity Company

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$198

Net realized capital gains (losses)

(165)

Net investment gain (loss)

$ 33

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

Federal and foreign income taxes incurred

(80)

Net Income (Loss)

$113

P&CBLK_02-19.dotm

Midvale Indemnity Company

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$(8,832)

Net investment income

178

Total

(8,654)

Benefit- and loss-related

payments

$ 1,186

Commissions, expenses paid,

and aggregate write-ins for

deductions

(3,260)

Federal and foreign income

taxes paid (recovered)

(84)

Total deductions

(2,158)

Net cash from operations

(6,496)

Proceeds from investments

sold, matured, or repaid:

Bonds

$36,278

Total investment proceeds

36,278

Cost of investments acquired

(long-term only):

Bonds

35,884

Total investments acquired

35,884

Net cash from investments

394

Cash from financing and

miscellaneous sources:

Other cash provided

(applied)

6,097

Net cash from financing and

miscellaneous sources

6,097

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

(5)

Cash, cash equivalents, and

short-term investments:

Beginning of year

2,719

End of Year

$2,715

P&CBLK_02-19.dotm

Midvale Indemnity Company

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$12,067

$14,060

$13,744

$13,317

$13,120

Net income

113

203

682

415

Change in net deferred

income tax

476

367

293

(25)

120

Change in nonadmitted

assets

(3,345)

(2,563)

(659)

(11)

Surplus, End of Year

$ 9,311

$12,067

$14,060

$13,744

$13,317

P&CBLK_02-19.dotm

Permanent General Assurance Corporation

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$114,846

Stocks:

Common stocks

12,264

Cash, cash equivalents, and short-term

investments

14,512

Receivables for securities

Investment income due and accrued

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

30,111

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

308,387

Reinsurance:

Amounts recoverable from reinsurers

52,167

Current federal and foreign income tax

recoverable and interest thereon

Net deferred tax asset

1,814

255

1,558

Guaranty funds receivable or on deposit

Receivable from parent, subsidiaries,

and affiliates

80,641

Write-ins for other than invested assets:

Advance

897

Total Assets

$615,741

$ 12,520

$603,221

P&CBLK_02-19.dotm

Permanent General Assurance Corporation

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Reinsurance payable on paid loss and loss adjustment

expenses

$ 18,549

Commissions payable, contingent commissions, and other

similar charges

2,001

Other expenses (excluding taxes, licenses, and fees)

596

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

2,297

Advance premium

715

Ceded reinsurance premiums payable (net of ceding

commissions)

360,230

Amounts withheld or retained by company for account of

others

160

Payable to parent, subsidiaries, and affiliates

92,643

Write-ins for liabilities:

All Other Liabilities

1,962

Total Liabilities

479,153

Common capital stock

$ 5,000

Gross paid in and contributed surplus

86,966

Unassigned funds (surplus)

32,102

Surplus as Regards Policyholders

124,068

Total Liabilities and Surplus

$ 603,221

Permanent General Assurance Corporation

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$1,842

Net realized capital gains (losses)

2,129

Net investment gain (loss)

$3,970

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

3,970

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

3,970

Federal and foreign income taxes incurred

731

Net Income (Loss)

$3,239

P&CBLK_02-19.dotm

Permanent General Assurance Corporation

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$(16,305)

Net investment income

3,195

Total

(13,111)

Benefit- and loss-related payments

$ 8,384

Commissions, expenses paid, and

aggregate write-ins for deductions

(759)

Federal and foreign income taxes

paid (recovered)

2,001

Total deductions

9,625

Net cash from operations

(22,735)

Proceeds from investments sold,

matured, or repaid:

Bonds

$131,264

Total investment proceeds

131,264

Cost of investments acquired (long-

term only):

Bonds

127,511

Miscellaneous applications

Total investments acquired

127,518

Net cash from investments

3,747

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

26,003

Net cash from financing and

miscellaneous sources

26,003

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

7,014

Cash, cash equivalents, and short-

term investments:

Beginning of year

7,498

End of Year

$ 14,512

P&CBLK_02-19.dotm

Permanent General Assurance Corporation

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$121,781

$138,359

$135,999

$135,765

$131,975

Net income

3,239

6,049

3,676

1,226

16,502

Change in net unrealized

capital gains/losses

4,163

2,948

1,021

827

(208)

Change in net deferred

income tax

628

256

161

(28)

(12,850)

Change in nonadmitted

assets

(5,743)

(2,966)

(881)

(740)

318

Dividends to

stockholders

(22,879)

(1,600)

(1,050)

Write-ins for gains and

(losses) in surplus:

Other

Increases/(Decrease

(17)

Surplus, End of Year

$124,068

$121,781

$138,359

$135,999

$135,765

P&CBLK_02-19.dotm

Permanent General Assurance Corporation of Ohio

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$ 12,017

Stocks:

Common stocks

12,849

Cash, cash equivalents, and short-term

investments

13,318

Receivables for securities

Investment income due and accrued

118

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

21,487

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

85,402

Reinsurance:

Amounts recoverable from reinsurers

16,438

Current federal and foreign income tax

recoverable and interest thereon

164

Net deferred tax asset

619

110

509

Guaranty funds receivable or on deposit

Write-ins for other than invested assets:

Other Miscellaneous

Total Assets

$162,426

$110

$162,316

P&CBLK_02-19.dotm

Permanent General Assurance Corporation of Ohio

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Commissions payable, contingent commissions, and other

similar charges

$ 797

Other expenses (excluding taxes, licenses, and fees)

476

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

1,515

Advance premium

341

Ceded reinsurance premiums payable (net of ceding

commissions)

71,352

Amounts withheld or retained by company for account of

others

123

Payable to parent, subsidiaries, and affiliates

42,727

Total Liabilities

117,334

Common capital stock

$ 3,000

Gross paid in and contributed surplus

73,218

Unassigned funds (surplus)

(31,236)

Surplus as Regards Policyholders

44,982

Total Liabilities and Surplus

$162,316

Permanent General Assurance Corporation of Ohio

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$188

Net investment gain (loss)

$188

Net income (loss) before dividends to policyholders and

before federal and foreign income taxes

188

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

188

Federal and foreign income taxes incurred

(208)

Net Income (Loss)

$396

P&CBLK_02-19.dotm

Permanent General Assurance Corporation of Ohio

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$(27,420)

Net investment income

157

Total

(27,263)

Benefit- and loss-related

payments

$ 514

Commissions, expenses paid,

and aggregate write-ins for

deductions

461

Federal and foreign income taxes

paid (recovered)

Total deductions

979

Net cash from operations

(28,242)

Proceeds from investments sold,

matured, or repaid:

Miscellaneous proceeds

$ 2

Total investment proceeds

Cost of investments acquired

(long-term only):

Bonds

230

Miscellaneous applications

Total investments acquired

232

Net cash from investments

(230)

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

23,079

Net cash from financing and

miscellaneous sources

23,079

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

(5,393)

Cash, cash equivalents, and

short-term investments:

Beginning of year

18,711

End of Year

$13,318

P&CBLK_02-19.dotm

Permanent General Assurance Corporation of Ohio

Analysis of Surplus

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$44,277

$99,388

$96,481

$94,832

$92,871

Net income

396

30,851

945

1,618

6,820

Change in net unrealized

capital gains/losses

(26,383)

1,781

744

Change in net deferred

income tax

276

(8)

(5,654)

Change in nonadmitted

assets

(29)

(2)

113

Change in treasury stock

(59,672)

Write-ins for gains and

(losses) in surplus:

(1)

Surplus, End of Year

$44,982

$44,277

$99,388

$96,481

$94,832

P&CBLK_02-19.dotm

The General Automobile Insurance Company Inc.

Assets (in thousands)

As of December 31, 2021

Net

Nonadmitted

Admitted

Assets

Bonds

$16,232

Cash, cash equivalents, and short-term

investments

702

Investment income due and accrued

Premiums and considerations:

Uncollected premiums and agents'

balances in course of collection

4,681

Deferred premiums, agents' balances,

and installments booked but

deferred and not yet due

39,666

Reinsurance:

Amounts recoverable from reinsurers

5,744

Net deferred tax asset

180

131

Guaranty funds receivable or on deposit

Total Assets

$67,296

$48

$67,247

The General Automobile Insurance Company Inc.

Liabilities, Surplus, and Other Funds (in thousands)

As of December 31, 2021

Commissions payable, contingent commissions, and other

similar charges

$ 112

Other expenses (excluding taxes, licenses, and fees)

Taxes, licenses, and fees (excluding federal and foreign

income taxes)

263

Current federal and foreign income taxes

Advance premium

Ceded reinsurance premiums payable (net of ceding

commissions)

32,818

Amounts withheld or retained by company for account of

others

Payable to parent, subsidiaries, and affiliates

21,042

Payable for securities

Total Liabilities

54,398

Common capital stock

$ 3,000

Gross paid in and contributed surplus

36,871

Unassigned funds (surplus)

(27,022)

Surplus as Regards Policyholders

12,849

Total Liabilities and Surplus

$67,247

100

P&CBLK_02-19.dotm

The General Automobile Insurance Company Inc.

Summary of Operations (in thousands)

For the Year 2021

Investment Income

Net investment income earned

$102

Net realized capital gains (losses)

(6)

Net investment gain (loss)

$97

Net income (loss) after dividends to policyholders but before

federal and foreign income taxes

Federal and foreign income taxes incurred

Net Income (Loss)

$16

101

P&CBLK_02-19.dotm

The General Automobile Insurance Company Inc.

Cash Flow (in thousands)

For the Year 2021

Premiums collected net of

reinsurance

$(16,802)

Net investment income

110

Total

(16,691)

Benefit- and loss-related payments

$ 1,953

Net transfers to separate accounts,

segregated accounts, and

protected cell accounts

(387)

Federal and foreign income taxes

paid (recovered)

274

Total deductions

1,841

Net cash from operations

(18,532)

Proceeds from investments sold,

matured, or repaid:

Bonds

$ 9,871

Total investment proceeds

9,871

Cost of investments acquired (long-

term only):

Bonds

9,516

Miscellaneous applications

106

Total investments acquired

9,622

Net cash from investments

249

Cash from financing and

miscellaneous sources:

Other cash provided (applied)

18,627

Net cash from financing and

miscellaneous sources

18,627

Reconciliation:

Net Change in Cash, Cash

Equivalents, and Short-Term

Investments

344

Cash, cash equivalents, and short-

term investments:

Beginning of year

358

End of Year

$ 702

102

P&CBLK_02-19.dotm

The General Automobile Insurance Company Inc.

Analysis of Surplus (in thousands)

For the Five-Year Period Ending December 31, 2021

2021

2020

2019

2018

2017

Surplus, beginning of

year

$12,787

$39,170

$37,413

$37,379

$36,635

Net income

2,682

1,676

4,593

Change in net unrealized

foreign exchange

capital gains/losses

(1)

Change in net deferred

income tax

(3,845)

Change in nonadmitted

assets

(13)

(1)

(4)

Dividends to

stockholders

(29,070)

Surplus, End of Year

$12,849

$12,787

$39,170

$37,413

$37,379