US 1 Industries SC 13E3/A Going private transaction (amended)

John Pierce

CONSULTING ACTUARY

1420 RENAISSANCE DRIVE SUITE 104 PARK RIDGE, IL 60068 PHONE (847) 297-1177 FAX (847) 297-1178

Lex Vendetti, President American Inter-Fidelity Exchange 8400 Louisiana Street Merrillville, IN 46410 March 5, 2010

Dear Lex:

Attached is a draft of my 12/09 actuarial report for AIFE. Please look over this draft and get back to me with any revisions or corrections. If there are no changes, we can consider this as the final actuarial report.

Once again this year we did not need to redo any exhibits because of late changes in the current year premium. Thanks to Melinda Clark for her work in providing us with the final premium at an earlier point in the cycle.

As you know, the NAIC requires that the actuary “present” this report to the company’s Board of Directors (or at least to the Audit Committee of the Board). However, it is generally agreed that this NAIC requirement can be satisfied by you providing each of the Board members with a copy of this actuarial report. Of course, I’d be happy to meet with the Board to present this report, if you’d prefer.

	Sincerely yours,
	John Pierce
	F.C.A.S. M.A.A.A. M.B.A.
Copy: Alex Meloy

John Pierce

CONSULTING ACTUARY

1420 RENAISSANCE DRIVE SUITE 104 PARK RIDGE, IL 60068 PHONE (847) 297-1177 FAX (847) 297-1178

Board of Directors American Inter-Fidelity Exchange 8400 Louisiana Street Merrillville, IN 46410 March 5, 2010

Dear Sirs:

Shown below is my analysis of the 12/09 loss and LAE reserves of American Inter-Fidelity Exchange (AIFE). This material represents the “actuarial report and underlying workpapers” described in my 2-27-10 loss and LAE reserves actuarial opinion letter for your company. Per NAIC regulations, this report should be retained by you for a period of seven years.

This report contains workpapers, trade secrets, and confidential information of AIFE. It has been prepared solely for use by management of the company, and is available for regulatory examination as required by the NAIC. Because of the nature of the material, this report is not intended to be subject to any disclosure requirements under the various state Freedom of Information Acts.

Except for use by your own staff and examination by regulators as required, please do not release this material to anyone without our firm’s written permission.

Overview     American Inter-Fidelity Exchange (AIFE) was organized in 1988 as a risk retention group for the long-haul trucking industry. The AIFE risk retention group wrote Auto Liability insurance for long-haul trucking firms throughout the period 1988-1994. AIFE entered into rehabilitation during 1994. During the period 1994-2000, AIFE continued to write Auto Liability business while in rehabilitation, but only for trucking firms affiliated with the two organizers of the original risk retention group (Hal Antonson and Mike Kibler).

At 12/01 AIFE emerged from rehabilitation.

Data Sources     Information for our analysis, including but not limited to:

a) the premium data and loss data used in our analysis

b) explanation of the nature of AIFE’s business, and

c) explanation of the reinsurance structure for the company

was provided to us by officers and employees of AIFE (primarily by Lex Venditti). In the early years of the company’s operation, the premium and loss data for some components of the company’s business was provided only on paper reports. At the 12/02 through 12/09 year-ends, loss data for all components was provided to us in computer files which were readable by our spreadsheet programs.

March 5, 2010

Reinsurance Structure     AIFE has operated with excess-of-loss reinsurance for Auto Liability during its entire period of operation. The history of this per-claim reinsurance protection is detailed below:

Inception to 7/91	$500,000 excess of $500,000 for Auto Liability
7/91 to 1993, plus	$750,000 excess of $250,000 for Auto Liability
runoff on policies in force at 12/93
1994-1999 (first part of 1999 year)	$900,000 excess of $100,000 for Auto Liability
1999 (last part of 1999 yr) to 2002	$800,000 excess of $200,000 for Auto Liability
2002 (last part of 2002 year)	$750,000 excess of $250,000 for Auto Liability
to 2009
However, five selected accounts have a higher reinsurance attachment beginning in 2006, as follows:.
Last part of 2006 (4/06 to 6/07)	$650,000 excess of $350,000 for Auto Liability,
Last part of 2007 (7/07 and after)	$500,000 excess of $500,000 for Auto Liability, (Reinsurance renewals occurred on either 4/07 or 7/07, but these five accounts renewed on 7/07)

In addition, one large account — Carolina National Transportation — has had differing policy limits over the years. Beginning in 1999 this account had a $200,000 policy, which was 100% retained by AIFE. In early 2002 the account moved to a standard $1 million policy with a standard reinsurance attachment point. That Carolina National policy terminated on 3-15-05. However, the account was written again effective 4/06 — but with a $50,000 per claim deductible.
 

Reinsurance for the period from inception to 1993 was provided through annual reinsurance treaties. Reinsurance for the 1994-2009 period has been provided by facultative certificates. A separate facultative certificate is written for each trucking firm.

Both the treaty and facultative reinsurance contracts provide for pro-rata coverage of LAE. Losses before deductible are compared to the reinsurance retention, and the reinsurer pays a percentage share of the LAE equal to its percentage share of the loss. For example, consider the following hypothetical claim:

$210,000 loss plus $5,000 LAE

$5,000 deductible

$200,000 reinsurance attachment point

In this example, the reinsurer will pay $10,000 of the loss and will also pay $238, or 4.76%, of the LAE ($10,000/$210,000 = 4.76%). AIFE will pay $195,000 of the loss ($200,000 minus the $5,000 deductible) and $4,762 (95.24%) of the LAE. The insured will pay $5,000 of the loss. AIFE’s total payment on this hypothetical claim is therefore $199,762.

John Pierce Consulting Actuary

Page 2

March 5, 2010

It is my understanding that AIFE has never had any reinsurance protection other than its reinsurance on Auto Liability. The company does not have any reinsurance protection on Collision or on Cargo claims.

Reinsurance Impact on Auto Liability Claims Data   When AlFE entered rehabilitation, the company began reserving all claims at no more than its reinsurance retention. For example, a hypothetical claim from 1995 accident year might have a reserve value of $195,000 – but AIFE would record only a $100,000 reserve on this claim because the excess over $100,000 would be ceded to the facultative reinsurer. (Statutory accounting requires the company to set a reserve of $195,000 on this hypothetical claim, and then take an offsetting credit of $95,000 to reflect the amount ceded to the reinsurers.)

This non-standard reserving procedure was still in effect through the 12/02 year-end. Open claims in the company’s Auto Liability historical database were therefore limited to the reinsurance retention levels for that particular year — either $100,000, $200,000, or $250,000. However, paid claim data is in the database without any limitation. (Carrying the example of the previous paragraph forward, if that hypothetical 1995 claim had in fact been paid and closed at $195,000, the AIFE claim database would include the entire $195,000 paid amount.) AlFE’s Auto Liability historical claims data was therefore neither entirely at full value, nor entirely capped at the reinsurance retention levels.

Beginning with the 12/03 year-end, open claims were reserved at 100% of the expected value. Beginning with the 12/03 year-end, case reserves were no longer limited to the applicable reinsurance retention.

Auto Liability Development Triangles     Attached are a variety of exhibits in which we project Auto Liability IBNR at 12/09. The first set of exhibits are:

Exhibit 1	A development triangle of all loss & ALAE, without any capping for reinsurance protection. Ultimate loss & ALAE is projected using average of last 5 loss development factors.
Exhibit 2	These are the amounts to be removed from Exhibit 1, to cap losses at $100,000 per claim, $200,000 per claim, $250,000 per claim, $350,000 per claim, or $500,000 per claim.
Exhibit 3	Development triangle, capped at $100,000 per claim. Ultimate loss & ALAE is projected using average of last 5 loss development factors.
Exhibit 4	Development triangle, capped at $200,000 per claim. Ultimate loss & ALAE is projected using average of last 5 loss development factors.
Exhibit 5	Development triangle, capped at $250,000 per claim. Ultimate loss & ALAE is projected using average of last 5 loss development factors.
Exhibit 6	Development triangle, capped at $350,000 per claim. Ultimate loss & ALAE is projected using average of last 5 loss development factors.

John Pierce Consulting Actuary

Page 3

March 5, 2010

Exhibit 7	Development triangle, capped at $500,000 per claim. Ultimate loss & ALAE is projected using average of last 5 loss development factors. (We produced this $500,000 triangle for the first time at the 12/07 year-end because of the new $500,000 reinsurance attachment point.)
Exhibit 8	Runoff of Auto Liability IBNR reserves at the 12/01 through 12/08 year-ends, based on projections using the average of the last 5 loss development factors. In this analysis, we recalculate the 12/01 through 12/08 IBNR’s – based on developments through 12/09.

Note the following details about the construction of these exhibits:

1. The attached Auto Liability loss development triangles Exhibits 1-7 were constructed from the *.dbf claim database files which were provided to us. One file of claims data was provided for each year-end point beginning with the 1994 year-end.

2. There is a 12/93 diagonal in these triangles. The Auto Liability data provided by you incepted with the 12/94 diagonal. The 12/93 diagonal has been excerpted from our workfiles of the old (i.e. pre-rehabilitation) AIFE as a form of double-check.

3. In the 2001 and prior years the Carolina National policy of $200,000 had been 100% retained by AIFE, so the $100,000 version of our triangles is not exactly correct for Carolina National. Other than this one exception, Exhibit 2 calculates ceded amounts according to our understanding of AIFE’s reinsurance contracts.

There are two additional sets of Exhibits 1-8. The first additional set uses the average of the last 3 loss development factors and the second additional set uses the average of the last 2 loss development factors. Actually, Exhibit 2 does not change in the alternate scenarios, so the two additional sets of Exhibits 1-8 do not include a copy of Exhibit 2.

(There is a need for judgment in the selection of loss development factors in any development triangle approach. However, the relatively small volume of AIFE’s Auto Liability business results in a higher than average variability in loss development factors. Rather than attempt to identify “unusual” loss development percentages from a pattern which is already quite variable, we instead rely on using several loss development approaches – averaging the last 5 loss development factors, averaging the last 3 factors and averaging the last 2 factors – to determine the sensitivity of your Auto Liability IBNR to variations in your loss development factors.)

The revalued Net (after-reinsurance) Auto Liability IBNR reserves from the (three versions of) Exhibit 8 are:

John Pierce Consulting Actuary

Page 4

March 5, 2010

	Original Auto			Selected
	Liability IBNR			Redundancy or
Year-End	Reserve		Range of Revalued IBNR reserves	(Deficiency)
12/01	$	1.050 million	$1.393 million	$	(343,000	)
12/02	$	1.950 million	$1.677 million	$	273,000
12/03	$	2.477 million	$1.603 million	$	874,000
12/04	$	2.365 million	$2.040 million to $2.070 million	$	310,000
12/05	$	2.600 million	$2.150 million to $2.286 million	$	382,000
12/06	$	3.535 million	$1.902 million to $2.132 million		1,518,000
12/07	$	4.182 million	$1.869 million to $2.327 million		2,084,000
12/08	$	3.826 million	$1.400 million to $2.135 million		2,059,000

The revalued 12/06, 12/07 and 12/08 IBNR’s do not include any additional IBNR at 12/09 for the $50,000 deductible policies. Those high-deductible policies incepted in 2006. That additional IBNR will be calculated in a later section of this report.

In all three versions of our triangles (averaging the last 5, last 3 and last 2 loss development factors) we see that the projected 2009 accident year loss ratio in every case is lower than the 2008 loss ratios. In most of these versions, there had been a steady increase in loss ratio – with the 2007 loss ratio higher than the 2006 loss ratio and the 2008 loss ratio higher than the 2007 loss ratio. Normally an increase in loss ratios from year to year would be expected, if rate increases are less than a loss severity trend of perhaps 5% to 7% per year. The decline in the 2009 projected loss ratio is therefore surprising.

(Note that we have adjusted the 2006-2009 premiums on Exhibits 1-7. We have removed all 2006-2009 premiums from policies with the high $50,000 deductible. We then calculated loss ratios using premiums with and without the premium for policies with these $50,000 deductibles. The trends in 2006-2009 loss ratios were evident using either of the two premium bases.)

Also attached is an exhibit calculating the company’s Auto Liability rate changes from the 2008 policy year to the 2009 policy year. Rates before reinsurance increased by an insignificant 0.03% and rates after reinsurance increased by about 2.93%. This after-reinsurance increase is relatively modest, and should not have a dramatic impact on the 2009 loss ratio.

We also produced a development triangle of Auto Liability claims, which is attached as Exhibit 9. There are a few interesting conclusions from this exhibit:

1. Exhibit 9 is predicting that 10 additional Auto Liability claims will be reported in 2010 and subsequent years, on 2009 and prior dates of loss.

John Pierce Consulting Actuary

Page 5

March 5, 2010

2. Exhibit 9 also shows that your Auto Liability claim frequencies per $1,000 of earned premium had been declining from a high point of 0.105 claims per $1,000 of Net premium in the 2004 accident year. In this year’s exhibit, we have considered claim frequencies both with and without the premium and claims from the policies with a $50,000 deductible. There is some continuing decline in claim frequency during the 2005-2009 accident years in both versions.

Exhibit l0 uses the ultimate claim counts from Exhibit 9, and the ultimate loss and LAE from Exhibits 3-7, to calculate the average Auto Liability claim sizes implied by our loss development methods. In our analysis of these results, we concentrated on the versions which are capped at $250,000, $350,000 and $500,000 per claim. The 12/09 IBNR is almost entirely from accident years which are reinsured at the $250,000 or higher levels.

In Exhibit 10, we would expect Auto Liability claim sizes to increase over time due to inflationary and other pressures which result in a positive loss severity trend. While the pattern of average claim sizes over time in Exhibit 10 is somewhat erratic, claim sizes for the $250,000, $350,000 and $500,000 versions do generally increase during 2003-2005. Average claim sizes for the 2006 and 2007 accident year are similar to or slightly lower than the 2003-2005 average. Then in 2008 average claim sizes increase dramatically from 2007, in all three of our methods (Average last 5, last 3 or last 2) and for all attachment points ($100,000 to $500,000). Finally, 2009 average claim sizes are lower than average claim sizes in any ofthe 2003-2008 years.

On Exhibit 10 (in the bottom portion of that exhibit) we also considered alternate calculations of average claim size for 2006-2009 accident years, in which we removed the claim counts from those policies with $50,000 deductibles. On this alternate basis, we also see very high average claim sizes for the 2008 accident year and lower average claim sizes for the 2009 accident year. However, in this alternate analysis there is very little disparity between the 2009 averages and the 2006-2007 average claim sizes.

The decline in projected 2009 average claim sizes which results from our Exhibit 1-7 IBNR projections is surprising.

The results of our Auto Liability projections are sununarized on the attached Exhibit II. The IBNR’s from the various development triangles are combined in Exhibit 11 using the following algorithm:

For 1998 and prior accident years, use the $100,000 version of IBNR (Exhibit 3)

For the 1999 accident year, use 1/4 of the $100,000 version (Exhibit 3) and 3/4 of the $200,000 version (Exhibit 4)

For the 2000 and 2001 accident years, use the $200,000 version of IBNR (Exhibit 4)

For the 2002 accident year, use 1/4 of the $200,000 version (Exhibit 4) and 3/4 of the $250,000 version (Exhibit 5)

John Pierce Consulting Actuary

Page 6

March 5, 2010

For the 2003-2005 accident years, use the $250,000 version of IBNR (Exhibit 5)

For the 2006 accident year, use 50% of the $250,000 version (Exhibit 5) and 50% of the $350,000 version (Exhibit 6)

For the 2007 accident year, use 22% of the $250,000 version (Exhibit 5), 39% of the $350,000 version (Exhibit 6), and 39% of the $500,000 version (Exhibit 7)

For the 2008 accident year, use 20% of the $250,000 version (Exhibit 5) and 80% of the $500,000 version (Exhibit 7)

For the 2009 accident year, use 21% of the $250,000 version (Exhibit 5) and 79% of the $500,000 version (Exhibit 7)

These algorithms assign IBNR based on AIFE’s actual reinsurance structure:

2006 Year     As shown towards the bottom of Exhibit 11, about 42% of the 2006 Auto Liability premium is from policies with a $350,000 reinsurance attachment. However, that percentage was increasing - from 0% in the first quarter 2006, to 26% in the second quarter, and to 71% and 61% in the third and fourth quarters. Because IBNR would be more heavily concentrated in the more recent accident quarters, we weighted the $350,000 IBNR in 2006 by a 50% factor instead of the actual 42% value.

2007 Year     As shown at the bottom of Exhibit 11, about 22% of the 2007 Auto Liability premium is from policies with a $250,000 reinsurance attachment. The 78% remaining portion of the Auto Liability business moved from a $350,000 attachment to a $500,000 attachment at 7/1/07. We then split that 78%, on a 50/50 basis. That split of the 78% gave the 22%-39%-39% split used in Exhibit 11 for the 2007 accident year.

2008 Year     Actual premium for this year was split 80% for policies with a $500,000 attachment point and 20% for policies with a $250,000 attachment point. (Last year we had used a different premium split, due to an error in our calculations.)

2009 Year     Actual premium for this year was split 79% for policies with a $500,000 attachment point and 21% for policies with a $250,000 attachment point.

Our projected Auto Liability Net IBNR is in the range [$1.296 million to $2.012 million] at 12/09. The mid-point of that range of 12/09 Net IBNR’s is $1.654 million.

Adjustment to Projected Auto Liabilitv IBNR   The company’s Auto Liability premium volume before reinsurance has been declining in recent years – from an average of about $4.50 million per year in 2003-2007 to only $2.364 million in 2009. We would therefore expect some decline in Auto Liability IBNR in the more recent years. On the other hand, we have the dramatic decline in our projected 2009 loss ratio (without any significant rate increases for Auto Liability) and the dramatic decline in average Auto Liability average claim size for the 2009 accident year. These results cause us to question our Exhibit 1-7 IBNR.

We are projecting 122 ultimate Auto Liability claims in the 2009 accident year. Increasing the average claim size of these 122 claims by about $4,000 would result in the 2009 averages being more consistent with the 2007 and 2008 averages. This adjustment would result in a $488,000 increase in 12/09 IBNR (where $4,000 * 122 = $488,000). This increase in IBNR would also increase the Net loss ratio on Exhibits 1-7 by about 34 points (where $488,000 divided by $1.432 million of Net premium excluding premium on $50,000 deductible policies). If we include the Net premium on the $50,000 deductible policies, the increase in Net loss ratio would be about 25 points.

John Pierce Consulting Actuary

Page 7

March 5, 2010

In summary, an additional $488,000 of Auto Liability IBNR in the 2009 accident year would:

1. Increase the 2009 average claim sizes to a level consistent with the 2007-2008 history.

2. Increase the 2009 Net loss ratios – using premium either with or without the $50,000 deductible policies – to a level consistent with the 2007-2008 history.

As we had last year, we also considered a model in which we calculated quarterly loss development factors and applied these factors to the quarterly reported losses of the 2009 accident year. These results (in which we use the Average of the Last 5 version of our Auto Liability triangles) are on the attached Exhibit 11A. These calculations do not support any adjustment to the Exhibit 1-7 Auto Liability IBNR. However, in my opinion the low projected loss ratios and low average claim sizes for the 2009 accident year indicate that some increase in our originally calculated IBNR is needed.

Auto Liability – Adjustment for Higher Deductibles     Beginning in 2006, a significant portion of the company’s business – Carolina National Trucking and certain affiliated companies – moved to a higher $50,000 per claim deductible. It is typical for policies with a higher deductible to exhibit greater lag in reporting of losses and LAE in excess of the· deductible.

There are 256 claims from these $50,000 deductible policies, in the 2006-2009 accident years. Reported losses in excess of the deductible are $1.293 million – on five-year Net premium of $2.459 million.

We next consider the IBNR for these $50,000 deductible policies. As shown on the attached Exhibit 12, we calculate IBNR on this policy using several different approaches. We begin with the Average of the Last 5 projection from Exhibits 6 and 7 – our $350,000 and $500,000 attachment versions. (The $50,000 deductible policies are all at the $350,000 reinsurance attachment point for 7-1-06 to 6-30-07 and are at the higher $500,000 attachment for 7-1-07 through 12-31-09.) We calculate that the $1.293 million of reported losses on these policies generated an IBNR of $345,000 at 12/09 which is included in our standard Exhibit 6 and 7 development triangles.

Our alternate IBNR calculations (shown on Exhibit 12) produce possible additional IBNR values as follows:

1.     Recalculate all claims using a deductible of only $5,000. Apply our Exhibit 6 loss development factor to this amount, producing an additional IBNR of $534,000. However, this additional IBNR must be reduced by some amount to reflect the savings from the $50,000 deductible – in the layer [$5,000 to $50,000] per claim.

John Pierce Consulting Actuary

Page 8

March 5, 2010

2.     Apply Reinsurance Association of America (RAA) excess Auto Liability IBNR factors to the $1.293 million of reported losses on these high-deductible policies. The additional IBNR produced by this method is $345,000.

3.     Use the RAA IBNR results for 2006-2008 accident years but use an Expected Loss Ratio approach for the 2009 accident year. Based on our projected loss ratios for 2006-2008, we selected a 100% Expected Loss Ratio for 2009. This calculation produced an additional IBNR of $796,000.

4.     In addition, it is worth examining the development pattern of these high-deductible claims. The reported losses on these high-deductible policies have developed as follows:

Accident Year	At Year-End		One Year Later		Two Years Later		Three Years Later
2006	$	37,500	$	51,067	$	392,144	$	325,256
2007	$	50,000	$	689,194	$	801,243
2008	$	5,445	$	146,284
2009	$	20,001

This limited development history certainly supports a high IBNR for this block of high-deductible policies.

Based on the results of these three methods – all of which have considerable uncertainty – and based on the development patterns shown above, I believe the highest IBNR should be selected. This selection would result in an additional Auto Liability IBNR of $796,000 to reflect probable late-emerging claims on these high deductible policies.

Of this $796,000 additional IBNR, $293,000 is for the 2006-2008 accident years and $502,000 is for the 2009 accident year. In a previous section of this report, we had calculated a $488,000 increase in Auto Liability IBNR for the 2009 accident year. That previous section of our report now provides support for this $796,000 increase in IBNR. (On the other hand, including both the $488,000 increase and the $796,000 increase would not be reasonable.)

Our projected Auto Liability Net IBNR from our original Exhibit 1-7 triangles was in the range [$1.296 million to $2.012 million]. Adding this $796,000 for the high deductible policies would result in a new Net IBNR range of [$2.092 million to $2.808 million]. The mid-point of that range of 12/09 Net IBNR’s would be $2.450 million.

Your actual 12/09 Net IBNR for Auto Liability is $3.400 million.

Include $50,000 IBNR in Re-Valued IBNR     Previously in this report, we had calculated the re-valued Auto Liability IBNR for previous year-ends, based on the results in our Exhibit 1 through Exhibit 7 loss development triangles. Those results did not include any additional IBNR for the $50,000 policies.

John Pierce Consulting Actuary

Page 9

March 5, 2010

Based on the work in the previous section of this report, we can now include this additional IBNR in our previous exhibit of re-valued IBNR’s. Of the $796,000 additional IBNR, $55,000 is for the 2006 accident year, $182,000 is for the 2007 accident year and $56,000 is for the 2008 accident year:

Year-End	Original Auto Liability IBNR Reserve		Range of Revalued IBNR reserves		Selected Redundancy or (Deficiency)
12/01	$	1.050 million		$1.393 million	$	(343,000	)
12/02	$	1.950 million		$1.677 million	$	273,000
12/03	$	2.477 million		$1.603 million	$	874,000
12/04	$	2.365 million		$2.040 million to $2.070 million	$	310,000
12/05	$	2.600 million		$2.150 million to $2.286 million	$	382,000
12/06	$	3.535 million		$1.902 million to $2.132 million	$	1,463,000
				plus $55,000 additional IBNR for
				$50K policies
12/07	$	4.182 million		$1.869 million to $2.327 million	$	1,847,000
				plus $182,000 additional IBNR for
				$50K policies
12/08	$	3.826 million		$1.400 million to $2.135 million	$	1,766,000
				plus $56,000 additional IBNR for $50K
				policies

Excess Liability Policy for U.S. 1 Industries     On 11-1-07 AIFE wrote an excess liability policy for U.S. 1 Industries. Premium for this policy is $10,000 per month – so $120,000 of premium has been earned during 2009. Further facts on this policy are:

1. The premium is 100% retained by AIFE, as there is no reinsurance on this policy.

2. The policy limit is $1 million.

3. This coverage is in excess of the first $1 million per claim.

U.S.1 Industries owns several of the trucking companies insured by AIFE. These trucking companies all have Auto Liability policies from AIFE with policy limits of $1 million per claim. This excess liability policy provides protection if a verdict of more than $1 million occurs against one of these trucking companies – and the plaintiff is then successful in “piercing the corporate veil” and collecting from U .S.1 Industries for the amounts in excess of $1 million.

John Pierce Consulting Actuary

Page 10

March 5, 2010

I would recommend that the IBNR for this excess liability policy be calculated using the Bornhuetter-Ferguson (B-F) method. This method relies on an expected loss ratio and a loss development pattern. We recommend using a 75% expected loss ratio and the Excess Auto Liability loss development pattern from the 2005 Reinsurance Association of America (RAA) Loss Development Study. These B-F calculations are shown below:

		2008 Year			2009 Year			Total
A	Earned Premium	$	120,000		$	120,000		$	240,000
B	Expected Loss Ratio		75	%		75	%
C	RAA Excess Auto Liability % Reported		50	%		20	%
D	IBNR based on B-F = A*B*(l-C)	$	45,000		$	72,000		$	117,000

Our recommended IBNR for this excess liability policy at 12/09 is therefore $117,000. The company’s actual 12/09 IBNR for this policy is $117,000.

Auto Liabilitv – “Big Picture” Need for IBNR     Reviewing Exhibits 1-7 also provides us with some “big picture” information on AIFE’s need for IBNR.

In considering the overall level of Auto Liability IBNR, we can look back at the history of the 1995-2008 accident years in Exhibits 1-7 and see that reported losses on each accident year have increased from the respective year-end levels – 1995 losses now are higher than they were at 12/95, 1996 losses now are higher than they were at 12/96, and so forth.

We also see that the reported losses for the 1995-2007 accident years have almost always increased by an additional amount in the years after “year-end plus 1 year” (e.g. 1996 losses are now higher than those same 1996 losses were at 12/97).

This type of reserve increase is to be expected for Auto Liability, due to late-reported claims and due to new information on previously reported claims. These historical reserve increases· support the need for AIFE’s Auto Liability IBNR.

AIFE Collision Attached as Exhibit 13 is our analysis of the Collision results of AIFE. This Collision loss development triangle has been constructed using the following assumptions about your Collision loss reports:

1. The “Date” field gives the Date of Loss

2. The total amount of each claim is equal to:

IV Loss Res. plus IV Paid plus LAE Res. plus LAE Paid minus Amount Recover (The “IV” abbreviation in your reports stands for “insured vehicle”)

3. All paid values are cumulative (inception-to-date)

John Pierce Consulting Actuary

Page 11

March 5, 2010

This Collision loss development triangle has been updated to include data through 12/08. This updated triangle is attached as Exhibit 13.

This Exhibit 13 approach projected a minus $87,100 of Collision IBNR at 12/09. Another version of Exhibit 13, in which we make some alternate selections, is also attached. That version projected a somewhat lower minus $71,100 of Collision IBNR at 12/09. Based on this range of results, we selected a minus $75,000 Collision IBNR at 12/09.

Our total recommended Collision reserve at 12/09 is therefore:

$	(75,000	)	IBNR
$	107,901		Case Reserves
$	32,901		Total Reserves

Your actual 12/09 Collision IBNR is zero.

(Lex Venditti has explained that the 1995-97 losses in Exhibit 13 are not true Collision claims. Instead, they are Trailer Interchange claims. These Trailer Interchange claims involve damage to a customer’s trailer while it was being hauled by an insured tractor. The trucking company is responsible for this damage to its customer’s trailer, and Trailer Interchange provides coverage for these claims. Premiums for this Trailer Interchange coverage are included in AIFE’s Auto Liability premiums. As for the 1998 year, Lex Venditti has confirmed that there were no Collision claims during this year.)

AIFE Cargo Results     Attached as Exhibit 14 is our analysis of the Cargo results of AIFE. At our 12/01 reserve review, a Cargo loss development triangle had been constructed using the following assumptions about your Cargo loss runs:

1.        The “Date” field gives the Date of Loss

2.        The total amount of each claim is equal to:

Total Res. plus Claim Paid plus LAE Res. plus LAE Paid minus Salvage & Amt. Recover

3.        All paid values are cumulative (inception-to-date)

In early 2002 we learned that the Deductible amount shown in these Cargo loss runs should have been subtracted from the items listed in 2 above. We also learned that in some exceptional cases – for “oversize Cargo claims” – the $5,000 deductibles shown on the loss run should actually have been higher amounts. These data problems were then corrected in Exhibit 14.

This Exhibit 14 approach projected a minus $55,700 of Cargo IBNR at 12/09. Another version of Exhibit 14, in which we make some alternate selections, is also attached. That version projected a similar minus $50,000 of Cargo IBNR at 12/09. Based on this range of results, we selected a minus $50,000 Cargo IBNR at 12/09.

John Pierce Consulting Actuary

Page 12

March 5, 2010

Our total recommended Cargo reserve is therefore:

$	(50,000	)	IBNR
$	399,482		Case Reserves
$	349,482		Total Reserves

Your actual 12/09 Cargo IBNR is zero.

Auto Liability – Paid-only Loss Development Triangle     During 2005, the Indiana Department of Insurance requested that we consider the use of paid-only loss development triangles for AIFE’s Auto Liability line. We have considered this alternate approach in the attached Exhibits 15-22.

Exhibits 15-21 are the paid-only analogs to our Exhibits 1-7 for paid+case triangles. We have produced only the “Average of the Last 5 LDF’s” version of Exhibits 15-21. Then on Exhibit 22 we calculate the IBNR produced by these paid-only triangles by subtracting the ultimate losses and LAE projected on Exhibits 15-21 from the reported paid+case losses and LAE. We selected the ultimate losses by accident year, and the reported losses by accident year, based on the reinsurance attachment point in each year. (This selection algorithm has previously been described on page 6 of this report.)

Some observations on the paid-only triangles’ projections follow:

1.     The latest 5 loss development percentages (“Percent of Ultimate”) at the end of the first development year in the paid-only triangle ($250,000 version) are:

2004			2005			2006			2007			2008				2009
	26.9	%		12.7	%		5.1	%		5.4	%		8.8	%	==>		11.8	%

The average of these percentages was the basis for my selected 11.8% loss development factor for the 2009 accident year in this paid-only triangle. Contrast these paid-only values with the corresponding factors in the “Average of the Last 5 LDF’s” paid+case triangle (the $250,000 version):

2004			2005			2006			2007			2008				2009
	56.0	%		47.0	%		36.0	%		50.1	%		49.0	%	==>		49.5	%

Averaging these percentages gave my selected 49.5% loss development factor for the 2009 accident year in the paid+case triangle.

Clearly the paid-only triangle’s Percent of Ultimate factors are much smaller and much more variable than the percentages in the paid+case triangle. Smaller and more variable Percent of Ultimate factors imply greater uncertainty.

2.     For the 1998 accident year – an old year where claims are still open — we set the ultimate losses equal to paid at 12/09 plus case reserves at 12/09. Otherwise, the paid triangles would have been unable to recognize the remaining case reserves in this old accident year. Except for this 1998 claim, all other claims from 2002 and prior accident years are closed at 12/09.

3.     The Developed IBNR’s from our Paid-Only triangles shown in Exhibit 22 for the 12/01 through 12/06 year-ends are generally similar to the corresponding developed IBNR’s in the original Exhibit 8. The developed reserves in the Paid-Only triangles for the 12/07 and 12/08 year-ends are higher in Exhibit 22 than in Exhibit 8.

John Pierce Consulting Actuary

Page 13

March 5, 2010

Based on these 12/09 results, I continue to believe that a paid-only loss development triangle for Auto Liability is less reliable than our preferred paid+case development triangle.

Further Details of Loss Development Methodology     During 2005 the Indiana Department of Insurance also requested additional details on our projection methodology. I have therefore attached a 4-page “Methodology Appendix” to explain our loss development selection process in some additional detail. I believe this appendix will facilitate any reviews of this report by the Indiana Department of Insurance.

Our Methodology Appendix begins with a loss development triangle with ultimate losses projected through the 2007 accident year. This sheet is labeled “Step 1”. Our loss development projections in Step 1 are incomplete, since we still need to project ultimate losses for the 2008 and 2009 accident years.

In the next sheet (labeled “Step 2”), we average the loss development percentages from the three previous accident years at the appropriate stage of development, and use that average loss development percentage to project ultimate losses for the 2008 accident year.

In the next sheet (labeled “Step 3”) we first calculate the loss development percentages for the 2008 column of our loss development triangle. We are now able to calculate these percentages, because by Step 3 we have an ultimate loss for this 2008 accident year. Then we average the loss development percentages for the three previous accident years at the appropriate stage of development, and use that average loss development percentage to project ultimate losses for the 2009 accident year. The completed loss development triangles shown in this sheet are labeled “Step 4”.

In this Methodology Appendix we have illustrated the iterative loss development process by projecting ultimate losses for two additional accident years. Of course, our actual year-end 2009 work for AIFE involves projection of ultimate losses for more than two accident years – but the iterative approach we use is completely described by the example in our Methodology Appendix.

Adjusting & Other LAE Reserve     AIFE’s Annual Statement shows zero payments for Adjusting & Other LAE (formerly called ULAE). Some portion of AIFE’s expenses for salaries and overhead should have been assigned to Adjusting & Other LAE as of 12/09 – and at previous year-ends as well. During 2005 the Indiana Department of Insurance requested that AIFE begin to record these paid salary and overhead amounts as Adjusting & Other LAE costs. However, the company has been unable to accomplish this improved accounting procedure at the year-ends 2005 and subsequent.

 John Pierce Consulting Actuary

Page 14

March 5, 2010

In the absence of any historical payment data, we continued to consider alternate approaches to the 12/09 reserve for Adjusting & Other LAE.

At the 12/01 year-end Lex Venditti had stated that a reasonable fee to a TPA for handling each of AlFE’s open claims until their conclusion would be $750 per claim. At 12/09 we have increased this per-claim amount to $950, to reflect inflationary trend of about 3% per year. This per-claim fee would result in the following 12/09 Adjusting & Other LAE reserves:

236 open claims * $950 per claim = $224,200 Adjusting & Other LAE reserve

(There are 155 open Auto Liability claims, 60 open Collision claims, and 21 open Cargo claims at 12/09.)

In addition, we are projecting 10 Auto Liability IBNR claims in Exhibit 9. The additional Adjusting & Other LAE reserve for these claims would be:

10 IBNR claims * $950 per claim = $9,500 Adjusting & Other LAE reserve

Our total projected Adjusting & Other LAE reserve at 12/09 is therefore about $234,000.

It is possible that some of the 236 open claim counts are due to the increased reporting and recording of small claims. On the other hand, it is also possible that these small claims are closed more quickly than the larger claims so open counts would not be much impacted by this change in procedures. We did not make any adjustment at 12/09 to this reserve component to reflect any increased reporting and recording of small claims.

AIFE’s actual 12/09 Adjusting & Other LAE reserve is $234,000. Based on our calculations, this reserve should be adequate.

Reserves on A Direct Basis     As discussed previously, our Auto Liability loss development triangles based on data limited to $100,000, $200,000, $250,000, $350,000, or $500,000 per claim are designed to provide Net (after reinsurance) IBNR. However, statutory accounting also requires an estimate of IBNR before reinsurance.

We first repeated last year’s approach of calculatingt he ceded Auto Liability IBNR as:

Exhibit 1 IBNR (uncapped) minus the capped IBNR’s from Exhibits 3-7

The company’s 2003 change in case reserving procedures means that the 12/03 through 12/09 diagonals in Exhibit 1 are on a different basis than the 12/02 and prior diagonals, and this difference would be concentrated in the reinsurance layer. However, by 12/09 we have sufficient years of development history so that we are not relying on the 12/02 and prior diagonals in our projections.

As shown on the attached Exhibit 23, the ceded IBNR obtained by subtracting the capped triangles from the uncapped triangle is:

John Pierce Consulting Actuary

Page 15

March 5, 2010

$	1.409 million	Average of Last 5
$	1.382 million	Average of Last 3
$	1.418 million	Average of Last 2

This range ofprojections is very narrow – so we can say that this approach supports a ceded Auto Liability IBNR of $1.400 million.

As an alternate approach, we have the attached Exhibit 24. This exhibit uses the ceded Auto Liability data from Exhibit 2 as a starting point. We then calculate the ceded loss ratio (ceded losses divided by ceded earned premium) at the $100,000, $200,000, $250,000, $350,000 and $500,000 retention levels. Recall that for accident years through the first portion of 1999, the retention was $100,000 per claim and for accident years from the last portion to 1999 to the first portion of 2002, the retention was $200,000 per claim. In 2006 about half the exposure is at the $250,000 retention and halfis at the $350,000 retention. For 2007-2009 we estimate the exposure is:

22% at $250,000	39% at $350,000	39% at $500,000	for 2007
20% at $250,000		80% at $500,000	for 2008
21% at $250,000		79% at $500,000	for 2009

Based on these historical ceded loss ratios, we selected a 65% Expected Loss Ratio for the 2008-2009 accident years and half of that loss ratio (32.5%) for the 2007 accident year. We calculated a ceded Auto Liability IBNR of $669,000 on that basis. These calculations are shown as Method 1 on the attached Exhibit 24. In addition, we re-valued the ceded IBNR at year-ends 12/02 through 12/08 based on developments through 12/09. These results are shown at Method 2 on Exhibit 24.

Based on this analysis, we selected a ceded IBNR of $1.400 million for Auto Liability at 12/09. This ceded IBNR was assigned to accident years on a partly judgmental basis.

(Because AIFE has no reinsurance protection on its Cargo and Collision reserves, before-reinsurance reserves for these two lines of business are equal to the company’s after-reinsurance reserves.)

Uncertainty in Our Reserve Projections     There is always uncertainty in any projection of loss and LAE reserves.

However, I feel the degree of uncertainty in AIFE’s 12/09 reserves is greater than normal, because of the potential for losses which are large in relation to the company’s size. The company is exposed to Auto Liability claims of up to $500,000 per occurrence. Comparing this worst-case claim with your $3.400 million of Net (after-reinsurance) IBNR for Auto Liability, we see that a single additional $500,000 claim would represent about 15% of your total IBNR. Comparing the worst-case $500,000 with the $6.087 million of Net case loss and LAE reserves and IBNR reserves for Auto Liability, we see that a single additional worst-case claim would represent about 8% of your total loss and LAE reserve. The high percentage impact from a single additional shock loss gives an indication of the uncertainty in the AIFE reserve projections.

John Pierce Consulting Actuary

Page 16

March 5, 2010

In addition, we note that the proportion of the company’s Auto Liability exposure from the $50,000 deductible policies has increased significantly in recent years. These percentages are:

	2007			2008			2009
Percent of Net Auto Liability Premium from $50K deductible policies		17	%		23	%		28	%

IBNR projections for high-deductible policies are inherently more uncertain than projections for first dollar (or low deductible) business. Because of this additional emerging uncertainty, we have selected a 12/09 Auto Liability IBNR at the top of our recommended range.

Reconciliation of Actuary’s Workpapers to Schedule P   As required by NAIC regulations, attached to this report is a worksheet which reconciles my workpapers to the company’s Schedule P. This worksheet shows that the unexplained differences between these two data sources are not material.
 

Conclusions   Our recommended Net (after-reinsurance) and Direct (before-reinsurance) loss and LAE IBNR for AIFE at 12/09 is shown below, allocated to line of business as follows:

Net IBNR			Ceded IBNR		Direct IBNR
$	2,808,000		$	1,400,000	$	4,208,000		Auto Liability
	117,000					117,000		Excess Liability
	(75,000	)				(75,000	)	Collision
	(50,000	)				(50,000	)	Cargo
$	2,800,000		$	1,400,000	$	4,200,000		All Lines

The company’s actual Net all-lines loss and DCC LAE IBNR as shown on Schedule P is $3.517 million. The company’s Net IBNR is therefore $717,000 higher than my recommended IBNR. Including the company’s $3.072 million of Net case reserves and the $234,000 of Adjusting & Other LAE reserves gives the 12/09 Net reserves of $6.823 million.

The company’s Ceded IBNR of $1.400 million is equal to our recommended Ceded IBNR. The company’s Direct IBNR of $4.917 million is therefore higher than our recommended Direct IBNR by the same $717,000 mentioned above. Including the company’s $5.284 million of Direct & Assumed case reserves and the $234,000 of Adjusting & Other LAE reserves gives the 12/09 Direct & Assumed reserves of $10.435 million.

The $717,000 of possible margin in the 12/09 IBNR reserves is about 11% of the company’s $6.823 million of Net reserves. However, this possible margin is equal to only 1.4 additional maximum Net losses under the current reinsurance coverage with its $500,000 attachment point.

John Pierce Consulting Actuary

Page 17

March 5, 2010
 

We therefore conclude that AIFE’s 12/09 IBNR reserves are reasonable – on both a Net and a Direct & Assumed basis.

Sincerely Yours,

John Pierce

F.C.A.S. M.A.A.A. M.B.A.

John Pierce Consulting Actuary

Page 18

Methodology Appendix

American Inter-Fidelity Exchange

Example of Calculations Used in Loss Development Method — Step 1

file =APP A eg for IN DOI 1209.xls

sheet =Step 1

	Paid+Case Loss
		2001			2002			2003			2004			2005			2006			2007			2008		2009
Years of	1		0			5000			6512			34178			6000			15000			131873			37557		86417
Development	2		0			4600			6512			31125			6321			14894			121222			35057
	3		777			4600			6512			31550			5851			17126			125154
	4		777			4600			6512			31550			5851			17126
	5		777			4600			6512			31550			5851
Ultimate Loss			777			4600			6512			31550			5851			17126			125154
IBNR			0			0			0			0			0			0			0
Earned Premium			n/a			34130			63385			137180			206148			287446			303497			339086		291015
Loss Ratio			n/a			13.5	%		10.3	%		23.0	%		2.8	%		6.0	%		41.2	%
	Paid+Case Loss — as % of ultimate
			2001			2002			2003			2004			2005			2006			2007			2008		2009
	1		0.0	%		108.7	%		100.0	%		108.3	%		102.5	%		87.6	%		105.4	%
	2		0.0	%		100.0	%		100.0	%		98.7	%		108.0	%		87.0	%		96.9	%
	3		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	4		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	5		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Ultimate Loss			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
IBNR			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

Methodology Appendix

American Inter-Fidelity Exchange

Example of Calculations Used in Loss Development Method — Step 2

file = APP A eg for IN DOI 1209.xls

sheet = Step 2

	Paid+Case Loss
			2001			2002			2003			2004			2005			2006			2007			2008		2009
Years of	1			0			5000			6512			34178			6000			15000			131873			37557		86417
Development	2			0			4600			6512			31125			6321			14894			121222			35057
	3			777			4600			6512			31550			5851			17126			125154
	4			777			4600			6512			31550			5851			17126
	5			777			4600			6512			31550			5851
Ultimate Loss				777			4600			6512			31550			5851			17126			125154
IBNR				0			0			0			0			0			0			0
Earned Premium			n/a				34130			63385			137180			206148			287446			303497			339086		291015
Loss Ratio			n/a				13.5	%		10.3	%		23.0	%		2.8	%		6.0	%		41.2	%
	Paid+Case Loss — as % of ultimate
				2001			2002			2003			2004			2005			2006			2007			2008		2009
	1			0.0	%		108.7	%		100.0	%		108.3	%		102.5	%		87.6	%		105.4	%
	2			0.0	%		100.0	%		100.0	%		98.7	%		108.0	%		87.0	%		96.9	%
	3			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	4			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	5			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Ultimate Loss				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
IBNR				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
		To project ultimate loss for 2008 year, proceed as follows:
		Average the following:								108.0	%
										87.0	%
										96.9	%
		to obtain								97.3	%
		Divide the reported loss of $35,057 for 2008 at 12/09 by this 97.3%
		to obtain $36,035 ultimate loss for 2008 year.

Methodology Appendix

American Inter-Fidelity Exchange

Example of Calculations Used in Loss Development Method — Step 3

file = APP A eg for IN DOI 1209.xls

sheet = Step 3

	Paid+Case Loss
			2001			2002			2003			2004			2005			2006			2007			2008			2009
Years of	1			0			5000			6512			34178			6000			15000			131873			37557			86417
Development	2			0			4600			6512			31125			6321			14894			121222			35057
	3			777			4600			6512			31550			5851			17126			125154
	4			777			4600			6512			31550			5851			17126
	5			777			4600			6512			31550			5851
Ultimate Loss				777			4600			6512			31550			5851			17126			125154			36035
IBNR				0			0			0			0			0			0			0			978
Earned Premium				n/a			34130			63385			137180			206148			287446			303497			339086			291015
Loss Ratio				n/a			13.5	%		10.3	%		23.0	%		2.8	%		6.0	%		41.2	%		10.6	%
	Paid+Case Loss — as % of ultimate
				2001			2002			2003			2004			2005			2006			2007			2008			2009
	1			0.0	%		108.7	%		100.0	%		108.3	%		102.5	%		87.6	%		105.4	%		104.2	%
	2			0.0	%		100.0	%		100.0	%		98.7	%		108.0	%		87.0	%		96.9	%		97.3	%
	3			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	4			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	5			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Ultimate Loss				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
IBNR				0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		2.7	%
		To project ultimate loss for 2009 year, proceed as follows:
		Average the following:								87.6	%
										105.4	%
										104.2	%
		to obtain								99.1	%
		Divide the reported loss of $86,417 for 2009 year at 12/09 by this 99.1%
		to obtain $87,238 ultimate loss for 2009 year.

Methodology Appendix

American Inter-Fidelity Exchange

Example of Calculations Used in Loss Development Method — Step 4

file =APP A eg for IN DOI 1209.xls

sheet =Step 4

	Paid+Case Loss
		2001			2002			2003			2004			2005			2006			2007			2008			2009
Years of	1		0			5000			6512			34178			6000			15000			131873			37557			86417
Development	2		0			4600			6512			31125			6321			14894			121222			35057
	3		777			4600			6512			31550			5851			17126			125154
	4		777			4600			6512			31550			5851			17126
	5		777			4600			6512			31550			5851
Ultimate Loss			777			4600			6512			31550			5851			17126			125154			36035			87238
IBNR			0			0			0			0			0			0			0			978			821
Earned Premium			n/a			34130			63385			137180			206148			287446			303497			339086			291015
Loss Ratio			n/a			13.5	%		10.3	%		23.0	%		2.8	%		6.0	%		41.2	%		10.6	%		30.0	%
	Paid+Case Loss — as % of ultimate
			2001			2002			2003			2004			2005			2006			2007			2008			2009
	1		0.0	%		108.7	%		100.0	%		108.3	%		102.5	%		87.6	%		105.4	%		104.2	%		99.1	%
	2		0.0	%		100.0	%		100.0	%		98.7	%		108.0	%		87.0	%		96.9	%		97.3	%
	3		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	4		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	5		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Ultimate Loss			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
IBNR			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		2.7	%		0.9	%

Exhibit 1

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg2.xls	Using data through 12/09	In this version, we average
tab=uncappped	Claims Data Is Uncapped	the last 2 LDF’s.

Paid Losses and LAE plus Case Reserves --------------------------------------->

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004	2005		2006		2007		2008		2009			Diagonal Total
YEAR END						1826889	528342	332794		87427		164044		324809		556975		377577		329809		645373		768541		1742716	1308398		683169		833067		1214939		317868			65182733		as of 2009
+1					2469767	2526010	1495127	540386		210778		386782		508077		435144		619391		765736		993280		892840		1970773	2085193		1321240		1956742		1746089					63658753		as of 2008
+2				5083944	3048918	2665142	1467638	651016		403488		383282		537580		723327		760035		1017932		1430014		1103254		2495156	2921985		2025346		2418030							59736196		as of 2007
+3			8772632	5780825	3383880	2792841	1511561	671551		548885		383282		596923		751499		1180339		1218632		2700182		1457853		2599816	3166856		1895626									57228595		as of 2006
+4		9511580	11873981	5778392	3399989	2827288	1516113	649568		595033		383282		1087779		776881		1151465		1939611		2854632		1510375		2681425	3576526											54589114		as of 2005
+5	1379578	13188766	11782522	5852591	3435015	2895896	1611795	622077		601894		383282		1064553		776881		1150424		2083969		2849129		2090986		2665924												50852139		as of 2004
+6	1530012	13137943	11801478	6280488	3543331	2868084	1316040	626115		605944		383282		1060865		776881		1152148		2131963		2849130		2109079														48378473		as of 2003
+7	1530012	13067338	11803793	6299882	3550410	2868087	1799321	608498		605944		383282		1060865		776881		1152148		2104709		2780054																46587868		as of 2002
+8	1530012	13067338	11803949	6336747	3550410	2867587	1810355	608498		608839		383282		1060866		776881		1152148		2104916																		44832430		as of 2001
+9	1530012	13067338	11796510	6336747	3550410	2861720	1810355	608498		608839		383282		1060866		776881		1152148																				43919601		as of 2000
+10	1530012	13070128	11797484	6336747	3538676	2861721	1810355	608498		608839		383282		1060866		776881																						43410471		as of 1999
+11	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866																								42443151		as of 1998
+12	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608838		383282																										41481333		as of 1997
+13	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839														Only one open clm														40539700		as of 1996
+14	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498																for $1MM-plus in 2003														40105812		as of 1995
																								but don’t adj Uncapped
Ultimate	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866		776881		1152149		2104917		2780192		2070114		2620330	4080546		2144015		2912012		2710895		865332			67857377
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		1		1		138		-38965		-45694	504020		248389		493982		964806		547964		$	2,674,644
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690	4022839		4749908		4463488		3714046		2364172			40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519	1230531		1105789		985180		648283		380448			12568435
Net @ 50KDeductible																													616693		599647		691873		551144			2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171	2792308		3027426		2378661		2373886		1432580			25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	137.4	%	87.4	%	167.2	%	153.6	%	121.3	%	74.2	%	99.1	146.1	%	70.8	%	101.2	%	114.2	%	60.4	%		105.2	%
																								Loss Ratio including $50K premium = =>					58.8	%	83.7	%	88.4	%	43.6	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ------------------------------------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	29.2	%	54.7	%	14.4	%	42.8	%	30.6	%	71.7	%	32.8	%	15.7	%	23.2	%	37.1	%	66,5	%	32.1	%	31.9	%	28.6	%	44.8	%	36.7	%
+1									69.8	%	88.3	%	82.6	%	88.8	%	34.6	%	100.9	%	47.9	%	56.0	%	53.8	%	36.4	%	35.7	%	43.1	%	75.2	%	51.1	%	61.6	%	67.2	%	64.4	%
+2							79.8	%	86.2	%	93.2	%	81.1	%	107.0	%	66.3	%	100.0	%	50.7	%	93.1	%	66.0	%	48.4	%	51.4	%	53.3	%	95.2	%	71.6	%	94.5	%	83.0	%
+3					74.4	%	90.7	%	95.6	%	97,6	%	83.5	%	110.4	%	90.2	%	100.0	%	56.3	%	96.7	%	102,4	%	57.9	%	97.1	%	70.4	%	99.2	%	77.6	%	88.4	%
+4			72.8	%	100.6	%	90.7	%	96.1	%	98.8	%	83.7	%	106.7	%	97.7	%	100.0	%	102.5	%	100.0	%	99,9	%	92.1	%	102.7	%	73.0	%	102.3	%	87.6	%
+5	90.2	%	100.9	%	99.9	%	91.9	%	97.1	%	101.2	%	89.0	%	102.2	%	98.9	%	100.0	%	100.3	%	100.0	%	99.9	%	99.0	%	102.5	%	101.0	%	101.7	%
+6	100.0	%	100.5	%	100.0	%	98.6	%	100.1	%	100.3	%	100.3	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.3	%	102.5	%	101.9	%
+7	100.0	%	100.0	%	100.1	%	98.9	%	100.3	%	100.3	%	99.4	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.5	%	100.3	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.5	%	100.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.1	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100,0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-1.9	%	-1.7	%	12.4	%	11.6	%	17.0	%	35.6	%	63.3	%

Page 1

Exhibit 2

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file=Lsdv09 avg2.xls	Using data through 12/09
tab=reduce

Excess over 100,000 per loss — LAE prorated

																							Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END							16957	0	0	0	14661	251500	108233	0	95114	8044	884075	591270	23458	164252	452519	0	28627468	as of 2009
+1						417933	936573	0	0	182588	16520	76417	108233	0	266693	7747	933867	1198528	211960	900883	693056		27713594	as of 2008
+2					1115039	359490	919616	60641	0	182588	16520	134737	150597	99290	524215	7747	954002	1814343	784258	1235645			25019657	as of 2007
+3				1774048	1419370	425231	919616	61183	100570	182588	19234	183326	486621	159388	1565047	234525	1009494	2005312	621228				23898959	as of 2006
+4			5670412	1752835	1416541	476185	919616	61183	100571	182588	455682	207271	486621	872824	1578298	257733	1070569	2470197					23008079	as of 2005
+5		5904460	5669750	1889125	1416541	514509	927077	61183	99639	182588	450792	207271	486621	872824	1575347	938178	1090100						20612749	as of 2004
+6	505285	5888936	5669750	2336236	1500199	420181	1156293	61183	99639	182588	450792	207271	486621	949204	1575347	955367							19411351	as of 2003
+7	505285	5875862	5669981	2356079	1514188	420181	1157967	61183	99639	182588	450792	207271	486621	949204	1575347								18777359	as of 2002
+8	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271	486621	949204									18167829	as of 2001
+9	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271	486621										18086053	as of 2000
+10	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271											17923686	as of 1999
+11	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792												17599963	as of 1998
+12	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588													17260347	as of 1997
+13	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639														16701410	as of 1996
+14	505285	5875862	5669981	2398751	1514188	420181	1164982	61183															16532239	as of 1995
Excess over 200,000 per loss — LAE prorated																							Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END							0	0	0	0	0	50000	2550	0	0	0	680443	487538	0	47643	320102	0	19267632	as of 2009
+1						62609	817436	0	0	82588	0	0	2550	0	58105	0	725631	989911	0	685886	327375		18765042	as of 2008
+2					682412	35871	817436	0	0	82588	0	0	2550	0	321173	0	725631	1433996	244223	954201			16786953	as of 2007
+3				915543	988928	38901	817436	0	0	82588	0	0	343215	19051	1273137	69100	672939	1491641	108791				16333688	as of 2006
+4			4092618	885366	987081	20604	817436	0	0	82588	346066	0	343215	655498	1270786	83329	672939	1839274					15764566	as of 2005
+5		4160661	4092618	929645	987081	20607	817436	0	0	82588	341085	0	343215	655498	1270786	801205	672939						13643429	as of 2004
+6	245690	4160661	4092618	1360276	987081	20607	918530	0	0	82588	341085	0	343215	655498	1270786	816006							12680867	as of 2003
+7	245690	4160661	4092823	1380570	987081	20607	919244	0	0	82588	341085	0	343215	655498	1270786								12287078	as of 2002
+8	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0	343215	655498									11938015	as of 2001
+9	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0	343215										11937301	as of 2000
+10	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0											11883657	as of 1999
+11	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085												11787456	as or 1998
+12	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588													11684571	as of 1997
+13	245690	4160661	4092823	1426771	987081	20607	922241	0	0														11272032	as of 1996
+14	245690	4160661	4092823	1426771	987081	20607	922241	0															11226570	as of 1995
Excess over 250,000 per loss — LAE prorated																							Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END							0	0	0	0	0	0	0	0	0	0	617408	435672	0	0	267626	0	16298745	as of 2009
+1						0	766346	0	0	32588	0	0	0	0	2555	0	621513	885602	0	578388	272676		15826338	as of 2008
+2					526138	0	766346	0	0	32588	0	0	0	0	268396	0	621513	1279563	108576	844066			14122145	as of 2007
+3				717836	830668	0	766346	0	0	32588	0	0	292218	0	1167313	0	617408	1292575	52				13732289	as of 2006
+4			3463398	687924	829312	0	766346	0	0	32588	291257	0	292218	591397	1165110	0	617408	1589170					13284562	as of 2005
+5		3499245	3463398	687924	829312	0	766346	0	0	32588	286231	0	292218	591397	1165110	736591	617408						11354561	as of 2004
+6	150435	3499245	3463398	1092767	829312	0	799648	0	0	32588	286231	0	292218	591397	1165110	750199							10471222	as of 2003
+7	150435	3499245	3463590	1114178	829312	0	799883	0	0	32588	286231	0	292218	591397	1165110								10181477	as of 2002
+8	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231	0	292218	591397									9889232	as of 2001
+9	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231	0	292218										9888997	as of 2000
+10	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231	0											9855696	as of 1999
+11	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231												9855696	as of 1998
+12	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588													9801697	as of 1997
+13	150435	3499245	3463590	1114178	829312	0	800870	0	0														9396661	as of 1996
+14	150435	3499245	3463590	1114178	829312	0	800870	0															9398017	as of 1995

Exhibit 2

American Inter-Fidelity Exchange @l2/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)

file = Lsdv09 avg2.xls Using data through 12/09

tab=reduce
Excess over 350,000 perloss — LAE prorated
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END														0	0	0	514507	331941	0	0	162675	0	11797547	as of 2009
+1													0	0	0	0	514507	676986	0	363391	165744		11348884	as of 2008
+2												0	0	0	162843	0	514507	1016340	7878	623796			10200531	as of 2007
+3											0	0	190225	0	955667	0	514507	1023384	0				9861177	as of 2006
+4										0	181640	0	190225	474354	953757	0	514507	1205231					9518042	as of 2005
+5									0	0	176524	0	190225	474354	953757	607365	514507						7918923	as of 2004
+6								0	0	0	176524	0	190225	474354	953757	618585							7241573	as of 2003
+7							664167	0	0	0	176524	0	190225	474354	953757								7056464	as of2002
+8						0	664167	0	0	0	176524	0	190225	474354									6874824	as of2001
+9					597391	0	664167	0	0	0	176524	0	190225
+10				772796	597391	0	664167	0	0	0	176524	0
+11			2339782	772796	597391	0	664167	0	0	0	176524
+12		2450720	2339782	772796	597391	0	664167	0	0	0
+13	49968	2450720	2339782	772796	597391	0	664167	0	0
+14	49968	2450720	2339782	772796	597391	0	664167	0
Excess over 500,000 perloss — LAE prorated																							Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END															0	0	360155	176344	0	0	5248	0	6323243	as of 2009
+1														0	0	0	360155	364061	0	149650	5347		6159611	as of 2008
+2													0	0	4512	0	360155	705185	0	293390			5585770	as of 2007
+3												0	37235	0	638197	0	360155	710603	0				5244646	as of 2006
+4											17215	0	37235	298789	636728	0	360155	722757					5058398	as of 2005
+5										0	11964	0	37235	298789	636728	413525	360155						3949580	as of 2004
+6									0	0	11964	0	37235	298789	636728	421164							3584913	as of 2003
+7								0	0	0	11964	0	37235	298789	636728								3552929	as of 2002
+8							510898	0	0	0	11964	0	37235	298789
+9						0	510898	0	0	0	11964	0	37235
+10					394273	0	510898	0	0	0	11964	0
+11				435859	394273	0	510898	0	0	0	11964
+12			1114310	435859	394273	0	510898	0	0	0
+13		1080374	1114310	435859	394273	0	510898	0	0
+14	0	1080374	1114310	435859	394273	0	510898	0

Exhibit 3

American Inter-Fidelity Exchange @12/2009

Auto Liability _ BI .and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg:2.xls	Using data through 12/09	In this version, We average
Tab=max100	Claims capped at $100,000 per loss – LAE prorated	The last 2 LDF’s
Paid Losses and LAE plus Case Reserves ------------------>

																																													Diagonal
ACC Year	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END											1826889		511385		332794		87427		164044		310148		305475		269344		329809		550759		760497		858641		717128		659711		668815		762420		317868		36555265		as of 2009
+1									2469767		2108077		558554		540386		210778		204194		491557		358727		511158		765736		726587		885093		1036906		886665		1109280		1055859		1053033				35945159		as of 2008
+2							5083944		1933879		2305652		548022		590375		403488		200694		521060		568590		609438		918642		905799		1095507		1541156		1107642		1241088		1182385						34716539		as of 2007
+3					8772632		4006777		1964510		2367610		591945		610368		448315		200694		577689		568173		693718		1059244		1135135		1223328		1590322		1161544		1274398								33329636		as of 2006
+4			9511580		6203569		4025557		1983448		2351103		596497		588385		494462		200694		632097		569610		664844		1066787		1276334		1252642		1610856		1106329										31581035		as of 2005
+5	1379578		7284306		6112772		3963466		2018474		2381387		684718		560894		502255		200694		613761		569610		663803		1211145		1273782		1152808		1575824												30239390		as of 2004
+6	1024727		7249007		6131728		3944252		2043132		2447903		659747		564932		506305		200694		610073		569610		665527		1182759		1273783		1153712														28967122		as of 2003
+7	1024727		7191476		6133812		3943803		2036222		2447906		641354		547315		506305		200694		610073		569610		665527		1155505		1204707																27810509		as of 2002
+8	1024727		7191476		6133968		3937996		2036222		2447406		645373		547315		509200		200694		610074		569610		665527		1155712																		26664601		as of 2001
+9	1024727		7191476		6126529		3937996		2036222		2441539		645373		547315		509200		200694		610074		569610		665527																				25833548		as of 2000
+10	1024727		7194266		6127503		3937996		2024488		2441540		645373		547315		509200		200694		610074		569610																						25486785		as of 1999
+11	1024727		7194266		6127503		3972096		2024488		2440424		645373		547315		509200		200694		610074																								24843188		as of 1998
+12	1024727		7194266		6127503		3972096		2024488		2440424		645373		547315		509199		200694																										24220986		as of 1997
+13	1024727		7194266		6127503		3972096		2024488		2440424		645373		547315		509200												Only one large open																23838290		as of 1996
+14	1024727		7194266		6127503		3972096		2024488		2440424		645373		547315														Claim for $1 MM plus																23573573		as of 1995
																													=> cap at zero IBNR
Ultimate	1024727		7194266		6127503		3972096		2024488		2440424		645373		547315		509200		200694		610074		569610		665527		1155713		1204816		1153712		1532561		1035483		1180309		1114837		1116140		495504		$36,520,373
IBNR	0		0		0		0		0		0		0		0		0		0		0		0		0		1		109		0		-43263		-70846		-94089		-67548		63107		177636		$    (34.892	)
Earned Premium															1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded															780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 5OK Deductible																				��																	616693		599647		691878		551144		2459362
Net Earned															330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio															165.6	%	131.5	%	23.0	%	79.0	%	64.1	%	96.6	%	84.4	%	52.6	%	41.3	%	58.0	%	37.1	%	39.0	%	38.7	%	47.0	%	34.6	%	51.2	%
																													Loss Ratio including $50K premium =>								324	%	321	%	36.4	%	25.0	%
Paid plus Case Reserves as a percent of ULTIMATE INCURRED =======>
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											74.9	%	79.2	%	60.8	%	17.2	%	81.7	%	50.8	%	53.6	%	40.5	%	28.5	%	45.7	%	65.9	%	56.0	%	69.3	%	55.9	%	60.0	%	68.3	%	64.2	%
+1									122.0	%	86.4	%	86.5	%	98.7	%	41.4	%	101.7	%	80.6	%	63.0	%	76.8	%	66.3	%	60.3	%	76.7	%	67.7	%	85.6	%	94.0.	%	94.7	%	94.3	%
+2							128.0	%	95.5	%	94.5	%	84.9	%	107.9	%	79.2	%	100.0	%	85.4	%	99.8	%	91.6	%	79.5	%	75.2	%	95.0	%	100.6	%	107.0	%	105.1	%	106.1	%
+3					143.2	%	100.9	%	97.0	%	97.0	%	91.7	%	111.5	%	88.0	%	100.0	%	94.7	%	99.7	%	104.2	%	91.7	%	94.2	%	106.0	%	103.8	%	112.2	%	108.0	%
+4			132.2	%	101.2	%	101.3	%	98.0	%	96.3	%	92.4	%	107.5	%	97.1	%	100.0	%	103.6	%	100.0	%	99.9	%	92.3	%	105.9	%	108.6	%	105.1	%	106.8	%
+5	134.6	%	101.3	%	99.8	%	99.8	%	99.7	%	97.6	%	106.1	%	112.5	%	98.6	%	100.0	%	100.6	%	100.0	%	99.7	%	104.8	%	105.7	%	99.9	%	102.8	%
+6	100.0	%	100.8	%	100.1	%	99.3	%	100.9	%	100.3	%	102.2	%	103.2	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	102.3	%	105.7	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.3	%	100.6	%	100.3	%	99.4	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.1	%	100.6	%	100.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.1	%	100.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.1	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-2.8	%	-6.8	%	-8.0	%	-6.1	%	5.7	%	35.8	%

Exhibit 4

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI .and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg2.xls	Using data through 12/09	In this version, we average
tab=max200	Claims capped at $200,000 per loss – LAE prorated	the last 2 LDF’s.
Paid Losses and LAE plus Case Reserves ------------------>

																																													Diagnol
ACC Year	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END											1826889		528342		332794		87427		164044		324809		506975		375027		329809		645873		768541		1062273		820860		683169		785424		894837		317868		45915101		as of 2009
+1									2469767		2463401		677691		540386		210778		304194		508077		435144		616841		765736		935175		892840		1245142		1095282		1321240		1270856		1418714				44893711		as of 2008
+2							5083944		2366506		2629271		650202		651016		403488		300694		537580		723327		757485		1017932		1108841		1103254		1769527		1487989		1781123		1463829						42949243		as of 2007
+3					8772632		4865282		2394952		2753940		694125		671551		548885		300694		596923		751499		837124		1199581		1427045		1388753		1926877		1675215		1786835								40894907		as of 2006
+4			9511580		7781363		4893026		2412908		2806684		698677		649568		595033		300694		741713		776881		808250		1284113		1583846		1427046		2008486		1737252										38824548		as of 2005
+5	1379578		9028105		7689904		4922946		2447934		2875289		794359		622077		601894		300694		723468		776881		807209		1428471		1578343		1289781		1992985												37208710		as of 2004
+6	1284322		8977282		7708860		4920212		2556250		2847477		897510		626115		605944		300694		719780		776881		808933		1476465		1578344		1293073														35697606		as of 2003
+7	1284322		8906677		7710970		4919312		2563329		2847480		880077		608498		605944		300694		719780		776881		808933		1449211		1509268																34300790		as of 2002
+8	1284322		8906677		7711126		4909976		2563329		2846980		888114		608498		608839		300694		719781		776881		808933		1449418																		32894415		as of 2001
+9	1284322		8906677		7703687		4909976		2563329		2841113		888114		608498		608839		300694		719781		776881		808933																				31982300		as of 2000
+10	1284322		8909467		7704661		4909976		2551595		2841114		888114		608498		608839		300694		719781		776881																						31526814		as of 1999
+11	1284322		8909467		7704661		4944076		2551595		2839998		888114		608498		608839		300694		719781																								30655695		as of 1998
+12	1284322		8909467		7704661		4944076		2551595		2839998		888114		608498		608839		300694																										29796762		as of 1997
+13	1284322		8909467		7704661		4944076		2551595		2839998		888114		608498		608839												Only one large open																29267668		asof 1996
+14	1284322		8909467		7704661		4944076		2551595		2839998		888114		608498														claim for $1 MM plus																28879242		asof 1995
																													=> cap at zero IBNR
Ultimate	1284322		8909467		7704661		4944076		2551595		2839998		888114		608498		608839		300694		719781		776881		808933		1449419		1509377		1293073		1950898		1628831		1772510		1526101		1797942		627973		46501984
IBNR	0		0		0		0		0		0		0		0		0		0		0		0		0		1		109		0		-42087		-108421		-14325		62272		379228		310105		$ 586,883
Earned Premium															1111129		996547		1188211		1l61154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded															780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																																					616693		599647		691878		551144		2459362
Net Earned															330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio															184.2	%	157.3	%	34.4	%	93.2	%	87.4	%	117.4	%	105.8	%	65.8	%	46.3	%	73.8	%	58.3	%	58.5	%	53.0	%	75.7	%	43.8	%	68.0	%
																													Loss Ratio including $50K premium =>								48.6	%	43.9	%	58.6	%	31.7	%
Paid plus Case Reserves as a percent of ULTIMATE INCURRED ---------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											64.3	%	595	%	54.7	%	14.4	%	54.6	%	45.1	%	65.3	%	46.4	%	22.8	%	42.8	%	59.4	%	54.5	%	50.4	%	38.5	%	51.5	%	49.8	%	50.6	%
+1									96.8	%	86.7	%	76.3	%	88.8	%	34.6	%	101.2	%	70.6	%	56.0	%	76.3	%	52.8	%	62.0	%	69.0	%	63.8	%	67.2	%	74.5	%	83.3	%	78.9	%
+2							102.8	%	92.7	%	92.6	%	73.2	%	107.0	%	66.3	%	100.0	%	74.7	%	93.1	%	93.6	%	70.2	%	73.5	%	85.3	%	90.7	%	91.4	%	100.5	%	95.9	%
+3					113.9	%	98.4	%	93.9	%	97.0	%	78.2	%	110.4	%	90.2	%	100.0	%	82.9	%	96.7	%	103.5	%	82.8	%	94.5	%	107.4	%	98.8	%	102.8	%	100.8	%
+4			106.8	%	101.0	%	99.0	%	94.6	%	98.8	%	78.7	%	106.7	%	97.7	%	100.0	%	103.0	%	100.0	%	99.9	%	88.6	%	104.9	%	110.4	%	103.0	%	106.7	%
+5	107.4	%	10l..3	%	99.8	%	99.6	%	95.9	%	101.2	%	89.4	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.6	%	99.7	%	102.2	%
+6	100.0	%	100.8	%	100.1	%	99.5	%	100.2	%	100.3	%	101.1	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.9	%	104.6	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.5	%	100.5	%	100.3	%	99.1	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100,0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.3	%	100.5	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.3	%	100.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
U1timate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-2.2	%	-6.7	%	-0.8	%	4.1	%	21.1	%	49.4	%

Exhibit 5

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg2.xls	Using data through 12/09	In this version, We average
tab=max250	Claims capped at $250,000 per loss – LAE prorated	The last 2 LDF’s
Paid Losses and LAE plus Case Reserves ------------------>

																																													Diagonal
ACC Year	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END											1826889		528342		332794		87427		164044		324809		556975		377577		329809		645873		768541		1125308		872726		683169		833067		947313		317868		48883988		as of 2009
+1									2469767		2526010		728781		540386		210778		354193		508077		435144		619391		765736		990725		892840		1349260		1199591		1321240		1378354		1473413				47832415		as of 2008
+2							5083944		2522780		2665142		701292		651016		403488		350693		537580		723327		760035		1017932		1161618		1103254		1873645		1642422		1916770		1573964						45614051		as of 2007
+3					8772632		5062989		2553212		2792841		745215		671551		548885		350694		596923		751499		888121		1218632		1532869		1457853		1982408		1874281		1895574								43496306		as of 2006
+4			9511580		8410583		5090468		2570677		2827288		749766		649568		595033		350694		796522		776881		859247		1348214		1689522		1510375		2064017		1987356										41304552		as of 2005
+5	1379578		9689521		8319124		5164667		2605703		2895896		845448		622077		601894		350694		778322		776881		858206		1492572		1684019		1354395		2048516												39497578		as of 2004
+6	1379577		9638698		8338080		5187720		2714019		2868084		1016392		626115		605944		350694		774634		776881		859930		1540566		1684020		1358880														37907251		as of 2003
+7	1379577		9568093		8340203		5185704		2721098		2868087		999438		608498		605944		350694		774634		776881		859930		1513312		1614944																36406391		as of 2002
+8	1379577		9568093		8340359		5222569		2721098		2867587		1009485		608498		608839		350694		774635		776881		859930		1513519																		34943198		as of 2001
+9	1379577		9568093		8332920		5222569		2721098		2861720		1009485		608498		608839		350694		774635		776881		859930																				34030604		as of 2000
+10	1379577		9570883		8333894		5222569		2709364		2861721		1009485		608498		608839		350694		774635		776881																						33554776		as of 1999
+11	1379577		9570883		8333894		5256669		2709364		2860605		1009485		608498		608839		350694		774635																								32587456		as of 1998
+12	1379577		9570883		8333894		5256669		2709364		2860605		1009485		608498		608838		350694																										31679636		as of 1997
+13	1379577		9570883		8333894		5256669		2709364		2860605		1009485		608498		608839												Only one large open																31143039		as of 1996
+14	1379577		9570883		8333894		5256669		2709364		2860605		1009485		608498														claim for $1 MM plus																30707795		as of 1995
																													=> cap at zero IBNR
U1timate	1379577		9570883		8333894		5256669		2709364		2860605		1009485		608498		608839		350694		774635		776881		859930		1513520		1615055		1358880		2008940		1858296		1899949		1663207		1933434		641611		49592847
IBNR	0		0		0		0		0		0		0		0		0		0		0		0		0		1		111		0		-39576		-129060		4375		89243		460021		323743		$  708,859
Earned Premium															1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded															780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																																					616693		599647		691878		551144		2459362
Net Earned															330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio															184.2	%	157.3	%	40.1	%	100.3	%	87.4	%	124.8	%	110.5	%	70.4	%	48.1	%	76.0	%	66.6	%	62.8	%	57.8	%	81.4	%	44.8	%	72.3	%
																													Loss Ratio including $50K premium =>								52.1	%	47.8	%	63.1	%	32.3	%
Paid plus Case Reserves as a percent of ULTIMATE INCURRED ---------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	52.3	%	54.7.	%	14.4	%	46.8	%	41.9	%	71.7	%	43.9	%	21.8	%	40.0	%	56.6	%	56.0	%	47.0	%	36.0	%	50.1	%	49.0	%	49.5	%
+1									91.2	%	88.3	%	72.2	%	88.8	%	34.6	%	101.0	%	65.6	%	56.0	%	72.0	%	50.6	%	61.3	%	65.7	%	67.2	%	64.6	%	69.5	%	82.9	%	76.2	%
+2							96.7	%	93.1	%	93.2	%	69.5	%	107.0	%	66.3	%	100.0	%	69.4	%	93.1	%	88.4	%	67.3	%	71.9	%	8U	%	93.3	%	88.4	%	100.9	%	94.6	%
+3					105.3	%	96.3	%	94.2	%	97.6	%	73.8	%	110.4	%	90.2	%	100.0	%	77.1	%	96.7	%	103.3	%	80.5	%	94.9	%	107.3	%	98.7	%	100.9	%	99.8	%
+4			99.4	%	100.9	%	96.8	%	94.9	%	98.8	%	74.3	%	106.7	%	97.7	%	100.0	%	102.8	%	100.0	%	99.9	%	89.1	%	104.6	%	111.l	%	102.7	%	106.9	%
+5	100.0	%	101.2	%	99.8	%	98.2	%	962	%	101.2	%	83.8	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.3	%	99.7	%	102.0	%
+6	100.0	%	100.7	%	100.1	%	98.7	%	100.2	%	100.3	%	100.7	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.8	%	104.3	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	98.7	%	100.4	%	100.3	%	99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.4	%	100.4	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.4	%	100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
U1timate	100.0	%	100.0	%	00.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-2.0	%	-6.9	%	0.2	%	5.4	%	23.8	%	50.5	%

Exhibit 6

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09avg2.xls	Using data through 12/09	In this version, we average
tab=max350	Claims capped at $350,000 per loss – LAE prorated	the last 2 LDF’s.

Paid Losses and LAE plus Case Reserves --------------------------->																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																				329809		645873		768541		1228209		976457		683169		833067		1052264		317868		53385186		as of 2009
+1																		619391		765736		993280		892840		1456266		1408207		1321240		1593351		1580345				52309869		as of 2008
+2																723327		760035		1017932		1267171		1103254		1980651		1905645		2017468		1794234						49535665		as of 2007
+3														596923		751499		990114		1218632		1744515		1457853		2085309		2143472		1895626								47367418		as of 2006
+4												383282		906139		776881		961240		1465257		1900875		1510375		2166918		2371295										45071072		as of 2005
+5										601894		383282		888029		776881		960199		1609615		1895372		1483621		2151417												42933216		as of 2004
+6								626115		605944		383282		884341		776881		961923		1657609		1895373		1490494														41136900		as of 2003
+7							1135154	608498		605944		383282		884341		776881		961923		1630355		1826297																39531404		as of 2002
+8						2867587	1146188	608498		608839		383282		884342		776881		961923		1630562																		37957606		as of 2001
+9					2953019	2861720	1146188	608498		608839		383282		884342		776881		961923
+10				5563951	2941285	2861721	1146188	608498		608839		383282		884342		776881
+11			9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342
+12		10619408	9457702	5598051	2941285	2860605	1146188	608498		608838		383282
+13	1480044	10619408	9457702	5598051	2941285	2360605	1146188	608498		608839														Only one large open
+14	1480044	10619408	9457702	5598051	2941285	2360605	1146188	608498																claim for $1 MM plus
																								=> cap at zero IBNR
Ultimate	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342		776881		961923		1630563		1826414		1490494		2116344		2327954		1989021		1957815		2138335		692822		54496813
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		1		117		0		-35073		-43341		93395		163581		557990		374954		######
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	114.5	%	87.4	%	139.6	%	119.0	%	79.7	%	53.4	%	80.0	%	83.4	%	65.7	%	68.0	%	90.1	%	48.4	%	79.8	%
																								Loss Ratio including $50K premium ==>						54.6	%	56.3	%	69.7	%	34.9	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																											20.2	%	35.4	%	51.6	%	58.0	%	41.9	%	34.3	%	42.6	%	49.2	%	45.9	%
+1																									64.4	%	47.0	%	54.4	%	59.9	%	68.8	%	60.5	%	66.4	%	81.4	%	73.9	%
+2																							93.1	%	79.0	%	62.4	%	69.4	%	74.0	%	93.6	%	81.9	%	101.4	%	91.6	%
+3																					67.5	%	96.7	%	102.9	%	74.7	%	95.5	%	97.8	%	98.5	%	92.1	%	95.3	%
+4																			100.0	%	102.5	%	100.0	%	99.9	%	89.9	%	104.1	%	101.3	%	102.4	%	101.9	%
+5																	98.9	%	100.0	%	100.4	%	100.0	%	99.8	%	98.7	%	103.8	%	99.5	%	101.7	%
+6															102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.7	%	103.8	%	100.0	%
+7													99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8											100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9									100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10							99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-1.7	%	-1.9	%	4.7	%	8.4	%	26.1	%	54.1	%

Exhibit 7

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09avg2.xls	Using data through 12/09	In this version, we average
tab=max500	Claims capped at $500,000 per loss – LAE prorated	the last 2 LDF’s

Paid Losses and LAE plus Case Reserves -------------------------->																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																						645873		768541		1382561		1132054		683169		833067		1209691		317868		58859490		as of 2009
+1																				765736		993280		892840		1610618		1721132		1321240		1807092		1740742				57499142		as of 2008
+2																		760035		1017932		1425502		1103254		2135003		2216800		2025346		2124640						54150426		as of 2007
+3																751499		1143104		1218632		2061985		1457853		2239661		2456253		1895626								47367418		as of 2006
+4														1070564		776881		1114230		1640822		2217904		1510375		2321270		2853769										45071072		as of 2005
+5												383282		1052589		776881		1113189		1785180		2212401		1677461		2305769												42933216		as of 2004
+6										605944		383282		1048901		776881		1114913		1833174		2212402		1687915														41136900		as of 2003
+7								608498		605944		383282		1048901		776881		1114913		1805920		2143326																39531404		as of 2002
+8							1299457	608498		608839		383282		1048902		776881		1114913		1806127																		37957606		as of 2001
+9						2861720	1299457	608498		608839		383282		1048902		776881		1114913
+10					3144403	2861721	1299457	608498		608839		383282		1048902		776881
+11				5934988	3144403	2860605	1299457	608498		608839		383282		1048902
+12			10683174	5934988	3144403	2860605	1299457	608498		608838		383282
+13		11989754	10683174	5934988	3144403	2360605	1299457	608498		608839														Only one large open
+14	1530012	11989754	10683174	5934988	3144403	2360605	1299457	608498																claim for $1 MM plus
																								=>cap at zero IBNR
Ultimate	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498		608839		383282		1048902		776881		1114914		1806128		2143450		1687915		2276207		2981038		2097044		2485768		2565528		788117		60814903
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		1		1		124		0		-29562		127269		201418		361128		824786		470249		######
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																��														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	135.9	%	87.4	%	161.8	%	131.8	%	93.5	%	60.5	%	86.1	%	106.8	%	69.3	%	86.4	%	108.1	%	55.0	%	91.5	%
																								Loss Ratio including $50K premium ==>						57.5	%	71.5	%	83.7	%	39.7	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																													30.1	%	45.5	%	60.7	%	38.0	%	32.6	%	33.5	%	47.2	%	40.3	%
+1																											42.4	%	46.3	%	52.9	%	70.8	%	57.7	%	63.0	%	72.7	%	67.9	%
+2																									68.2	%	56.4	%	66.5	%	65.4	%	93.8	%	74.4	%	96.6	%	85.5	%
+3																							96.7	%	102.5	%	67.5	%	96.2	%	86.4	%	98.4	%	82.4	%	90.4	%
+4																					102.1	%	100.0	%	99.9	%	90.8	%	103.5	%	89.5	%	102.0	%	95.7	%
+5																			100.0	%	100.4	%	100.0	%	99.8	%	98.8	%	103.2	%	99.4	%	101.3	%
+6																	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.5	%	103.2	%	100.0	%
+7															100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8													100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9											100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10									100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11							100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-1.3	%	4.3	%	9.6	%	14.5	%	32.1	%	59.7	%

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg2.xls	In this version, we average
tab = runoff	the last 2 LDF's.
page 1

	Paid plus Case		Ultimate		Developed
	at 12/01		at 12/09		12/01 IBNR
1 for $100K triangle through 12/98		25255044		25296160		41116
2 for $100K triangle for 1999		. 568590		569610		1020
3 for $200K triangle for 1999		723327		776881		53554
4 for $200K triangle for 2000-2001		946650		2258352		1311702
5 (1)+.25*(2)+.75*(3)+(4) =		26886337		28279576		1393240

Note 1: The 1999 year is included in the Line (5) total as 25% of the $100K version and 75% of $200K version.

	Paid plus Case		Ultimate		Developed
	at 12/02		at 12/09		12/02 IBNR
1 for $100K triangle through 12/98		25316403		25296160		-20243
2 for $100K triangle for 1999		568173		569610		1437
3 for $200K triangle for 1999		751499		776881		25382
4 for $200K triangle for 2000-2001		1523221		2258352		735131
5 for $200K triangle for 2002		645873		1509377		863504
6 for $250K triangle for 2002		645873		1615055		969182
7 (1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6) =		28191165		29868212		1677048

Note 1: The 1999 year is included in the Line (7) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (7) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/03		at 12/09		12/03 IBNR
1 for $100K triangle through 12/98		25298068		25296160		-1908
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		1855056		2258352		403296
5 for $200K triangle for 2002		935175		1509377		574202
6 for $250K triangle for 2002		990725		1615055		624330
7 for $250K triangle for 2003		768541		1358880		590339
8 (1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7) =		29623566		31227092		1603526

Note l: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/04		at 12/09		12/04 IBNR
1 for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2007831		2258352		250521
5 for $200K triangle for 2002		1108841		1509377		400536
6 for $250K triangle for 2002		1161618		1615055		453437
7 for $250K triangle for 2003-2004		2018148		3367820		1349672
8 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7) =		31195625		33236032		2040407

Note l: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg2.xls	In this version, we average
tab = runoff	the last 2 LDF's.
page 2

	Paid plusCase		Ultimate		Developed
	at 12/05		at 12/09		12/05 IBNR
1for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2091322		2258352		167030
5 for $200K triangle for 2002		1427045		1509377		82332
6 for $250K triangle for 2002		1532869		1615055		82186
7 for $250K triangle for 2003-2005		3325240		5226116		1900876
8 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7) =		32944197		35094328		2150131

Note l: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/06		at 12/09		12/06 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2237404		2258352		20948
5 for $200K triangle for 2002		1583846		1509377		-74469
6 for $250K triangle for 2002		1689522		1615055		-74467
7 for $250K triangle for 2003-2005		4531089		5226116		695027
8 for $250K triangle for 2006		683169		1899949		1216780
9 for $350K triangle for 2006		683169		1989021		1305852
10 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7)+.5*(8)+.5*(9) =		35135988		37038813		1902825

Note l: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note 3: The 2006 year is included in the Line (10) total as 50% of the $250K version and 50% of $350K version.

	Paid plus Case		Ultimate		Developed
	at 12/07		at 12/09		12/07 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2285398		2258352		-27046
5 for $200K triangle for 2002		1578343		1509377		-68966
6 for $250K triangle for 2002		1684019		1615055		-68964
7 for $250K triangle for 2003-2005		5135205		5226116		90911
8 for $250K triangle for 2006		1321240		1899949		578709
9 for $350K triangle for 2006		1321240		1989021		667781
10 for $250K triangle for 2007		833067		1663207		830140
11 for $350K triangle for 2007		833067		1957815		1124748
12 for $500K triangle for 2007		833067		2485768		1652701
13 (1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(+.5*(8)+.5*(9)+.22*(10)+.39*(11)+.39*(12)=		37253733		39137716		1883983

Note 1: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note 3: The 2006 year is included in the Line (10) total as 50% of the $250K version and 50% of $350K version.

Note 3: The 2007 year is included in the Line (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

	Exhibit 8
	American Inter-Fidelity Exchange @12/2009
	Auto Liability — BI and PD Liability
file = Lsdv09 avg2.xls	In this version, we average
tab = runoff	the last 2 LDF's.
Page 3

		Paid plus Case		Ultimate		Developed
		at 12/08		at 12/09		12/08 IBNR
1	for $100K triangle through 12/98		25296159		25296160		1
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for 1999		776881		776881		0
4	for $200K triangle for 2000-2001		2258144		2258352		208
5	for $200K triangle for 2002		1578344		1509377		-68967
6	for $250K triangle for 2002		1684020		1615055		-68965
7	for $250K triangle for 2003-2005		5292693		5226116		-66577
8	for $250K triangle for 2006		1916770		1899949		-16821
9	for $350K triangle for 2006		2017468		1989021		-28447
10	for $250K triangle for 2007		1378354		1663207		284853
11	for $350K triangle for 2007		1593351		1957815		364464
12	for $500K triangle for 2007		1807092		2485768		678676
13	for $250K triangle for 2008		947313		1933434		986121
14	for $500K triangle for 2008		1209691		2565528		1355837
15	(1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(+.5*(8)+.5*(9)+.22*(10)+.39*(11)+.39*(12)+.2*(13)+.8*(14) =		39983405		41576825		1593420

Note 1: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note 2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note 3: The 2006 year is included in the Line (10) total as 50% of the $250K version and 50% of $350K version.

Note 3: The 2007 year is included in the Line (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Note 4: The 2008 year is included in the Line (13) total as 20% of the $250K version and 80% of $500K version.

Exhibit 1

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg3.xls	Using data through 12/09	In this version, we average
tab = uncapped	Claims Data Is Uncapped	the last 3 LDF's.
Paid Losses and LAE plus Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		556975		377577		329809		645873		768541		1742716		1308398		683169		833067		1214939		317868		65182733		as of 2009
+1					2469767	2526010	1495127	540386		210778		386782		508077		435144		619391		765736		993280		892840		1970773		2085193		1321240		1956742		1746089				63658753		as of 2008
+2				5083944	3048918	2665142	1457638	651016		403488		383282		537580		723327		760035		1017932		1430014		1103254		2495158		2921985		2025346		2418030						59736195		as of 2007
+3			8772632	5780825	3383880	2792841	1511561	671551		548885		383282		596923		751499		1180339		1218632		2700182		1457853		2599816		3166856		1895626								57228595		as of 2006
+4		9511580	11873981	5778392	3399989	2827288	1516113	649568		595033		383282		1087779		776881		1151465		1939611		2854632		1510375		2681425		3576526										54589114		as of 2005
+5	1379578	13188766	11782522	5852591	3435015	2895896	1611795	622077		601894		383282		1064553		776881		1150424		2083969		2849129		2090986		2665924												50852139		as of 2004
+6	1530012	13137943	11801478	6280488	3543331	2168084	1816040	626115		605944		383282		1060865		776881		1152148		2131963		2849130		2109079														48378473		as of 2003
+7	1530012	13067338	11803793	6299882	3550410	2868087	1799321	608498		605944		383282		1060865		776881		1152148		2104709		2780054																46587868		as of 2002
+8	1530012	13067338	11803949	6336747	3550410	2867587	1810355	608498		608839		383282		1060866		776881		1152148		2104916																		44832430		as or 2001
+9	1530012	13067338	11796510	6336747	3550410	2861720	1810355	608498		608839		383282		1060866		776881		1152148																				43919601		as of 2000
+10	1530012	13070128	11797484	6336747	3538676	2861721	1810355	608498		608839		383282		1060866		776881																						43410471		as of 1999
+11	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866																								42443151		as of 1998
+12	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608838		383282																										41481333		as of 1997
+13	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839														Only one open cltn														40539700		as of 1996
+14	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498																for$1MM-plus in2003														40105812		as of 1995
																								but don't adj Uncapped
Ultimate	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866		776881		1152148		2104917		2780146		2082930		2649384		3881893		2277486		2807528		2887287		937220		67977414
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		1		92		-26149		-16540		305367		381860		389498		1141198		619352		27944681
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	137.4	%	87.4	%	167.2	%	153.6	%	121.3	%	74.6	%	100.2	%	139.0	%	75.2	%	97.5	%	121.6	%	65.4	%	105.7	%
																								Loss Ratio including $50K premium ==>						62.5	%	80.7	%	94.2	%	47.2	%

Paid plus Case Reserves a percent of ULTIMATE INCURRED ------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	29.2	%	54.7	%	14.4	%	42.8	%	30.6	%	71.7	%	32.8	%	15.7	%	23.2	%	36.9	%	65.8	%	33.7	%	30.0	%	29.7	%	42.1	%	33.9	%
+1									69.8	%	88.3	%	82.6	%	88.8	%	34.6	%	100.9	%	47.9	%	56.0	%	53.8	%	36.4	%	35.7	%	42.9	%	74.4	%	53.7	%	58.0	%	69.7	%	60.5	%
+2							79.8	%	86.2	%	93.2	%	81.1	%	107.0	%	66.3	%	100.0	%	50.7	%	93.1	%	66.0	%	48.4	%	51.4	%	53.0	%	94.2	%	75.3	%	88.9	%	86.1	%
+3					74.4	%	90.7	%	95.6	%	97.6	%	83.5	%	110.4	%	90.2	%	100.0	%	56.3	%	96.7	%	102.4	%	57.9	%	97.1	%	70.0	%	98.1	%	81.6	%	83.2	%
+4			72.8	%	100.6	%	90.7	%	96.1	%	98.8	%	83.7	%	106.7	%	97.7	%	100.0	%	102.5	%	100.0	%	99.9	%	92.1	%	102.7	%	72.5	%	101.2	%	92.1	%
+5	90.2	%	100.9	%	99.9	%	91.9	%	97.1	%	101.2	%	89.0	%	102.2	%	98.9	%	100.0	%	100.3	%	100.0	%	99.9	%	99.0	%	102.5	%	100.4	%	100.6	%
+6	100.0	%	100.5	%	100.0	%	98.6	%	100.1	%	100.3	%	100.3	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.3	%	102.5	%	101.3	%
+7	100.0	%	100.0	%	100.1	%	98.9	%	100.3	%	100.3	%	99.4	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.5	%	100.3	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%.	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-1.3	%	-0.6	%	7.9	%	16.8	%	13.9	%	39.5	%	66.1	%

Exhibit 3

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg3.xls	Using data through 12/09	In this version, we average
tab = max100	Claims capped at $100,000 per loss – LAE prorated	the last 3 LDF's.
Paid Losses and LAE plus Case Reserves ------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	511385	332794		87427		164044		310148		305475		269344		329809		550759		760497		858641		717128		659711		668815		762420		317868			36555265		as of 2009
+1					2469767	2108077	558554	540386		210778		204194		491557		358727		511158		765736		726587		885093		1036906		886665		1109280		1055859		1053033					35945159		as of 2008
+2				5083944	1933879	2305652	548022	590375		403488		200694		521060		568590		609438		918642		905799		1095507		1541156		1107642		1241088		1182385							34716539		as of 2007
+3			8772632	4006777	1964510	2367610	591945	610368		448315		200694		577689		568173		693718		1059244		1135135		1223328		1590322		1161544		1274398									33329636		as of 2006
+4		9511580	6203569	4025557	1983448	2351103	596497	588385		494462		200694		632097		569610		664844		1066787		1276334		1252642		1610856		1106329											31581035		as of 2005
+5	1379578	7284306	6112772	3963466	2018474	2381387	684718	560894		502255		200694		613761		569610		663803		1211145		1273782		1152808		1575824													30239390		as of 2004
+6	1024727	7249007	6131728	3944252	2043132	2447903	659747	564932		506305		200694		610073		569610		665527		1182759		1273783		1153712															28967122		as of 2003
+7	1024727	7191476	6133812	3943803	2036222	2447906	641354	547315		506305		200694		610073		569610		665527		1155505		1204707																	27810509		as of 2002
+8	1024727	7191476	6133968	3937996	2036222	2447406	645373	547315		509200		200694		610074		569610		665527		1155712																			26664601		as of 2001
+9	1024727	7191476	6126529	3937996	2036222	2441539	645373	547315		509200		200694		610074		569610		665527																					25833548		as of 2000
+10	1024727	7194266	6127503	3937996	2024488	2441540	645373	547315		509200		200694		610074		569610																							25486785		as of 1999
+11	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694		610074																									24843188		as of 1998
+12	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509199		200694																											24220986		as of 1997
+13	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200														Only one large open															23838290		as of 1996
+14	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315																claim for $1 MM plus															23573573		as of 1995
																								=> cap at zero IBNR
Ultimate	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694		610074		569610		665527		1155712		1204771		1153712		1522803		1036223		1185259		1133973		1160290		528755			36612804
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		72		0		-53021		-70106		-89139		-48412		107257		210887		$	57,539
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172			40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448			12568435
Net @ 50K Deductible																														616693		599647		691878		551144			2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580			25544455
Loss Ratio								165.6	%	131.5	%	23.0	%	79.0	%	64.1	%	96.6	%	84.4	%	52.6	%	41.3	%	57.6	%	37.1	%	39.2	%	39.4	%	48.9	%	36.9	%		51.6	%
																								Loss Ratio including $50K premium ==>						32.5	%	32.6	%	37.8	%	26.7	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											74.9	%	79.2	%	60.8	%	17.2	%	81.7	%	50.8	%	53.6	%	40.5	%	28.5	%	45.7	%	65.9	%	56.4	%	69.2	%	55.7	%	59.0	%	65.7	%	60.1	%
+1									122.0	%	86.4	%	86.5	%	98.7	%	41.4	%	101.7	%	80.6	%	63.0	%	76.8	%	66.3	%	60.3	%	76.7	%	68.1	%	85.6	%	93.6	%	93.1	%	90.8	%
+2							128.0	%	95.5	%	94.5	%	84.9	%	107.9	%	79.2	%	100.0	%	85.4	%	99.8	%	91.6	%	79.5	%	75.2	%	95.0	%	101.2	%	106.9	%	104.7	%	104.3	%
+3					143.2	%	100.9	%	97.0	%	97.0	%	91.7	%	111.5	%	88.0	%	100.0	%	94.7	%	99.7	%	104.2	%	91.7	%	94.2	%	106.0	%	104.4	%	112.1	%	107.5	%
+4			132.2	%	101.2	%	101.3	%	98.0	%	96.3	%	92.4	%	107.5	%	97.1	%	100.0	%	103.6	%	100.0	%	99.9	%	92.3	%	105.9	%	108.6	%	105.8	%	106.8	%
+5	134.6	%	101.3	%	99.8	%	99.8	%	99.7	%	97.6	%	106.1	%	102.5	%	98.6	%	100.0	%	100.6	%	100.0	%	99.7	%	104.8	%	105.7	%	99.9	%	103.5	%
+6	100.0	%	100.8	%	100.1	%	99.3	%	100.9	%	100.3	%	102.2	%	103.2	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	102.3	%	105.7	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.3	%	100.6	%	100.3	%	99.4	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.1	%	100.6	%	100.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.1	%	100.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.1	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-3.5	%	-6.8	%	-7.5	%	-4.3	%	9.2	%	39.9	%

Exhibit 4

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg3.xls	Using data through 12/09	In this version, we average
tab = max200	Claims capped at $200,000 per loss – LAE prorated	the last 3 LDF's.
Paid Losses and LAE pins Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		506975		375027		329809		645873		768541		1062273		820360		683169		785424		894837		317868		45915101		as of 2009
+1					2469767	2463401	677691	540386		210778		304194		508077		435144		616841		765736		935175		892840		1245142		1095282		1321240		1270856		1418714				44893711		as of 2008
+2				5083944	2366506	2629271	650202	651016		403488		300694		537580		723327		757485		1017932		1108841		1103254		1769527		1487989		1781123		1463829						42949243		as of 2007
+3			8772632	4865282	2394952	2753940	694125	671551		548885		300694		596923		751499		837124		1199581		1427045		1388753		1926877		1675215		1786835								40894907		as of 2006
+4		9511580	7781363	4893026	2412908	2806684	698677	649568		595033		300694		741713		776881		808250		1284113		1583846		1427046		2008486		1737252										38824548		as of 2005
+5	1379578	9028105	7689904	4922946	2447934	2875289	794359	622077		601894		300694		723468		776881		807209		1428471		1578343		1289781		1992985												37208710		as of 2004
+6	1284322	8977282	7708860	4920212	2556250	2847477	897510	626115		605944		300694		719780		776881		808933		1476465		1578344		1293073														35697606		as of 2003
+7	1284322	8906677	7710970	4919312	2563329	2847480	880077	608498		605944		300694		719780		776881		808933		1449211		1509268																34300790		as or 2002
+8	I284322	8906677	7711126	4909976	2563329	2846980	888114	608498		608839		300694		719781		776881		808933		1449418																		32894415		as of 2001
+9	1284322	8906677	7703687	4909976	2563329	2841113	888114	608498		608839		300694		719781		776881		808933																				31982300		as of 2000
+10	1284322	8909467	7704661	4909976	2551595	2841114	888114	608498		608839		300694		719781		776881																						31526814		as of 1999
+11	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694		719781																								30655695		as or 1998
+12	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608838		300694																										29796762		as of 1997
+13	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839														Only one large open														29267668		as or 1996
+14	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498																claim for $1 MM plus														28879242		as of 1995
																								=> cap at zero IBNR
Ultimate	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694		719781		776881		808933		1449418		1509340		1293073		1974087		1643881		1746582		1556535		1900730		697829		46717336
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		72		0		-18898		-93371		-40253		92706		482016		379961		$ 802,235
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	34.4	%	93.2	%	87.4	%	117.4	%	105.8	%	65.8	%	46.3	%	74.7	%	58.9	%	57.7	%	54.1	%	80.1	%	48.7	%	68.9	%
																								Loss Ratio including $50K premium ==>						47.9	%	44.7	%	62.0	%	35.2	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ---------------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											64.3	%	59.5	%	54.7	%	14.4	%	54.6	%	45.1	%	65.3	%	46.4	%	22.8	%	42.8	%	59.4	%	53.8	%	49.9	%	39.1	%	50.5	%	47.1	%	45.6	%
+1									96.8	%	86.7	%	76.3	%	88.8	%	34.6	%	101.2	%	70.6	%	56.0	%	76.3	%	52.8	%	62.0	%	69.0	%	63.1	%	66.6	%	75.6	%	81.6	%	74.6	%
+2							102.8	%	92.7	%	92.6	%	73.2	%	107.0	%	66.3	%	100.0	%	74.7	%	93.1	%	93.6	%	70.2	%	73.5	%	85.3	%	89.6	%	90.5	%	102.0	%	94.0	%
+3					113.9	%	98.4	%	93.9	%	97.0	%	78.2	%	110.4	%	90.2	%	100.0	%	82.9	%	96.7	%	103.5	%	82.8	%	94.5	%	107.4	%	97.6	%	101.9	%	102.3	%
+4			106.8	%	101.0	%	99.0	%	94.6	%	98.8	%	78.7	%	106.7	%	97.7	%	100.0	%	103.0	%	100.0	%	99.9	%	88.6	%	104.9	%	110.4	%	101.7	%	105.7	%
+5	107.4	%	101.3	%	99.8	%	99.6	%	95.9	%	101.2	%	89.4	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.6	%	99.7	%	101.0	%
+6	100.0	%	100.8	%	100.1	%	99.5	%	100.2	%	100.3	%	101.1	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.9	%	104.6	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.5	%	100.5	%	100.3	%	99.1	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.3	%	100.5	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.3	%	100.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-1.0	%	-5.7	%	-2.3	%	6.0	%	25.4	%	54.4	%

Exhibit 5

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Ladv09avg3.xls	Using data through 12/09	In this version, we average
tab=max250	Claims capped at $250,000 per loss – LAE prorated	the last 3 LDF’s.

Paid Losses and LAE plus Case Reserves ---------->																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		556975		377577		329809		645873		768541		1125308		872726		683169		833067		947313		317868			48883988		as of2009
+1					2469767	2526010	728781	540386		210778		354193		508077		435144		619391		765736		990725		892840		1349260		1199591		1321240		1378354		1473413					47832415		as of 2008
+2				5083944	2522780	2665142	701292	651016		403488		350693		537580		723327		760035		1017932		1161618		1103254		1873645		1642422		1916770		1573964							45614051		as of 2007
+3			8772632	5062989	2553212	2792841	745215	671551		548885		350694		596923		751499		888121		1218632		1532869		1457853		1982408		1874281		1895574									43496306		as of 2006
+4		9511580	8410583	5090468	2570677	2827288	749766	649568		595033		350694		796522		776881		859247		1348214		1689522		1510375		2064017		1987356											41304552		as of 2005
+5	1379578	9689521	8319124	5164667	2605703	2895896	845448	622077		601894		350694		778322		776881		858206		1492572		1684019		1354395		2048516													39497578		as of 2004
+6	1379577	9638698	8338080	5187720	2714019	2868084	1016392	626115		605944		350694		774634		776881		859930		1540566		1684020		1358880															37907251		as of 2003
+7	1379577	9568093	8340203	5185704	2721098	2868087	999438	608498		605944		350694		774634		776881		859930		1513312		1614944																	36406391		as of2002
+8	1379577	9568093	8340359	5222569	2721098	2867587	1009485	608498		608839		350694		774635		776881		859930		1513519																			34943198		as of 2001
+9	1379577	9568093	8332920	5222569	2721098	2861720	1009485	608498		608839		350694		774635		776881		859930																					34030604		as of 2000
+10	1379577	9570883	8333894	5222569	2709364	2861721	1009485	608498		608839		350694		774635		776881																							33554776		as of 1999
+11	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694		774635																									32587456		as of 1998
+12	1379577	9570883	8333894	5256669	2709364	2850605	1009485	608498		608838		350694																											31679636		as of 1997
+13	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839														Only one large open															31143039		as of 1996
+14	1379577	9570883	8333394	5256669	2709364	2860605	1009485	608498																claim for $1 MM plus															30707795		as of 1995
																								==> cap at zero IBNR
Ultimate	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694		774635		776881		859930		1513519		1615018		1358880		2031194		1878541		1866611		1672287		2036378		717346			49789730
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		74		0		-17322		-108815		-28963		98323		562965		399478		$	905,742
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172			40572252
Coded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448			12568435
Net @ 50K Deductible																														616693		599647		691878		551144			2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580			25544455
Loss Ratio								184.2	%	157.3	%	40.1	%	100.3	%	87.4	%	124.8	%	110.5	%	70.4	%	48.7	%	76.8	%	67.3	%	61.7	%	58.1	%	85.8	%	50.1	%		73.1	%
																								Loss Ratio including $50K premium ==>						51.2	%	48.1	%	66.4	%	36.2	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	52.3	%	54.7	%	14.4	%	46.8	%	41.9	%	71.7	%	43.9	%	21.8	%	40.0	%	56.6	%	55.4	%	46.5	%	36.6	%	49.8	%	46.5	%	44.3	%
+1									91.2	%	88.3	%	72.2	%	88.8	%	34.6	%	101.0	%	65.6	%	56.0	%	72.0	%	50.6	%	61.3	%	65.7	%	66.4	%	63.9	%	70.8	%	82.4	%	72.4	%
+2							96.7	%	93.1	%	93.2	%	69.5	%	107.0	%	66.3	%	100.0	%	69.4	%	93.1	%	88.4	%	67.3	%	71.9	%	81.2	%	92.2	%	87.4	%	102.7	%	94.1	%
+3					105.3	%	96.3	%	94.2	%	97.6	%	73.8	%	110.4	%	90.2	%	100.0	%	77.1	%	96.7	%	103.3	%	80.5	%	94.9	%	107.3	%	97.6	%	99.8	%	101.6	%
+4			99.4	%	100.9	%	96.8	%	94.9	%	93.8	%	74.3	%	106.7	%	97.7	%	100.0	%	102.8	%	100.0	%	99.9	%	89.1	%	104.6	%	111.1	%	101.6	%	105.8	%
+5	100.0	%	101.2	%	99.8	%	98.2	%	96.2	%	101.2	%	83.8	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.3	%	99.7	%	100.9	%
+6	100.0	%	100.7	%	100.1	%	98.7	%	100.2	%	100.3	%	100.7	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.8	%	104.3	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	98.7	%	100.4	%	100.3	%	99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.4	%	100.4	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.4	%	100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100 0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.9	%	-5.8	%	-1.6	%	5.9	%	27.6	%	55.7	%

Exhibit 6

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09avg3.xls	Using data through 12/09	In this version, we average
tab=max350	Claims capped at $350,000 per loss – LAE prorated	the last 3 LDF’s.

Paid Losses and LAE plus Case Reserves --------------------------->																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																				329809		645873		768541		1228209		976457		683169		833067		1052264		317868		53385186		as of 2009
+1																		619391		765736		993280		892840		1456266		1408207		1321240		1593351		1580345				52309869		as of 2008
+2																723327		760035		1017932		1267171		1103254		1980651		1905645		2017468		1794234						49535665		as of 2007
+3														596923		751499		990114		1218632		1744515		1457853		2085309		2143472		1895626								47367418		as of 2006
+4												383282		906139		776881		961240		1465257		1900875		1510375		2166918		2371295										45071072		as of 2005
+5										601894		383282		888029		776881		960199		1609615		1895372		1483621		2151417												42933216		as of 2004
+6								626115		605944		383282		884341		776881		961923		1657609		1895373		1490494														41136900		as of 2003
+7							1135154	608498		605944		383282		884341		776881		961923		1630355		1826297																39531404		as of 2002
+8						2867587	1146188	608498		608839		383282		884342		776881		961923		1630562																		37957606		as of 2001
+9					2953019	2861720	1146188	608498		608839		383282		884342		776881		961923
+10				5563951	2941285	2861721	1146188	608498		608839		383282		884342		776881
+11			9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342
+12		10619408	9457702	5598051	2941285	2860605	1146188	608498		608838		383282
+13	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839														Only one large open
+14	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498																claim for $1 MM plus
																								=> cap at zero IBNR
Ultimate	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342		776881		961923		1630562		1826375		1490494		2136943		2318618		1975709		1943293		2261930		769235		54680208
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		78		0		-14474		-52677		80083		149059		681585		451367		########
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	114.5	%	87.4	%	139.6	%	119.0	%	79.7	%	53.4	%	80.8	%	83.0	%	65.3	%	67.5	%	95.3	%	53.7	%	80.6	%
																								Loss Ratio including $50K premium ==						54.2	%	55.9	%	73.8	%	38.8	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																											20.2	%	35.4	%	51.6	%	57.5	%	42.1	%	34.6	%	42.9	%	46.5	%	41.3	%
+1																									64.4	%	47.0	%	54.4	%	59.9	%	68.1	%	60.7	%	66.9	%	82.0	%	69.9	%
+2																							93.1	%	79.0	%	62.4	%	69.4	%	74.0	%	92.7	%	82.2	%	102.1	%	92.3	%
+3																					67.5	%	96.7	%	102.9	%	74.7	%	95.5	%	97.8	%	97.6	%	92.4	%	95.9	%
+4																			100.0	%	102.5	%	100.0	%	99.9	%	89.9	%	104.1	%	101.3	%	101.4	%	102.3	%
+5																	98.9	%	100.0	%	100.4	%	100.0	%	99.8	%	98.7	%	103.8	%	99.5	%	100.7	%
+6															102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.7	%	103.8	%	100.0	%
+7													99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8											100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9									100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10							99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.7	%	-2.3	%	4.1	%	7.7	%	30.1	%	58.7	%

Exhibit 7

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09avg3.xls	Using data through 12/09	In this version, we average
tab=max500	Claims capped at $500,000 per loss – LAE prorated	the last 3 LDF’s

Paid Losses and LAE plus Case Reserves -------------------------->																																						Diagonal
ACC Yeat	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																						645873		768541		1382561		1132054		683169		833067		1209691		317868		58859490		as of 2009
+1																				765736		993280		892840		1610618		1721132		1821240		1307092		1740742				57499142		as of 2008
+2																		760035		1017932		1425502		1103254		2135003		2216800		2025346		2124640						54150426		as of 2007
+3																751499		1143104		1218632		2061985		1457853		2239661		2456253		1895626								47367418		as of 2006
+4														1070564		776881		1114230		1640822		2217904		1510375		2321270		2853769										45071072		as of 2005
+5												383282		1052589		776881		1113109		1785180		2212401		1677461		2305769												42933216		as of 2004
+6										605944		383282		1048901		776881		1114913		1833174		2212402		1687915														41136900		as of 2003
+7								608498		605944		383282		1048901		776881		1114913		1805920		2143326																39531404		as of 2002
+8							1299457	608498		608839		383282		1048902		776881		1114913		1806127																		37957606		as of 2001
+9						2861720	1299457	608498		608839		383282		1048902		776881		1114913
+10					3144403	2861721	1299457	608498		608839		383282		1048902		776881
+11				5934988	3144403	2860605	1299457	608498		608839		383282		1048902
+12			10683174	5934988	3144403	2860605	1299457	608498		608838		383282
+13		11989754	10683174	5934988	3144403	2860605	1299457	608498		608839														Only one large open
+14	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498																claim for $1 MM plus
																								=> cap at zero IBNR
Ultimate	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498		608839		383232		1048902		776881		1114913		1806127		2143408		1687915		2294757		2910894		2119198		2407338		2657108		848641		60859145
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		82		0		-11012		57125		223572		282748		916366		530773		#########
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572352
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Lass Ratio								184.2	%	157.3	%	43.8	%	135.9	%	87.4	%	161.8	%	131.8	%	93.5	%	60.5	%	86.8	%	104.2	%	70.0	%	83.6	%	111.9	%	59.2	%	91.7	%
																								Loss Ratio including $50K premium ==>						58.2	%	69.2	%	86.7	%	42.8	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																													30.1	%	45.5	%	60.2	%	38.9	%	32.2	%	34.6	%	45.5	%	37.5	%
+1																											42.4	%	46.3	%	52.9	%	70.2	%	59.1	%	62.3	%	75.1	%	65.5	%
+2																									68.2	%	56.4	%	66.5	%	65.1	%	93.0	%	76.2	%	95.6	%	88.3	%
+3																							96.7	%	102.5	%	67.5	%	96.2	%	86.4	%	97.6	%	84.4	%	89.5	%
+4																					102.1	%	100.0	%	99.9	%	90.8	%	103.5	%	89.5	%	101.2	%	98.0	%
+5																			100.0	%	100.4	%	100.0	%	99.8	%	98.8	%	103.2	%	99.4	%	100.5	%
+6																	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.5	%	103.2	%	100.0	%
+7															100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8													100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9											100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10									100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11							100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.5	%	2.0	%	10.5	%	11.7	%	34.5	%	62.5	%

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg3.xls	In this version, we average
tab = runoff	the last 3 LDF's.
Page 1

	Paid plus Case		Ultimate		Developed
	at 12/01		at 12/09		12/01 IBNR
1 for $100K triangle through 12/98		25255044		25296160		41116
2 for $100K triangle for 1999		. 568590		569610		1020
3 for $200K triangle for 1999		723327		776881		53554
4 for $200K triangle for 2000-2001		946650		2258352		1311702
5 (l)+.25*(2)+.75*(3)+(4) =		26886337		28279575		1393239

Note1: The 1999 year is included in theLine (5) total as 25% of the $100K version and 75% of $200K version.

	Paid plus Case		Ultimate		Developed
	at 12/02		at 12/09		12/02 IBNR
1 for $100K triangle through 12/98		25316403		25296160		-20243
2 for $100K triangle for 1999		568173		569610		1437
3 for $200K triangle for 1999		751499		776881		25382
4 for $200K triangle for 2000-2001		1523221		2258352		735131
5 for $200K triangle for 2002		645873		1509340		863467
6 for $250K triangle for 2002		645873		1615018		969145
7 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6) =		28191165		29868174		1677009

Note1: The 1999 year is included in theLine (7) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (7) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/03		at 12/09		12/03 IBNR
1 for $100K triangle through 12/98		25298068		25296160		-1908
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		1855056		2258352		403296
5 for $200K triangle for 2002		935175		1509340		574165
6 for $250K triangle for 2002		990725		1615018		624293
7 for $250K triangle for 2003		768541		1358880		590339
8 (1)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		29623566		31227054		1603488

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/04		at 12/09		12/04 IBNR
1 for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2007831		2258352		250521
5 for $200K triangle for 2002		1108841		1509340		400499
6 for $250K triangle for 2002		1161618		1615018		453400
7 for $250K triangle for 2003-2004		2018148		3390074		1371926
8 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		31195625		33258248		2062623

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg3.xls	In this version, we average
tab = runoff	the last 3 LDF's.
Page 2

	Paid plusCase		Ultimate		Developed
	at 12/05		at 12/09		12/05 IBNR
1for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2091322		2258352		167030
5 for $200K triangle for 2002		1427045		1509340		82295
6 for $250K triangle for 2002		1532869		1615018		82149
7 for $250K triangle for 2003-2005		3325240		5268615		1943375
8 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		32944197		35136789		2192591

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/06		at 12/09		12/06 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2237404		2258352		20948
5 for $200K triangle for 2002		1583846		1509340		-74506
6 for $250K triangle for 2002		1689522		1615018		-74504
7 for $250K triangle for 2003-2005		4531089		5268615		737526
8 for $250K triangle for 2006		683169		1866611		1183442
9 for $350K triangle for 2006		683169		1975709		1292540
10 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6) +(7)+.5*(8)+.5*(9) =		35135988		37057949		1921960

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

	Paid plus Case		Ultimate		Developed
	at 12/07		at 12/09		12/07 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		569610		0
3 for $200K triangle for 1999		776881		776881		0
4 for $200K triangle for 2000-2001		2285398		2258352		-27046
5 for $200K triangle for 2002		1578343		1509340		-69003
6 for $250K triangle for 2002		1684019		1615018		-69001
7 for $250K triangle for 2003-2005		5135205		5268615		133410
8 for $250K triangle for 2006		1321240		1866611		545371
9 for $350K triangle for 2006		1321240		1975709		654469
10 for $250K triangle for 2007		833067		1672287		839220
11 for $350K triangle for 2007		833067		1943293		1110226
12 for $500K triangle for 2007		833067		2407388		1574321
13 (1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7)+.5*(8)+.5*(9)+.22*(10)+.39*(11)+.39*(12)=		37253733		39122617		1868884

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

Note3: The 2007 year is included in theLine (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

	Exhibit 8
	American Inter-Fidelity Exchange @12/2009
	Auto Liability — BI and PD Liability
file = Lsdv09 avg3.xls	In this version, we average
tab = runoff	the last 3 LDF's.
Page 3

		Paid plus Case		Ultimate		Developed
		at 12/08		at 12/09		12/08 IBNR
1	for $100K triangle through 12/98		25296159		25296160		1
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for 1999		776881		776881		0
4	for $200K triangle for 2000-2001		2258144		2258352		208
5	for $200K triangle for 2002		1578344		1509340		-69004
6	for $250K triangle for 2002		1684020		1615018		-69002
7	for $250K triangle for 2003-2005		5292693		5268615		-24078
8	for $250K triangle for 2006		1916770		1866611		-50159
9	for $350K triangle for 2006		2017468		1975709		-41759
10	for $250K triangle for 2007		1378354		1672287		293933
11	for $350K triangle for 2007		1593351		1943293		349942
12	for $500K triangle for 2007		1807092		2407388		600296
13	for $250K triangle for 2008		947313		1672287		724974
14	for $500K triangle for 2008		1209691		2407388		1197697
15	(1)-.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7) +.5*(8)+.5*(9)+.22*(10)+.39*(l)+.39*(12)+.2*(13)+.8*(14) =		39983405		41382985		1399580

Note1: The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

Note3: The 2007 year is included in theLine (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Note4: The 2008 year is included in theLine (13) total as 20% of the $250K version and 80% of $500K version.

Exhibit 1

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed to 10 CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab = uncapped	Claims Data Is Uncapped	the last 5 LDF's.
Paid Losses and LAE plu= Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		556975		377577		329809		645873		768541		1742716		1308398		683169		833067		1214939		317868			65132733		as of 2009
+1					2469767	2526010	1495127	540386		210778		386782		508077		435144		619391		765736		993280		892840		1970773		2085193		1321240		1956742		1746089					61658753		as of 2008
+2				5083944	3048918	2665142	1467638	651016		403488		383282		537580		723327		760035		1017932		1430014		1103254		2495158		2921985		2025346		2418030							59736196		as of 2007
+3			8772632	5780825	3383880	2792841	1511561	671551		548885		383282		596923		751499		1180339		1218632		2700182		1457853		2599816		3166856		1895626									57228595		as of 2006
+4		9511580	11873981	5778392	3399989	2827288	1516113	649568		595033		383282		1087779		776881		1151465		1939611		2854632		1510375		2681425		3576526											54589114		as of 2005
+5	1379578	13188766	11782522	5852591	3435015	2895896	1611795	622077		601894		383282		1064553		776881		1150424		2083969		2849129		2090986		2665924													50852119		as of 2004
+6	1530012	13137943	11801478	6280488	3543331	2168084	1816040	626115		605944		383282		1060865		776881		1152148		2131963		2849130		2109079															48378473		as of 2003
+7	1530012	13067338	11803793	6299882	3550410	2868087	1799321	608498		605944		383282		1060865		776881		1152148		2104709		2780054																	46587868		as of 2002
+8	1530012	13067338	11803949	6336747	3550410	2867587	1810355	608498		608839		383282		1060866		776881		1152148		2104916																			44832430		as or 2001
+9	1530012	13067338	11796510	6336747	3550410	2861720	1810355	608498		608839		383282		1060866		776881		1152148																					43919601		as of 2000
+10	1530012	13070128	11797484	6336747	3538676	2861721	1810355	608498		608839		383282		1060866		776881																							43410471		as of 1999
+11	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866																									42443151		as of 1998
+12	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608838		383282																											41481333		as of 1997
+13	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839														Only one open clm															40539700		as of 1996
+14	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498																for $IMM-plus in2003															40105112		as of 1995
																								but don't adj Uncapped
Ultimate	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866		776881		1152148		2104916		2780110		2093306		2659398		3823126		2338795		3349142		3050287		820650			68588352
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		56		-15773		-6526		246600		443169		931112		1304198		502782		$	3,405.619
Earned Premium								1111129		996547		1181211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172			40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		.985180		648283		380448			12563435
Net @ 50K Deductible																														616693		599647		691873		551144			2459362
Net Earned								330405		387117		874329		772020		888507		639144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580			25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	137.4	%	87.4	%	167.2	%	153.6	%	121.3	%	75.0	%	100.6	%	136.9	%	77.3	%	116.3	%	128.5	%	57.3	%		108.1	%
																								Loss Ratio including $50K premium ==>						64.2	%	96.3	%	99.5	%	41.4	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	29.2	%	54.7	%	14.4	%	42.8	%	30.6	%	71.7	%	32.8	%	15.7	%	23.2	%	36.7	%	65.5	%	34.2	%	29.2	%	24.9	%	39.3	%	38.7	%
+1									69.8	%	88.3	%	82.6	%	88.8	%	34.6	%	100.9	%	47.9	%	56.0	%	53.8	%	36.4	%	35.7	%	42.7	%	74.1	%	54.5	%	56.5	%	58.4	%	57.2	%
+2							79.8	%	86.1	%	93.2	%	81.1	%	107.0	%	66.3	%	100.0	%	50.7	%	93.1	%	66.0	%	48.4	%	51.4	%	52.7	%	93.8	%	76.4	%	86.6	%	72.2	%
+3					74.4	%	90.7	%	95.6	%	97.6	%	83.5	%	110.4	%	90.2	%	100.0	%	56.3	%	96.7	%	102.4	%	57.9	%	97.1	%	69.6	%	97.8	%	82.8	%	81.1	%
+4			72.8	%	100.6	%	90.7	%	96.1	%	98.8	%	83.7	%	106.7	%	97.7	%	100.0	%	102.5	%	100.0	%	99.9	%	92.1	%	102.7	%	72.2	%	100.8	%	93.5	%
+5	90.2	%	100.9	%	99.9	%	91.9	%	97.1	%	101.2	%	89.0	%	102.2	%	98.9	%	100.0	%	100.3	%	100.0	%	99.9	%	99.0	%	102.5	%	99.9	%	100.2	%
+6	100.0	%	100.5	%	100.0	%	98.6	%	100.1	%	100.3	%	100.3	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.3	%	102.5	%	100.8	%
+7	100.0	%	100.0	%	100.1	%	98.9	%	100.3	%	100.3	%	99.4	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.5	%	100.3	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%.	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.5	%	100.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.8	%	-0.2	%	6.5	%	18.9	%	27.8	%	42.8	%	61.3	%

Exhibit 3

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab = max100	Claims capped at $100,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE plus Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826389	511385	332794		87427		164044		310148		305475		269344		329809		550759		760497		858641		717128		659711		668815		762420		317868			36555265		as of 2009
+1					2469767	2108077	558554	540386		210778		204194		491557		358727		511158		765736		726587		885093		1036906		886665		1109280		1055859		1053033					35945159		as of 2008
+2				5083944	1933879	2305652	548022	590375		403488		200694		521060		568590		609438		918642		905799		1095507		1541156		1107642		1241088		1182385							34716539		as of 2007
+3			8772632	4006777	1964510	2367610	591945	610363		448315		200694		577689		568173		693718		1059244		1135135		1223328		1590322		1161544		1274398									33329636		as of 2006
+4		9511580	6203569	4025557	1983448	2351103	596497	588385		494462		200694		632097		569610		664844		1066787		1276334		1252642		1610856		1106329											31581035		as of 2005
+5	1379578	7284306	6112772	3963466	2018474	2381387	684718	560894		502255		200694		613761		569610		663803		1211145		1273782		1152808		1575824													30239390		as of 2004
+6	1024727	7249007	6131728	3944252	2043132	2447903	659747	564932		506305		200694		610073		569610		665527		1182759		1273783		1153712															28967122		as of 2003
+7	1024727	7191476	6133812	3943803	2036222	2447906	641354	547315		506305		200694		610073		569610		665527		1155505		1204707																	27810509		as of 2002
+8	1024727	7191476	6133968	3937996	2036222	2447406	645373	547315		509200		200694		610074		569610		665527		1155712																			26664601		as of 2001
+9	1024727	7191476	6126529	3937996	2016222	2441539	645373	547315		509200		200694		610074		5S9610		665527																					25833548		as of 2000
+10	1024727	7194266	6127503	3937996	2024488	2441540	645373	547315		509200		200694		610074		569610																							25486785		as of 1999
+11	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694		610074																									24843188		as of 1998
+12	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509199		200694																											24220986		as of 1997
+13	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200														Only one large open															23838290		as of 1996
+14	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315																claim for $1 MM plus															23573573		as of 1995
																								=> cap at zero IBNR
Ultimate	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694		610074		569610		665527		1155712		1204751		1153712		1544353		1082459		1268837		1257661		1325737		558584			37083104
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		44		0		-31471		-23870		-5561		75276		272704		240716		$	527,839
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172			40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448			12568435
Net @ 50K Deductible																														616693		599647		691878		551144			2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373836		1432580			25544455
Loss Ratio								165.6	%	131.5	%	23.0	%	79.0	%	64.1	%	96.6	%	84.4	%	52.6	%	41.3	%	58.4	%	38.8	%	41.9	%	43.7	%	55.8	%	39.0	%		53.5	%
																								Loss Ratio including $50K premium ==>						34.8	%	36.2	%	43.2	%	28.2	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											74.9	%	79.2	%	60.8	%	17.2	%	81.7	%	50.8	%	53.6	%	40.5	%	28.5	%	45.7	%	65.9	%	55.6	%	66.2	%	52.0	%	53.2	%	57.5	%	56.9	%
+1									122.0	%	36.4	%	86.5	%	98.7	%	41.4	%	101.7	%	80.6	%	63.0	%	768	%	66.3	%	60.3	%	76.7	%	67.1	%	81.9	%	87.4	%	84.0	%	79.4	%
+2							128.0	%	95.5	%	94.5	%	84.9	%	107.9	%	79.2	%	100.0	%	85.4	%	99.8	%	91.6	%	79.5	%	75.2	%	95.0	%	99.8	%	102.3	%	97.8	%	94.0	%
+3					143.2	%	100.9	%	97.0	%	97.0	%	91.7	%	111.5	%	88.0	%	100.0	%	94.7	%	99.7	%	104.2	%	91.7	%	94.2	%	106.0	%	103.0	%	107.3	%	100.4	%
+4			132.2	%	101.2	%	101.3	%	98.0	%	96.3	%	92.4	%	107.5	%	97.1	%	100.0	%	103.6	%	100.0	%	99.9	%	92.3	%	105.9	%	108.6	%	104.3	%	102.2	%
+5	134.6	%	101.3	%	99.8	%	99.8	%	99.7	%	97.6	%	106.1	%	102.5	%	98.6	%	100.0	%	100.6	%	100.0	%	99.7	%	104.8	%	105.7	%	99.9	%	102.0	%
+6	100.0	%	100.8	%	100.1	%	99.3	%	100.9	%	100.3	%	102.2	%	103.2	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	102.3	%	105.7	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.3	%	100.6	%	100.3	%	99.4	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.1	%	100.6	%	100.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.1	%	100.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.1	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-2.0	%	-2.2	%	-0.4	%	6.0	%	20.6	%	43.1	%

Exhibit 4

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab = max200	Claims capped at $200,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE plus Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		506975		375027		329809		645873		768541		1062273		820860		683169		785424		894837		317868			45915101		as of 2009
+1					2469767	2463401	677691	540386		210778		304194		508077		435144		616841		765736		935175		892840		1245142		1095282		1321240		1270856		1418714					44893711		as of 2008
+2				5083944	2366506	2629271	650202	651016		403488		300694		537580		723327		757485		1017932		1108841		1103254		1769527		1487989		1781123		1463829							42949243		as of 2007
+3			8772632	4865282	2394952	2753940	694125	671551		548885		300694		596923		751499		837124		1199581		1427045		1388753		1926877		1675215		1786835									40894907		as of 2006
+4		9511580	7781363	4893026	2412908	2806684	698677	649568		595033		300694		741713		776881		808250		1284113		1583846		1427046		2008486		1737252											38824548		as of 2005
+5	1379578	9028105	7689904	4922946	2447934	2875289	794359	622077		601894		300694		723468		776881		807209		1428471		1578343		1289781		1992985													37208710		as of 2004
+6	1284322	8977282	7708860	4920212	2556250	2847477	897510	626115		605944		300694		719780		776881		808933		1476465		1578344		1293073															35697606		as of 2003
+7	1284322	8906677	7710970	4919312	2563329	2847480	880077	608498		605944		300694		719780		776881		808933		1449211		1509268																	34300790		as of 2002
+8	1284322	8906677	7711126	4909976	2563329	2846980	888114	608498		608839		300694		719781		776881		808933		1449418																			32894415		as of 2001
+9	1284322	8906677	7703687	4909976	2563329	2841113	888114	608498		608839		300694		719781		776881		808933																					31982300		as of 2000
+10	1284322	8909467	7704661	4909976	2551595	2841114	888114	608498		608839		300694		719781		776881																							31526814		as of 1999
+11	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694		719781																									30655695		as of 1998
+12	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608838		300694																											29796762		as of 1997
+13	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839														Only one large open															29267668		as of 1996
+14	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498																claim for $1 MM plus															28879242		as of 1995
																								=> cap at zero IBNR
Ultimate	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694		719781		776881		808933		1449418		1509312		1293073		1982435		1719630		1863902		1701590		2079484		699652			47244356
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		44		0		-10550		-17622		77067		237761		660770		381784		$	1,329,255
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172			40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448			12568435
Net @ 50K Deductible																														616693		599647		691878		551144			2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580			25544455
Loss Ratio								184.2	%	157.3	%	34.4	%	93.2	%	87.4	%	117.4	%	105.8	%	65.8	%	46.3	%	75.0	%	61.6	%	61.6	%	59.1	%	87.6	%	48.8	%		70.9	%
																								Loss Ratio including $50K premium ==>						51.1	%	48.9	%	67.8	%	35.3	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ---------------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											64.3	%	59.5	%	54.7	%	14.4	%	54.6	%	45.1	%	65.3	%	46.4	%	22.8	%	42.8	%	59.4	%	53.6	%	47.7	%	36.7	%	46.2	%	43.0	%	45.4	%
+1									96.8	%	86.7	%	76.3	%	88.8	%	34.6	%	101.2	%	70.6	%	56.0	%	76.3	%	52.8	%	62.0	%	69.0	%	62.8	%	63.7	%	70.9	%	74.7	%	68.2	%
+2							102.8	%	92.7	%	92.6	%	73.2	%	107.0	%	66.3	%	100.0	%	74.7	%	93.1	%	93.6	%	70.2	%	73.5	%	85.3	%	89.3	%	86.5	%	95.6	%	86.0	%
+3					113.9	%	98.4	%	93.9	%	97.0	%	78.2	%	110.4	%	90.2	%	100.0	%	82.9	%	96.7	%	103.5	%	82.8	%	94.5	%	107.4	%	97.2	%	97.4	%	95.9	%
+4			106.8	%	101.0	%	99.0	%	94.6	%	98.8	%	78.7	%	106.7	%	97.7	%	100.0	%	103.0	%	100.0	%	99.9	%	88.6	%	104.9	%	110.4	%	101.3	%	101.0	%
+5	107.4	%	101.3	%	99.8	%	99.6	%	95.9	%	101.2	%	89.4	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.6	%	99.7	%	100.5	%
+6	100.0	%	100.8	%	100.1	%	99.5	%	100.2	%	100.3	%	101.1	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.9	%	104.6	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	99.5	%	100.5	%	100.3	%	99.1	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.3	%	100.5	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.3	%	100.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.3	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.5	%	-1.0	%	4.1	%	14.0	%	31.8	%	54.6	%

Exhibit 5

American Inter-Fidelity Exchange @12/2009

 Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab = max250	Claims capped at $250,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE plus Case Reserves -------------------------->

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						1826889	528342	332794		87427		164044		324809		556975		377577		329809		645873		768541		1125308		872726		683169		833067		947313		317868		48883988		as of 2009
+1					2469767	2526010	728781	540386		210778		354193		508077		435144		619391		765736		990725		892840		1349260		1199591		1321240		1378354		1473413				47832415		as of 2008
+2				5083944	2522780	2665142	701292	651016		403488		350693		537580		723327		760035		1017932		1161618		1103254		1873645		1642422		1916770		1573964						45614051		as of 2007
+3			8772632	5062989	2553212	2792841	745215	671551		548885		350694		596923		751499		888121		1218632		1532869		1457853		1982408		1874281		1895574								43496306		as of 2006
+4		9511580	8410583	5090468	2570677	2827288	749766	649568		595033		350694		796522		776881		859247		1348214		1689522		1510375		2064017		1987356										41304552		as of 2005
+5	1379578	9689521	8319124	5164667	2605703	2895896	845448	622077		601894		350694		778322		776881		358206		1492572		1684019		1354395		2048516												39497578		as of 2004
+6	1379577	9638698	8338030	5187720	2714019	2868084	1016392	626115		605944		350694		774634		776881		859930		1540566		1684020		1358880														37907251		as of 2003
+7	1379577	9568093	8340203	5185704	2721098	2868087	999438	608498		605944		350694		774634		776881		859930		1513312		1614944																36406391		as of 2002
+8	1379577	9568093	8340359	5222569	2721098	2867587	1009485	608498		608839		350694		774635		776881		859930		1513519																		34943198		as of 2001
+9	1379577	9568093	8332920	5222569	2721098	2861720	1009485	608498		608839		350694		774635		776881		859930																				34030604		as of 2000
+10	1379577	9570883	8333894	5222569	2709364	2861721	1009485	608498		608839		350694		774635		776881																						33554776		as of 1999
+11	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694		774635																								32587456		as of 1998
+12	1379577	9570883	8333894	5256669	2709364	2360605	1009485	608498		608838		350694																										31679636		as of 1997
+13	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839														Only one large open														31143039		as of 1996
+14	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498																claim for $1 MM plus														30707795		as of 1995
																								=> cap at zero IBNR
Ultimate	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694		774635		776881		859930		1513519		1614989		1358880		2038893		1963812		1993723		1852657		2208129		716675		50361231
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		45		0		-9623		-23544		98149		278693		734716		398807		#########
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ $50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	40.1	%	100.3	%	87.4	%	124.8	%	110.5	%	70.4	%	48.7	%	77.1	%	70.3	%	65.9	%	64.4	%	93.0	%	50.0	%	75.3	%
																								Loss Ratio including $50K premium ==>						54.7	%	53.3	%	72.0	%	36.1	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----------------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											63.9	%	52.3	%	54.7	%	14.4	%	46.8	%	41.9	%	71.7	%	43.9	%	21.8	%	40.0	%	56.6	%	55.2	%	44.4	%	34.3	%	45.0	%	42.9	%	44.4	%
+1									91.2	%	88.3	%	72.2	%	88.8	%	34.6	%	101.0	%	65.6	%	56.0	%	72.0	%	50.6	%	61.3	%	65.7	%	66.2	%	61.1	%	66.3	%	74.4	%	66.7	%
+2							96.7	%	93.3	%	93.2	%	69.5	%	107.0	%	66.3	%	100.0	%	69.4	%	93.1	%	88.4	%	67.3	%	71.9	%	81.2	%	91.9	%	83.6	%	96.1	%	85.0	%
+3					105.3	%	96.3	%	94.2	%	97.6	%	73.8	%	110.4	%	90.2	%	100.0	%	77.1	%	96.7	%	103.3	%	80.5	%	94.9	%	107.3	%	97.2	%	95.4	%	95.1	%
+4			99.4	%	100.9	%	96.8	%	94.9	%	98.8	%	74.3	%	106.7	%	97.7	%	100.0	%	102.8	%	100.0	%	99.9	%	89.1	%	104.6	%	111.1	%	101.2	%	101.2	%
+5	100.0	%	101.2	%	99.8	%	98.2	%	96.2	%	101.2	%	83.8	%	102.2	%	98.9	%	100.0	%	100.5	%	100.0	%	99.8	%	98.6	%	104.3	%	99.7	%	100.5	%
+6	100.0	%	100.7	%	100.1	%	98.7	%	100.2	%	100.3	%	100.7	%	102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.8	%	104.3	%	100.0	%
+7	100.0	%	100.0	%	100.1	%	98.7	%	100.4	%	100.3	%	99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.1	%	99.4	%	100.4	%	100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	99.4	%	100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0%		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.5	%	-1.2	%	4.9	%	15.0	%	33.3	%	55.6	%

Exhibit 6

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab=max350	Claims capped at $350,000 per loss – LAE prorated	the last 5 LDF's.

Paid Losses and LAE plus Case Reserves ------------------------------>

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Diagonal Total
YEAR END																				329809		645873		768541		1228209		976457		683169		813067		1052264		317868		53385186		as of 2009
+1																		619391		765736		993280		892840		1456266		1408207		1321240		1593351		1580345				52309869		as of 2008
+2																723327		760035		1017932		1267171		1103254		1980651		1905645		2017468		1794234						49535665		as of 2007
+3														596923		751499		990114		1218632		1744515		1457853		2085309		2143472		1895626								47367418		as of 2006
+4												383282		906139		776881		961240		1465257		1900875		1510375		2166918		2371295										45071072		as of 2005
+5										601894		383282		888029		776881		960199		1609615		1895372		1483621		2151417												42933216		as of 2004
+6								626115		605944		383282		884341		776881		961923		1657609		1895373		1490494														41136900		as of 2003
+7							1135154	608498		605944		383282		884341		776881		961923		1630355		1826297																39531404		as of 2002
+8						2867587	1146188	608498		608839		383282		884342		776881		961923		1630562																		37957606		as of 2001
+9					2953019	2861720	1146188	608498		608839		383282		884342		776881		961923
+10				5563951	2941285	2861721	1146188	608498		608839		383282		884342		776881
+11			9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342
+12		10619408	9457702	5598051	2941285	2860605	1146188	608498		608838		383282
+13	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839														Only one large open
+14	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498																claim for $1 MM plus
																								=> cap at zero IBNR
Ultimate	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342		776881		961923		1630562		1826344		1490494		2143467		2388974		2082754		2175145		2442740		748448		55255976
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		47		0		-7950		17679		187128		380911		862395		430580		#########
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	114.5	%	87.4	%	139.6	%	119.0	%	79.7	%	53.4	%	81.1	%	85.6	%	68.8	%	75.6	%	102.9	%	52.2	%	82.8	%
																								Loss Ratio including $50K premium ==						57.2	%	62.5	%	79.7	%	37.7	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED ----------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																											20.2	%	35.4	%	51.6	%	57.3	%	40.9	%	32.8	%	38.3	%	43.1	%	42.5	%
+1																									64.4	%	47.0	%	54.4	%	59.9	%	67.9	%	58.9	%	63.4	%	73.3	%	64.7	%
+2																							93.1	%	79.0	%	62.4	%	69.4	%	74.0	%	92.4	%	79.8	%	96.9	%	82.5	%
+3																					67.5	%	96.7	%	102.9	%	74.7	%	95.5	%	97.8	%	97.3	%	89.7	%	91.0	%
+4																			100.0	%	102.5	%	100.0	%	99.9	%	89.9	%	104.1	%	101.3	%	101.1	%	99.3	%
+5																	98.9	%	100.0	%	100.4	%	100.0	%	99.8	%	98.7	%	103.8	%	99.5	%	100.4	%
+6															102.9	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.7	%	103.8	%	100.0	%
+7													99.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8											100.2	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9									100.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10							99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.4	%	0.7	%	9.0	%	17.5	%	35.3	%	57.5	%

Exhibit 7

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 lo CLOSED (as of 1209)
file = Lsdv09 avg5.xls	Using data through 12/09	In this version, we average
tab=max500	Claims capped at $500,000 per loss — LAE prorated	the last 5 LDFs.
Paid Losses and LAE plus Case Reserves ==============>

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																						645873		768541		1382561		1132054		683169		833067		1209691		317868		58859490		as of 2009
+1																				765736		993280		892840		1610618		1721132		1321240		1807092		1740742				57499142		as of 2008
+2																		760035		1017932		1425502		1103254		2135003		2216800		2025346		2124640						54150426		as of 2007
+3																751499		1143104		1218632		2061985		1457853		2239661		2456253		1895626								47367418		as of 2006
+4														1070564		776881		1114230		1640822		2217904		1510375		2321270		2853769										45071072		as of 2005
+5												383282		1052589		776881		1113189		1785180		2212401		1677461		2305769												42933216		as of 2004
+6										605944		383282		1048901		776881		1114913		1833174		2212402		1687915														41136900		as of 2003
+7								608498		605944		383282		1048901		776881		1114913		1805920		2143326																39531404		as of 2002
+8							1299457	608498		608839		383282		1048902		776881		1114913		1806127																		37957606		as of 2001
+9						2861720	1299457	608498		608839		383282		1048902		776881		1114913
+10					3144403	2861721	1299457	608498		608839		383282		1048902		776881
+11				5934988	3144403	2860605	1299457	608498		608839		383282		1048902
+12			10683174	5934988	3144403	2860605	1299457	608498		608838		383282
+13		11989754	10683174	5934988	3144403	2860605	1299457	608498		608839														Only one large open
+14	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498																claim for $1 MM plus
																								==> cap at zero IBNR
Ultimate	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498		608839		383282		1048902		776881		1114913		1806127		2143376		1687915		2299851		2943994		2199815		2709520		2824545		782164		61381015
IBNR	0	0	0	0	0	0	0	0		0		0		0		0		0		0		50		0		-5918		90225		304189		584880		1083803		464296
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	135.9	%	87.4	%	161.8	%	131.8	%	93.5	%	60.5	%	87.0	%	105.4	%	72.7	%	94.1	%	119.0	%	54.6	%	93.7	%
																						Less Ratio including $50K premium ==								60.4	%	77.9	%	92.1	%	39.4	%

Paid plus Case Reserves as a percent of ULTIMATE INCURRED =======>

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																													30.1	%	45.5	%	60.1	%	38.5	%	31.1	%	30.7	%	42.8	%	40.6	%
+1																											42.4	%	46.3	%	52.9	%	70.0	%	58.5	%	60.1	%	66.7	%	61.6	%
+2																									68.2	%	56.4	%	66.5	%	65.4	%	92.8	%	75.3	%	92.1	%	78.4	%
+3																							96.7	%	102.5	%	67.5	%	96.2	%	86.4	%	97.4	%	83.4	%	86.2	%
+4																					102.1	%	100.0	%	99.9	%	90.8	%	103.5	%	89.5	%	100.9	%	96.9	%
+5																			100.0	%	100.4	%	100.0	%	99.8	%	98.8	%	103.2	%	99.4	%	100.3	%
+6																	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	101.5	%	103.2	%	100.0	%
+7															100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8													100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9											100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10									100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100j0	%	100.0	%	100.0	%
+11							100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+ 14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	-0.3	%	3.1	%	13.8	%	21.6	%	38.4	%	59.4	%

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg5.xls	In this version, we average
tab = runoff	the last 5LDF's.
Page 1

		Paid plus Case		Ultimate		Developed
		at 12/01		at 12/09		12/01 IBNR
1	for $100K triangle through 12/98		25255044		25296160		41116
2	for $100K triangle for 1999		568590		569610		1020
3	for $200K triangle for 1999		723327		776881		53554
4	for $200K triangle for 2000-2001		946650		2258351		1311701
5	(l)+.25*(2)+.75*(3)+(4) =		26886337		28279575		1393238

Note1: The 1999 year is included in the Line (5) total as 25% of the $100K version and 75% of $200K version.

		Paid plus Case		Ultimate		Developed
		at 12/02		at 12/09		12/02 IBNR
1	for $100K triangle through12/98		25316403		25296160		-20243
2	for $100K triangle for1999		568173		569610		1437
3	for $200K triangle for1999		751499		776881		25382
4	for $200K triangle for2000-2001		1523221		2258351		735130
5	for $200K triangle for2002		645873		1509312		863439
6	for$250K triangle for2002		645873		1614989		969116
7	(l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6) =		28191165		29868144		1676980

Note1: The 1999 year is included in the Line (7) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (7) total as 25% of the $200K version and 75% of $250K version.

		Paid plus Case		Ultimate		Developed
		at12/03		at12/09		12/03 IBNR
1	for $100K triangle through12/98		25298068		25296160		-1908
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for1999		776881		776881		0
4	for $200K triangle for2000-2001		1855056		2258351		403295
5	for$200K triangle for 2002		935175		1509312		574137
6	for $250K triangle for2002		990725		1614989		624264
7	for $250K triangle for2003		768541		1358880		590339
8	(l)+.25*(2)+.75*{3)+(4) +.25*(5)+.75*(6)+(7) =		29623566		31227024		1603458

Note1: The 1999 year is included in the Line (8) total as 25% of the $100Kversion and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

		Paid plus Case		Ultimate		Developed
		at 12/04		at12/09		12/04 IBNR
1	for$100K trianglethrough 12/98		25296159		25296160		1
2	for$100K triangle for1999		569610		569610		0
3	for $200K triangle for1999		776881		776881		0
4	for$200K triangle for 2000-2001		2007831		2258351		250520
5	for$200K triangle for 2002		1108841		1509312		400471
6	for $250K triangle for 2002		1161618		1614989		453371
7	for $250K triangle for 2003-2004		2018148		3397773		1379625
8	(l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		31195625		33265917		2070292

Note1: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09avg5.xls	In this version, we average
tab = runoff	the last 5 LDF's.
page 2

		Paid plus Case		Ultimate		Developed
		at 12/05		at 12/09		12/05 IBNR
1	for $100K triangle through 12/98		25296159		25296160		1
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for 1999		776881		776881		0
4	for $200K triangle for 2000-2001		2091322		2258351		167029
5	for $200K triangle for 2002		1427045		1509312		82267
6	for $250K triangle for 2002		1532869		1614989		82120
7	for $250K triangle for 2003-2005		3325240		5361585		2036345
8	(l)+-.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7) =		32944197		35229729		2285532

Notel: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

			Paidplus Case		Ultimate		Developed
			at 12/06		at 12/09		12/06 IBNR
1		for $100K triangle through12/98		25296160		25296160		0
2		for $100K triangle for1999		569610		569610		0
3		for $200K triangle for1999		776881		776881		0
4	��	for$200K triangle for2000-2001		2237404		2258351		20947
5		for $200K triangle for2002		1583846		1509312		-74534
6		for $250K triangle for2002		1689522		1614989		-74533
7		for $250K triangle for2003-2005		4531089		5361585		830496
8		for$250K triangle for2006		683169		1993723		1310554
9		for $350K triangle for2006		683169		2082754		1399585
10		(1)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7)+.5*(8)+.5*(9) =		35135988		37267968		2131979

Note1: The 1999year is included in the Line (8)total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in the Line (10) total as 50% of the $250K version and 50% of $350K version.

		Paid plus Case		Ultimate		Developed
		at 12/07		at 12/09		12/07 IBNR
1	for $100K triangle through 12/98		25296160		25296160		0
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for 1999		776881		776881		0
4	for $200K triangle for 2000-2001		2285398		2258351		-27047
5	for $200K triangle for 2002		1578343		1509312		-69031
6	for $250K triangle for 2002		1684019		1614989		-69030
7	for $250K triangle for 2003-2005		5135205		5361585		226380
8	for $250K triangle for 2006		1321240		1993723		672483
9	for $350K triangle for 2006		1321240		2082754		761514
10	for $250K triangle for 2007		833067		1852657		1019590
11	for $350K triangle for 2007		833067		2175145		1342078
12	for $500K triangle for 2007		833067		2709520		1876453
13	(l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7)+.5*(8)+.5*(9)+.22*(10)+.39*(11)+.39*(12)=		37253733		39580571		2326838

Note1: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in the Line (10) total as 50% of the $250K version and 50% of $350K version.

Note3: The 2007 year is included in the Line (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Exhibit 8

American Inter-Fidelity Exchange @12/2009

Auto Liability - BI and PD Liability

file = Lsdv09 avg5.xls	Inthis version, we average
tab = runoff	the last 5LDF's.
Page 3

		Paid plus Case		Ultimate		Developed
		at 12/08		at 12/09		12/08 IBNR
1	for $100K triangle through 12/98		25296159		25296160		1
2	for $100K triangle for 1999		569610		569610		0
3	for $200K triangle for 1999		776881		776881		0
4	for $200K triangle for 2000-2001		2258144		2258351		207
5	for $200K triangle for 2002		1578344		1509312		-69032
6	for $250K triangle for 2002		1684020		1614989		-69031
7	for $250K triangle for 2003-2005		5292693		5361585		68892
8	for $250K triangle for 2006		1916770		1993723		76953
9	for $350K triangle for 2006		2017468		2082754		65286
10	for $250K triangle for 2007		1378354		1852657		474303
11	for $350K triangle for 2007		1593351		2175145		581794
12	for $500K triangle for 2007		1807092		2709520		902428
13	for $250K triangle for 2008		947313		1852657		905344
14	for $500K triangle for 2008		1209691		2709520		1499829
15	(l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+(7)+.5*(8)+.5*(9)+.22*(10)+.39*(l 1)+.39*(12)= +.2*(13)+.8*(14) =		39983405		42118718		2135313

Note1: The 1999 year is included in the Line (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in the Line (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year isincluded in the Line (10) total as 50% of the $250K version and 50% of $350K version,

Note3: The 2007 year is included in the Line (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Note 4: The 2008 year is included in the Line (13) total as 20% of the $250K version and 80% of $500K version.

American Inter-Fidelity at 12/09

Worksheet – Auto Liability Rate Changes from 2008 to 2009

	file = JPCA Sept09Actuaryreport.xls
Insurance rates	sheet = rates v2

NA- not covered by AIFE for this time frame or no revenue

Revised to ignore NA policies

	Per AON:		1st Half of 2009									2nd Half of 2009
Policy period ends:	7/1/2008					Reinsurance									Reinsurance						Rate Change						Premium		Premium			Weighted Average
Company	Except:		Liability rate			Rate			Difference			Liability rate			Rate			Difference			Gross			Net			Gross		Net			Gross			Net
Antler		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%		2.00	%		0.482	%		1.52	%		0.0	%		-0.5	%	$	70,885.76	$	53,960.30			0.00	%		-0.02	%
CNT		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%		2.00	%		0.482	%		1.52	%		0.0	%		-0.5	%	$	338,186.16	$	257,464.52			0.00	%		-0.08	%
Fivestar		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%		2.00	%		0.482	%		1.52	%		0.0	%		-0.5	%	$	90,387.85	$	68,807.00			0.00	%		-0.02	%
Fast Freight Systems		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%		2.00	%		0.482	%		1.52	%		0.0	%		-0.5	%	$	7,975.65	$	6,056.88			0.00	%		0.00	%
Freightmaster		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%
Gulfline		01/01/09-06/30/09		2.00	%		0.48	%		1.53	%		2.00	%		0.482	%		1.52	%		0.0	%		-0.5	%	$	13,973.73	$	10,642.62			0.00	%		0.00	%
Keystone CAM		01/01/09-06/30/09		2.90	%		0.64	%		2.26	%		2.90	%		0.318	%		2.58	%		0.0	%		14.2	%	$	21,105.62	$	17,274.26			0.00	%		0.17	%
Keystone Main-Willmington		01/01/09-06/30/09		2.90	%		0.36	%		2.55	%		2.90	%		0.318	%		2.58	%		0.0	%		1.5	%	$	129,365.94	$	114,068.10			0.00	%		0.11	%
CAM-Gulfport		01/01/09-06/30/09		2.90	%		0.57	%		2.33	%		2.90	%		0.514	%		2.39	%		0.0	%		2.4	%	$	61,855.79	$	50,099.68			0.00	%		0.08	%
Patriot		01/01/09-06/30/09		3.18	%		0.44	%		2.74	%		3.18	%		0.279	%		2.90	%		0.0	%		6.9	%	$	480,715.23	$	422,076.80			0.00	%		1.71	%
TLI		01/01/09-06/30/09		3.35	%		0.23	%		3.12	%		3.35	%		0.228	%		3.12	%		0.0	%		0.1	%	$	69,503.79	$	64,759.49			0.00	%		0.00	%
TLIGA		01/01/09-06/30/09		3.20	%		0.23	%		2.97	%		3.20	%		0.228	%		2.97	%		0.0	%		0.1	%	$	91,181.13	$	84,646.58			0.00	%		0.00	%
Blue & Gray	4/1/2009	01/01/09-03/31/09		3.00	%		0.56	%		2.44	%
Bruin		01/01/09-06/30/09		3.50	%		0.60	%		2.90	%		3.50	%		0.540	%		2.96	%		0.0	%		2.1	%	$	35,432.75	$	29,544.13			0.00	%		0.04	%
CAM		01/01/09-06/30/09		3.40	%		0.57	%		2.83	%		3.40	%		0.514	%		2.89	%		0.0	%		2.0	%	$	52,902.32	$	44,296.24			0.00	%		0.06	%
Centrans		01/01/09-06/30/09		3.00	%		0.83	%		2.17	%		3.00	%		0.318	%		2.68	%		0.0	%		23.6	%	$	3,649.29	$	2,892.36			0.00	%		0.05	%
Commercial Cartage		01/01/09-06/30/09		3.25	%		0.62	%		2.63	%		3.25	%		0.555	%		2.70	%		0.0	%		2.5	%	$	49,837.56	$	40,806.48			0.00	%		0.07	%
Liberty		01/01/09-06/30/09		3.50	%		0.65	%		2.85	%		3.50	%		0.571	%		2.93	%		0.0	%		2.8	%	$	44,311.63	$	36,438.43			0.00	%		0.07	%
Enterprise	4/1/2008	01/01/09-03/31/09		3.00	%		0.88	%		2.12	%		3.00	%		0.501	%		2.50	%		0.0	%		17.9	%	$	25,480.65	$	19,545.04			0.00	%		0.24	%
Cross Transportation (Exceter)		01/01/09-06/30/09		3.30	%		0.88	%		2.42	%		3.30	%		0.576	%		2.72	%		0.0	%		12.6	%	$	42,599.58	$	33,226.31			0.00	%		0.29	%
Thunderbird		01/01/09-06/30/09		3.00	%		0.65	%		2.35	%		3.25	%		0.318	%		2.93	%		8.3	%		24.6	%	$	6,007.63	$	5,017.64			0.03	%		0.09	%
Venture		01/01/09-06/30/09		3.50	%		0.36	%		3.15	%		3.50	%		0.318	%		3.18	%		0.0	%		1.2	%	$	98,798.37	$	88,638.22			0.00	%		0.07	%
Freightmaster Kearny		01/01/09-06/30/09		3.60	%		0.00	%		3.60	%
Lucas	4/1/2008	01/01/09-03/31/09		3.00	%		0.83	%		2.17	%
		Average		2.90	%		0.53	%		2.36	%		2.91	%		0.43	%		2.48	%		0.42	%		5.55	%	$	1,734,156.68	$	1,450,260.07			0.03	%		2.93	%
																															Weighted Average – but NOT Including NA accounts

Exhibit 9

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

Projection of Ultimate Claim Counts

Using data through 12/09

Source: diskette file closed94 to closed1209

file = Claim DEV 09.xls

 

																	In this version, we average
Reported Claims --------------------------------------->																	the last 5 LDF’s.						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END							153	73	73	53	75	54	72	98	145	161	268	205	223	251	159	114	7043	as of 2009
+1						416	158	80	80	60	81	65	84	105	158	174	276	223	238	261	169		6917	as of 2008
+2					396	417	160	81	80	61	82	66	86	106	159	175	278	226	240	264			6744	as of 2007
+3				907	399	418	161	81	80	62	82	66	86	106	159	175	278	228	239				6475	as of 2006
+4			1606	907	399	418	161	81	80	62	82	66	86	106	159	175	278	228					6232	as of 2005
+5		1153	1606	907	399	418	161	81	80	62	82	66	86	106	159	175	278						6018	as of 2004
+6	210	1153	1606	907	399	418	161	81	80	62	82	66	86	106	159	175							5736	as of 2003
+7	210	1153	1606	907	399	418	161	81	80	62	82	66	86	106	159								5561	as of 2002
+8	210	1153	1606	907	399	418	161	81	80	62	82	66	86	106									5407	as of 2001
+9	210	1153	1606	907	399	418	161	81	80	62	82	66	86										5296	as of 2000
+10	210	1153	1606	907	399	418	161	81	80	62	82	66											5211	as of 1999
+11	210	1153	1606	907	399	418	161	81	80	62	82												5150	as of 1998
+12	210	1153	1606	907	399	418	161	81	80	62													5068	as of 1997
+13	210	1153	1606	907	399	418	161	81	80														5006	as of 1996
+14	210	1153	1606	907	399	418	161	81															4923	as of 1995
Ultimate	210	1153	1606	907	399	418	161	81	80	62	82	66	86	106	159	175	278	228	239	264	171	122	7053
IBNR	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	2	8	10
														Reported Claims on Policies with $50K deductible ====>					50	92	65	49	256
Earned Premium								1111129	996547	1188211	1161154	1122605	1001541	1706919	3571083	4591920	4806690	4022839	4749908	4463488	3714046	2364172	40572252
Ceded								780724	609430	313882	389134	234098	312397	336954	1278553	1800513	2162519	1230531	1105789	985180	648283	380448	12568435
Net @ 50K Deductible																			616693	599647	691878	551144	2459362
Net Earned								330405	387117	874329	772020	888507	689144	1369965	2292530	2791407	2644171	2792308	3027426	2878661	2373886	1432580	25544455
Claims per $1000 Net Premium (including $50K premiums and claims)								0.245	0.207	0.071	0.106	0.074	0.125	0.077	0.069	0.063	0.105	0.082	0.066	0.076	0.056	0.061	0.074
Claims per $1000 Net Premium (excluding $50K premiums and claims)								0.245	0.207	0.071	0.106	0.074	0.125	0.077	0.069	0.063	0.105	0.082	0.062	0.060	0.045	0.051	0.073

Paid plus Case Reserves as a percent of ULTIMATE INCURRED----------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											0.0	%	95.0	%	90.1	%	91.3	%	85.5	%	91.5	%	81.8	%	83.7	%	92.5	%	91.2	%	92.0	%	96.4	%	89.9	%	93.3	%	95.0	%	93.1	%	93.5	%
+1									0.0	%	99.5	%	98.1	%	98.8	%	100.0	%	96.8	%	98.8	%	98.5	%	97.7	%	99.1	%	99.4	%	99.4	%	99.3	%	97.8	%	99.6	%	98.8	%	99.0	%
+2							0.0	%	99.2	%	99.8	%	99.4	%	100.0	%	100.0	%	98.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	99.1	%	100.4	%	99.9	%
+3					0.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+4			0.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+5	0.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+6	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+7	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+8	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+9	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+10	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+11	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.1	%	1.0	%	6.5	%

Exhibit 10

American Inter-Fidelity Exchange @ 12/2009

Auto Liability — BI and PD Liability

file = Exh 10 Avg AutoLiab Clm 1209.xls

	1988-1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
Ultimate Claim Counts		4854		81		80		62		82		66		86		106		159		175		278		228		239		264		171		122		7053
Average of Last 5 LDF's
Cap at $100,000		23428877		547315		509200		200694		610074		569610		665527		1155712		1204751		1153712		1544353		1082459		1268837		1257661		1325737		558584		37083104
Cap at $200,000		29122233		608498		608839		300694		719781		776881		808933		1449418		1509312		1293073		1982435		1719630		1863902		1701590		2079484		699652		47244356
Cap at $250,000		31120477		608498		608839		350694		774635		776881		859930		1513519		1614989		1358880		2038893		1963812		1993723		1852657		2208129		716675		50361231
Cap at $350,000		34103283		608498		608839		383282		884342		776881		961923		1630562		1826344		1490494		2143467		2388974		2082754		2175145		2442740		748448		55255976
Cap at $500,000		37442393		608498		608839		383282		1048902		776881		1114913		1806127		2143376		1687915		2299851		2943994		2199815		2709520		2824545		782164		61381015
Average Claim @ $100K	$	4,827	$	6,757	$	6,365	$	3,237	$	7,440	$	8,630	$	7,739	$	10,903	$	7,577	$	6,593	$	5,555	$	4,748	$	5,309	$	4,759	$	7,764	$	4,584	$	5,258
Average Claim @ $200K	$	6,000	$	7,512	$	7,610	$	4,850	$	8,778	$	11,771	$	9,406	$	13,674	$	9,493	$	7,389	$	7,131	$	7,542	$	7,799	$	6,440	$	12,178	$	5,741	$	6,699
Average Claim @ $250K	$	6,411	$	7,512	$	7,610	$	5,656	$	9,447	$	11,771	$	9,999	$	14,278	$	10,157	$	7,765	$	7,334	$	8,613	$	8,342	$	7,011	$	12,932	$	5,881	$	7,141
Average Claim @ $350K	$	7,026	$	7,512	$	7,610	$	6,182	$	10,785	$	11,771	$	11,185	$	15,383	$	11,486	$	8,517	$	7,710	$	10,478	$	8,714	$	8,232	$	14,306	$	6,142	$	7,835
Average Claim @ $500K	$	7,714	$	7,512	$	7,610	$	6,182	$	12,791	$	11,771	$	12,964	$	17,039	$	13,480	$	9,645	$	8,273	$	12,912	$	9,204	$	10,254	$	16,542	$	6,418	$	8,703
Average of Last 3 LDF's
Cap at $100,000		23428877		547315		509200		200694		610074		569610		665527		1155712		1204779		1153712		1522803		1036223		1185259		1133973		1160290		528755		36612804
Cap at $200,000		29122233		608498		608839		300694		719781		776881		808933		1449418		1509340		1293073		1974087		1643881		1746582		1556535		1900730		697829		46717336
Cap at $250,000		31120477		608498		608839		350694		774635		776881		859930		1513519		1615018		1358880		2031194		1878541		1866611		1672287		2036378		717346		49789730
Cap at $350,000		34103283		608498		608839		383282		884342		776881		961923		1630562		1826375		1490494		2136943		2318618		1975709		1943293		2261930		769235		54680208
Cap at $500,000		37442393		608498		608839		383282		1048902		776881		1114913		1806127		2143408		1687915		2294757		2910894		2119198		2407388		2657108		848641		60859145
Average Claim @ $100K	$	4,827	$	6,757	$	6,365	$	3,237	$	7,440	$	8,630	$	7,739	$	10,903	$	7,577	$	6,593	$	5,478	$	4,545	$	4,959	$	4,291	$	6,795	$	4,339	$	5,191
Average Claim @ $200K	$	6,000	$	7,512	$	7,610	$	4,850	$	8,778	$	11,771	$	9,406	$	13,674	$	9,493	$	7,389	$	7,101	$	7,210	$	7,308	$	5,891	$	11,132	$	5,726	$	6,624
Average Claim @ $250K	$	6,411	$	7,512	$	7,610	$	5,656	$	9,447	$	11,771	$	9,999	$	14,278	$	10,157	$	7,765	$	7,306	$	8,239	$	7,810	$	6,329	$	11,926	$	5,886	$	7,060
Average Claim @ $350K	$	7,026	$	7,512	$	7,610	$	6,182	$	10,785	$	11,771	$	11,185	$	15,383	$	11,487	$	8,517	$	7,687	$	10,169	$	8,267	$	7,354	$	13,247	$	6,312	$	7,753
Average Claim @ $500K	$	7,714	$	7,512	$	7,610	$	6,182	$	12,791	$	11,771	$	12,964	$	17,039	$	13,481	$	9,645	$	8,255	$	12,767	$	8,867	$	9,111	$	15,561	$	6,964	$	8,629
Average of Last 2 LDF's
Cap at $100,000		23428877		547315		509200		200694		610074		569610		665527		1155713		1204816		1153712		1532561		1035483		1180309		1114837		1116140		495504		36520373
Cap at $200,000		29122233		608498		608839		300694		719781		776881		808933		1449419		1509377		1293073		1950898		1628831		1772510		1526101		1797942		627973		46501984
Cap at $250,000		31120477		608498		608839		350694		774635		776881		859930		1513520		1615055		1358880		2008940		1858296		1899949		1663207		1933434		641611		49592847
Cap at $350,000		34103283		608498		608839		383282		884342		776881		961923		1630563		1826414		1490494		2116344		2327954		1989021		1957815		2138335		692822		54496813
Cap at $500,000		37442393		608498		608839		383282		1048902		776881		1114914		1806128		2143450		1687915		2276207		2981038		2097044		2485768		2565528		788117		60814903
Average Claim @ $100K	$	4,827	$	6,757	$	6,365	$	3,237	$	7,440	$	8,630	$	7,739	$	10,903	$	7,577	$	6,593	$	5,513	$	4,542	$	4,939	$	4,219	$	6,537	$	4,066	$	5,178
Average Claim @ $200K	$	6,000	$	7,512	$	7,610	$	4,850	$	8,778	$	11,771	$	9,406	$	13,674	$	9,493	$	7,389	$	7,018	$	7,144	$	7,416	$	5,775	$	10,530	$	5,153	$	6,593
Average Claim @ $250K	$	6,411	$	7,512	$	7,610	$	5,656	$	9,447	$	11,771	$	9,999	$	14,278	$	10,158	$	7,765	$	7,226	$	8,150	$	7,950	$	6,294	$	11,323	$	5,265	$	7,032
Average Claim @ $350K	$	7,026	$	7,512	$	7,610	$	6,182	$	10,785	$	11,771	$	11,185	$	15,383	$	11,487	$	8,517	$	7,613	$	10,210	$	8,322	$	7,409	$	12,523	$	5,685	$	7,727
Average Claim @ $500K	$	7,714	$	7,512	$	7,610	$	6,182	$	12,791	$	11,771	$	12,964	$	17,039	$	13,481	$	9,645	$	8,188	$	13,075	$	8,774	$	9,407	$	15,025	$	6,467	$	8,623

		Remove claim counts from $50,000 deductible policies
				2006		2007		2008		2009		2006-2009
		$50,000 deductible policies			50		92		65		49	256
2003-2005 avg		Ultimate excluding 50K deductible			189		172		106		73
$	7,904	Average Claim @ $250K	Last 5	$	10,549	$	10,756	$	20,880	$	9,836
$	7,770		Last 3	$	9,876	$	9,709	$	19,256	$	9,845
$	7,714		Last 2	$	10,053	$	9,656	$	18,283	$	8,805
$	8,902	Average Claim @ $350K	Last 5	$	11,020	$	12,623	$	23,099	$	10,272
$	8,791		Last 3	$	10,453	$	11,282	$	21,389	$	10,557
$	8,780		Last 2	$	10,524	$	11,367	$	20,220	$	9,508
$	10,277	Average Claim @ $500K	Last 5	$	11,639	$	15,731	$	26,709	$	10,734
$	10,222		Last 3	$	11,213	$	13,977	$	25,126	$	11,647
$	10,303		Last 2	$	11,095	$	14,432	$	24,260	$	10,816

file=Exh 11 AutoLiab IBNRsum 12-09.xls

Exhibit 11

American Inter-Fidelity Exchange at 12/09

Auto Liability IBNR Summary

Average of Last 5 Loss Development Factors

Accident
Years	@ $100K		@ $200K		@ $250K		@ $350K		@ $500K		Selected
1996+prior												0
1997	$	0	$	0	$	0	$	0	$	0	$	0
1998	$	0	$	0	$	0	$	0	$	0	$	0
1999	$	0	$	0	$	0	$	0	$	0	$	0
2000	$	0	$	0	$	0	$	0	$	0	$	0
2001	$	0	$	0	$	0	$	0	$	0	$	0
2002	$	44	$	44	$	45	$	47	$	50	$	45
2003	$	0	$	0	$	0	$	0	$	0	$	0
2004	$	-31,471	$	-10,550	$	-9,623	$	-7,950	$	-5,918	$	-9,623
2005	$	-23,870	$	-17,622	$	-23,544	$	17,679	$	90,225	$	-23,544
2006	$	-5,561	$	77,067	$	98,149	$	187,128	$	304,189	$	142,638
2007	$	75,276	$	237,761	$	278,693	$	380,911	$	584,880	$	437,971
2008	$	272,704	$	660,770	$	734,716	$	862,395	$	1,083,803	$	1,013,986
2009	$	240,716	$	381,784	$	398,807	$	430,580	$	464,296	$	450,544
Total	$	527,839	$	1,329,255	$	1,477,243	$	1,870,790	$	2,521,525	$	2,012,016

Average of Last 3 Loss Development Factors

Accident
Years	@ $100K		@ $200K		@ $250K		@ $350K		@ $500K		Selected
1996+prior
1997	$	0	$	0	$	0	$	0	$	0	$	0
1998	$	0	$	0	$	0	$	0	$	0	$	0
1999	$	0	$	0	$	0	$	0	$	0	$	0
2000	$	0	$	0	$	0	$	0	$	0	$	0
2001	$	0	$	0	$	0	$	0	$	0	$	0
2002	$	72	$	72	$	74	$	78	$	82	$	74
2003	$	0	$	0	$	0	$	0	$	0	$	0
2004	$	-53,021	$	-18,898	$	-17,322	$	-14,474	$	-11,012	$	-17,322
2005	$	-70,106	$	-93,371	$	-108,815	$	-52,677	$	57,125	$	-108,815
2006	$	-89,139	$	-40,253	$	-28,963	$	80,083	$	223,572	$	25,560
2007	$	-48,412	$	92,706	$	98,323	$	149,059	$	282,748	$	190,036
2008	$	107,257	$	482,016	$	562,965	$	681,585	$	916,366	$	845,686
2009	$	210,887	$	379,961	$	399,478	$	451,367	$	530,773	$	503,201
Total	$	57,539	$	802,235	$	905,742	$	1,295,022	$	1,999,655	$	1,438,421

Average of Last 2 Loss Development Factors

Accident
Years	@ $100K		@ $200K		@ $250K		@ $350K		@ $500K		Selected
1996+prior
1997	$	0	$	0	$	0	$	0	$	0	$	0
1998	$	0	$	0	$	0	$	0	$	0	$	0
1999	$	0	$	0	$	0	$	0	$	0	$	0
2000	$	0	$	0	$	0	$	0	$	1	$	0
2001	$	1	$	1	$	1	$	1	$	1	$	1
2002	$	109	$	109	$	111	$	117	$	124	$	111
2003	$	0	$	0	$	0	$	0	$	0	$	0
2004	$	-43,263	$	-42,087	$	-39,576	$	-35,073	$	-29,562	$	-39,576
2005	$	-70,846	$	-108,421	$	-129,060	$	-43,341	$	127,269	$	-129,060
2006	$	-94,089	$	-14,325	$	4,375	$	93,395	$	201,418	$	48,885
2007	$	-67,548	$	62,272	$	89,243	$	163,581	$	361,128	$	224,270
2008	$	63,107	$	379,228	$	460,021	$	557,990	$	824,786	$	751,833
2009	$	177,636	$	310,105	$	323,743	$	374,954	$	470,249	$	439,482
Total	$	-34,892	$	586,883	$	708,859	$	1,111,627	$	1,955,413	$	1,295,947

Note 1: For 2006, fraction of premium for $350K attachment has increased by quarter as follows:

1st Qtr		2nd Qtr		3rdQtr		4th Qtr		Total Year
	0.0%		26.2%		70.9%		61.2%		42.3%

Use 50% weighting of $350K and $250K for 2006, because of higher amount of IBNR in more recent accident quarters.

Note 2: Actual premium weights for 2007 are: 22% for $250K attachment and 78% for $350K/$500K attachment. Use 22% weighting of $250K and 78% of $350K/$500K for 2007.

Further split the $350K/$500K category 50% in $500K and 50% in $350K, because difference between first half and second half of the year is not as important after one more year of development

$250K		$350K		$500K		Total
	22%		39%		39%		100%

Note 3: Corrected premium weights for 2008 are: 80% at $500K attachment and 20% at $250K attachment Actual premium weights for 2009 are: 79% at $500K attachment and 21% at $250K attachment

Exhibit 11A

American Inter-Fidelity Exchange at 12/09

Projection of Auto Liability 2008 Accident Year Using Quarterly Loss Development Factors

Projections at the $600,000 and $250,000 reinsurance attachment points

file = quarterly dev results 1209.xls

sheet = at 500k

	Net Paid		Net Reserve		Total Inc			Exc 500K		Inc 500K		Exc 250K				Net Paid		Net Reserve		Total Inc		Exc 500K		Inc 500K		Exc 250K		Inc 250K
	At the Respective Year-Ends 12/04 thru 12/09															At of 12/31/2009
4th Qtr 2009	$	25,385	$	12,436	$	37,822				$	37,822			$	37,822	$	25,385	$	12,436	$	37,822			$	37,822			$	37,822
3rd Qtr 2009	$	17,349	$	44,474	$	61,823				$	61,823			$	61,823	$	17,349	$	44,474	$	61,823			$	61,823			$	61,823
2nd Qtr 2009	$	3,021	$	36,950	$	39,972				$	39,972			$	39,972	$	3,021	$	36,950	$	39,972			$	39,972			$	39,972
1st Qtr 2009	$	34,635	$	143,616	$	178,251				$	178,251			$	178,251	$	34,635	$	143,616	$	178,251			$	178,251			$	178,251
4th Qtr 2008	$	10,475	$	58,360						$	68,835			$	68,835	$	45,535	$	69,372	$	114,907			$	114,907			$	114,907
3rd Qtr 2008	$	1,852	$	22,101	$	23,952				$	23,952			$	23,952	$	42,152	$	66,802	$	106,854			$	108,954			$	108,954
2nd Qtr 2008	$	10,763	$	117,433	$	128,196				$	128,196			$	128,196	$	42,705	$	200,000	$	242,705			$	242,705			$	242,705
1st Qtr 2008	$	183,190	$	810,765	$	993,955	3/11/2006	$	5,248	$	988,707	$	267,626	$	726,329	$	557,772	$	721,751	$	1,278,523	$	5,347	$	1,274,176	$	272,676	$	1,006,847
4th Qtr 2007	$	6,358	$	39,258	$	45,825				$	45,625			$	45,625	$	108,238	$	76,591	$	184,829			$	184,829			$	184,829
3rd Qtr 2007	$	32,845	$	127,474	$	160,319				$	180,319			$	160,319	$	201,702	$	73,116	$	274,618			$	274,818			$	274,818
2nd Qtr 2007	$	14,742	$	140,609	$	155,551				$	155,551			$	155,551	$	102,931	$	223,752	$	326,683			$	326,683			$	326,683
1st Qtr 2007	$	73,113	$	398,459	$	471,571				$	471,571			$	471,571	$	1,472,883	$	158,817	$	1,631,700	$	293,390	$	1,338,310	$	844,066	$	787,634
4th Qtr 2006	$	456	$	131,160	$	131,813				$	131,617			$	131,617	$	619,646	$	336,836	$	956,482			$	856,482	$	52	$	956,430
3rd Qtr 2006	$	34,194	$	137,025	$	171,218				$	171,218			$	171,218	$	325,037	$	13,000	$	338,037			$	338,037			$	338,037
2nd Qtr 2006	$	29,142	$	$149,717	$	178,859				$	176,859			$	178,859	$	312,716	$	16,750	$	329,466			$	329,466			$	329,466
1st Qtr 2006	$	55,190	$	146,285	$	201,475				$	201,475			$	201,475	$	268,888	$	2,953	$	271,641			$	271,641			$	271,641
4th Qtr 2005	$	16,610	$	132,795	$	49,405				$	149,405			$	149,405	$	411,002	$	528,019	$	939,021	$	5,591	$	933,430	$	285,131	$	653,890
3rd Qtr 2005	$	37,415	$	134,815	$	172,231				$	172,231			$	172,231	$	774,683	$	5,000	$	779,683	$	185,091	$	594,592	$	443,635	$	336,048
2nd Qtr 2005	$	65,747	$	752,205	$	817,952	5/31/2005	$	176,344	$	641,608	$	435,672	$	382,280	$	551,289	$	1,000,000	$	1,551,289	$	532,075	$	1,019,214	$	860 404	$	690,885
1st Qtr 2005	$	96,962	$	71,847	$	168,810				$	168,810			$	168,810	$	302,433	$	4,100	$	306,533			$	306,533			$	306,533
4th Qtr 2004	$	28,980	$	68,649	$	97,629				$	87,829			$	87,629	$	364,279	$	40,000	$	404,279			$	404,279			$	404,279
3rd Qtr 2004	$	43,343	$	85,150	$	128,492				$	128,492			$	128,492	$	377,045	$	0	$	377,045			$	377,045			$	377,045
2nd Qtr 2004	$	174,605	$	73,628	$	248,233				$	248,233			$	248,233	$	412,167	$	6,845	$	419,012			$	419,012			$	419,012
1st Qtr 2004	$	905,955	$	382,407	$	1,268,362	3/1/2004	$	360,155	$	908,207	$	617,408	$	650,954	$	1,339,159	$	126,429	$	1,465,586	$	360,155	$	1,105,434	$	617,408	$	848,180
										Inc 500K														Inc 500K

Calculations for the $600,000 Reinsurance Attachment

	(1)		(2)		(3)		(4)			(5)
			Remaining				Selected
Quarterly Development Factors at 500K			Annual Factor				at $500K			Ultimate for 2009
4th Qtr 2004		0.24		1.003		0.24
4th Qtr 2005		0.16		0.969		0.16		0.22	0.18	$	210,120
4th Qtr 2006		0.14		0.862		0.12		0.18
4th Qtr 2007		0.25		0.784		0.19
4th Qtr 2008		0.60		0.616		0.37
3rd Qtr 2004		0.34		1.003		0.34
3rd Qtr 2005		0.29		0.969		0.28		0.33	0.35	$	176,638
3rd Qtr 2006		0.51		0.862		0.44		0.38
3rd Qtr 2007		0.58		0.784		0.46
3rd Qtr 2008		0.22		0.616		0.14
2nd Qtr 2004		0.59		1.003		0.59
2nd Qtr 2005		0.63		0.969		0.61		0.47	0.50	$	79,944
2nd Qtr 2006		0.54		0.862		0.47		0.51
2nd Qtr 2007		0.48		0.784		0.37
2nd Qtr 2008		0.53		0.616		0.33
1st Qtr 2004		0.82		1.003		0.82
1st Qtr 2005		0.74		0.969		0.72		0.59	0.60	$	297,085
1st Qtr 200S		0.74		0.862		0.64		0.61
1st Qtr 2007		0.35		0.784		0.28
1st Qtr 2008		0.78		0.616		0.48
						Average =			0.408	$	763,787
										$	317,868	2009 reported
				Actual annual factor =					0.406	$	782,926
						Dollar Change in IBNR =				$	19,139

(1) is Reported at the respective year-end divided by Reported at 12/09 for that accident quarter

(2) is the remaining development factor at 12/09 – from Exhibit 7 (Avg 5)

(3) is (1) * (2). This adjustment includes the remaining tall development – from 12/09 to ultimate.

(4) is our selected quarterly development factor

(5) is the quarterly reported at 12/09 divided by (4) to give a quarterly ultimate

Exhibit 11A

American Inter-Fidelity Exchange at 12/09

Projection of Auto Liability 2008 Accident Year Using Quarterly Loss Development Factors

Projections at the $500,000 and $250,000 reinsurance attachment points

file = quarterly dev results 1208.xls

sheet = at 250K
 

	Net Paid		Net Reserve		Total Inc			Exc 500K		Inc 500K		Exc 250K		Inc 250K		Net Paid		Net Reserve		Total Inc		Exc 500K		Inc 500K		Exc 250K		Inc 250K
	At theRespective Year-Ends12/04 thru 12/09															As of 12/31/2009
4th Qtr 2009	$	25,385	$	12,436	$	37,822				$	37,822			$	37,822	$	25,385	$	12,438	$	37,822			$	37,822			$	37,822
3rd Qtr 2009	$	17,349	$	44,474	$	61,823				$	61,823			$	61,823	$	17,349	$	44,474	$	61,823			$	61,823			$	61,823
2ndQtr 2009	$	3,021	$	36,950	$	39,972				$	39,972			$	39,972	$	3,021	$	36,950	$	39,972			$	39,972			$	39,972
1st Qtr 2009	$	34,635	$	143,616	$	178,251				$	178,251			$	178,251	$	34,635	$	143,616	$	178,251			$	178,251			$	178,251
4thQtr 2008	$	10,475	$	58,360	$	68,836				$	68,836			$	68,835	$	45,535	$	69,372	$	114,907			$	114,907			$	114,907
3rdQtr 2008	$	1,652	$	22,101	$	23,952				$	23,952			$	23,952	$	42,152	$	66,802	$	108,954			$	108,954			$	108,954
2ndQtr 2008	$	10,763	$	117,433	$	128,196				$	128,196			$	128,196	$	42,705	$	200,000	$	242,705			$	242,705			$	242,705
1st Qtr 2008	$	163,190	$	810,765	$	993,955	3/11/2008	$	5,248	$	988,707	$	267,626	$	726,328	$	557,772	$	721,751	$	1,279,523	$	5,347	$	1,274,176	$	272,676	$	1,006,847
4thQtr 2007	$	6,388	$	39,258	$	45,625				$	45,625			$	45,625	$	108,238	$	76,591	$	164,829			$	184,829			$	184,829
3rdQtr 2007	$	32,845	$	127,474	$	160,319				$	160,319			$	160,319	$	201,702	$	73,116	$	274,818			$	274,818			$	274,818
2nd Qtr 2007	$	14,742	$	140,809	$	155,551				$	155,551			$	155,551	$	102,931	$	223,752	$	326,663			$	326,683			$	326,683
1st Qtr 2007	$	73,113	$	398,459	$	471,571				$	471,571			$	471,671	$	1,472,883	$	156,817	$	1,631,700	$	293,390	$	1,338,310	$	844,066	$	787,634
4th Qtr 2006	$	456	$	131,160	$	131,617				$	131,617			$	131,617	$	619,646	$	336,836	$	956,482			$	956,482	$	52	$	956,430
3rdQtr2006	$	34,194	$	137,025	$	171,218				$	171,218			$	171,218	$	325,037	$	13,000	$	338,037			$	338,037			$	338,037
2nd Qtr 2006	$	29,142	$	149,717	$	178,859				$	178,859			$	178,859	$	312,716	$	16,750	$	329,466			$	329,466			$	329,466
1st Qtr 2006	$	55,190	$	146,285	$	201,475				$	201,475			$	201,475	$	268,688	$	2,953	$	271,641			$	271,641			$	271,641
4th Qtr 2005	$	16,610	$	132,795	$	149,405				$	149,405			$	149,405	$	411,002	$	528,019	$	939,021	$	5,591	$	933,430	$	285,131	$	653,800
3rdQtr 2005	$	37,415	$	134,815	$	172,231				$	172,231			$	172,231	$	774,683	$	5,000	$	779,683	$	185,091	$	594,592	$	443,635	$	336,048
2nd Qtr 2005	$	65,747	$	752,205	$	817,952	5/31/2005	$	176,344	$	641,608	$	435,672	$	382,280	$	551,289	$	1,000,000	$	1,551,289	$	532,075	$	1,019,214	$	860,404	$	690,885
1st Qtr 2005	$	96,962	$	71,847	$	168,810				$	168,810			$	168,810	$	302,433	$	4,100	$	306,533			$	306,533			$	306,533
4th Qtr 2004	$	28,980	$	68,649	$	97,629				$	97,629			$	97,629	$	364,279	$	40,000	$	404,279			$	404,279			$	404,279
3rd Qtr 2004	$	43,343	$	85,150	$	128,492				$	128,492			$	128,492	$	377,045	$	0	$	377,045			$	377,045			$	377,045
2ndQtr 2004	$	174,605	$	73,628	$	248,233				$	248,233			$	248,233	$	412,167	$	6,845	$	419,012			$	419,012			$	419,012
1st Qtr 2004	$	905,955	$	362,407	$	1,268,362	3/1/2004	$	360,155	$	908,207	$	617,408	$	650,954	$	1,339,159	$	126,429	$	1,465,588	$	360,155	$	1,105,434	$	617,408	$	848,180

Calculations forthe $250,000 Reinsurance Attachment
	(1)	(2)		(3)		(4)			(5)
		Remaining		Factor		Selected
Quarterly Development Factors at 250K		Annual Factor		to Ultimate		at $250K			Ultimate for 2009
4th Qtr 2004	0.24		1.004		0.24
4th Qtr 2005	0.23		0.993		0.23	0.24		0.20	$	189,108
4th Qtr 2006	0.14		0.910		0.13	0.20
4th Qtr 2007	0.26		0.825		0.20
4th Qtr 2008	0.60		0.647		0.39
3rd Qtr 2004	0.34		1.004		0.34
3rd Qtr 2005	0.51		0.993		0.51	0.39		0.42	$	147,198
3rd Qtr 2006	0.51		0.910		0.46	0.45
3rd Qtr 2007	0.58		0.825		0.48
3rd Qtr 2008	0.22		0.647		0.14
2nd Qtr 2004	0.59		1.004		0.59
2nd Qtr 2005	0.55		0.993		0.55	0.47		0.51	$	78,376
2nd Qtr 2006	0.54		0.910		0.49	0.51
2nd Qtr 2007	0.48		0.625		0.39
2nd Qtr 2008	0.53		0.647		0.34
1st Qtr 2004	0.77		1.004		0.77
1st Qtr 2005	0.74		0.993		0.74	0.63		0.65	$	274,232
1st Qtr 2006	0.74		0.910		0.67	0.67
1st Qtr 2007	0.60		0.825		0.49
1st Qtr 2008	0.72		0.647		0.47
						Average =		0.445	$	688,915
									$	317,868 2009 reported
						Actual annual factor =		0.444	$	715,919
							Change =		$	-27,004

(1)   is Reported at the respective year-end divided by Reported at 12/09 for that accident quarter

(2)   is the remaining development factor at 12/09 – from Exhibit #5 (Avg 5)

(3)   is (1) * (2). This adjustment includes the remaining tail development – from 12/09 to ultimate.

(4)   is our selected quarterly development factor

(5)   is the quarterly reported at 12/09 divided by (4) to give a quarterly ultimate

Exhibit 12

American Inter-Fidelity Exchange at 12/2009

Auto Liability – Calculation of Alternate IBNR for Policies with $50,000 Deductibles

fi1e=2009 50000 ded.xls	PAGE 1
sheet = IBNR calc

On this sheet, we calculate IBNR as if these claims were all at a $5,000 deductible, and compare this with the IBNR actually produced in our Exhibit 1-7 triangles for this block of business

			Accident Year								Accident Year
	Total		2006		2007		2008		2009		2006		2007		2008		2009		Total
Paid at $50K	$	904,288	$	238,435	$	599,016	$	66,837	$	0
Reserve at $50K	$	388,496	$	86,821	$	202,227	$	79,447	$	20,001
Paid+Res at $50K	$	1,292,784	$	325,256	$	801,243	$	146,284	$	20,001
Adjust Pd at $5K	$	1,643,256	$	457,428	$	907,837	$	236,890	$	41,101
Adjust Res at $5k	$	887,247	$	112,416	$	399,355	$	292,326	$	83,149
Paid & Case at $5K	$	2,530,502	$	569,844	$	1,307,192	$	529,216	$	124,250	$	325,256	$	801,243	$	146,284	$	20,001
Loss Development %'s for Avg Last 5				0.913		0.805		0.619		0.407		0.913		0.805		0.619		0.407
Ultimate at $5K level			$	624,144	$	1,624,851	$	854,953	$	305,283	$	356,250	$	995,951	$	236,323	$	49,143
IBNR at $5K level	$	878,729	$	54,301	$	317,658	$	325,737	$	181,033	$	30,994	$	194,708	$	90,039	$	29,142	$	344,883
											IBNR already in the Avg Last 5 $350K triangle
											(for 2006-07) and the Avg Last 5 $500K triangle (2007-09)
								Possible Addn IBNR			$	23,307	$	122,950	$	235,698	$	151,891	$	533,846

Exhibit 12

American Inter-Fidelity Exchange at 12/2009

Auto Liability – Calculation of Alternate IBNR for Policies with $50,000 Deductibles

file=2009 50000 ded.xls	PAGE 2
sheet = RAA IBNR

On this sheet, we calculate IBNR for these $50,000 deductible policies using Reinsurance Association of America (RAA) Excess-of-Loss IBNR factors – and compare this to the Exhibit 1-7 IBNR

	Accident Years
	2006		2007		2008		2009		Total
Paid at $50K	$	238,435	$	599,016	$	66,837	$	0	$	904,288
Reserve at $50K	$	86,821	$	202,227	$	79,447	$	20,001	$	388,496
Paid+Res at $50K	$	325,256	$	801,243	$	146,284	$	20,001	$	1,292,784
RAA Excess Auto Liability development factor =		0.79		0.68		0.50		0.20
Ultimate per RAA	$	411,716	$	1,178,298	$	292,568	$	100,005	$	1,982,588
IBNR per RAA	$	86,460	$	377,055	$	146,284	$	80,004	$	689,804
IBNR already in development triangle (avg last 5 version)	$	30,994	$	194,708	$	90,039	$	29,142	$	344,883
Possible Additional IBNR===>	$	55,467	$	182,347	$	56,245	$	50,863	$	344,921

Exhibit 12

American Inter-Fidelity Exchange at 12/2009

Auto Liability – Calculation of Alternate IBNR for Policies with $50,000 Deductibles

file=2009 50000 ded.xls	PAGE 3
sheet = RAA IBNR & ELR IBNR

On this sheet, we calculate IBNR for these $50,000 deductible policies using Reinsurance Association of America (RAA) Excess-of-Loss IBNR factors – but we also include an additional IBNR for the 2008 accident year based on an Expected Loss Ratio

	Accident Years
	2006			2007			2008			2009			Total
Paid at $50K	$	238,435		$	599,016		$	66,837		$	0		$	904,288
Reserve at $50K	$	86,821		$	202,227		$	79,447		$	20,001		$	388,496
Paid+Res at $50K	$	325,256		$	801,243		$	146,284		$	20,001		$	1,292,784
RAA Excess Auto Liability development factor		0.79			0.68			0.50			0.20
Ultimate per RAA	$	411,716		$	1,178,298		$	292,568		$	100,005		$	1,982,588
IBNR per RAA	$	86,460		$	377,055		$	146,284		$	80,004		$	689,804
Net Earned Premium	$	616,693		$	599,647		$	691,878		$	551,144		$	2,459,362
Ultimate Loss Ratio		66.8	%		196.5	%		42.3	%		18.1	%		80.6	%
Additional IBNR to increase 2009 LR to 100%										$	451,139		$	451,139
Total RAA & ELR IBNR	$	86,460		$	377,055		$	146,284		$	531,143		$	1,140,943
IBNR already in development triangle (Avg 5 version)	$	30,994		$	194,708		$	90,039		$	29,142		$	344,883
Possible Additional IBNR ===>	$	55,467		$	182,347		$	56,245		$	502,001		$	796,060
													$	0

Exhibit 13

American Inter-Fidelity Exchange at 12/09

Projection of Collision IBNR

file = collision 2009.xls

Tab = triangle

use average of last three loss development %'s

in projecting ultimate for future accident quarter.

Accident	Paid plus		Case Reserves (losses and LAE)
Year	Yr-end			+1	+2	+3	+4	+5	+6	+7	Ultimate		IBNR
1993									42969	42969		42969		0
1994								0	0	0		0		0
1995							0	0	0	0		0		0
1996						37551	37551	37551	37551	37551		37551		0
1997					0	12000	13851	13851	13851	13851		13851		0
1998				0	0	0	0	0	0	0		0		0
1999		351710		399338	375880	375879	375879	375879	375879	375879		375879		0
2000		630160		714875	684125	672281	672281	672281	672281	667281		667281		0
2001		402872		399918	399918	405895	399692	399692	399692	399692		399692		0
2002		733790		767283	766886	756187	757170	747170	740454	740454		740454		0
2003		1089771		1068943	1049148	1034451	1011687	1006437	1006437			1006187		-250
2004		1010781		1023165	925732	914598	914298	914148				913348		-800
2005		1431651		1472608	1433508	1417686	1409684					1396150		-13534
2006		1350587		1185910	1185380	1129875						1128725		-1150
2007		1231157		1284366	1284551							1281156		-3395
2008		1022097		1014527								994661		-19866
2009		828027										779903		-48124
Diagonal		9864926										9777608		-87118

**Note: 2003-2009 ultimates capped at max(LDprojection, paid to date). Only years 2005 and 2009 were NOT actually impacted by cap.

Accident	Paid plus			Case Reserves at % of Ultimate
Year	Yr-end			+1			+2			+3			+4		+5		+6		+7		Ultimate			IBNR
1993																	100.0	%	100.0	%		100.0	%		0.0	%
1994																						100.0	%
1995																						100.0	%		100.0	%
1996											100.0	%	100.0	%	100.0	%	100.0	%	100.0	%		100.0	%		0.0	%
1997								0.0	%		86.6	%	100.0	%	100.0	%	100.0	%	100.0	%		100.0	%		0.0	%
1998																						100.0	%
1999		93.6	%		106.2	%		100.0	%		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%		100.0	%		0.0	%
2000		94.4	%		107.1	%		102.5	%		100.7	%	100.7	%	100.7	%	100.7	%	100.0	%		100.0	%		0.0	%
2001		100.8	%		100.1	%		100.1	%		101.6	%	100.0	%	100.0	%	100.0	%	100.0	%		100.0	%	0.0		%
2002		99.1	%		103.6	%		103.6	%		102.1	%	102.3	%	100.9	%	100.0	%	100.0	%		100.0	%		0.0	%
2003		108.3	%		106.2	%		104.3	%		102.8	%	100.5	%	100.0	%	100.0	%				100.0	%		0.0	%
2004		110.7	%		112.0	%		101.4	%		100.1	%	100.1	%	100.1	%						100.0	%		-0.1	%
2005		102.5	%		105.5	%		102.7	%		101.5	%	101.0	%								100.0	%		-1.0	%
2006		119.7	%		105.1	%		105.0	%		100.1	%										100.0	%		-0.1	%
2007		96.1	%		100.3	%		100.3	%													100.0	%		-0.3	%
2008		102.8	%		102.0	%																100.0	%		-2.0	%
2009		106.2	%																			100.0	%		-6.2	%

								Collision
								Case				Collision
Accident	Earned		Ultimate		Loss &			Loss&ALAE				Total
Year	Premium		Loss+LAE		LAE Ratio			Reserves		IBNR		Reserves
1993				42969		n/a			0		0		0
1994				0		n/a			0		0		0
1995				0		n/a			0		0		0
1996				37551		n/a			0		0		0
1997				13851		n/a			0		0		0
1998		217236		0		0.0	%		0		0		0
1999		803790		375879		46.8	%		0		0		0
2000		890279		667281		75.0	%		603		0		603
2001		1147411		399692		34.8	%		687		0		687
2002		1419900		740454		52.1	%		0		0		0
2003		1426561		1006187		70.5	%		250		-250		0
2004		1561637		913348		58.5	%		800		-800		0
2005		1696238		1396150		82.3	%		22503		-13534		8969
2006		2422771		1128725		46.6	%		1150		-1150		0
2007		2243881		1281156		57.1	%		3395		-3395		0
2008		2048569		994661		48.6	%		19866		-19866		0
2009		1679928		779903		46.4	%		58647		-48124		10523
Total		17558201		9777808		55.7	%		107901		-87118		20783
Tot 98-05		9163052		5498991		60.0	%
Tot 98-06		11685823		6627716		57.2	%
Tot 98-07		13829704		7908872		57.2	%
Tot 98-08		15878273		8903534		56.1	%
Tot 98-09		17558201		9683437		55.2	%

Exhibit 13

American Inter-Fidelity Exchange at 12/09

Projection of Collision IBNR

file = collision 2009.xls	This alternate version uses paid+case as the ultimate for the 2003-2006 accident years. Loss development is ignored for
Tab = alternate triangle	these years. For 2007 and subsequent, use loss development ==>	use average of last three loss development %'s in projecting ultimate for future accident quarter.

Accident	Paid plus Case Reserves (losses and LAE)
Year	Yr-end		+1		+2		+3		+4		+5		+6		+7		Ultimate		IBNR
1993														42969		42969		42969		0
1994												0		0		0		0		0
1995										0		0		0		0		0		0
1996								37551		37551		37551		37551		37551		37551		0
1997						0		12000		13851		13851		13851		13851		13851		0
1998				0		0		0		0		0		0		0		0		0
1999		351710		399338		375880		375879		375879		375879		375879		375879		375879		0
2000		630160		714875		684125		672281		672281		672281		672281		667281		667281		0
2001		402872		399918		399918		405895		399692		399692		399692		399692		399692		0
2002		733790		767283		766886		756187		757170		747170		740454		740454		740454		0
2003		1089771		1068943		1049148		1034451		1011687		1006437		1006437				1006437		0
2004		1010781		1023165		925732		914598		914298		914148						914148		0
2005		1431651		1472608		1433508		1417686		1409684								1409684		0
2006		1350587		1185910		1185380		1129875										1129875		0
2007		1231157		1284366		1284551												1281156		-3395
2008		1022097		1014527														994661		-19866
2009		828027																780201		-47826
Diagonal		9864926																9793839		-71087

** Note: 2007-2009 ultimates capped at max(LD projection; paid to date). Years 2007 and 2008 are actually impacted by cap.

Accident	Paid plus Case Reserves at % of Ultimate
Year	Yr-end			+1			+2			+3			+4			+5			+6			+7			Ultimate			IBNR
1993																				100.0	%		100.0	%		100.0	%		0.0	%
1994																										100.0	%
1995																										100.0	%		100.0	%
1996											100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1997								0.0	%		86.6	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1998																										100.0	%
1999		93.6	%		106.2	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2000		94.4	%		107.1	%		102.5	%		100.7	%		100.7	%		100.7	%		100.7	%		100.0	%		100.0	%		0.0	%
2001		100.8	%		100.1	%		100.1	%		101.6	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2002		99.1	%		103.6	%		103.6	%		102.1	%		102.3	%		100.9	%		100.0	%		100.0	%		100.0	%		0.0	%
2003		108.3	%		106.2	%		104.2	%		102.8	%	100.5		%		100.0	%		100.0	%					100.0	%		0.0	%
2004		110.6	%		111.9	%		101.3	%		100.0	%		100.0	%		100.0	%								100.0	%		0.0	%
2005		101.6	%		104.5	%		101.7	%		100.6	%		100.0	%											100.0	%		0.0	%
2006		119.5	%		105.0	%		104.9	%		100.0	%														100.0	%		0.0	%
2007		96.1	%		100.3	%		100.3	%																	100.0	%		-0.3	%
2008		102.8	%		102.0	%																				100.0	%		-2.0	%
2009		106.1	%																							100.0	%		-6.1	%

								Collision
								Case				Collision
Accident	Earned		Ultimate		Loss &			Loss&ALAE				Total
Year	Premium		Loss+LAE		LAE Ratio			Reserves		IBNR		Reserves
1993				42969		n/a			0		0		0
1994				0		n/a			0		0		0
1995				0		n/a			0		0		0
1996				37551		n/a			0		0		0
1997				13851		n/a			0		0		0
1998		217236		0		0.0	%		0		0		0
1999		803790		375879		46.8	%		0		0		0
2000		890279		667281		75.0	%		603		0		603
2001		1147411		399692		34.8	%		687		0		687
2002		1419900		740454		52.1	%		0		0		0
2003		1426561		1006437		70.5	%		250		0		250
2004		1561637		914148		58.5	%		800		0		800
2005		1707205		1409684		82.6	%		22503		0		22503
2006		2422771		1129875		46.6	%		1150		0		1150
2007		2243881		1281156		57.1	%		3395		-3395		0	��
2008		2048569		994661		48.6	%		19866		-19866		0
2009		1679928		780201		46.4	%		58647		-47826		10822
Total		17569168		9793839		55.7	%		107901		-71087		36815
Tot 96-05		9174019		5513575		60.1	%
Tot 98-06		11596790		6643450		57.3	%
Tot 98-07		13840671		7924606		57.3	%
Tot 98-08		15889240		8919267		56.1	%
Tot 98-09		17569168		9699468		55.2	%

Exhibit 14

American Inter-Fidelity Exchange at 12/09

Projection of CARGO IBNR (after Deductible)

file = cargo 2009.xle
Tab = triangle	use average of last three loss development %'s
	in projecting ultimate for future accident quarter.

Accident	CARGO Paid plus Case Reserves (losses and LAE) after deductible & after Salvage+Recoveries
Year	Yr-end		+1		+2		+3		+4		+5		+6		+7		Ultimate		IBNR
1988																18677		18677		0
1989																379629		379629		0
1990																160327		160327		0
1991																106412		106412		0
1992																1592		1592		0
1993																79570		79570		0
1994																7969		7969		0
1995														53988		53988		53988		0
1996												14915		14915		14915		14915		0
1997										87176		87176		87176		87176		87176		0
1998				86842		91842		112595		112595		112595		107595		107595		107595		0
1999		6885		9773		9774		9774		9774		9774		9774		9774		9774		0
2000		52652		68355		68355		68355		53355		53355		53355		53355		53355		0
2001		59701		78518		90065		98296		98558		99269		99269		99269		99269		0
2002		108460		85203		96203		96203		95203		87703		87704		87704		87704		0
2003		214548		195376		195376		202837		200558		177958		177958				177958		0
2004		246300		246169		226190		188690		173690		173690						173691		1
2005		201016		265372		247710		227483		227483								227483		0
2006		211192		279114		254518		254518										236676		-17842
2007		115998		127100		120850												106995		-13855
2008		122232		130894														110953		-19741
2009		167962																163699		-4263
		2521107																2465406		-55701

Note: 2004-2009 ultimates are limited to Min(paid-to-date, loss dev ult). Years 2005 & 2007 are actually impacted by this cap.

Accident	CARGO Paid plus Case Reserves (after Ded, Salvage & Recoveries) as % of Ultimate
Year	Yr-end			+1			+2			+3			+4			+5			+6			+7			Ultimate			IBNR
1988																							100.0	%		100.0	%		0.0	%
1989																							100.0	%		100.0	%		0.0	%
1990																							100.0	%		100.0	%		0.0	%
1991																							100.0	%		100.0	%		0.0	%
1992																							100.0	%		100.0	%		0.0	%
1993																				0.0	%		100.0	%		100.0	%		0.0	%
1994																	0.0	%		0.0	%		100.0	%		100.0	%		0.0	%
1995														0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1996											0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1997								0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1998					80.7	%		85.4	%		104.6	%		104.6	%		104.6	%		100.0	%		100.0	%		100.0	%		0.0	%
1999		70.4	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2000		98.7	%		128.1	%		128.1	%		128.1	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2001		60.1	%		79.1	%		90.7	%		99.0	%		99.3	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2002		123.7	%		97.1	%		109.7	%		109.7	%		108.6	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2003		120.6	%		109.8	%		109.8	%		114.0	%		112.7	%		100.0	%		100.0	%					100.0	%		0.0	%
2004		141.8	%		141.7	%		130.2	%		108.6	%		100.0	%		100.0	%								100.0	%		0.0	%
2005		88.4	%		116.7	%		108.9	%		100.0	%		100.0	%											100.0	%		0.0	%
2006		89.2	%		117.9	%		107.5	%		107.5	%														100.0	%		-7.5	%
2007		108.4	%		118.8	%		112.9	%																	100.0	%		-12.9	%
2008		110.2	%		117.8	%																				100.0	%		-17.8	%
2009		102.6	%																							108.0	%		-2.6	%

			Cargo
			Ultimate
	Cargo		Loss+LAE		Cargo			Cargo				Cargo
Accident	Earned		after		Loss &			Case		Cargo		Total
Year	Premium		Deductible		LAE Ratio			Reserves		IBNR		Reserves
1988				18677		n/a					0		0
1989				379629		n/a					0		0
1990				160327		n/a					0		0
1991				106412		n/a					0		0
1992				1592		n/a					0		0
1993				79570		n/a					0		0
1994				7969		n/a					0		0
1995		99131		53988		54.5	%				0		0
1996		92895		14915		16.1	%				0		0
1997		81664		87176		106.7	%				0		0
1998		78321		107595		137.4	%				0		0
1999		87819		9774		11.1	%				0		0
2000		64506		53355		82.7	%				0		0
2001		142773		99269		69.5	%				0		0
2002		236778		87704		37.0	%		0		0		0
2003		386949		177958		46.0	%		0		0		0
2004		369454		173691		47.0	%		0		1		1
2005		353208		227483		64.4	%		0		0		0
2006		459254		236676		51.5	%		175000		-17842		157158
2007		337384		106995		31.7	%		13855		-13855		0
2008		265900		110953		41.7	%		88527		-19741		68786
2009		143942		163699		113.7	%		122100		-4263		117837
Total		3199979		2465406					399482		-55701		343781
Tot 95-05		1993498		1092908		54.8	%		0		1		1
Tot 95-06		2452752		1329584		54.2	%		175000		-17841		157159
Tot 95-07		2790136		1436579		51.5	%		188855		-31696		157159
Tot 95-08		3056037		1547531		50.6	%		277382		-51438		225944
Tot 95-09		3199979		1711230		53.5	%		399482		-55701		343781

Exhibit 14

American Inter-Fidelity Exchange at 12/09

Projection of CARGO IBNR (after Deductible)

file = cargo 2009.xls Tab = alternate triangle In this version, we ignore lose development when projecting 2005 and prior accident years, and simply use Paid+Case for those years.    Loss development uses the average of the previous 3 loss development %'s.

Accident	CARGO Paid plus Case Reserves (losses and LAE) after deductible & after Salvage+Recoveries
Year	Yr-end		+1		+2		+3		+4		+5		+6		+7		Ultimate		IBNR
1988																18677		18677		0
1989																379629		379629		0
1990																160327		160327		0
1991																106412		106412		0
1992																1592		1592		0
1993																79570		79570		0
1994																7969		7969		0
1995														53988		53988		53988		0
1996												14915		14915		14915		14915		0
1997										87178		87176		87176		87176		87176		0
1998				86842		91642		112595		112595		112595		107595		107595		107595		0
1999		6885		9773		9774		9774		9774		9774		9774		9774		9774		0
2000		52652		68355		68355		68355		53355		53355		53355		53355		53355		0
2001		59701		78518		90065		98298		98558		99269		99269		99269		99269		0
2002		108460		85203		96203		96203		95203		87703		87704		87704		87704		0
2003		214548		195375		195376		202837		200558		177958		177958		**		177958		0
2004		246300		246169		226190		188690		173690		173690				**		173690		0
2005		201016		265372		247710		227483		227483						**		227483		0
2006		211192		279114		254518		254518										240663		-13855
2007		115998		127100		120850												106995		-13855
2008		122232		130694														111570		-19124
2009		167962																164817		-3145
		2521107																2471127		-49980

** Note: 2003-2005 ultimates are selected as equal to PAID+CASE. 2006-2009 are limited to minimum of paid-to-date.

Only the 2007 year is actually impacted by this cap.

Accident	CARGO Paid plus Case Reserves (after Ded, Salvage & Recoveries) as % of Ultimate
Year	Yr-end			+1			+2			+3			+4			+5			+6			+7			Ultimate			IBNR
1988																							100.0	%		100.0	%		0.0	%
1989																							100.0	%		100.0	%		0.0	%
1990																							100.0	%		100.0	%		0.0	%
1991																							100.0	%		100.0	%		0.0	%
1992																							100.0	%		100.0	%		0.0	%
1993																				0.0	%		100.0	%		100.0	%		0.0	%
1994																	0.0	%		0.0	%		100.0	%		100.0	%		0.0	%
1995														0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1996											0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1997								0.0	%		0.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
1998					80.7	%		85.4	%		104.6	%		104.6	%		104.6	%		100.0	%		100.0	%		100.0	%		0.0	%
1999		70.4	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2000		98.7	%		128.1	%		128.1	%		128.1	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2001		60.1	%		79.1	%		90.7	%		99.0	%		99.3	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2002		123.7	%		97.1	%		109.7	%		109.7	%		108.6	%		100.0	%		100.0	%		100.0	%		100.0	%		0.0	%
2003		120.6	%		109.8	%		109.8	%		114.0	%		112.7	%		100.0	%		100.0	%					100.0	%		0.0	%
2004		141.8	%		141.7	%		130.2	%		108.6	%		100.0	%		100.0	%								100.0	%		0.0	%
2005		88.4	%		116.7	%		108.9	%		100.0	%		100.0	%											100.0	%		0.0	%
2006		87.8	%		116.0	%		105.8	%		105.8	%														100.0	%		-5.8	%
2007		108.4	%		118.8	%		112.9	%																	100.0	%		-12.9	%
2008		109.6	%		117.1	%																				100.0	%		-17.1	%
2009		101.9	%

			Cargo
			Ultimate
	Cargo		Loos+LAE		Cargo			Cargo				Cargo
Accident	Earned		after		Loss &			Case		Cargo		Total
Year	Premium		Deductible		LAE Ratio			Reserves		IBNR		Reserves
1988				18677		n/a					0		0
1989				379629		n/a					0		0
1990				160327		n/a					0		0
1991				106412		n/a					0		0
1992				1592		n/a					0		0
1993				79570		n/a					0		0
1994				7969		n/a					0		0
1995		99131		53988		54.5	%				0		0
1996		92895		14915		16.1	%				0		0
1997		81664		87176		106.7	%				0		0
1998		78321		107595		137.4	%				0		0
1999		87819		9774		11.1	%				0		0
2000		64506		53355		82.7	%				0		a
2001		142773		99269		69.5	%				0		0
2002		236778		87704		37.0	%		0		0		0
2003		386949		177958		46.0	%		0		0		0
2004		369454		173690		47.0	%		0		0		0
2005		353208		227483		64.4	%		0		0		0
2006		459254		240663		52.4	%		175000		-13855		161145
2007		337384		106995		31.7	%		13855		-13855		0
2008		265900		111570		42.0	%		88527		-19124		69403
2009		143942		164817		114.5	%		122100		-3145		118955
Total		3199979		2471127					399482		-49980		349502
Tot 95-05		1993498		1092907		54.8	%		0		0		0
Tot 95-06		2452752		1333570		54.4	%		175000		-13855		161145
Tot 95-07		2790136		1440565		51.6	%		188855		-27710		161145
Tot 95-08		3056037		1552135		50.8	%		277382		-46834		230548
Tot 95-09		3199979		1716951		53.7	%		399482		-49980		349502

Exhibit 15

American Inter-Fidelity Exchange @ 12/09

AutoLiability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5 paid.xls	Using data through 12/09	In this version,  we average
tab=uncapped	Claims Data is Uncapped	the last 5LDF’s.
Paid Losses and LAE ---------------------------------->

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Diagonal Total
YEAR END							45383	155736		27498		45720		72149		39198		60383		122232		87031		367155		1152883		216735		118982		127068		206280		80391		60406573		as of 2009
+1						861765	1272547	237457		77920		383282		227445		109257		199674		367230		332169		623939		1346370		354624		523372		435389		688165				63658753		as of 2008
+2					2212845	1641776	1332633	551971		157892		383282		359841		520082		356657		529712		423845		783065		1815791		1193299		1101592		1885754						59736196		as of 2007
+3				5145741	3258838	2148834	1373086	573548		502871		383282		410730		559545		1063236		859954		1460223		911944		2162649		1451923		1526087								57228595		as of 2006
+4			11585249	5304662	3307155	2476826	1412327	596189		583517		383282		985473		776881		1148877		1801168		2747573		1151342		2394101		2039407										54589114		as of 2005
+5	1379578	12858839	11653607	5508719	3335604	2687524	1443529	597077		596452		383282		998423		776881		1150424		1870969		2756869		1220831		2492650												50852139		as of 2004
+6	1530012	13020327	11780985	6135594	3525774	2793322	1754666	603115		604226		383282		1006865		776881		1152148		2056084		2780054		1289079														48378473		as of 2003
+7	1530012	13067338	11791354	6196977	3538676	2813910	1797821	608498		604827		383282		1007183		776881		1152148		2104709		2780054																46587868		as of 2002
+8	1530012	13067338	11791510	6348480	3538676	2814893	1810355	608498		608839		383282		1013315		776881		1152148		2104916																		44832430		as of 2001
+9	1530012	13067338	11796510	6348480	3538676	2860220	1810355	608498		608839		383282		1012315		776881		1152148																				43919601		as of 2000
+10	1530012	13070128	11797484	6348480	3538676	2860605	1810355	608498		608839		383282		1012315		776881																						43410471		as of 1999
+11	1530012	13070128	11797484	6348645	3538676	2860605	1810355	608498		608839		383282		1012315																								42443151		as of 1998
+12	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282																										41481333		as of 1997
+13	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839																												40539700		as of 1996
+14	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498																														40105812		as of 1995
Ultimate	1530012	13070128	11797484	6370847	3538676	2860605	1810355	608498		608839		383282		1060866		784057		1164943		2133030		2827567		1279251		2604729		2206442		2445046		3847687		2305311		564538		65802194
IBNR	0	0	0	0	0	0	0	0		0		0		43551		7176		12795		28114		47513		-9828		112079		167035		918959		1961933		1617146		484147		5395621
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689141		1369965		2292530		2791407		2644171		2792308		3027426		2873661		2373386		1432580		25544455
Loss Ratio								134.2	%	157.3	%	43.8	%	137.4	%	88.2	%	169.0	%	155.7	%	123.3	%	45.8	%	98.5	%	79.0	%	80.8	%	133.7	%	97.1	%	39.4	%	972	%
																Loss Ratio including $50K premium ==>														67.1	%	110.6	%	75.2	%	28.5	%

Paid Loss & LAE as a percent of ULTIMATE INCURRED ----------->
	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											0.0	%	2.5	%	25.6	%	4.5	%	11.9	%	6.8	%	5.0	%	5.2	%	5.7	%	3.1	%	28.7	%	44.3	%	9.8	%	4.9	%	3.3	%	8.9	%	14.2	%
+1									0.0	%	30.1	%	70.3	%	39.0	%	12.8	%	100.0	%	21.4	%	13.9	%	17.1	%	17.2	%	11.7	%	48.8	%	51.7	%	16.1	%	21.4	%	11.3	%	29.9	%
+2							0.0	%	62.5	%	57.4	%	73.6	%	90.7	%	25.9	%	100.0	%	33.9	%	66.3	%	30.6	%	24.8	%	15.0	%	61.2	%	69.7	%	54.1	%	45.1	%	49.0	%
+3					0.0	%	80.8	%	92.1	%	75.1	%	75.8	%	94.3	%	82.6	%	100.0	%	38.7	%	71.4	%	91.3	%	40.3	%	51.6	%	71.3	%	83.0	%	65.8	%	62.4	%
+4			0.0	%	98.2	%	83.3	%	93.5	%	86.6	%	78.0	%	98.0	%	95.8	%	100.0	%	92.9	%	99.1	%	98.6	%	84.4	%	97.2	%	90.0	%	91.9	%	92.4	%
+5	90.2	%	98.4	%	98.8	%	86.5	%	94.3	%	93.9	%	79.7	%	98.1	%	98.0	%	100.0	%	94.1	%	99.1	%	98.8	%	87.7	%	97.5	%	95.4	%	95.7	%
+6	100.0	%	99.6	%	99.9	%	96.3	%	99.6	%	97.6	%	96.9	%	99.1	%	99.2	%	100.0	%	94.9	%	99.1	%	98.9	%	96.4	%	98.3	%	100.8	%
+7	100.0	%	100.0	%	99.9	%	97.3	%	100.0	%	98.4	%	99.3	%	100.0	%	99.3	%	100.0	%	94.9	%	99.1	%	98.9	%	98.7	%	98.3	%
+8	100.0	%	100.0	%	99.9	%	99.6	%	100.0	%	98.4	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99.1	%	98.9	%	98.7	%
+9	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99.1	%	98.9	%
+10	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99.1	%
+11	100.0	%	100.0	%	100.0	%	99.7	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	1000	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	4.6	%	0.9	%	1.1	%	1.3	%	1.7	%	-0.8	%	4.3	%	7.6	%	37.6	%	51.0	%	70.1	%	85.8	%

Exhibit 16

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5 paid.x	Using data through 12/09
tab=reduce
Excess over 100,000 per loss – LAE prorated

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Diagonal Total
YEAR END							0	0	0	0	0	0	0	0	0	7747	771760	0	0	0	0	0	25256454	as of 2009
+1						0	919616	0	0	182588	0	0	0	0	0	7747	771760	0	62490	0	119769		27713594	as or 2008
+2					667325	201747	919616	60641	0	182588	0	93814	0	0	0	7747	896772	598761	304042	1091958			25019657	as of 2007
+3				1551878	1415659	263921	919616	61183	99554	182588	0	93814	486621	100855	586104	7747	1005715	639799	409786				23898959	as of 2006
+4			5669697	1588308	1416541	403896	919616	61183	99639	182588	450792	207271	486621	872824	1575347	7747	1005715	1059604					23008079	as of 2005
+5		5826784	5669750	1605865	1416541	420181	919616	61183	99639	182588	450792	207271	486621	872824	1575347	7747	1005715						20612749	as of 2004
+6	505285	5875862	5669750	2186727	1499867	420181	1155339	61183	99639	182588	450792	207721	486621	949204	1575347	7747							19411351	as of 2003
+7	505285	5875862	5669981	2207291	1514188	420181	1157013	61183	99639	182588	450792	207271	486621	949204	1575347								18777359	as of 2002
+8	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271	486621	949204									18167829	as of 2001
+9	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271	486621										18086053	as of 2000
+10	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450792	207271											17923686	as of 1999
+11	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588	450791												17599963	as of 1998
+12	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639	182588													17260347	as of 1997
+13	505285	5875862	5669981	2398751	1514188	420181	1164982	61183	99639														16701410	as of 1996
+14	505285	5875862	5669981	2398751	1514188	420181	1164982	61183															16532239	as of 1995

Excess over 200,000 per loss – LAE prorated

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Diagonal Total
YEAR END							0	0	0	0	0	0	0	0	0	0	668859	0	0	0	0	0	16783949	as of 2009
+1						0	817436	0	0	82588	0	0	0	0	0	0	668859	0	0	0	0		18765042	as of 2008
+2					365153	7481	817436	0	0	82588	0	0	0	0	0	0	672934	495344	37608	869699			16786953	as of 2007
+3				849019	986505	7481	817436	0	0	82588	0	0	343215	565	408182	0	672939	495344	45352				16333688	as of 2006
+4			4092618	885366	987081	20604	817436	0	0	82588	341085	0	343215	655498	1270786	0	672939	646913					15764566	as 01 2005
+5		4160661	4092618	885366	987081	20607	817436	0	0	82588	341085	0	343215	655498	1270786	0	672939						13643429	as of 2004
+6	245690	4160661	4092618	1348882	987081	20607	918122	0	0	82588	341085	0	343215	655498	1270786	0							12680867	as of 2003
+7	245690	4160661	4092823	1370010	987081	20607	918837	0	0	82588	341085	0	343215	655498	1270786								12287078	as of 2002
+8	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0	343215	655498									11938015	as of 2001
+9	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0	343215										11937301	as of 2000
+10	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085	0											11883657	as of 1999
+11	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588	341085												11787456	as of 1998
+12	245690	4160661	4092823	1426771	987081	20607	922241	0	0	82588													11684571	as of 1997
+13	245690	4160661	4092823	1426771	987081	20607	922241	0	0														11272032	as of 1996
+14	245690	4160661	4092823	1426771	987081	20607	922241	0															11226570	as of 1995

Excess over 250,000 per loss – LAE prorated

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Diagonal Total
YEAR END							0	0	0	0	0	0	0	0	0	0	617408	0	0	0	0	0	14107075	as of 2009
+1						0	766346	0	0	32588	0	0	0	0	0	0	617408	0	0	0	0		15826338	as of 2008
+2					271029	0	766346	0	0	32588	0	0	0	0	0	0	617408	443635	0	758569			14122145	as of 2007
+3				651449	828890	0	766346	0	0	32588	0	0	292218	0	356418	0	617408	443635	0				13732289	as of 2006
+4			3463398	687924	829312	0	766346	0	0	32588	286231	0	292218	591397	1165110	0	617408	505924					13284562	as of 2005
+5		3499245	3463398	687924	829312	0	766346	0	0	32588	286231	0	292218	591397	1165110	0	617408						11354561	as of 2004
+6	150435	3499245	3463398	1092767	829312	0	799514	0	0	32588	286231	0	292218	591397	1165110	0							10471222	as of 2003
+7	150435	3499245	3463590	1114178	829312	0	799749	0	0	32588	286231	0	292218	591397	1165110								10181477	as of 2002
+8	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231	0	292218	591397									9889232	as of 2001
+9	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231	0	292218										9888997	as of 2000
+10	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	283231	0											9855696	as of 1999
+11	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588	286231												9855696	as of 1998
+12	150435	3499245	3463590	1114178	829312	0	800870	0	0	32588													9801697	as of 1997
+13	150435	3499245	3463590	1114178	829312	0	800870	0	0														9396661	as of 1996
+14	150435	3499245	3463590	1114178	829312	0	800870	0															9398017	as of 1995

Excess over 350,000 per loss – LAE prorated

Exhibit 16

American lnter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5 paid x	Using data through 12/09
tab=reduce

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Total
YEAR END														0	0	0	514507	0	0	0	0	0	10060718	as of 2009
+1													0	0	0	0	514507	0	0	0	0		11348884	as of 2003
+2												0	0	0	0	0	514507	340217	0	536310			10200531	as of 2007
+3											0	0	190225	0	252391	0	514507	340217	0				9861177	asof 2006
+4										0	176524	0	190225	474354	953757	0	514507	340217					9518042	as of 2005
+5									0	0	176524	0	190225	474354	953757	0	514507						7918923	as of 2004
+6								0	0	0	176524	0	190225	474354	953757	0							7241573	as of 2003
+7							664167	0	0	0	176524	0	190225	474354	953757								7056464	as of 2002
+8						0	664167	0	0	0	176524	0	190225	474354									6874824	as of 2001
+9					597391	0	664167	0	0	0	I76S24	0	190225
+10				772796	597391	0	664167	0	0	0	176524	0
+11			2339782	772796	597391	0	664167	0	0	0	176524
+12		2450720	2339782	772796	597391	0	664167	0	0	0
+13	49968	2450720	2339782	772796	597391	0	664167	0	0
+14	49968	2450720	2339782	772796	597391	0	664167	0

Excess over 500,000 per loss – LAE prorated

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	Diagonal Total
YEAR END															0	0	360155	0	0	0	0	0	5268597	as of 2009
+1														0	0	0	360155	0	0	0	0		6159611	as of 2008
+2													0	0	0	0	360155	185091	0	202921			5585770	as of 2007
+3												0	37235	0	97600	0	360155	135091	0				5244646	as of 2006
+4											11964	0	37235	298789	636728	0	360155	185091					5058398	as of 2005
+5										0	11964	0	37235	298789	636728	0	360155						3949580	as of 2004
+6									0	0	11964	0	37235	298789	636728	0							3584913	as of 2003
+7								0	0	0	11964	0	37235	298789	636728								3552929	as of 2002
+8							510898	0	0	0	11964	0	37235	298789
+9						0	510898	0	0	0	11964	0	37235
+10					394273	0	510898	0	0	0	11964	0
+11				435859	394273	0	510898	0	0	0	11964
+12			1114310	435859	394273	0	510898	0	0	0
+13		1080374	1114310	435859	394273	0	510898	0	0
+14	0	1080374	1114310	435859	394273	0	510898	0

Exhibit 17

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 toCLOSED (as of 1209)
file = Lsdv09 avg5 paid.xl	Using data through 12/09	In this version, we average
tab=maxl00	Claims capped at $100,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE ================>

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						0	45383	155736		27498		45720		72149		39198		60383		122232		87031		359408		381123		216735		118982		127068		206280		80391		35150119		as of 2009
+1					0	861765	352931	237457		77920		200694		227445		109257		199674		367230		332169		616192		574610		354624		460882		435389		568396				35945159		as of 2008
+2				0	1545520	I440029	413017	491330		157892		200694		359841		426268		356657		529712		423845		775318		919019		594538		797550		793796						34716539		as of 2007
+3			0	3593863	1843179	1884913	453470	512365		403317		200694		410730		465731		576615		759099		874119		904197		1156934		812124		1116301								33329636		as of 2006
+4		0	5915552	3716354	1890614	2072930	492711	535006		483878		200694		534681		569610		662256		928344		1172226		1143595		1388386		979803										31581035		as of 2005
+5	1379578	7032055	5983857	3902854	1919063	2267343	523913	535894		496813		200694		547631		569610		663803		998145		1181522		1213084		1486935												30239390		as of 2004
+6	1024727	7144465	6111235	3948867	2025907	2373141	599327	541932		504587		200694		556073		569160		665527		1106880		1204707		1281332														28967122		as of 2003
+7	1024727	7191476	6121373	3989686	2024488	2393729	640808	547315		505188		200694		556391		569610		665527		1155505		1204707																27810509		as of 2002
+8	1024727	7191476	6121529	3949729	2024488	2394717	645373	547315		509200		200694		561523		569610		665527		1155712																		26664601		as of 2001
+9	1024727	7191476	6126529	3949729	2024488	2440039	645373	547315		509200		200694		561523		569610		665527																				25833548		as of 2000
+10	1024727	7194266	6127503	3949729	2024488	2440424	645373	547315		509200		200694		561523		569610																						25486785		as of 1999
+11	1024727	7194266	6127503	3949894	2024488	2440424	645373	547315		509200		200694		561523																								24843188		as of 1998
+12	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694																										24220986		as of 1997
+13	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200																												23838290		as of 1996
+14	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315																														23573573		as of 1995
														use case res
Ultimate	1024727	7194266	6127503	3972096	2024488	2440424	645373	547315		509200		200694		610074		578823		678486		1182822		1240969		1302696		1585348		1098638		1590523		1550988		1643967		558356		38307775
IBNR	0	0	0	0	0	0	0	0		0		0		48551		9213		12959		27110		36262		21364		98413		118835		474222		757192		1075571		477965		3157656
Earned Premium								1111129		996547		1138211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780721		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Nd @ $50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		8S8507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								165.6	%	131.5	%	23.0	%	79.0	%	65.1	%	98,5	%	86.3	%	54.1	%	46.7	%	60.0	%	39.3	%	52.5	%	53.9	%	69.3	%	39.0	%	58.2	%
																						loss Ratio including $50K prcmium ===>								43.6	%	44.6	%	53.6	%	28.1	%

Paid Loss & LAE as a Descent of ULTIMATE INCURRED =======>

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											0.0	%	7.0	%	28.5	%	5.4	%	22.8	%	11.8	%	6,8	%	8.9	%	10.3	%	7.0	%	27.6	%	24.0	%	19.7	%	7.5	%	8.2	%	12.5	%	14.4	%
+1									0.0	%	35.3	%	54.7	%	43.4	%	15.3	%	100.0	%	37.3	%	18.9	%	29.4	%	31.0	%	26.8	%	47.3	%	36.2	%	32,3	%	29.0	%	28.1	%	34.6	%
+2							0.0	%	76.3	%	59.0	%	64.0	%	89.8	%	31.0	%	100.0	%	59.0	%	73.6	%	52.6	%	44.8	%	34.2	%	59.5	%	58.0	%	54.1	%	50.1	%	51.2	%
+3					0.0	%	90.5	%	91.0	%	77.2	%	70.3	%	93.6	%	79.2	%	100.0	%	67.3	%	80.5	%	85.0	%	64.2	%	70.4	%	69.4	%	73.0	%	73.9	%	70.2	%
+4			0.0	%	96.5	%	93.6	%	93.4	%	84.9	%	76.3	%	97.8	%	95.0	%	100.0	%	87.6	%	98.4	%	97.6	%	78.5	%	94.5	%	87.8	%	87.6	%	89.2	%
+5	134.6	%	97.7	%	97.7	%	98.3	%	94.8	%	92.9	%	81.2	%	97.9	%	97.6	%	100.0	%	89.8	%	98.4	%	97.8	%	84.4	%	95.2	%	93.1	%	93.8	%
+6	100.0	%	99.3	%	99.7	%	99.4	%	100.1	%	97.2	%	92.9	%	99.0	%	99.1	%	100.0	%	91.1	%	98.3	%	98.1	%	93.6	%	97.1	%	98.4	%
+7	100.0	%	100.0	%	99.9	%	100.4	%	100.0	%	98.1	%	99.3	%	100.0	%	99.2	%	100.0	%	91.2	%	98.4	%	98.1	%	97.7	%	97.1	%
+8	100.0	%	100.0	%	99.9	%	99.4	%	100.0	%	98.1	%	100.0	%	100.0	%	100.0	%	100.0	%	92.0	%	98.4	%	98,1	%	97.7	%
+9	100.0	%	100.0	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	92.0	%	98.4	%	98.1	%
+10	100.0	%	100.0	%	I00.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100,0	%	92.0	%	98.4	%
+11	100.0	%	100.0	%	100.0	%	99.4	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	92,0	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100,0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	8.0	%	1.6	%	1.9	%	2.3	%	2.9	%	1.6	%	6.2	%	10.8	%	29.8	%	48.8	%	65.4	%	85.6	%

Exhibit 18

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 toCLOSED (as of 1209)
file = Lsdv09 avg5 paid.xl	Using data through 12/09	In this version, we average
tab=max200	Claims capped at $200,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE ================>

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END						0	45383	155736		27498		45720		72149		39198		60383		122232		87031		367155		484024		216735		118982		127068		206280		80391		43622624		as of 2009
+1					0	861765	455111	237457		77920		300694		227445		109257		199674		367230		332169		623939		677511		354624		523372		435389		688165				44893711		as of 2008
+2				0	1847692	1634295	515197	551971		157892		300694		359841		520082		356657		529712		423845		783065		1142857		697955		1063984		1016055						42949243		as of 2007
+3			0	4296722	2272333	2141353	555650	573548		502871		300694		410730		559545		720021		859389		1052041		911944		1489710		956579		1480735								40894907		as of 2006
+4		0	7492631	4419296	2320074	2456222	594891	596189		583517		300694		644388		776881		805662		1145670		1476787		1151342		1721162		1392494										38824548		as of 2005
+5	1379578	8698178	7560989	4623353	2348523	2666917	626093	597077		596452		300694		657338		776881		807209		1215471		1486083		1220831		1819711												37208710		a of 2004
+6	1284322	8859666	7688367	4786712	2538693	2772715	836544	603115		604226		300694		665780		776881		808933		1400586		1509268		1289079														35697606		as of 2003
+7	1284322	8906677	7698531	4826967	2551595	2793303	878984	608498		604827		300694		666098		776881		808933		1449211		1509268																34300790		as of 2002
+8	1284322	8906677	7698687	4921709	2551595	2794291	888114	608498		608839		300694		671230		776881		808933		1449418																		32894415		as of 2001
+9	1284322	8906677	7703687	4921709	2551595	2839613	888114	608498		608839		300694		671230		776881		808933																				31982300		a of 2000
+10	1284322	8909467	7704661	4921709	2551595	2839998	888114	608498		608839		300694		671230		776881																						31526814		as of 1999
+11	1284322	8909467	7704661	4921874	2551595	2839998	888114	608498		608839		300694		671230																								30655695		as of 1998
+12	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694																										29796762		as of 1997
+13	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839																												29267668		aa of 1996
+14	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498																														28879242		as of 1995
														use case res
Ultimate	1284322	8909467	7704661	4944076	2551595	2839998	888114	608498		608839		300694		719781		787505		822244		1478133		1547595		1308774		1942648		1555909		2216912		2126515		2302730		679599		48128606
IBNR	0	0	0	0	0	0	0	0		0		0		48551		10624		13311		28715		38327		19695		122937		163415		736177		1110460		1614565		399208		4505982
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		5714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		374329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	34.4	%	93.2	%	88.6	%	119.3	%	107.9	%	67.5	%	46.9	%	73.5	%	55.7	%	73.2	%	73.9	%	97.0	%	47.4	%	74.4	%
																				Loss Ratio including $50K premium ====>										60.8	%	61.1	%	75.1	%	34.3	%

Paid Loss & LAE as a percent of ULTIMATE INCURRED =======>

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											0.0	%	5.1	%	25.6	%	4.5	%	15.2	%	10.0	%	5.0	%	7.3	%	8.3	%	5.6	%	28.1	%	24,9	%	13.9	%	5.4	%	6.0	%	9.0	%	11.8	%
+1									0.0	%	30.3	%	51.2	%	39.0	%	12.8	%	100.0	%	31.6	%	13.9	%	24.3	%	24.8	%	21.5	%	47.7	%	34.9	%	22.8	%	23.6	%	20.5	%	29.9	%
+2							0.0	%	72.4	%	57.5	%	58.0	%	90.7	%	25.9	%	100.0	%	50.0	%	66.0	%	43.4	%	35.8	%	27.4	%	59.8	%	58.8	%	44.9	%	48.0	%	47.8	%
+3					0.0	%	86.9	%	89.1	%	75.4	%	62.6	%	94.3	%	82.6	%	100.0	%	57.1	%	71.1	%	87.6	%	58.1	%	68.0	%	69.7	%	76.1	%	61.5	%	66.8	%
+-1			0.0	%	97.2	%	89.4	%	90.9	%	86.5	%	67.0	%	98.0	%	95.8	%	100.0	%	89.5	%	98.7	%	98.0	%	77.5	%	95.4	%	88.0	%	88.6	%	89.5	%
+S	107.4	%	91.6	%	98.1	%	93.5	%	92.0	%	93.9	%	70.5	%	98.1	%	98.0	%	100.0	%	91.3	%	98.7	%	98.2	%	82.2	%	96.0	%	93.3	%	93.7	%
+6	100.0	%	99.4	%	99.8	%	96.8	%	99.5	%	97.6	%	94.2	%	99.1	%	99.2	%	100.0	%	92.5	%	98.7	%	98.4	%	94.8	%	97.5	%	98.5	%
+7	100.0	%	100.0	%	99.9	%	97.6	%	100.0	%	98.4	%	99.0	%	100.0	%	99.3	%	100.0	%	92.5	%	98.7	%	98.4	%	98.0	%	97.5	%
+8	100.0	%	100.0	%	99.9	%	99.5	%	100.0	%	98.4	%	100.0	%	100.0	%	100.0	%	100.0	%	93.3	%	98.7	%	98.4	%	98.1	%
+9	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	93.3	%	98.7	%	98.4	%
+10	100.0	%	100.0	%	100.0	%	99.5	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	93.3	%	98.7	%
+11	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	93,3	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100,0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	6.7	%	1.3	%	1.6	%	1.9	%	2.5	%	1.5	%	6,3	%	10.5	%	33.2	%	52.2	%	70.1	%	88.2	%

Exhibit 19

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 toCLOSED (as of 1209)
file = Lsdv09 avg5 paid.xl	Using data through 12/09	In this version, we average
tab=max250	Claims capped at $250,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE ================>

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Diagonal Total
YEAR END						0	45383	155736		27498		45720		72149		39198		60383		122332		87031		367155		535475		216735		118982		127068		206280		80391		46299498		as of 2009
+1					0	361765	506201	237457		77920		350693		227445		109257		199674		367230		332169		623939		728962		354624		523372		435389		688165				47832415		as of 2008
+2				0	1941816	1641776	566286	551971		157892		350693		359841		520082		356657		529712		423845		783065		1198383		749664		1101592		1127185						45614051		as of 2007
+3			0	4494292	2429948	2148334	606739	573548		502871		350693		410730		559545		771018		859954		1103805		911944		1545241		1008288		1526087								43496306		as of 2006
+4		0	8121851	4616738	2477843	2476826	645980	596189		583517		350693		699242		776881		856659		1209771		1582463		1151342		1776693		1533483										41304552		as of 2005
+5	1379578	9359594	8190209	4820795	2506292	2687524	677182	597077		596452		350693		712192		776881		858206		1279572		1591759		1220831		1875242												39497578		as of 2004
+6	1379577	9521082	8317587	5042827	2696461	2793322	955152	603115		604226		350694		720634		776881		859930		1464687		1614944		1289079														37907251		as of 2003
+7	1379577	9568093	8337764	5082799	2709364	2813910	998072	603498		604827		350694		720952		776881		859930		1513312		1614944																36406391		as of 2002
+8	1379577	9568093	8327920	5234303	2709364	2814898	1009485	608498		608839		350694		726084		776881		859930		1513519																		34943198		as of 2001
+9	1379577	9568093	8332920	5234303	2709364	2860220	1009485	608498		608839		350694		726084		776881		859930																				34030604		as of 2000
+10	1379577	9570883	8333894	5234303	2709364	2860605	1009485	608498		608839		350694		729084		776881																						33554776		as of 1999
+11	1379577	9570883	8333694	5234468	2709364	2860605	1009485	608498		608839		350694		726084																								32587456		as of 1998
+12	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694																										31679636		as of 1997
+13	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839																												31143039		as of 1996
+14	1379577	9570883	8333894	5255669	2709364	2860605	1009485	608498				use  case res																										30707795		as of 1995
Ultimate	1379577	9570883	8333894	5256669	2709364	2860605	1009485	608498		608839		350694		774635		786126		872925		1541049		1652606		1303117		1994201		1704471		2317739		2374590		2354204		683433		51047605
IBNR	0		0	0	0	0	0	0		0		0		48551		9245		12995		27530		37662		14033		118959		170988		791652		1247405		1666039		603042		4748107
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463438		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @ 50K Deductible																														6I6693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373386		1432580		25544455
Loss Ratio								184.2	%	157.3	%	40.1	%	100.3	%	88.5	%	126.7	%	112.5	%	72.1	%	45.7	%	75.4	%	61.0	%	76.6	%	82.5	%	99.2	%	47.7	%	78.0	%
																						Loss Ratio icluding $50K premium =====>								63.6	%	68.3	%	76.8	%	34.5	%

Pa id Loss & LAE as a percent of ULTIMATE INCURRED =======>

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END											0.0	%	45	%	256	%	4.5	%	13.0	%	9.3	%	5.0	%	6.9	%	7.9	%	5.3	%	28.2	%	26.9	%	12.7	%	5.1	%	5.4	%	3.8	%	11.8	%
+1									0.0	%	30.1	%	50.1	%	39.0	%	12.8	%	100.0	%	29.4	%	13.9	%	22.9	%	23.8	%	20.1	%	47.9	%	36.6	%	20.8	%	22.6	%	18.3	%	29.2	%
+2							0.0	%	71.7	%	57.4	%	56.1	%	90.7	%	25.9	%	100.0	%	46.5	%	66.2	%	40.9	%	34.4	%	25.6	%	60.1	%	60.1	%	44.0	%	47.5	%	47.5	%
+3					0.0	%	85.5	%	89.7	%	75.1	%	60.1	%	94.3	%	82.6	%	100.0	%	53.0	%	71.2	%	88.3	%	55.8	%	66.8	%	70.0	%	77.5	%	59.2	%	65.8	%
+4			0.0	%	975	%	87.8	%	91.5	%	86.6	%	64.0	%	98.0	%	95.8	%	100.0	%	90.3	%	98.8	%	98.1	%	78.5	%	95.8	%	88.4	%	89.1	%	90.0	%
+5	100.0	%	97.8	%	98.3	%	91.7	%	925	%	93.9	%	67.1	%	98.1	%	98.0	%	100.0	%	91.9	%	98.8	%	98.3	%	83.0	%	96.3	%	93.7	%	94.0	%
+6	100.0	%	99.5	%	99.3	%	95.9	%	99.5	%	97.6	%	98.6	%	99.1	%	99.2	%	100.0	%	93.0	%	98.8	%	98.5	%	95.0	%	97.7	%	98.9	%
+7	100.0	%	100.0	%	99.9	%	96.7	%	100.0	%	98.4	%	93.9	%	100.0	%	99.3	%	100.0	%	93.1	%	98.3	%	98.5	%	98.2	%	97.7	%
+8	100.0	%	100.0	%	99.9	%	99.6	%	100.0	%	98.4	%	100.0	%	100.0	%	100.0	%	100.0	%	93.7	%	98.8	%	98.5	%	98.2	%
+9	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	93.7	%	98.8	%	98.5	%
+10	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	94.1	%	93.8	%
+11	100.0	%	100.0	%	100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	93.7	%
+12	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	6.3	%	1.2	%	1.5	%	1.8	%	2.3	%	1.1	%	6.0	%	10.0	%	34.2	%	52.5	%	70.8	%	88.2	%

Exhibit 20

American Inter-Fidelity Exchange @12/2009

Auto Liability – BI and PD Liability

Source: diskette files closed94 toCLOSED (as of 1209)
file = Lsdv09 avg5 paid.xl	Using data through 12/09	In this version, we average
tab=max350	Claims capped at $350,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE ================>

																																						Diagonal
ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total
YEAR END																				122232		87031		367155		638376		216735		118982		127068		206280		80391		50345855		as of 2009
+1																		199674		367230		332169		623939		831863		354624		523372		435389		688165				52309869		as of 2008
+2																520082		356657		529712		423845		783065		1301284		853082		1101592		1349444						49535665		as of 2007
+3														410730		559545		873011		859954		1207332		911944		1648142		1111706		1526087								47367418		as of 2006
+4												383282		808949		776881		958652		1326814		1793816		1151342		1879594		1699190										45071072		as of 2005
+5										596452		383282		821899		776881		960199		1396615		1803112		1220831		1978143												42933216		as of 2004
+6								603115		604226		383282		830341		776881		961923		1581730		1826297		1289079														41136900		as of 2003
+7							1133654	608498		604827		383282		830659		776881		961923		1630355		1826297																39531404		as of 2002
+8						2814898	1146188	608498		608839		383282		835791		776881		961923		1630562																		37957606		as of 2001
+9					2941285	2850220	1146188	608498		608839		383282		835791		776881		961923
+10				5575684	2941285	2860605	1146188	608498		608839		383282		835791		776881
+11			9457702	5575849	2941285	2860605	1146188	608498		608839		383282		835791
+12		10619408	9457702	5598051	2941285	2860605	1146188	608498		608839		383282
+13	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839
+14	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498				use case res
Ultimate	1480044	10619408	9457702	5598051	2941285	2860605	1146188	608498		608839		383282		884342		785506		974767		1656757		1863871		1294941		2092287		1873755		2346327		2836361		2380807		666669		55360291
IBNR	0	0	0	0	0	0	0	0		0		0		48551		8625		12844		26195		37574		5862		114144		174565		820240		1486917		1692642		586278		5014436
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1106919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312391		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net @  50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	114.5	%	88.4	%	141.4	%	120.9	%	81.3	%	46.4	%	79.1	%	67.1	%	77.5	%	98,5	%	100.3	%	46.5	%	83.2	%
																				Loss Ratio including $50K Premium ======>										64.4	%	81.5	%	77.7	%	33.6	%

Paid Loss & LAE as a percent of ULTIMATE INCURRED =======>

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																											7.4	%	4.7	%	28.4	%	30.5	%	11.6	%	5.1	%	4.5	%	8.7	%	12.1	%
+1																									20.5	%	22.2	%	17.8	%	48.2	%	39.8	%	18.9	%	22.3	%	15.4	%	28.9	%
+2																							66.2	%	36.6	%	32.0	%	22.7	%	60.5	%	62.2	%	45.5	%	46.9	%	47.6	%
+3																					46.4	%	71.2	%	89.6	%	51.9	%	64.8	%	70.4	%	78.8	%	59.3	%	65.0	%
+4																			100.0	%	91.5	%	98.9	%	98.3	%	80.1	%	96.2	%	88.9	%	89.8	%	90.7	%
+5																	98.0	%	100.0	%	92.9	%	98.9	%	98.5	%	84.3	%	96.7	%	94.3	%	94.5	%
+6															99.1	%	99.2	%	100.0	%	93.9	%	98.9	%	98.7	%	95.5	%	98.0	%	99.5	%
+7													98.9	%	100.0	%	99.3	%	100.0	%	93.9	%	98.9	%	98.7	%	98.4	%	98.0	%
+8											98.4	%	100.0	%	100.0	%	100.0	%	100.0	%	94.5	%	98.9	%	98.7	%	98.4	%
+9									100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	94.5	%	98.9	%	98.7	%
+10							99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	94.5	%	98.9	%
+11					100.0	%	99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	94.5	%
+12			100.0	%	100.0	%	1000	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	5.5	%	1.1	%	1.3	%	1.6	%	2.0	%	0.5	%	5.5	%	9.3	%	35.0	%	52.4	%	71.1	%	87.9	%

Exhibit 21

American Inter-Fidelity Exchange @ 12/2009

Auto Liability — BI and PD Liability

Source: diskette files closed94 to CLOSED (as of 1209)
file = Lsdv09 avg5 paid.x	Using data through 12/09	In this version, we average
tab=max500	Claims capped at $350,000 per loss – LAE prorated	the last 5 LDF's.
Paid Losses and LAE ------------------------------->

ACC Year	1988	1989	1990	1991	1992	1993	1994	1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Diagonal Total
YEAR END																						87031		367155		792728		216735		118982		127068		206280		80391		55137976		as of 2009
+1																				367230		332169		623939		986215		354624		523372		435389		688165				57499142		as of 2008
+2																		356657		529712		423845		783065		1455636		1008208		1101592		1682833						54150426		as of 2007
+3																559545		1026001		859954		1362623		911944		1802494		1266832		1526087								47367418		as of 2006
+4														973509		776881		1111642		1502379		2110845		1151342		2033946		1854316										45071072		as of 2005
+5												383282		986459		776881		1113189		1572180		2120141		1220831		2132495												42933216		as of 2004
+6										604226		383282		994901		776881		1114913		1757295		2143326		1289079														41136900		as of 2003
+7								608498		604827		383232		995219		776881		1114913		1805920		2143326																39531404		as of 2002
+8							1299457	608498		608839		383282		1000351		776881		1114913		1806127																		37957606		as of 2001
+9						2860220	1299457	608498		608839		383282		1000351		776881		1114913
+10					3144403	2860605	1299457	608498		608839		383232		1000351		776881
+11				5912786	3144403	2860605	1299457	608498		608839		383282		1000351
+12			10683174	5934988	3144403	2860605	1299457	608498		608839		383232
+13		11989754	10683174	5934988	3144403	2860606	1299457	608498		608839
+14	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498
												use case res
Ultimate	1530012	11989754	10683174	5934988	3144403	2860605	1299457	608498		608839		383282		1048902		784140		1127437		1830529		2180388		1285137		2240345		2024985		2359077		3479381		2376550		633373		60413257
IBNR	0	0	0	0	0	0	0	0		0		0		48551		7259		12524		24402		37062		-3942		107850		170669		832990		1796548		1688385		552982		5275281
Earned Premium								1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded								780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985130		648283		380448		12568435
Net @ 50K Deductible																														616693		599647		691878		551144		2459362
Net Earned								330405		387117		874329		772020		888507		689144		1369965		2292530		2791407		2644171		2792308		3027426		2878661		2373886		1432580		25544455
Loss Ratio								184.2	%	157.3	%	43.8	%	135.9	%	88.3	%	163.6	%	133.6	%	95.1	%	46.0	%	84.7	%	72.5	%	77.9	%	120.9	%	100.1	%	44.2	%	89.9	%
																						Loss Ratio including $50K premium==>								64.7	%	100.0	%	77.5	%	31.9	%

Paid Loss & LAE as a percent of ULTIMATE INCURRED --------->

	1988		1989		1990		1991		1992		1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
YEAR END																													4,0	%	28.6	%	35.4	%	10.7	%	5.0	%	3.7	%	8.7	%	12.7	%
+1																											20.1	%	15.2	%	48.6	%	44.0	%	17.5	%	22.2	%	12.5	%	29.0	%
+2																									31.6	%	28.9	%	19.4	%	60.9	%	65.0	%	49.8	%	46.7	%	48.4	%
+3																							71.4	%	91.0	%	47.0	%	62.5	%	71.0	%	80.5	%	62.6	%	64.7	%
+4																					92.8	%	99.1	%	98.6	%	82.1	%	96.8	%	89.6	%,	90.8	%	91.6	%
+5																			100.0	%	94.0	%	99.1	%	98.7	%	85.9	%	97.2	%	95.0	%	95.2	%
+6																	99.2	%	100.0	%	94.9	%	99.1	%	98.9	%	96.0	%	93.3	%	100.3	%
+7															100.0	%	99.3	%	100.0	%	94,9	%	99.1	%	98.9	%	98.7	%	98.3	%
+8													100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99,1	%	98.9	%	98.7	%
+9											100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99.1	%	98.9	%
+10									100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%	99.1	%
+11							99.6	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	95.4	%
+12					100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+13			100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
+14	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Ultimate	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	I00.0		100.0	%	100.0	%	100.0%		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
IBNR	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	4.6	%	0.9	%	1.1	%	1.3	%	1.7	%	-0.3	%	4.8	%	8.4	%	35.3	%	51.6	%	71.0	%	87.3	%

Exhibit 22

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg5 paid.xls	In this version, we average
tab = runoff	the last 5 LDF’s.
Page l

	Paid plus Case		Ultimate		Developed
	at 12/01		at 12/09		12/01 IBNR
1 for $100K triangle through 12/98		25255044		25296160		41116
2 for $100K triangle for 1999		568590		578823		10233
3 for $200K triangle for 1999		723327		787505		64178
4 for $200K triangle for 2000-2001		946650		2300376		1353726
5 (l)+.25*(2)+.75*(3)+(4) =		26886337		28331870		1445534

Note1: The 1999 year is included in theLine (5) total as 25% of the $100K version and 75% of $200K version.

	Paid plus Case		Ultimate		Developed
	at 12/02		at 12/09		12/02 IBNR
1 for $100K triangle through 12/98		25316403		25296160		-20243
2 for $100K triangle for 1999		568173		578823		10650
3 for $200K triangle for 1999		751499		787505		36006
4 for $200K triangle for 2000-2001		1523221		2300376		777155
5 for $200K triangle for 2002		645873		1547595		901722
6 for $250K triangle for 2002		645873		1652606		1006733
7 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6) =		28191165		29958224		1767059

Note1: The 1999 year is included in theLine (7) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (7) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/03		at 12/09		12/03 IBNR
1 for $100K triangle through 12/98		25298068		25296160		-1908
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		1855056		2300376		445320
5 for $200K triangle for 2002		935175		1547595		612420
6 for $250K triangle for 2002		990725		1652606		661881
7 for $250K triangle for 2003		768541		1303117		534576
8 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		29623566		31261340		1637775

Notel:  The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/04		at 12/09		12/04 IBNR
1 for $I00K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		2007831		2300376		292545
5 for $200K triangle for 2002		1108841		1547595		438754
6 for $250K triangle for 2002		1161618		1652606		490988
7 for $250K triangle for 2003-2004		2018148		3297317		1279169
8 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		31195625		33255541		2059916

Notel:  The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Exhibit 22

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg5 paid.xls	In this version, we average
tab = runoff	the last 5 LDF’s.
page 2

	Paid plus Case		Ultimate		Developed
	at 12/05		at 12/09		12/05 IBNR
1 for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		2091322		2300376		209054
5 for $200K triangle for 2002		1427045		1547595		120550
6 for $250K triangle for 2002		1532869		1652606		119737
7 for $250K triangle for 2003-2005		3325240		5001789		1676549
8 (l)+.25*(2)+.75*(3)+(4) +.25*(5)+.75*(6)+(7) =		32944197		34960012		2015815

Notel:  The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

	Paid plus Case		Ultimate		Developed
	at 12/06		at 12/09		12/06 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		2237404		2300376		62972
5 for $200K triangle for 2002		1583846		1547595		-36251
6 for $250K triangle for 2002		1689522		1652606		-36916
7 for $250K triangle for 2003-2005		4531089		5001789		470700
8 for $250K triangle for 2006		683169		2317739		1634570
9 for $250K triangle for 2006		683169		2346327		1663158
10 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6) +(7)+.5*(8)+.5*(9) =		35135988		37292046		2156057

Notel:  The 1999 year is included in theLine (8) total as 25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

	Paid plus Case		Ultimate		Developed
	at 12/07		at 12/09		12/07 IBNR
1 for $100K triangle through 12/98		25296160		25296160		0
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		2285398		2300376		14978
5 for $200K triangle for 2002		1578343		1547595		-30748
6 for $250K triangle for 2002		1684019		1652606		-31413
7 for $250K triangle for 2003-2005		5135205		5001789		-133416
8 for $250K triangle for 2006		1321240		2317739		996499
9 for $350K triangle for 2006		1321240		2346327		1025087
10 for $250K triangle for 2007		833067		2374590		1541523
11 for $350K triangle for 2007		833067		2836361		2003294
12 for $500K triangle for 2007		833067		3479381		2646314
13 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+( +.5*(8)+.5*(9)+.22*(10)+.39*(ll)+.39*(12)=		37253733		40277595		3023861

Notel: The 1999 year is included in theLine (8) total as25% of the $100K version and 75% of $200K version.

Note2: The 2002 year is included in theLine (8) total as 25% of the $200K version and 75% of $250K version.

Note3: The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

Note3: The 2007 year is included in theLine (13) totalas 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Exhibit 22

American Inter-Fidelity Exchange @12/2009

Auto Liability — BI and PD Liability

file = Lsdv09 avg5 paid.xls	In this version, we average
tab = runoff	the last 5 LDF’s.
Page 3

	Paid plus Case		Ultimate		Developed
	at 12/08		at 12/09		12/08 IBNR
1 for $100K triangle through 12/98		25296159		25296160		1
2 for $100K triangle for 1999		569610		578823		9213
3 for $200K triangle for 1999		776881		787505		10624
4 for $200K triangle for 2000-2001		2258144		2300376		42232
5 for $200K triangle for 2002		1578344		1547595		-30749
6 for $250K triangle for 2002		1684020		1652606		-31414
7 for $250K triangle for 2003-2005		5292693		5001789		-290904
8 for $250K triangle for 2006		1916770		2317739		400969
9 for $350K triangle for 2006		2017468		2346327		328859
10 for $250K triangle for 2007		1378354		2374590		996236
11 for $350K triangle for 2007		1593351		2836361		1243010
12 for $500K triangle for 2007		1807092		3479381		1672289
13 for $250K triangle for 2008		947313		2374590		1427277
14 for $500K triangle for 2008		1209691		3479381		2269690
15 (l)+.25*(2)+.75*(3)+(4)+.25*(5)+.75*(6)+( +.5*(8)+.5*(9)+.22*(l0)+.39*(11)+.39*(12) +.2*(13)+.8*(14)=		39983405		43536017		3552612

Notel: The 1999 year is included in theLine (8) total as25% of the $100K version and 75% of $200K version.

Note2:The 2002 year is included in theLine (8) total as25% of the $200K version and 75% of $250K version.

Note3:The 2006 year is included in theLine (10) total as 50% of the $250K version and 50% of $350K version.

Note3: The 2007 year is included in theLine (13) total as 22% of the $250K version, 39% of the $350K and 39% of $500K version.

Note 4:The 2008 year is included in theLine (13) totalas 20% of the $250K version and 80% of $500K version.

Exhibit 23

American Inter-Fidelity Exchange at 12/09

Analysis of Auto Liability Excess Layer - Based on Loss Development Triangles

file = Uncapped minus 250350500 1209.xls

Step 1 — Summarize Reported Losses & LAE in the Excess Layers

Reported Losses & LAE – in the Excess Layers

	2004		2005		2006		2007		2008		2009
Exc $250K	$	617,408	$	1,589,170	$	52	$	844,066	$	272,676	$	0	$	3,323,372
Exc $350K	$	514,507	$	1,205,231	$	0	$	623,796	$	165,744	$	0	$	2,509,278
Exc $500K	$	360,155	$	722,757	$	0	$	293,390	$	5,347	$	0	$	1,381,649

Step 2 – Summarize Ultimate Losses & LAE for Various Ground-Up Layers

by Subtracting Ultimates at $250K, $350K and $500K – from the Uncapped Ultimates

Ultimate Loss & LAE – Average of Last 5 LD %’s

	2004		2005		2006		2007		2008		2009		Avg Last 5 Total
Uncapped	$	2,659,398	$	3,823,126	$	2,338,795	$	3,349,142	$	3,050,287	$	820,650	$	16,041,399
$250K	$	2,038,893	$	1,963,812	$	1,993,723	$	1,852,657	$	2,208,129	$	716,675	$	10,773,889
$350K	$	2,143,467	$	2,388,974	$	2,082,754	$	2,175,145	$	2,442,740	$	748,448	$	11,981,528
$500K	$	2,299,851	$	2,943,994	$	2,199,815	$	2,709,520	$	2,824,545	$	782,164	$	13,759,889
Exc $250K	$	620,505	$	1,859,315	$	345,073	$	1,496,485	$	842,158	$	103,975	$	5,267,510
Exc $350K	$	515,931	$	1,434,152	$	256,041	$	1,173,997	$	607,547	$	72,202	$	4,059,872
Exc $500K	$	359,547	$	879,132	$	138,981	$	639,623	$	225,741	$	38,486	$	2,281,510

Ultimate Loss & LAE – Average of Last 3 LD %’s

	2004		2005		2006		2007		2008		2009		Avg Last 3 Total
Uncapped	$	2,649,384	$	3,881,893	$	2,277,486	$	2,807,528	$	2,887,287	$	937,220	$	15,440,800
$250K	$	2,031,194	$	1,878,541	$	1,866,611	$	1,672,287	$	2,036,378	$	717,346	$	10,202,357
$350K	$	2,136,943	$	2,318,618	$	1,975,709	$	1,943,293	$	2,261,930	$	769,235	$	11,405,728
$500K	$	2,294,757	$	2,910,894	$	2,119,198	$	2,407,388	$	2,657,108	$	848,641	$	13,237,986
Exc $250K	$	618,190	$	2,003,353	$	410,875	$	1,135,242	$	850,909	$	219,874	$	5,238,442
Exc $350K	$	512,442	$	1,563,275	$	301,778	$	864,235	$	625,357	$	167,985	$	4,035,072
Exc $500K	$	354,628	$	971,000	$	158,289	$	400,140	$	230,179	$	88,579	$	2,202,814

Ultimate Loss & LAE - Average of Last 2 LD %’s

	2004		2005		2006		2007		2008		2009		Avg Last 2 Total
Uncapped	$	2,620,230	$	4,080,546	$	2,144,015	$	2,912,012	$	2,710,895	$	865,832	$	15,333,530
$250K	$	2,008,940	$	1,858,296	$	1,899,949	$	1,663,207	$	1,933,434	$	641,611	$	10,005,436
$350K	$	2,116,344	$	2,327,954	$	1,989,021	$	1,957,815	$	2,138,335	$	692,822	$	11,222,292
$500K	$	2,276,207	$	2,981,038	$	2,097,044	$	2,485,768	$	2,565,528	$	788,117	$	13,193,701
Exc $250K	$	611,290	$	2,222,250	$	244,066	$	1,248,805	$	777,461	$	224,222	$	5,328,094
Exc $350K	$	503,886	$	1,752,592	$	154,994	$	954,197	$	572,560	$	173,010	$	4,111,238
Exc $500K	$	344,023	$	1,099,508	$	46,971	$	426,245	$	145,367	$	77,716	$	2,139,830

Exhibit 23

American Inter-Fidelity Exchange at 12/09

Analysis of Auto Liability Excess Layer — Based on Loss Development Triangles

file = Uncapped minus 250350500 1209.xls

Step 3 — Calculate Excess Layer IBNR as Excess Reported at the respective Attachments

($250K, $350K, or $500K) from the Excess Layer Ultimates at Uncapped

IBNR = Ultimate minus Reported - Average of Last 5 LD %’s

													Avg Last 5
	2004		2005		2006		2007		2008		2009		Total
Exc $250K	$	33,097	$	270,145	$	345,021	$	652,419	$	569,482	$	103,975	$	1,944,138
Exc $350K	$	1,424	$	228,921	$	256,041	$	550,201	$	441,803	$	72,202	$	1,550,594
Exc $500K	$	-608	$	156,375	$	138,981	$	346,233	$	220,394	$	38,486	$	899,861

IBNR = Ultimate minus Reported - Average of Last 3 LD %’s

													Avg Last 3
	2004		2005		2006		2007		2008		2009		Total
Exc $250K	$	782	$	414,183	$	410,823	$	291,176	$	578,233	$	219,874	$	1,915,070
Exc $350K	$	-2,065	$	358,044	$	301,778	$	240,439	$	459,613	$	167,985	$	1,525,794
Exc $500K	$	-5,527	$	248,243	$	158,289	$	106,750	$	224,832	$	88,579	$	821,165

IBNR = Ultimate minus Reported — Average of Last 2 LD %’s

													Avg Last 2
	2004		2005		2006		2007		2008		2009		Total
Exc $250K	$	-6,118	$	633,080	$	244,014	$	404,739	$	504,785	$	224,222	$	2,004,722
Exc $350K	$	-10,621	$	547,361	$	154,994	$	330,401	$	406,816	$	173,010	$	1,601,960
Exc $500K	$	-16,132	$	376,751	$	46,971	$	132,855	$	140,020	$	77,716	$	758,181

Step 4 — Using the Layer Weights (see Exhibit 12), Calculate a Weighted

Excess Layer IBNR

Weights	2004			2005			2006			2007			2008			2009
$250K		100	%		100	%		50	%		22	%		20	%		21	%
$350K								50	%		39	%
$500K											39	%		80	%		79	%
Total		100	%		100	%		100	%		100	%		100	%		100	%

Weighted Excess Layer IBNR

Last 5	$	3,097	$	270,145	$	300,531	$	493,142	$	290,212	$	52,239	$	1,409,365
Last 3	$	782	$	414,183	$	356,300	$	199,462	$	295,512	$	116,151	$	1,382,391
Last 2	$	-6,118	$	633,080	$	199,504	$	269,712	$	212,973	$	108,482	$	1,417,633

Exhibit 24

American Inter-Fidelity Exchange at 12/09

Calculation of Ceded IBNR

Automobile Liability

file = ceded IBNR calcs 2009.xls

Accident Year =	1995		1996		1997		I998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		Total 1995-2009
Earned Premium	1111129		996547		1188211		1161154		1122605		1001541		1706919		3571083		4591920		4806690		4022839		4749908		4463488		3714046		2364172		40572252
Ceded	780724		609430		313882		389134		234098		312397		336954		1278553		1800513		2162519		1230531		1105789		985180		648283		380448		12568435
Net Earned	330405		387117		874329		772010		888507		689144		1369965		2292530		2791407		2644171		2792308		3644119		3478308		3065763		1983724		28003817
Reported LossRatio — $100K level (as % of CEDED premium)	7.8	%	16.3	%	58.2	%	115.8	%	88.5	%	155.8	%	281.7	%	123.2	%	52.1	%	49.5	%	163.0	%	70.9	%	91.4	%	69.8	%	0.0	%	80.9	%
Reported Loss Ratio — $200K level (as % of CEDED premium)	0.0	%	0.0	%	26.3	%	87.7	%	0.0	%	109.9	%	194.5	%	99.4	%	44.5	%	31.1	%	121.2	%	22.1	%	69.6	%	49.4	%	0.0	%	55.0	%
Reported Loss Ratio — $250K level (as % of CEDED premium)	0.0	%	0.0	%	0.0	%	73.6	%	0.0	%	93.5	%	l75.5	%	91.1	%	40.9	%	28.6	%	105.0	%	9.8	%	58.7	%	41.3	%	0.0	%	47.2	%
Reported Loss Ratio — $350K level (as % of CEDED premium)	0.0	%	0.0	%	0.0	%	45.4	%	0.0	%	60.9	%	140.8	%	74.6	%	33.7	%	23.8	%	83.2	%	0.7	%	36.9	%	25.1	%	0.0	%	35.6	%
Reported Loss Ratio — $500K level (as % of CEDED premium)	0.0	%	0.0	%	0.0	%	3.1	%	0.0	%	11.9	%	88.7	%	49.8	%	23.0	%	16.7	%	57.7	%	0.0	%	15.2	%	0.8	%	0.0	%	20.9	%

Reinsurance Attachment Points:	$	100,000	until first part of 1999
	$	100,000	last part of 1999 to first part of 2002
	$	250,000	last part of 2002 to current
	$	350,000	during 2006, for 5 selected accounts only
	$	500,000	during 2007, for the same 5 selected accounts only

Exhibit 24

American Inter-Fidelity Exchange at 12/09

Calculation of Ceded IBNR

Automobile Liability

file = ceded IBNR calcs 2009.xls

sheet = conclusion

Method 1: Use Expected Loss Ratio on Ceded Premiums – for the 2006-2009 accident years.

	2002			2003			2004			2005			2006			2007			2008			2009			Total
Ceded Earned Premium		1278553			1800513			2162519			1230531			1105789			985180			648283			380448			9591816
Reported Losses ($250K)		1165110			750199			617408			1589170			52			844066			272676			0			5238681
Reported Losses ($350K)														0			623796			165744			0			789540
Reported Losses ($500K)																	293390			5347			0			298737
Selected Reported Losses		1165110			750199			617408			1589170			26			580843			58813			0			4761569
Reported Loss Ratio		91.1	%		41.7	%		28.6	%		129.1	%		0.0	%		59.0	%		9.1	%		0.0	%		49.6	%
Additional IBNR																	59524			362571			247291			669386
Ultimate Losses		1165110			750199			617408			1589170			26			640367			421384			247291			5430955
Ultimate Loss Ratio		91.1	%		41.7	%		28.6	%		129.1	%		0.0	%		32.5	%		65.0	%		65.0	%		56.6	%
Last year we had used:														37.5	%		75.0	%		75.0	%
Avg LR 2002-2006 =>					58.1	%

Method 2: Consider actual Emergence of Ceded IBNR on 12/02 and subsequent year-ends at $250,000 level or $350,000 level or $500,000 level.

	$250,000		$350,000		$500,000
	Emerged IBNR		Emerged IBNR		Emerged IBNR
Reserve at 12/02		2043697		1613220		967501
Reserve at 12/03		2504151		2046696		1356681
Reserve at 12/04		2238220		1883853		1352169
Reserve at 12/05		1897389		1489965		966108
Reserve at 12/06		1449714		1146830		779860
Reserve at 12/07		1903924		1431272		732126
Reserve at 12/08		472407		448663		163632

Conclusion:
Selected Ceded IBNR at 12/09		1400000
split by accident year	2009	150000
	2008	250000
	2007	300000
	2006	300000
	2005	400000
	Total	1400000

American Inter-Fidelity Exchange at 12/09

Reconciliation of Actuary's Workpapers to Schedule P

file = SchP reconcile AIFE 1209.xls

Page 1

	Schedule P ======>
Accident	Auto Liability		JPCA - Actuary's Workpapere
Year	Net Earned		Net Earned		Delta
prior
2000		799		689		-110
2001		1523		1370		-153
2002		2656		2293		-363
2003		3137		2791		-346
2004		3086		2644		-442
2005		3231		2792		-439
2006		4090		3644		-446
2007		3920		3479		-441
2008		3640		3066		-574
2009		2365		1984		-381
Total		28447		24752		-3695

Difference in premium is (almost exactly) Bobtail and US1 premium – not included in Actuary's workpapers. See page 2 of this worksheet.

Accident	Auto Liability – Net				Paid								Case				Total		JPCA - Actuary's Workpapers					Last Yr’s
Year	Paid Loss		ceded		DCC LAE		ceded		Case Loss		ceded		DCC LAE		ceded		Reported		Reported		Delta			12/08 Delta
Prior										47				2				49		49		0
2000		1018		337		133		7										807		809		2			2
2001		1525		561		534		95										1403		1449		46			46
2002		2309		1194		455		29										1541		1589		48			49
2003		796				493				820		570				180		1359		1359		0			1
2004		1996		600		483		17		163				10				2035		2049		14			13
2005		1558		491		477		15		1521		990		17		78		1999		1987		-12			7
2006		1163				316				356				14				1849		1896		47			-18
2007		1621		610		242				426		81		106		40		1664		1875		211			99
2008		596				77				1026		255		32		18		1458		1687		229			77
2009		38				41				224				13				316		318		2
Total		12620		3793		3251		163		4583		1896		194		316		14480		15066		586			276
																						3.9	%

Source for actuary's values – my 2/10/10 draft report sections to Lex Venditti on IBNR projections.

The losses for 1999 in my worksheets are (.25*Exh 3 and .75*Exh4), and losses for 1998 and prior are Exh 3

The losses for 2002 in my worksheets are (.25*Exh 4 and .75*Exh5), and losses for 2000-2001 are Exh 4.

The losses for 2006 in my worksheets are (.50*Exh 5 and .50*Exh6), and losses for 2003-2005 are Exh 5.

The losses for 2007 in my worksheets are: 22% Exh5 and 39% Exh6 and 39% Exh7

The lasses for 2008 in my worksheets are: 20% Exh5 and 80% Exh7

The losses for 2009 in my worksheets are: 21 % Exh5 and 79% Exh7

The off-balances for 2000-2006 are similar to the off-balances at 12/08. The 2007+2008 off-balances could be the result of actual distribution of losses by reinsurance attachment being different than our percentage weighting for those two years.

	Schedule P ======>
Accident	Auto Physical Damage		JPCA - Actuary's Workpapers
Year	Net Earned		Net Earned		Delta
Prior						0
2008	2049			2048.569		-0.431
2009		1679		1679.928		0.928
Total		3728		3728.497		0.497
						0.0	%

Accident	Auto Physical Damage		Paid				Case		Total		JPCA - Actuary's Workpapers
Year	Paid Loss		DCC LAE		Case Loss		DCC LAE		Reported		Reported		Delta
Prior		-8		4		28		2		26		24.991		-1.009
2008		967		59		19		1		1046		1014.527		-31.473
2009		747		35		57		1		840		828.027		-11.973
Total		1706		98		104		4		1912		1867.545		-44.455
														-2.4	%

Source for actuary's values – my 2/3/10 draft report sections to Lex Venditti

Actuary's losses for "prior" — paid in 2009 on 2007+prior, plus O/Sfor 2007+prior — are calculated in the "for Sch P recon" tab of our file collision 2009.xls.

	Schedule P ======>
Accident	Inland Marine		JPCA - Actuary's Workpapers
Year	Net Earned		Net Earned		Delta
Prior
2008		266		265.900		-0.100
2009		144		143.942		-0.058
Total		410		409.842		-0.158
						0.0	%

Accident	Inland Marine		Paid				Case		Total		JPCA - Actuary's Workpapers
Year	Paid Loss		DCC LAE		Case Loss		DCC LAE		Reported		Reported		Delta
Prior		0		1		183		5		189		202.593		13.593
2008		9		11		88		1		109		130.694		21.694
2009		44		2		120		2		168		167.962		-0.038
Total		53		14		391		8		466		501.249		35.249
														7.0	%

Source for actuary's values – my 2/3/10 draft report sections to Lex Venditti

Actuary's losses for "prior" – paid in 2009 on 2007+prior, plus O/S for 2007+prior – are calculated in the" for Sch P recon" tab of our file Cargo 2009.xls.

American Inter-Fidelity Exchange at 12/09

Reconciliation of Actuary's Workpapers to Schedule P

file = SchP reconcile AIFE 1209.xls

Page 2

					Remaining
	Auto Liability				JPCA-Sch P
Accident	Delta		Bobtail		Delta in
Year	JPCA - SchP		Written Prem		Auto Liab Premiums
prior		0
2000		-110		109.397		-0.603
2001		-153		153.488		0.488
2002		-363		363.000		0.000
2003		-346		346.518		0.518
2004		-442		442.742		0.742
2005		-439		438.720		-0.280
2006		-446		446.255		0.255
2007		-441		441.337		0.337
2008		-574		453.811		-120.189
2009		-381		507.599		126.599
Total		-3695		3702.867		7.867

Note 1: The 2008 off-balance is because US1 Excess policy premium of $120,000 is not included in our Auto Liability workpapers.

Note 2: The 2009 off-balance consists of two items:

a) additional ceded premium of $246,235 due to audits by the reinsurers.

b) $120,000 of premium for US1 Excess policy which is not included in our Auto Liability workpapers.

$120,000   ($246,235)   equals   $126,235