ANNUAL STATEMENT THE STANDARD FIRE INSURANCE COMPANY

ANNUAL STATEMENT OF THE THE STANDARD FIRE INSURANCE COMPANY Of HARTFORD in the state of CT to the Insurance Department of the State of For the Year...
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ANNUAL STATEMENT OF THE

THE STANDARD FIRE INSURANCE COMPANY Of

HARTFORD in the state of CT

to the Insurance Department of the State of For the Year Ended December 31, 2006

2006

THE STANDARD FIRE INSURANCE PROPERTY

AND CASUALTY

-ASSOCIATION

COMPANIES

COMPANY

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EDITION

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ANNUAL STATEMENT For the Year Ended December 31, 2006 OF THE CONDITION AND AFFAIRS OF

THE STANDARD FIRE INSURANCE COMPANY NAIC Group Code

3548

3548

(Current Period) (prior Period)

NAIC Company Code 19070 Employer's ID Number 06-6033509

Organized under the Laws of Connecticut, State of Domicile or Port of Entry Connecticut, Country of Domicile US

INCORPORATED/ORGANIZED, JULY 6, 1905

COMMENCED BUSINESS, MARCH 26, 1910

Statutory Home Office: One Tower Square, Hartford, CT 06183 Main Administrative Office: One Tower Square, Hartford, CT 06183 (860) 277-0111 Mail Adjress: One Tower Square, Hartford, CT 06183-6014 Primary Location ofBodkS and Records: One Tower Square, Hartford, CT 06183 (860) 277-0111 Internet Website Address: stpaultravelers.com Statutory Statement Contact: Michael J. Doody (860) 277-3966 [email protected] (860) 277-7002 (B-MailAddr...) (FaxNumber) Policy owner Relations Contact: Olle Tower Square, 5GS, Hartford, CT 06183 (860) 277-1561

OFFICERS Name

Title

Name

Title

t. BRIAN WIUJAM MacLEAN.....Chainnanofthe Board, President & ChiefExecutiveOfficer # SAMUELGERSTENLISS ExecutiveVice President,StrategicDevelopmentand 2. JAY STEVENBENET Vice Chainnan& ChiefFinancialOfficer Financial& Professional& InternationalInsurance 3. CHARLESJOSEPHCLARKE Vice Chainnan # MARIAOLIVO ExecutiveVice President,InvestorRelations& Communications 4. WILLIAMHERBERT HEYMAN Vice Chainnan& ChiefInveshnentOfficer # KATHLEENLYNCHPRESTON ExecutiveVice President,EnterpriseDevelopment S. # JOHN JOSEPH ALBANO ExecutiveVice President,BusinessInsurance DOREENSPADORCIA ExecutiveVice President,Claim 6. ANDY FRANCISBESSETTE ExecutiveVice President& ChiefAdministrativeOfficer KENNETHFRANKLINSPENCE,III ExecutiveVice President& GeneralCounsel 7. JOHN PATRICK CLIFFORD,JR ExecutiveVice President,HumanResources BRUCEALLENBACKBERG Senior Vice President& Corporate Secretary 8. # WILLIAMPATRICKHANNON' ExecutiveVice President,EnterpriseRisk Management # DOUGLASKEITHBELL" SeniorVice President,AccountingStandards and BusinessConductOfficer WADETHOMASOVERGAARD Senior Vice President& ChiefCorporate Actuary 9. # JOSEPH PATRICKLACHER,JR ExecutiveVice President,Petsonallnsurance DOUGLASKENNETHRUSSELL Senior Vice President,Treasurer& CorporateController SCOTTWILLIAMRYNDA Senior Vice President,Tax Administration

DIRECTORS JAY STEVEN BENET WILLIAM HERBERT HEYMAN

BRIAN WILLIAM MacLEAN DOREEN SPADORCIA

JOSEPH PATRICK LACHER, JR. . Effective January 22, 2007 .. Effective January 1,2007

STATE OF CONNECTICUT COUNTY OF HARTFORD

}

ss:

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

~w~~ Brian

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W. MacLean

Bruce A. Backberg

President ","""''''''' ,.t'1. I'd. ~~q

Notary Public

251

Controller

Secretary

Subscribed and sworn to before me this

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a. Is this an original

b. If no: "~.

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Douglas K. Ru.,sell

Yes lEI No 0

filing?

1. Statethe amendmentnumber 2. Date filed 3. Numberof pages attached

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

ASSETS 1

Current Year 2

Assets

Nonadmitted Assets

3 Net Admitted Assets (Cols. 1 - 2)

Prior Year 4 Net Admitted Assets

1.

Bonds (Schedule D)........................................................................................................... ..........2,411,152,418 ...............................0 ..........2,411,152,418 ..........2,196,263,560

2.

Stocks (Schedule D):

3.

4.

2.1

Preferred stocks....................................................................................................... .................8,708,843 ...............................0 .................8,708,843 ...............12,507,281

2.2

Common stocks....................................................................................................... .............525,178,416 ...............................0 .............525,178,416 .............490,042,049

Mortgage loans on real estate (Schedule B): 3.1

First liens.................................................................................................................. ...............................0 ...............................0 ...............................0 ...............................0

3.2

Other than first liens................................................................................................. ...............................0 ...............................0 ...............................0 ...............................0

Real estate (Schedule A): 4.1

Properties occupied by the company (less $............0 encumbrances)........................................................................................................ .................4,637,984 ...............................0 .................4,637,984 .................4,726,854

4.2

Properties held for the production of income (less $............0 encumbrances)........................................................................................................ ...............................0 ...............................0 ...............................0 ...............................0

4.3

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

5.

Cash ($.....1,918,744, Sch. E-Part 1), cash equivalents ($..........0, Sch. E-Part 2) and short-term investments ($.....108,371,740, Sch. DA)......................... .............110,290,484 ...............................0 .............110,290,484 .............100,345,582

6.

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

7.

Other invested assets (Schedule BA)................................................................................ .............187,220,818 ......................12,460 .............187,208,358 .............168,502,004

8.

Receivables for securities.................................................................................................. ......................26,200 ...............................0 ......................26,200 ...............................0

9.

Aggregate write-ins for invested assets............................................................................. ...............................0 ...............................0 ...............................0 ...............................0

10. Subtotals, cash and invested assets (Lines 1 to 9)........................................................... ..........3,247,215,164 ......................12,460 ..........3,247,202,704 ..........2,972,387,329 11. Title plants less $..........0 charged off (for Title insurers only)........................................... ...............................0 ...............................0 ...............................0 ...............................0 12. Investment income due and accrued................................................................................. ...............29,743,006 ...............................0 ...............29,743,006 ...............26,834,991 13. Premiums and considerations: 13.1 Uncollected premiums and agents' balances in course of collection..................... ...............55,193,760 .................5,910,748 ...............49,283,011 ...............47,717,543 13.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $.....3,784,814 earned but unbilled premiums)............ .............192,054,089 .................1,503,109 .............190,550,979 .............185,060,005 13.3 Accrued retrospective premiums............................................................................. .................6,742,677 ....................359,440 .................6,383,237 .................9,538,262 14. Reinsurance: 14.1 Amounts recoverable from reinsurers..................................................................... ...............................0 ...............................0 ...............................0 ...............................0 14.2 Funds held by or deposited with reinsured companies........................................... ...............................0 ...............................0 ...............................0 ...............................0 14.3 Other amounts receivable under reinsurance contracts......................................... ...............................0 ...............................0 ...............................0 ...............................0 15. Amounts receivable relating to uninsured plans................................................................ ...............................0 ...............................0 ...............................0 ...............................0 16.1 Current federal and foreign income tax recoverable and interest thereon....................... .................2,403,125 ...............................0 .................2,403,125 ...............20,415,623 16.2 Net deferred tax asset........................................................................................................ .............119,535,576 ...............74,012,503 ...............45,523,073 ...............53,950,437 17. Guaranty funds receivable or on deposit........................................................................... .................2,285,368 ...............................0 .................2,285,368 .................3,216,121 18. Electronic data processing equipment and software......................................................... ...............15,485,226 ...............................0 ...............15,485,226 ...............13,847,731 19. Furniture and equipment, including health care delivery assets ($..........0)..................... ....................671,812 ....................671,812 ...............................0 ...............................0 20. Net adjustment in assets and liabilities due to foreign exchange rates............................ ...............................0 ...............................0 ...............................0 ...............................0 21. Receivables from parent, subsidiaries and affiliates......................................................... ...............................0 ...............................0 ...............................0 ...............................0 22. Health care ($..........0) and other amounts receivable...................................................... ...............................0 ...............................0 ...............................0 ...............................0 23. Aggregate write-ins for other than invested assets........................................................... ...............20,234,834 .................9,533,773 ...............10,701,060 ...............14,761,047 24. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 10 to 23)........................................................................................... ..........3,691,564,637 ...............92,003,847 ..........3,599,560,790 ..........3,347,729,088 25. From Separate Accounts, Segregated Accounts and Protected Cell Accounts............... ...............................0 ...............................0 ...............................0 ...............................0 26. TOTALS (Lines 24 and 25)................................................................................................ ..........3,691,564,637 ...............92,003,847 ..........3,599,560,790 ..........3,347,729,088 DETAILS OF WRITE-INS 0901. Investments in process....................................................................................................... ...............................0 ...............................0 ...............................0 ...............................0 0902. ............................................................................................................................................ ...............................0 ...............................0 ...............................0 ...............................0 0903. ............................................................................................................................................ ...............................0 ...............................0 ...............................0 ...............................0 0998. Summary of remaining write-ins for Line 9 from overflow page........................................ ...............................0 ...............................0 ...............................0 ...............................0 0999. Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above).................................................. ...............................0 ...............................0 ...............................0 ...............................0 2301. Equities and deposits in pools and associations............................................................... .................8,650,936 ...............................0 .................8,650,936 .................7,495,283 2302. Amounts receivable under high deductible policies.......................................................... .................4,114,488 .................2,986,382 .................1,128,106 .................6,497,449 2303. State surcharges receivable............................................................................................... .................1,008,928 ...............................0 .................1,008,928 ....................823,976 2398. Summary of remaining write-ins for Line 23 from overflow page...................................... .................6,460,482 .................6,547,391 .....................(86,909) .....................(55,662) 2399. Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above)................................................ ...............20,234,834 .................9,533,773 ...............10,701,060 ...............14,761,047

2

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

1 Current Year

2 Prior Year

1.

Losses (Part 2A, Line 34, Column 8)..................................................................................................................................................... ................1,490,205,486 ................1,541,202,501

2.

Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)............................................... ......................................0 ......................................0

3.

Loss adjustment expenses (Part 2A, Line 34, Column 9)..................................................................................................................... ...................331,407,612 ...................336,740,717

4.

Commissions payable, contingent commissions and other similar charges......................................................................................... .....................28,829,062 .....................27,605,396

5.

Other expenses (excluding taxes, licenses and fees)........................................................................................................................... .....................24,171,097 .....................16,052,860

6.

Taxes, licenses and fees (excluding federal and foreign income taxes)............................................................................................... .....................21,377,334 .....................24,417,648

7.1

Current federal and foreign income taxes (including $..........0 on realized capital gains (losses))...................................................... ......................................0 ......................................0

7.2

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

8.

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

9.

Unearned premiums (Part 1A, Line 37, Column 5) (after deducting unearned premiums for ceded reinsurance of $.....816,473,455 and including warranty reserves of $..........0)........................................................................................................... ...................382,914,061 ...................372,702,134

10.

Advance premiums................................................................................................................................................................................. ......................................0 ......................................0

11.

Dividends declared and unpaid: 11.1 Stockholders................................................................................................................................................................................... ......................................0 ......................................0 11.2 Policyholders.................................................................................................................................................................................. .......................1,081,775 .......................1,259,615

12.

Ceded reinsurance premiums payable (net of ceding commissions)................................................................................................... .....................17,322,831 .....................18,669,022

13.

Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 19)........................................................................ ......................................0 ......................................0

14.

Amounts withheld or retained by company for account of others......................................................................................................... .......................4,975,403 .......................5,007,894

15.

Remittances and items not allocated..................................................................................................................................................... ..........................335,567 .........................(476,623)

16.

Provision for reinsurance (Schedule F, Part 7)...................................................................................................................................... ......................................0 ......................................0

17.

Net adjustments in assets and liabilities due to foreign exchange rates............................................................................................... ......................................0 ......................................0

18.

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

19.

Payable to parent, subsidiaries and affiliates........................................................................................................................................ .....................11,957,992 .....................15,612,775

20.

Payable for securities............................................................................................................................................................................. .....................25,945,554 .......................5,477,292

21.

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

22.

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

23.

Aggregate write-ins for liabilities............................................................................................................................................................ ....................(17,181,216) ....................(20,307,575)

24.

Total liabilities excluding protected cell liabilities (Lines 1 through 23)................................................................................................. ................2,323,342,559 ................2,343,963,656

25.

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

26.

Total liabilities (Lines 24 and 25)............................................................................................................................................................ ................2,323,342,559 ................2,343,963,656

27.

Aggregate write-ins for special surplus funds........................................................................................................................................ .......................4,892,172 .......................4,452,318

28.

Common capital stock............................................................................................................................................................................ .......................5,000,000 .......................5,000,000

29.

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

30.

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

31.

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

32.

Gross paid in and contributed surplus................................................................................................................................................... ...................623,472,070 ...................623,472,070

33.

Unassigned funds (surplus).................................................................................................................................................................... ...................642,853,989 ...................370,841,044

34.

Less treasury stock, at cost: 34.1 ..........0.000 shares common (value included in Line 28 $..........0)............................................................................................ ......................................0 ......................................0 34.2 ..........0.000 shares preferred (value included in Line 29 $..........0)........................................................................................... ......................................0 ......................................0

35.

Surplus as regards policyholders (Lines 27 to 33, less 34) (Page 4, Line 39)...................................................................................... ................1,276,218,231 ................1,003,765,432

36.

TOTALS (Page 2, Line 26, Col. 3)......................................................................................................................................................... ................3,599,560,790 ................3,347,729,088 DETAILS OF WRITE-INS

2301. Retrospective premium reserve............................................................................................................................................................. ..........................262,335 ..........................262,335 2302. Unpaid electronic data processing equipment....................................................................................................................................... ..........................163,871 ..........................169,763 2303. Retroactive reinsurance reserve assumed............................................................................................................................................ ..........................129,433 ..........................132,698 2398. Summary of remaining write-ins for Line 23 from overflow page.......................................................................................................... ....................(17,736,854) ....................(20,872,371) 2399. Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above)..................................................................................................................... ....................(17,181,216) ....................(20,307,575) 2701. Special surplus from retroactive reinsurance......................................................................................................................................... .......................4,892,172 .......................4,452,318 2702. ................................................................................................................................................................................................................ ......................................0 ......................................0 2703. ................................................................................................................................................................................................................ ......................................0 ......................................0 2798. Summary of remaining write-ins for Line 27 from overflow page.......................................................................................................... ......................................0 ......................................0 2799. Totals (Lines 2701 thru 2703 plus 2798) (Line 27 above)..................................................................................................................... .......................4,892,172 .......................4,452,318 3001. ................................................................................................................................................................................................................ ......................................0 ......................................0 3002. ................................................................................................................................................................................................................ ......................................0 ......................................0 3003. ................................................................................................................................................................................................................ ......................................0 ......................................0 3098. Summary of remaining write-ins for Line 30 from overflow page.......................................................................................................... ......................................0 ......................................0 3099. Totals (Lines 3001 thru 3003 plus 3098) (Line 30 above)..................................................................................................................... ......................................0 ......................................0

3

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

STATEMENT OF INCOME

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

1 2 Current Year Prior Year Premiums earned (Part 1, Line 34, Column 4)............................................................................................................................ .....................827,094,642 .....................823,792,812 DEDUCTIONS Losses incurred (Part 2, Line 34, Column 7)............................................................................................................................... .....................381,508,745 .....................505,499,668 Loss expenses incurred (Part 3, Line 25, Column 1).................................................................................................................. .....................101,182,795 .....................113,269,632 Other underwriting expenses incurred (Part 3, Line 25, Column 2)............................................................................................ .....................239,420,320 .....................226,757,782 Aggregate write-ins for underwriting deductions......................................................................................................................... .......................................0 .......................................0 Total underwriting deductions (Lines 2 through 5)...................................................................................................................... .....................722,111,860 .....................845,527,082 Net income of protected cells....................................................................................................................................................... .......................................0 .......................................0 Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)................................................................................................... .....................104,982,783 ......................(21,734,271)

9. 10. 11.

Net investment income earned (Exhibit of Net Investment Income, Line 17)............................................................................. .....................171,525,173 .....................194,827,068 Net realized capital gains (losses) less capital gains tax of $.....(1,354,601) (Exhibit of Capital Gains (Losses))..................... ......................(11,529,017) .........................5,027,793 Net investment gain (loss) (Lines 9 + 10).................................................................................................................................... .....................159,996,156 .....................199,854,862

UNDERWRITING INCOME

1.

INVESTMENT INCOME

OTHER INCOME 12. Net gain (loss) from agents' or premium balances charged off (amount recovered $.....(1,454,179) amount charged off $.....1,437)................................................................................................................................................... 13. Finance and service charges not included in premiums............................................................................................................. 14. Aggregate write-ins for miscellaneous income............................................................................................................................ 15. Total other income (Lines 12 through 14).................................................................................................................................... 16. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Lines 8 + 11 + 15)................................................................................................................................................. 17. Dividends to policyholders............................................................................................................................................................ 18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes (Line 16 minus Line 17)......................................................................................................................................... 19. Federal and foreign income taxes incurred................................................................................................................................. 20. Net income (Line 18 minus Line 19) (to Line 22).........................................................................................................................

........................(1,455,616) .........................4,306,887 ........................(2,645,301) ............................205,970

........................(1,669,140) .........................4,147,801 .........................3,747,630 .........................6,226,291

.....................265,184,909 .....................184,346,882 ............................764,766 ............................772,278 .....................264,420,143 .....................183,574,604 .......................58,083,505 .......................30,739,571 .....................206,336,638 .....................152,835,033

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

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

Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)......................................................... Net income (from Line 20)............................................................................................................................................................ Net transfers (to) from Protected Cell accounts........................................................................................................................... Change in net unrealized capital gains or (losses) less capital gains tax of $.....4,904,946....................................................... Change in net unrealized foreign exchange capital gain (loss)................................................................................................... Change in net deferred income tax.............................................................................................................................................. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 26 Column 3)................................................................. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1).................................................................. Change in surplus notes............................................................................................................................................................... Surplus (contributed to) withdrawn from protected cells.............................................................................................................. Cumulative effect of changes in accounting principles................................................................................................................ Capital changes: 32.1 Paid in.................................................................................................................................................................................. 32.2 Transferred from surplus (Stock Dividend)......................................................................................................................... 32.3 Transferred to surplus......................................................................................................................................................... Surplus adjustments: 33.1 Paid in.................................................................................................................................................................................. 33.2 Transferred to capital (Stock Dividend)............................................................................................................................... 33.3. Transferred from capital..................................................................................................................................................... Net remittances from or (to) Home Office.................................................................................................................................... Dividends to stockholders............................................................................................................................................................. Change in treasury stock (Page 3, Lines 34.1 and 34.2, Column 2 minus Column 1)............................................................... Aggregate write-ins for gains and losses in surplus.................................................................................................................... Change in surplus as regards policyholders for the year (Lines 22 through 37)........................................................................ Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 35)...................................

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

DETAILS OF WRITE-INS ...................................................................................................................................................................................................... ...................................................................................................................................................................................................... ...................................................................................................................................................................................................... Summary of remaining write-ins for Line 5 from overflow page.................................................................................................. Totals (Lines 0501 thru 0503 plus 0598) (Line 5 above)............................................................................................................. Retroactive reinsurance gain/loss................................................................................................................................................ Profit and loss, miscellaneous...................................................................................................................................................... Fines and penalties of regulatory authorities............................................................................................................................... Summary of remaining write-ins for Line 14 from overflow page................................................................................................ Totals (Lines 1401 thru 1403 plus 1498) (Line 14 above)........................................................................................................... ...................................................................................................................................................................................................... ...................................................................................................................................................................................................... ...................................................................................................................................................................................................... Summary of remaining write-ins for Line 37 from overflow page................................................................................................ Totals (Lines 3701 thru 3703 plus 3798) (Line 37 above)...........................................................................................................

33.

4

..................1,003,765,432 .....................206,336,638 .......................................0 .......................71,278,311 ............................172,697 ........................(6,044,816) ............................709,968 .......................................0 .......................................0 .......................................0 .......................................0

.....................924,701,700 .....................152,835,033 .......................................0 .........................1,205,463 ...........................(149,165) .........................7,136,513 ........................(8,126,017) .......................................0 .......................................0 .......................................0 .........................1,161,905

.......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .....................272,452,799 ..................1,276,218,231

.......................................0 .......................................0 .......................................0 .......................................0 ......................(75,000,000) .......................................0 .......................................0 .......................79,063,732 ..................1,003,765,432

.......................................0 .......................................0 .......................................0 .......................................0 .......................................0 ............................667,669 ............................327,455 ........................(3,640,425) .......................................0 ........................(2,645,301) .......................................0 .......................................0 .......................................0 .......................................0 .......................................0

.......................................0 .......................................0 .......................................0 .......................................0 .......................................0 .........................3,705,746 ..............................43,611 ...............................(1,727) .......................................0 .........................3,747,630 .......................................0 .......................................0 .......................................0 .......................................0 .......................................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

CASH FLOW

1 Current Year

2 Prior Year

CASH FROM OPERATIONS 1.

Premiums collected net of reinsurance.......................................................................................................................................... .....................834,308,382 .....................833,672,782

2.

Net investment income................................................................................................................................................................... .....................175,391,097 .....................198,057,341

3.

Miscellaneous income.................................................................................................................................................................... ............................205,970 .........................6,226,291

4.

Total (Lines 1 through 3)................................................................................................................................................................ ..................1,009,905,449 ..................1,037,956,414

5.

Benefit and loss related payments................................................................................................................................................. .....................432,505,760 .....................402,504,255

6.

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

7.

Commissions, expenses paid and aggregate write-ins for deductions......................................................................................... .....................339,179,398 .....................333,738,477

8.

Dividends paid to policyholders..................................................................................................................................................... ............................942,606 ...........................(428,558)

9.

Federal and foreign income taxes paid (recovered) $.....7,750,088 net of tax on capital gains (losses)..................................... .......................38,716,406 .......................82,276,640

10.

Total (Lines 5 through 9)................................................................................................................................................................ .....................811,344,170 .....................818,090,814

11.

Net cash from operations (Line 4 minus Line 10).......................................................................................................................... .....................198,561,279 .....................219,865,600

CASH FROM INVESTMENTS 12.

Proceeds from investments sold, matured or repaid: 12.1 Bonds................................................................................................................................................................................... .....................262,185,279 .....................330,998,788 12.2 Stocks................................................................................................................................................................................... .......................22,004,683 .........................6,385,144 12.3 Mortgage loans.................................................................................................................................................................... ........................................0 .......................15,934,065 12.4 Real estate........................................................................................................................................................................... ........................................0 ........................................0 12.5 Other invested assets.......................................................................................................................................................... .......................25,409,710 .......................35,416,599 12.6 Net gains or (losses) on cash, cash equivalents and short-term investments................................................................... ........................................0 ........................................0 12.7 Miscellaneous proceeds...................................................................................................................................................... .......................20,468,262 .........................6,721,467 12.8 Total investment proceeds (Lines 12.1 to 12.7).................................................................................................................. .....................330,067,934 .....................395,456,062

13.

Cost of investments acquired (long-term only): 13.1 Bonds................................................................................................................................................................................... .....................482,646,112 .....................451,091,827 13.2 Stocks................................................................................................................................................................................... .........................8,203,383 ............................432,176 13.3 Mortgage loans.................................................................................................................................................................... ........................................0 ........................................0 13.4 Real estate........................................................................................................................................................................... ............................171,513 ............................107,747 13.5 Other invested assets.......................................................................................................................................................... .......................29,808,057 .......................84,459,498 13.6 Miscellaneous applications.................................................................................................................................................. ..............................26,200 .......................12,546,518 13.7 Total investments acquired (Lines 13.1 to 13.6)................................................................................................................. .....................520,855,265 .....................548,637,766

14.

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

15.

Net cash from investments (Line 12.8 minus Lines 13.7 and 14)................................................................................................. ....................(190,787,330) ....................(153,181,703)

16.

Cash provided (applied):

CASH FROM FINANCING AND MISCELLANEOUS SOURCES 16.1 Surplus notes, capital notes................................................................................................................................................. ........................................0 ........................................0 16.2 Capital and paid in surplus, less treasury stock.................................................................................................................. ........................................0 ........................................0 16.3 Borrowed funds.................................................................................................................................................................... ........................................0 ........................................0 16.4 Net deposits on deposit-type contracts and other insurance liabilities............................................................................... ........................................0 ........................................0 16.5 Dividends to stockholders.................................................................................................................................................... ........................................0 .......................75,000,000 16.6 Other cash provided (applied)............................................................................................................................................. .........................2,170,954 .........................1,556,904 17.

Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)................................. .........................2,170,954 ......................(73,443,096)

18.

Net change in cash, cash equivalents and short-term investments (Line 11 plus Line 15 plus Line 17).................................... .........................9,944,902 ........................(6,759,199)

19.

Cash, cash equivalents and short-term investments:

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

19.1 Beginning of year................................................................................................................................................................. .....................100,345,582 .....................107,104,781 19.2 End of year (Line 18 plus Line 19.1)................................................................................................................................... .....................110,290,484 .....................100,345,582 Note: Supplemental disclosures of cash flow information for non-cash transactions: 20.0001 .............................................................................................................................................................................................. ........................................0 ........................................0

5

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 1 - PREMIUMS EARNED 1

Line of Business

Net Premiums Written per Column 6, Part 1B

2 Unearned Premiums December 31 Prior Yearper Col. 3, Last Year's Part 1

3 Unearned Premiums December 31 Current Yearper Col. 5, Part 1A

4 Premiums Earned During Year (Cols. 1 + 2 - 3)

1.

Fire...................................................................................................... .........................26,046,107 .........................11,145,956 .........................12,247,528 .........................24,944,535

2.

Allied lines........................................................................................... .........................22,871,838 ...........................9,063,185 .........................10,047,892 .........................21,887,130

3.

Farmowners multiple peril................................................................... ...........................5,223,531 ...........................2,317,424 ...........................2,477,037 ...........................5,063,918

4.

Homeowners multiple peril.................................................................. .......................121,643,548 .........................58,712,995 .........................64,674,722 .......................115,681,821

5.

Commercial multiple peril.................................................................... .......................149,213,460 .........................68,627,265 .........................69,814,827 .......................148,025,898

6.

Mortgage guaranty.............................................................................. .........................................0 .........................................0 .........................................0 .........................................0

8.

Ocean marine...................................................................................... .........................14,456,217 ...........................5,145,711 ...........................5,432,278 .........................14,169,650

9.

Inland marine...................................................................................... .........................37,044,825 .........................15,131,231 .........................16,150,263 .........................36,025,793

10.

Financial guaranty............................................................................... .........................................0 .........................................0 .........................................0 .........................................0

11.1

Medical malpractice - occurrence....................................................... ................................68,882 ......................................(18) ..................................1,651 ................................67,213

11.2

Medical malpractice - claims-made..................................................... ................................23,715 ................................80,754 ................................72,300 ................................32,169

12.

Earthquake.......................................................................................... ...........................3,323,251 ...........................1,561,303 ...........................1,716,013 ...........................3,168,540

13.

Group accident and health.................................................................. .........................................0 .........................................0 .........................................0 .........................................0

14.

Credit accident and health (group and individual)............................... .........................................0 .........................................0 .........................................0 .........................................0

15.

Other accident and health................................................................... .........................................0 .........................................0 .........................................0 .........................................0

16.

Workers' compensation....................................................................... .......................103,665,619 .........................31,165,028 .........................38,760,800 .........................96,069,847

17.1

Other liability - occurrence.................................................................. .........................83,500,330 .........................36,380,464 .........................33,731,214 .........................86,149,580

17.2

Other liability - claims-made................................................................ .........................35,761,293 .........................20,567,018 .........................20,064,882 .........................36,263,429

18.1

Products liability - occurrence............................................................. ...........................5,247,374 ...........................2,646,887 ...........................2,262,473 ...........................5,631,789

18.2

Products liability - claims-made........................................................... ..............................753,528 ..............................309,348 ..............................337,785 ..............................725,090

19.1, 19.2 Private passenger auto liability........................................................... .........................85,025,619 .........................30,440,268 .........................31,279,629 .........................84,186,258 19.3, 19.4 Commercial auto liability..................................................................... .........................61,186,089 .........................28,656,507 .........................28,191,459 .........................61,651,138 21.

Auto physical damage......................................................................... .........................69,074,197 .........................26,298,760 .........................26,656,039 .........................68,716,917

22.

Aircraft (all perils)................................................................................ ..................................1,323 ................................27,680 ................................27,680 ..................................1,323

23.

Fidelity................................................................................................. ...........................3,825,991 ...........................2,403,397 ...........................2,633,912 ...........................3,595,476

24.

Surety.................................................................................................. ...........................1,800,127 ...........................4,015,925 ...........................1,073,293 ...........................4,742,759

26.

Burglary and theft................................................................................ ..............................287,877 ..............................296,356 ..............................245,803 ..............................338,430

27.

Boiler and machinery.......................................................................... ...........................8,635,807 ...........................3,860,203 ...........................3,959,582 ...........................8,536,429

28.

Credit................................................................................................... ................................12,850 ................................19,935 ..................................9,875 ................................22,910

29.

International........................................................................................ .............................(383,716) ................................82,039 ................................40,762 .............................(342,438)

30.

Reinsurance - nonproportional assumed property.............................. ..............................288,991 ...............................(61,025) ...............................(37,751) ..............................265,716

31.

Reinsurance - nonproportional assumed liability................................ ...........................1,420,652 ..............................908,451 ..............................811,015 ...........................1,518,087

32.

Reinsurance - nonproportional assumed financial lines...................... ...............................(40,308) ................................18,138 ................................22,595 ...............................(44,766)

33.

Aggregate write-ins for other lines of business................................... .........................................0 .........................................0 .........................................0 .........................................0

34.

TOTALS......................................................................................... .......................839,979,016 .......................359,821,185 .......................372,705,558 .......................827,094,643 DETAILS OF WRITE-INS

3301.

............................................................................................................ .........................................0 .........................................0 .........................................0 .........................................0

3302.

............................................................................................................ .........................................0 .........................................0 .........................................0 .........................................0

3303.

............................................................................................................ .........................................0 .........................................0 .........................................0 .........................................0

3398.

Summary of remaining write-ins for Line 33 from overflow page........ .........................................0 .........................................0 .........................................0 .........................................0

3399.

Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above)................... .........................................0 .........................................0 .........................................0 .........................................0

6

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 1A - RECAPITULATION OF ALL PREMIUMS

Line of Business

1

2

Amount Unearned (Running One Year or Less from Date of Policy) (a)

Amount Unearned (Running more than One Year from Date of Policy) (a)

3

Earned But Unbilled Premium

4 Reserve for Rate Credits and Retrospective Adjustments Based on Experience

5 Total Reserve for Unearned Premiums Cols. 1 + 2 + 3 + 4

1.

Fire................................................................................................. .................11,969,786 ......................322,956 .......................(45,213) .................................0 .................12,247,528

2.

Allied lines...................................................................................... ...................9,816,596 ......................245,384 .......................(14,088) .................................0 .................10,047,892

3.

Farmowners multiple peril.............................................................. ...................2,496,102 .......................(19,065) .................................0 .................................0 ...................2,477,037

4.

Homeowners multiple peril............................................................. .................64,674,722 .................................0 .................................0 .................................0 .................64,674,722

5.

Commercial multiple peril............................................................... .................70,192,020 .......................(21,665) .....................(353,407) .........................(2,121) .................69,814,827

6.

Mortgage guaranty......................................................................... .................................0 .................................0 .................................0 .................................0 .................................0

8.

Ocean marine................................................................................ ...................5,761,196 ......................102,002 .....................(430,920) .................................0 ...................5,432,278

9.

Inland marine................................................................................. .................13,729,316 ...................2,847,394 .....................(426,447) .................................0 .................16,150,263

10.

Financial guaranty.......................................................................... .................................0 .................................0 .................................0 .................................0 .................................0

11.1

Medical malpractice - occurrence.................................................. ..........................1,651 .................................0 .................................0 .................................0 ..........................1,651

11.2

Medical malpractice - claims-made................................................ .............................322 .................................0 ................................(2) ........................71,980 ........................72,300

12.

Earthquake..................................................................................... ...................1,632,699 ........................83,314 .................................0 .................................0 ...................1,716,013

13.

Group accident and health............................................................. .................................0 .................................0 .................................0 .................................0 .................................0

14.

Credit accident and health (group and individual).......................... .................................0 .................................0 .................................0 .................................0 .................................0

15.

Other accident and health.............................................................. .................................0 .................................0 .................................0 .................................0 .................................0

16.

Workers' compensation.................................................................. .................44,960,789 ........................16,913 .....................(705,195) ..................(5,511,706) .................38,760,800

17.1

Other liability - occurrence............................................................. .................35,189,707 ......................247,642 .....................(832,283) .....................(873,852) .................33,731,214

17.2

Other liability - claims-made........................................................... .................16,201,998 ...................3,955,873 .......................(92,989) .................................0 .................20,064,882

18.1

Products liability - occurrence........................................................ ...................2,338,331 ........................60,069 .......................(71,090) .......................(64,837) ...................2,262,473

18.2

Products liability - claims-made..................................................... ......................333,497 ..........................4,466 ............................(177) .................................0 ......................337,785

19.1, 19.2 Private passenger auto liability...................................................... .................31,279,629 .................................0 .................................0 ................................(0) .................31,279,629 19.3, 19.4 Commercial auto liability................................................................ .................28,279,707 ........................72,951 .....................(120,108) .......................(41,091) .................28,191,459 21.

Auto physical damage.................................................................... .................26,644,109 ........................23,026 .........................(9,033) .........................(2,062) .................26,656,039

22.

Aircraft (all perils)........................................................................... ........................27,680 .................................0 .................................0 .................................0 ........................27,680

23.

Fidelity............................................................................................ ...................1,373,720 ...................1,260,193 .................................0 .................................0 ...................2,633,912

24.

Surety............................................................................................. .......................(56,544) ...................1,813,696 .....................(683,859) .................................0 ...................1,073,293

26.

Burglary and theft........................................................................... ......................120,808 ......................124,995 .................................0 .................................0 ......................245,803

27.

Boiler and machinery..................................................................... ...................3,868,409 ........................91,173 .................................0 .................................0 ...................3,959,582

28.

Credit............................................................................................. ..........................9,875 .................................0 .................................0 .................................0 ..........................9,875

29.

International................................................................................... ........................40,762 .................................0 .................................0 .................................0 ........................40,762

30.

Reinsurance - nonproportional assumed property......................... .......................(37,751) .................................0 .................................0 .................................0 .......................(37,751)

31.

Reinsurance - nonproportional assumed liability........................... ......................758,384 ........................52,631 .................................0 .................................0 ......................811,015

32.

Reinsurance - nonproportional assumed financial lines................ ........................22,504 ...............................91 .................................0 .................................0 ........................22,595

33.

Aggregate write-ins for other lines of business.............................. .................................0 .................................0 .................................0 .................................0 .................................0

34.

TOTALS......................................................................................... ...............371,630,023 .................11,284,038 ..................(3,784,814) ..................(6,423,689) ...............372,705,558

35.

Accrued retrospective premiums based on experience............................................................................................................................................................................ ...................6,423,689

36.

Earned but unbilled premiums.................................................................................................................................................................................................................. ...................3,784,814

37.

Balance (sum of Lines 34 through 36)...................................................................................................................................................................................................... ...............382,914,061

3301.

....................................................................................................... .................................0 .................................0 .................................0 .................................0 .................................0

3302.

....................................................................................................... .................................0 .................................0 .................................0 .................................0 .................................0

3303.

....................................................................................................... .................................0 .................................0 .................................0 .................................0 .................................0

3398.

Summary of remaining write-ins for Line 33 from overflow page... .................................0 .................................0 .................................0 .................................0 .................................0

DETAILS OF WRITE-INS

3399. Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above)............. .................................0 .................................0 .................................0 .................................0 .................................0 (a) State here basis of computation used in each case: Daily pro rata; pools and associations as submitted

7

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 1B - PREMIUMS WRITTEN 1

Line of Business

Direct Business (a)

Reinsurance Assumed 2 3

From Affiliates

From Non-Affiliates

Reinsurance Ceded 4 5 To Affiliates

To Non-Affiliates

6 Net Premiums Written (Cols. 1 + 2 + 3 - 4 - 5)

1.

Fire............................................................................................... ...........13,697,853 ...........26,046,107 .............1,989,514 ...........15,687,367 ...........................0 ...........26,046,107

2.

Allied lines.................................................................................... .........186,589,213 ...........22,871,838 .............5,626,493 .........192,215,706 ...........................0 ...........22,871,838

3.

Farmowners multiple peril............................................................ ...........................0 .............5,223,531 ...........................0 ...........................0 ...........................0 .............5,223,531

4.

Homeowners multiple peril........................................................... .........793,585,269 .........121,643,548 .............2,438,899 .........796,024,168 ...........................0 .........121,643,548

5.

Commercial multiple peril............................................................. ................159,234 .........149,213,460 ...........................0 ................159,234 ...........................0 .........149,213,460

6.

Mortgage guaranty....................................................................... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

8.

Ocean marine.............................................................................. ...........73,781,407 ...........14,456,217 ...........................0 ...........73,781,407 ...........................0 ...........14,456,217

9.

Inland marine............................................................................... ...........13,049,793 ...........37,044,825 ...........................0 ...........13,049,793 ...........................0 ...........37,044,825

10.

Financial guaranty........................................................................ ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

11.1

Medical malpractice - occurrence................................................ ...........................0 ..................68,882 ...........................0 ...........................0 ...........................0 ..................68,882

11.2

Medical malpractice - claims-made.............................................. ...........................0 ..................23,715 ...........................0 ...........................0 ...........................0 ..................23,715

12.

Earthquake................................................................................... ...........11,827,305 .............3,323,251 ...........................0 ...........11,827,305 ...........................0 .............3,323,251

13.

Group accident and health........................................................... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

14.

Credit accident and health (group and individual)........................ ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

15.

Other accident and health............................................................ ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

16.

Workers' compensation................................................................ ...........16,761,478 .........103,665,619 ...........................0 ...........16,761,478 ...........................0 .........103,665,619

17.1

Other liability - occurrence........................................................... .............9,427,796 ...........83,500,330 ..................49,795 .............9,477,591 ...........................0 ...........83,500,330

17.2

Other liability - claims-made......................................................... ..................35,992 ...........35,761,293 ...........................0 ..................35,992 ...........................0 ...........35,761,293

18.1

Products liability - occurrence...................................................... ...........................0 .............5,247,374 ...........................0 ...........................0 ...........................0 .............5,247,374

18.2

Products liability - claims-made................................................... ...........................0 ................753,528 ...........................0 ...........................0 ...........................0 ................753,528

19.1, 19.2 Private passenger auto liability.................................................... .........205,624,551 ...........85,025,619 .........124,114,860 .........329,739,411 ...........................0 ...........85,025,619 19.3, 19.4 Commercial auto liability.............................................................. ...........................0 ...........61,186,089 ...........................0 ...........................0 ...........................0 ...........61,186,089 21.

Auto physical damage.................................................................. .........136,474,827 ...........69,074,197 ...........88,431,822 .........224,906,649 ...........................0 ...........69,074,197

22.

Aircraft (all perils)......................................................................... ...........................0 ....................1,323 ...........................0 ...........................0 ...........................0 ....................1,323

23.

Fidelity.......................................................................................... ..................34,748 .............3,825,991 ...........................0 ..................34,748 ...........................0 .............3,825,991

24.

Surety........................................................................................... ....................2,050 .............1,800,127 ...........................0 ....................2,050 ...........................0 .............1,800,127

26.

Burglary and theft......................................................................... ..................10,945 ................287,877 ..................22,009 ..................32,954 ...........................0 ................287,877

27.

Boiler and machinery................................................................... ...........................0 .............8,635,807 ...........................0 ...........................0 ...........................0 .............8,635,807

28.

Credit........................................................................................... ...........................0 ..................12,850 ...........................0 ...........................0 ...........................0 ..................12,850

29.

International................................................................................. ...........................0 ..............(383,716) ...........................0 ...........................0 ...........................0 ..............(383,716)

30.

Reinsurance - nonproportional assumed property....................... ............XXX............ ................288,991 ...........................0 ...........................0 ...........................0 ................288,991

31.

Reinsurance - nonproportional assumed liability......................... ............XXX............ .............1,420,652 ...........................0 ...........................0 ...........................0 .............1,420,652

32.

Reinsurance - nonproportional assumed financial lines.............. ............XXX............ ................(40,308) ...........................0 ...........................0 ...........................0 ................(40,308)

33.

Aggregate write-ins for other lines of business............................ ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

34.

TOTALS....................................................................................... ......1,461,062,461 .........839,979,016 .........222,673,392 ......1,683,735,853 ...........................0 .........839,979,016 DETAILS OF WRITE-INS

3301.

..................................................................................................... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

3302.

..................................................................................................... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

3303.

..................................................................................................... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

3398.

Summary of remaining write-ins for Line 33 from overflow page. ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

3399.

Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above)........... ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

(a) Does the company's direct premiums written include premiums recorded on an installment basis? Yes [ ] No [ X ] If yes: 1. The amount of such installment premiums $..........0. 2. Amount at which such installment premiums would have been reported had they been recorded on an annualized basis $..........0.

8

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 2 - LOSSES PAID AND INCURRED 1

9

Line of Business 1. Fire.......................................................................................................... 2. Allied lines............................................................................................... 3. Farmowners multiple peril....................................................................... 4. Homeowners multiple peril...................................................................... 5. Commercial multiple peril........................................................................ 6. Mortgage guaranty.................................................................................. 8. Ocean marine.......................................................................................... 9. Inland marine.......................................................................................... 10. Financial guaranty................................................................................... 11.1 Medical malpractice - occurrence........................................................... 11.2 Medical malpractice - claims-made......................................................... 12. Earthquake.............................................................................................. 13. Group accident and health...................................................................... 14. Credit accident and health (group and individual)................................... 15. Other accident and health....................................................................... 16. Workers' compensation........................................................................... 17.1 Other liability - occurrence...................................................................... 17.2 Other liability - claims-made.................................................................... 18.1 Products liability - occurrence................................................................. 18.2 Products liability - claims-made............................................................... 19.1, 19.2 Private passenger auto liability............................................................... 19.3, 19.4 Commercial auto liability......................................................................... 21. Auto physical damage............................................................................. 22. Aircraft (all perils).................................................................................... 23. Fidelity..................................................................................................... 24. Surety...................................................................................................... 26. Burglary and theft.................................................................................... 27. Boiler and machinery.............................................................................. 28. Credit....................................................................................................... 29. International............................................................................................ 30. Reinsurance - nonproportional assumed property.................................. 31. Reinsurance - nonproportional assumed liability.................................... 32. Reinsurance - nonproportional assumed financial lines.......................... 33. Aggregate write-ins for other lines of business....................................... 34. TOTALS.................................................................................................. 3301. 3302. 3303. 3398. 3399.

Auto warranty.......................................................................................... ................................................................................................................ ................................................................................................................ Summary of remaining write-ins for Line 33 from overflow page............ Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above).......................

2

Losses Paid Less Salvage

Direct Business .............................4,614,986 .........................608,688,043 ...........................................0 .........................418,604,461 ................................790,341 ...........................................0 ...........................39,047,401 .............................4,031,383 ...........................................0 ...........................................0 ...........................................0 ....................................7,774 ...........................................0 ...........................................0 ...........................................0 ...........................19,571,737 .............................3,393,913 ...........................................0 ................................896,942 ...........................................0 .........................114,581,403 ................................100,000 ...........................68,904,551 ....................................4,195 ...........................................0 ...........................................0 .......................................456 ...........................................0 ...........................................0 ...........................................0 ....................XXX................... ....................XXX................... ....................XXX................... ...........................................0 ......................1,283,237,585

Reinsurance Assumed ...........................11,936,115 ...........................22,310,991 .............................1,913,611 ...........................50,302,910 ...........................68,206,463 ...........................................0 .............................6,466,487 ...........................12,558,969 ...........................................0 .............................2,043,237 .............................8,012,559 ................................(16,701) ...........................................0 ...........................................0 ...........................................0 ...........................47,836,508 ...........................45,189,953 ...........................20,114,449 .............................7,922,070 ................................(48,887) ...........................99,105,514 ...........................32,475,540 ...........................80,896,774 ..................................37,592 .............................1,737,751 .............................6,373,090 ..................................55,688 .............................1,660,876 ..................................53,139 ................................934,775 .............................1,412,807 ...........................13,193,625 ................................(25,007) ....................................2,579 .........................542,663,477

...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0

....................................2,579 ...........................................0 ...........................................0 ...........................................0 ....................................2,579

3

4

Reinsurance Net Payments Recovered (Cols. 1 + 2 - 3) .............................5,731,864 ...........................10,819,238 .........................615,758,928 ...........................15,240,106 ...........................................0 .............................1,913,611 .........................419,490,056 ...........................49,417,314 ................................790,341 ...........................68,206,463 ...........................................0 ...........................................0 ...........................39,047,401 .............................6,466,487 .............................4,031,383 ...........................12,558,969 ...........................................0 ...........................................0 ...........................................0 .............................2,043,237 ...........................................0 .............................8,012,559 ....................................7,774 ................................(16,701) ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................19,571,737 ...........................47,836,508 .............................3,421,214 ...........................45,162,652 ...........................................0 ...........................20,114,449 ................................896,942 .............................7,922,070 ...........................................0 ................................(48,887) .........................169,197,711 ...........................44,489,206 ................................100,000 ...........................32,475,540 .........................115,342,335 ...........................34,458,990 ....................................4,195 ..................................37,592 ...........................................0 .............................1,737,751 ...........................................0 .............................6,373,090 ....................................3,425 ..................................52,719 ...........................................0 .............................1,660,876 ...........................................0 ..................................53,139 ...........................................0 ................................934,775 ...........................................0 .............................1,412,807 ...........................................0 ...........................13,193,625 ...........................................0 ................................(25,007) ...........................................0 ....................................2,579 ......................1,393,395,305 .........................432,505,757 DETAILS OF WRITE-INS ...........................................0 ....................................2,579 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ...........................................0 ....................................2,579

5

6

7

Net Losses Unpaid Current Year (Part 2A, Col. 8) ...........................14,087,916 ...........................13,536,734 .............................1,381,908 ...........................28,881,355 .........................148,977,950 ...........................................0 .............................7,373,139 ...........................15,352,606 ...........................................0 .............................9,592,643 ...........................16,022,533 ..............................(102,672) ...........................................0 ...........................................0 ...........................................0 .........................448,727,594 .........................329,137,344 ...........................70,549,000 ...........................78,545,812 .............................1,862,753 ...........................75,604,644 ...........................80,613,390 .............................5,709,987 .............................1,346,311 .............................4,095,987 ...........................20,422,245 ................................470,314 .............................2,591,563 ................................627,379 .............................4,842,156 ...........................11,007,976 ...........................97,031,551 .............................1,915,438 .......................................(68) ......................1,490,205,486

Net Losses Unpaid Prior Year ...........................11,386,731 ...........................23,677,113 .............................1,679,254 ...........................40,943,867 .........................168,259,205 ...........................................0 .............................8,443,907 ...........................17,719,103 ...........................................0 ...........................10,514,653 ...........................22,985,426 .............................1,375,751 ...........................................0 ...........................................0 ...........................................0 .........................430,394,902 .........................304,071,757 ...........................66,422,505 .........................104,699,602 .............................1,756,782 ...........................75,452,582 ...........................89,212,773 .............................6,303,272 .............................1,304,849 .............................3,957,586 ...........................25,265,491 ................................404,550 .............................3,714,782 ................................661,875 .............................6,675,191 ...........................12,773,445 ...........................98,953,482 .............................1,873,495 ................................318,571 ......................1,541,202,501

Losses Incurred Current Year (Cols. 4 + 5 - 6) ...........................13,520,423 .............................5,099,727 .............................1,616,264 ...........................37,354,803 ...........................48,925,208 ...........................................0 .............................5,395,719 ...........................10,192,472 ...........................................0 .............................1,121,227 .............................1,049,667 ...........................(1,495,125) ...........................................0 ...........................................0 ...........................................0 ...........................66,169,200 ...........................70,228,239 ...........................24,240,943 .........................(18,231,721) ..................................57,084 ...........................44,641,269 ...........................23,876,158 ...........................33,865,705 ..................................79,054 .............................1,876,152 .............................1,529,844 ................................118,483 ................................537,657 ..................................18,643 ..............................(898,260) ..............................(352,661) ...........................11,271,693 ..................................16,936 ..............................(316,061) .........................381,508,741

8 Percentage of Losses Incurred (Col. 7, Part 2) to Premiums Earned (Col. 4, Part 1) ......................................54.2 ......................................23.3 ......................................31.9 ......................................32.3 ......................................33.1 ........................................0.0 ......................................38.1 ......................................28.3 ........................................0.0 .................................1,668.2 .................................3,263.0 ....................................(47.2) ........................................0.0 ........................................0.0 ........................................0.0 ......................................68.9 ......................................81.5 ......................................66.8 ..................................(323.7) ........................................7.9 ......................................53.0 ......................................38.7 ......................................49.3 .................................5,975.6 ......................................52.2 ......................................32.3 ......................................35.0 ........................................6.3 ......................................81.4 ....................................262.3 ..................................(132.7) ....................................742.5 ....................................(37.8) ........................................0.0 ......................................46.1

.......................................(68) ...........................................0 ...........................................0 ...........................................0 .......................................(68)

................................318,571 ...........................................0 ...........................................0 ...........................................0 ................................318,571

..............................(316,061) ...........................................0 ...........................................0 ...........................................0 ..............................(316,061)

........................................0.0 ........................................0.0 ........................................0.0 ................XXX....................... ........................................0.0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 2A - UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES 1

2

Reported Losses

10

1. 2. 3. 4. 5. 6. 8. 9. 10. 11.1 11.2 12. 13. 14. 15. 16. 17.1 17.2 18.1 18.2 19.1, 19.2 19.3, 19.4 21. 22. 23. 24. 26. 27. 28. 29. 30. 31. 32. 33. 34.

Line of Business Fire.................................................................................................... Allied lines......................................................................................... Farmowners multiple peril................................................................. Homeowners multiple peril................................................................ Commercial multiple peril.................................................................. Mortgage guaranty............................................................................ Ocean marine.................................................................................... Inland marine..................................................................................... Financial guaranty............................................................................. Medical malpractice - occurrence...................................................... Medical malpractice - claims-made................................................... Earthquake........................................................................................ Group accident and health................................................................ Credit accident and health (group and individual)............................. Other accident and health................................................................. Workers' compensation..................................................................... Other liability - occurrence................................................................. Other liability - claims-made.............................................................. Products liability - occurrence............................................................ Products liability - claims-made......................................................... Private passenger auto liability.......................................................... Commercial auto liability.................................................................... Auto physical damage....................................................................... Aircraft (all perils)............................................................................... Fidelity............................................................................................... Surety................................................................................................ Burglary and theft.............................................................................. Boiler and machinery......................................................................... Credit................................................................................................. International....................................................................................... Reinsurance - nonproportional assumed property............................ Reinsurance - nonproportional assumed liability............................... Reinsurance - nonproportional assumed financial lines.................... Aggregate write-ins for other lines of business.................................. TOTALS.............................................................................................

Direct ........................1,345,418 ........................4,400,448 ......................................0 ......................81,005,268 ........................1,475,577 ......................................0 ......................13,479,086 ...........................413,342 ......................................0 .............................40,001 ......................................0 ...............................1,698 ......................................0 ......................................0 ......................................0 ....................244,585,717 ........................4,720,952 ......................................0 ........................1,818,770 ......................................0 ......................87,599,259 ...............................2,381 ........................2,335,957 .............................70,979 ......................................0 ......................................0 ....................................92 ......................................0 ......................................0 ......................................0 ................XXX.................. ................XXX.................. ................XXX.................. ......................................0 ....................443,294,944

Reinsurance Assumed ........................9,853,432 ......................18,048,691 ...........................599,242 ......................12,118,159 ......................60,776,340 ......................................0 ........................5,306,931 ........................7,803,146 ......................................0 ......................10,045,316 ......................16,861,873 ............................(29,410) ......................................0 ......................................0 ......................................0 ....................247,399,648 ......................70,773,717 ......................24,739,455 ......................16,259,064 ...........................247,414 ......................67,540,751 ......................40,058,896 ........................3,293,836 ...........................609,679 ........................2,405,451 ......................18,783,041 .............................25,212 ........................1,419,602 ...........................476,420 ........................1,211,003 ........................5,169,890 ......................55,859,340 ...........................660,277 ...................................(68) ....................698,316,348

3301. 3302. 3303. 3398. 3399. (a)

Auto warranty.................................................................................... ........................................................................................................... ........................................................................................................... Summary of remaining write-ins for Line 33 from overflow page...... Totals (Lines 3301 thru 3303 plus 3398) (Line 33 above)................. Including $..........0 for present value of life indemnity claims.

......................................0 ......................................0 ......................................0 ......................................0 ......................................0

...................................(68) ......................................0 ......................................0 ......................................0 ...................................(68)

3 4 Deduct Reinsurance Net Losses Excluding Recoverable from Incurred but Authorized and not Reported Unauthorized Companies (Cols. 1 + 2 - 3) ........................1,698,620 ........................9,500,230 ......................16,259,296 ........................6,189,843 ......................................0 ...........................599,242 ......................81,460,549 ......................11,662,878 ........................1,475,577 ......................60,776,340 ......................................0 ......................................0 ......................13,479,086 ........................5,306,931 ...........................413,342 ........................7,803,146 ......................................0 ......................................0 .............................40,001 ......................10,045,316 ......................................0 ......................16,861,873 ...............................1,698 ............................(29,410) ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ....................244,585,717 ....................247,399,648 ........................4,763,571 ......................70,731,098 ......................................0 ......................24,739,455 ........................1,818,770 ......................16,259,064 ......................................0 ...........................247,414 ....................113,397,141 ......................41,742,868 ...............................2,381 ......................40,058,896 ........................3,703,455 ........................1,926,338 .............................70,979 ...........................609,679 ......................................0 ........................2,405,451 ......................................0 ......................18,783,041 ..................................598 .............................24,706 ......................................0 ........................1,419,602 ......................................0 ...........................476,420 ......................................0 ........................1,211,003 ......................................0 ........................5,169,890 ......................................0 ......................55,859,340 ......................................0 ...........................660,277 ......................................0 ...................................(68) ....................483,170,781 ....................658,440,511 DETAILS OF WRITE-INS ......................................0 ...................................(68) ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ...................................(68)

5

Incurred But Not Reported 6

7

8

9

Direct ...........................952,916 ........................2,583,792 .................................(142) ....................245,833,172 ........................4,210,982 ......................................0 ........................4,774,678 ...........................643,659 ......................................0 ........................3,437,028 ......................................0 .............................63,887 ......................................0 ......................................0 ......................................0 ....................116,740,708 ......................23,777,715 .............................26,528 ........................8,924,667 ......................................0 ......................82,005,670 ...........................165,155 .......................(2,130,832) .............................10,207 ...............................4,215 ...........................108,116 ...................................(32) ......................................0 ......................................0 ......................................0 ................XXX.................. ................XXX.................. ................XXX.................. ......................................0 ....................492,132,089

Reinsurance Assumed ........................4,630,415 ......................10,489,411 ...........................782,666 ......................17,280,675 ......................88,201,609 ......................................0 ........................2,066,208 ........................7,549,460 ......................................0 ..........................(452,673) ..........................(839,340) ............................(73,262) ......................................0 ......................................0 ......................................0 ....................201,327,945 ....................258,430,749 ......................45,809,545 ......................62,286,747 ........................1,615,339 ......................33,861,776 ......................40,554,494 ........................3,783,649 ...........................736,632 ........................1,690,536 ........................1,639,203 ...........................445,731 ........................1,171,960 ...........................150,959 ........................3,631,153 ........................5,838,086 ......................41,172,211 ........................1,255,161 ......................................0 ....................835,037,047

Reinsurance Ceded ...........................995,644 ........................5,726,312 .................................(142) ....................245,895,370 ........................4,210,982 ......................................0 ........................4,774,678 ...........................643,659 ......................................0 ........................3,437,028 ......................................0 .............................63,887 ......................................0 ......................................0 ......................................0 ....................116,740,708 ......................23,802,218 .............................26,528 ........................8,924,667 ......................................0 ......................82,005,670 ...........................165,155 .......................(2,130,832) .............................10,207 ...............................4,215 ...........................108,116 ....................................91 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ......................................0 ....................495,404,161

Net Losses Unpaid (Cols. 4 + 5 + 6 - 7) ......................14,087,916 ......................13,536,734 ........................1,381,908 ......................28,881,355 ....................148,977,950 ......................................0 ........................7,373,139 ......................15,352,606 ......................................0 ........................9,592,643 ......................16,022,533 ..........................(102,672) (a).................................0 ......................................0 (a).................................0 ....................448,727,594 ....................329,137,344 ......................70,549,000 ......................78,545,812 ........................1,862,753 ......................75,604,644 ......................80,613,390 ........................5,709,987 ........................1,346,311 ........................4,095,987 ......................20,422,245 ...........................470,314 ........................2,591,563 ...........................627,379 ........................4,842,156 ......................11,007,976 ......................97,031,551 ........................1,915,438 ...................................(68) .................1,490,205,486

Unpaid Loss Adjustment Expenses ........................1,360,387 ........................2,300,161 ...........................696,120 ........................5,008,713 ......................54,362,244 ......................................0 ........................1,643,882 ........................2,254,015 ......................................0 ........................1,336,893 ........................1,624,338 ...........................324,742 ......................................0 ......................................0 ......................................0 ......................54,015,642 ....................102,186,082 ......................16,375,028 ......................48,790,948 ........................1,149,753 ......................16,163,924 ......................12,745,122 ........................2,011,078 ...........................171,827 ...........................631,195 ........................3,382,729 .............................62,082 ...........................491,035 ...............................6,271 ...............................8,688 ...........................813,256 ........................1,483,321 ...............................8,139 ......................................0 ....................331,407,612

......................................0 ......................................0 ......................................0 ......................................0 ......................................0

......................................0 ......................................0 ......................................0 ......................................0 ......................................0

......................................0 ......................................0 ......................................0 ......................................0 ......................................0

...................................(68) ......................................0 ......................................0 ......................................0 ...................................(68)

......................................0 ......................................0 ......................................0 ......................................0 ......................................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

UNDERWRITING AND INVESTMENT EXHIBIT PART 3 - EXPENSES 1

Loss Adjustment Expenses 1.

3.

3

4

Investment Expenses

Total

Claim adjustment services: 1.1

2.

2 Other Underwriting Expenses

Direct.............................................................................................................................. ..................35,347,988 ..................................0 ..................................0 ..................35,347,988

1.2

Reinsurance assumed................................................................................................... ..................57,676,218 ..................................0 ..................................0 ..................57,676,218

1.3

Reinsurance ceded........................................................................................................ ..................40,667,164 ..................................0 ..................................0 ..................40,667,164

1.4

Net claim adjustment services (1.1 + 1.2 - 1.3)............................................................. ..................52,357,042 ..................................0 ..................................0 ..................52,357,042

Commission and brokerage: 2.1

Direct, excluding contingent........................................................................................... ..................................0 ................245,642,827 ..................................0 ................245,642,827

2.2

Reinsurance assumed, excluding contingent................................................................ ..................................0 ................146,446,409 ..................................0 ................146,446,409

2.3

Reinsurance ceded, excluding contingent..................................................................... ..................................0 ................282,287,130 ..................................0 ................282,287,130

2.4

Contingent - direct.......................................................................................................... ..................................0 ..................35,232,799 ..................................0 ..................35,232,799

2.5

Contingent - reinsurance assumed................................................................................ ..................................0 ..................17,164,229 ..................................0 ..................17,164,229

2.6

Contingent - reinsurance ceded..................................................................................... ..................................0 ..................35,232,799 ..................................0 ..................35,232,799

2.7

Policy and membership fees.......................................................................................... ..................................0 ..................................0 ..................................0 ..................................0

2.8

Net commission and brokerage (2.1 + 2.2 - 2.3 + 2.4 + 2.5 - 2.6 + 2.7)........................ ..................................0 ................126,966,334 ..................................0 ................126,966,334

Allowances to managers and agents....................................................................................... ..................................0 .........................38,844 ..................................0 .........................38,844

4.

Advertising............................................................................................................................... ...........................1,756 ....................3,769,276 ..............................416 ....................3,771,448

5.

Boards, bureaus and associations........................................................................................... .......................263,661 ....................3,991,141 ..............................735 ....................4,255,537

6.

Surveys and underwriting reports............................................................................................ ..............................918 ....................2,979,068 ................................99 ....................2,980,085

7.

Audit of assureds' records........................................................................................................ ..................................0 ..................................0 ..................................0 ..................................0

8.

Salary and related items: 8.1

Salaries.......................................................................................................................... ..................29,959,292 ..................49,585,818 ....................1,371,800 ..................80,916,909

8.2

Payroll taxes.................................................................................................................. ....................2,074,654 ....................3,180,650 .........................56,885 ....................5,312,189

9.

Employee relations and welfare............................................................................................... ....................4,716,038 ....................6,494,829 .......................137,606 ..................11,348,472

10.

Insurance................................................................................................................................. ....................2,365,462 ....................1,222,523 .........................11,605 ....................3,599,590

11.

Directors' fees.......................................................................................................................... ..................................0 ................................76 ..................................0 ................................76

12. Travel and travel items............................................................................................................. ....................2,322,257 ....................3,339,895 .......................157,801 ....................5,819,953 13. Rent and rent items.................................................................................................................. ....................1,469,120 ....................4,665,758 ......................(202,191) ....................5,932,686 14.

Equipment................................................................................................................................ .......................457,145 ....................1,455,126 .........................26,270 ....................1,938,541

15.

Cost or depreciation of EDP equipment and software............................................................. .......................407,195 ....................4,771,814 .......................123,432 ....................5,302,441

16.

Printing and stationery............................................................................................................. .......................283,593 .......................823,733 .........................27,305 ....................1,134,631

17.

Postage, telephone and telegraph, exchange and express..................................................... .......................488,751 ....................3,042,395 .........................34,306 ....................3,565,452

18. Legal and auditing.................................................................................................................... .......................663,544 ....................2,914,661 .......................133,244 ....................3,711,449 19.

Totals (Lines 3 to 18)............................................................................................................... ..................45,473,384 ..................92,275,607 ....................1,879,312 ................139,628,302

20. Taxes, licenses and fees: 20.1 State and local insurance taxes deducting guaranty association credits of $.....732,427............................................................................................................... ..................................0 ..................20,421,972 ..................................0 ..................20,421,972 20.2 Insurance department licenses and fees....................................................................... ..................................0 ....................1,873,448 ..................................0 ....................1,873,448 20.3 Gross guaranty association assessments..................................................................... ..................................0 ....................1,056,300 ..................................0 ....................1,056,300 20.4 All other (excluding federal and foreign income and real estate)................................... ..................................0 .......................995,831 ..................................0 .......................995,831 20.5 Total taxes, licenses and fees (20.1 + 20.2 + 20.3 + 20.4)............................................ ..................................0 ..................24,347,552 ..................................0 ..................24,347,552 21.

Real estate expenses.............................................................................................................. ..................................0 ..................................0 .......................653,996 .......................653,996

22.

Real estate taxes..................................................................................................................... ..................................0 ..................................0 .......................122,831 .......................122,831

23. Reimbursements by uninsured plans....................................................................................... ..................................0 ..................................0 ..................................0 ..................................0 24. Aggregate write-ins for miscellaneous expenses..................................................................... ....................3,352,369 ...................(4,169,173) .......................616,828 ......................(199,976) 25. Total expenses incurred........................................................................................................... ................101,182,795 ................239,420,320 ....................3,272,967 (a)...........343,876,082 26.

Less unpaid expenses - current year....................................................................................... ................331,407,612 ..................73,530,663 .......................846,831 ................405,785,106

27.

Add unpaid expenses - prior year............................................................................................ ................336,740,717 ..................67,704,595 .......................371,309 ................404,816,620

28.

Amounts receivable relating to uninsured plans, prior year..................................................... ..................................0 ..................................0 ..................................0 ..................................0

29.

Amounts receivable relating to uninsured plans, current year................................................. ..................................0 ..................................0 ..................................0 ..................................0

30.

TOTAL EXPENSES PAID (Lines 25 - 26 + 27 - 28 + 29).............................................. ................106,515,899 ................233,594,252 ....................2,797,445 ................342,907,596 DETAILS OF WRITE-INS

2401. Miscellaneous expenses.......................................................................................................... ....................4,007,629 ....................9,848,431 .......................616,828 ..................14,472,888 2402. Service reimbursements.......................................................................................................... ......................(655,260) ...................(6,975,208) ..................................0 ...................(7,630,468) 2403. Costs of computer software developed for internal use........................................................... ..................................0 ...................(7,042,396) ..................................0 ...................(7,042,396) 2498. Summary of remaining write-ins for Line 24 from overflow page............................................. ..................................0 ..................................0 ..................................0 ..................................0 2499. Totals (Lines 2401 thru 2403 plus 2498) (Line 24 above)....................................................... ....................3,352,369 ...................(4,169,173) .......................616,828 ......................(199,976) (a) Includes management fees of $..........0 to affiliates and $.....837 to non-affiliates.

11

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

EXHIBIT OF NET INVESTMENT INCOME 1. 1.1 1.2 1.3 2.1 2.11 2.2 2.21 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

1 Collected During Year U.S. government bonds................................................................................................................................................................... (a)............................5,472,047 Bonds exempt from U.S. tax............................................................................................................................................................ (a)..........................57,055,269 Other bonds (unaffiliated)................................................................................................................................................................ (a)..........................44,204,163 Bonds of affiliates............................................................................................................................................................................ (a)..........................................0 Preferred stocks (unaffiliated).......................................................................................................................................................... (b)............................1,072,833 Preferred stocks of affiliates............................................................................................................................................................ (b)..........................................0 Common stocks (unaffiliated).......................................................................................................................................................... ..............................................0 Common stocks of affiliates............................................................................................................................................................. ..............................46,300,000 Mortgage loans................................................................................................................................................................................ (c)..........................................0 Real estate...................................................................................................................................................................................... (d)...............................679,759 Contract loans................................................................................................................................................................................. ..............................................0 Cash, cash equivalents and short-term investments....................................................................................................................... (e)............................4,484,029 Derivative instruments..................................................................................................................................................................... (f)...........................................0 Other invested assets...................................................................................................................................................................... ..............................10,907,486 Aggregate write-ins for investment income..................................................................................................................................... ................................1,974,921 Total gross investment income........................................................................................................................................................ ............................172,150,507 Investment expenses........................................................................................................................................................................................................................... Investment taxes, licenses and fees, excluding federal income taxes................................................................................................................................................ Interest expense.................................................................................................................................................................................................................................. Depreciation on real estate and other invested assets........................................................................................................................................................................ Aggregate write-ins for deductions from investment income............................................................................................................................................................... Total deductions (Lines 11 through 15)............................................................................................................................................................................................... Net investment income (Line 10 minus Line 16).................................................................................................................................................................................

2 Earned During Year ................................6,166,900 ..............................58,853,014 ..............................44,619,580 ..............................................0 ................................1,072,833 ..............................................0 ..............................................0 ..............................46,300,000 ..............................................0 ...................................679,759 ..............................................0 ................................4,484,029 ..............................................0 ..............................10,907,486 ................................1,974,921 ............................175,058,522 (g)............................3,272,967 (g)..........................................0 (h)..........................................0 (i)................................260,382 ..............................................0 ................................3,533,349 ............................171,525,173

0901. 0902. 0903. 0998. 0999. 1501. 1502. 1503. 1598. 1599. (a) (b) (c) (d) (e) (f) (g) (h) (i)

DETAILS OF WRITE-INS Miscellaneous income..................................................................................................................................................................... ................................1,427,327 ................................1,427,327 Aetna agreement reimbursement.................................................................................................................................................... ...................................453,602 ...................................453,602 Lending of security fees................................................................................................................................................................... .....................................93,992 .....................................93,992 Summary of remaining write-ins for Line 9 from overflow page...................................................................................................... ..............................................0 ..............................................0 Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)................................................................................................................. ................................1,974,921 ................................1,974,921 ............................................................................................................................................................................................................................................................. ..............................................0 ............................................................................................................................................................................................................................................................. ..............................................0 ............................................................................................................................................................................................................................................................. ..............................................0 Summary of remaining write-ins for Line 15 from overflow page........................................................................................................................................................ ..............................................0 Totals (Lines 1501 thru 1503 plus 1598) (Line 15 above)................................................................................................................................................................... ..............................................0 Includes $.....4,187,223 accrual of discount less $.....10,225,258 amortization of premium and less $.....2,969,078 paid for accrued interest on purchases. Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued dividends on purchases. Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued interest on purchases. Includes $.....679,759 for company's occupancy of its own buildings; and excludes $..........0 interest on encumbrances. Includes $..........0 accrual of discount less $..........0 amortization of premium and less $..........0 paid for accrued interest on purchases. Includes $..........0 accrual of discount less $..........0 amortization of premium. Includes $..........0 investment expenses and $..........0 investment taxes, licenses and fees, excluding federal income taxes, attributable to Segregated and Separate Accounts. Includes $..........0 interest on surplus notes and $..........0 interest on capital notes. Includes $.....260,382 depreciation on real estate and $..........0 depreciation on other invested assets.

EXHIBIT OF CAPITAL GAINS (LOSSES)

1. 1.1 1.2 1.3 2.1 2.11 2.2 2.21 3. 4. 5. 6. 7. 8. 9. 10.

U.S. government bonds................................................................ Bonds exempt from U.S. tax......................................................... Other bonds (unaffiliated).............................................................. Bonds of affiliates.......................................................................... Preferred stocks (unaffiliated)....................................................... Preferred stocks of affiliates.......................................................... Common stocks (unaffiliated)........................................................ Common stocks of affiliates.......................................................... Mortgage loans............................................................................. Real estate.................................................................................... Contract loans............................................................................... Cash, cash equivalents and short-term investments.................... Derivative instruments................................................................... Other invested assets................................................................... Aggregate write-ins for capital gains (losses)............................... Total capital gains (losses)............................................................

1 Realized Gain (Loss) on Sales or Maturity ................................(222,195) ..................................(18,647) .................................107,815 ............................................0 .................................127,548 ............................................0 .....................................2,783 ...........................(15,304,164) ............................................0 ............................................0 ............................................0 ............................................0 ..............................2,691,838 ............................................0 ............................................0 ...........................(12,615,022)

0901. 0902. 0903. 0998. 0999.

...................................................................................................... ...................................................................................................... ...................................................................................................... Summary of remaining write-ins for Line 9 from overflow page.... Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above)...............

DETAILS OF WRITE-INS ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0

12

2 Other Realized Adjustments ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ................................(268,596) ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ............................................0 ................................(268,596)

3 Unrealized Increases (Decreases) by Adjustment ............................................0 ............................................0 .................................599,087 ............................................0 ................................(282,058) ............................................0 .................................273,283 ............................60,590,432 ............................................0 ............................................0 ............................................0 ............................................0 .................................845,952 ............................14,329,258 ............................................0 ............................76,355,954

4

Total ................................(222,195) ..................................(18,647) .................................706,902 ............................................0 ................................(154,510) ............................................0 .....................................7,470 ............................45,286,268 ............................................0 ............................................0 ............................................0 ............................................0 ..............................3,537,790 ............................14,329,258 ............................................0 ............................63,472,337

............................................0 ............................................0 ............................................0 ............................................0 ............................................0

............................................0 ............................................0 ............................................0 ............................................0 ............................................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

EXHIBIT OF NONADMITTED ASSETS 1 Current Year Total Nonadmitted Assets

2 Prior Year Total Nonadmitted Assets

3 Change in Total Nonadmitted Assets (Col. 2 - Col. 1)

1.

Bonds (Schedule D)................................................................................................................... ...............................................0 ...............................................0 ...............................................0

2.

Stocks (Schedule D):

3.

4.

2.1

Preferred stocks............................................................................................................... ...............................................0 ...............................................0 ...............................................0

2.2

Common stocks............................................................................................................... ...............................................0 ...............................................0 ...............................................0

Mortgage loans on real estate (Schedule B): 3.1

First liens.......................................................................................................................... ...............................................0 ...............................................0 ...............................................0

3.2

Other than first liens........................................................................................................ ...............................................0 ...............................................0 ...............................................0

Real estate (Schedule A): 4.1

Properties occupied by the company.............................................................................. ...............................................0 ...............................................0 ...............................................0

4.2

Properties held for the production of income.................................................................. ...............................................0 ...............................................0 ...............................................0

4.3

Properties held for sale................................................................................................... ...............................................0 ...............................................0 ...............................................0

5.

Cash (Schedule E-Part 1), cash equivalents (Schedule E-Part 2) and short-term investments (Schedule DA).............................................................................. ...............................................0 ...............................................0 ...............................................0

6.

Contract loans............................................................................................................................ ...............................................0 ...............................................0 ...............................................0

7.

Other invested assets (Schedule BA)....................................................................................... ......................................12,460 ...............................................0 .....................................(12,460)

8.

Receivables for securities.......................................................................................................... ...............................................0 ...............................................0 ...............................................0

9.

Aggregate write-ins for invested assets.................................................................................... ...............................................0 ...............................................0 ...............................................0

10. Subtotals, cash and invested assets (Lines 1 to 9)................................................................... ......................................12,460 ...............................................0 .....................................(12,460) 11. Title plants (for Title insurers only)............................................................................................ ...............................................0 ...............................................0 ...............................................0 12. Investment income due and accrued........................................................................................ ...............................................0 ...............................................0 ...............................................0 13. Premiums and considerations: 13.1 Uncollected premiums and agents' balances in the course of collection....................... .................................5,910,748 .................................7,799,711 .................................1,888,962 13.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due................................................................................................. .................................1,503,109 .................................1,752,141 ....................................249,031 13.3 Accrued retrospective premiums..................................................................................... ....................................359,440 ....................................470,869 ....................................111,429 14. Reinsurance: 14.1 Amounts recoverable from reinsurers............................................................................. ...............................................0 ...............................................0 ...............................................0 14.2 Funds held by or deposited with reinsured companies.................................................. ...............................................0 ...............................................0 ...............................................0 14.3 Other amounts receivable under reinsurance contracts................................................. ...............................................0 ...............................................0 ...............................................0 15. Amounts receivable relating to uninsured plans....................................................................... ...............................................0 ...............................................0 ...............................................0 16.1 Current federal and foreign income tax recoverable and interest thereon............................... ...............................................0 ...............................................0 ...............................................0 16.2 Net deferred tax asset............................................................................................................... ...............................74,012,503 ...............................76,304,462 .................................2,291,959 17. Guaranty funds receivable or on deposit.................................................................................. ...............................................0 ...............................................0 ...............................................0 18. Electronic data processing equipment and software................................................................ ...............................................0 ...............................................0 ...............................................0 19. Furniture and equipment, including health care delivery assets.............................................. ....................................671,812 ....................................195,954 ...................................(475,858) 20. Net adjustment in assets and liabilities due to foreign exchange rates.................................... ...............................................0 ...............................................0 ...............................................0 21. Receivable from parent, subsidiaries and affiliates................................................................... ...............................................0 ...............................................0 ...............................................0 22. Health care and other amounts receivable............................................................................... ...............................................0 ...............................................0 ...............................................0 23. Aggregate write-ins for other than invested assets................................................................... .................................9,533,773 .................................6,190,679 ...............................(3,343,095) 24. Total assets excluding Separate Accounts, Segregated Accounts and Protected Cell Accounts (Lines 10 through 23)......................................................................................... ...............................92,003,847 ...............................92,713,815 ....................................709,968 25. From Separate Accounts, Segregated Accounts and Protected Cell Accounts...................... ...............................................0 ...............................................0 ...............................................0 26. TOTALS (Lines 24 and 25)....................................................................................................... ...............................92,003,847 ...............................92,713,815 ....................................709,968 DETAILS OF WRITE-INS 0901. ................................................................................................................................................... ...............................................0 ...............................................0 ...............................................0 0902. ................................................................................................................................................... ...............................................0 ...............................................0 ...............................................0 0903. ................................................................................................................................................... ...............................................0 ...............................................0 ...............................................0 0998. Summary of remaining write-ins for Line 9 from overflow page............................................... ...............................................0 ...............................................0 ...............................................0 0999. Totals (Lines 0901 thru 0903 plus 0998) (Line 9 above).......................................................... ...............................................0 ...............................................0 ...............................................0 2301. Amounts receivable under high deductible policies.................................................................. .................................2,986,382 .................................1,068,359 ...............................(1,918,023) 2302. Other assets nonadmitted......................................................................................................... .................................6,547,391 .................................5,122,320 ...............................(1,425,072) 2303. ................................................................................................................................................... ...............................................0 ...............................................0 ...............................................0 2398. Summary of remaining write-ins for Line 23 from overflow page............................................. ...............................................0 ...............................................0 ...............................................0 2399. Totals (Lines 2301 thru 2303 plus 2398) (Line 23 above)........................................................ .................................9,533,773 .................................6,190,679 ...............................(3,343,095)

13

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. The Standard Fire Insurance Company (the Company) prepares its statutory financial statements in conformity with accounting practices prescribed or permitted by the State of Connecticut. The State of Connecticut requires that insurance companies domiciled in Connecticut prepare their statutory basis financial statements in accordance with the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the Connecticut Insurance Commissioner. The impact of any permitted accounting practices on statutory surplus was not material. B. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and losses and expenses during the reporting period. Actual results could differ from those estimates. C. Certain assets designated as nonadmitted are excluded from the statutory balance sheet and changes in such amounts are charged or credited directly to unassigned surplus. The costs of acquiring both new and renewal insurance business are charged to income as incurred. Premiums are recognized as revenues pro rata over the policy period. Unearned premium reserves represent the unexpired portion of policy premiums, net of reinsurance. Reserves for losses, loss adjustment expenses (LAE) and unearned premiums ceded to reinsurers have been reported as reductions of the related reserves. Amounts recoverable from reinsurers are estimated in a manner consistent with the loss liability associated with the reinsured business. A liability is established for unsecured, unauthorized reinsurance and overdue authorized reinsurance recoverables. The provision for federal income taxes is comprised of two components, current income taxes and deferred income taxes. Deferred federal income taxes arise from changes during the year in cumulative temporary differences between the statutory basis and tax basis of assets and liabilities, and are recognized in accordance with Statement of Statutory Accounting Principles (SSAP) No. 10, Income Taxes. Invested assets are valued according to statutory requirements and the bases of valuation adopted by the NAIC.

Short-term investments are stated at amortized cost. Bonds are generally stated at amortized cost, except bonds that are defined by the NAIC as non-investment grade (NAIC Class 3-6) which are stated at the lower of amortized cost or NAIC fair value. Amortization is calculated using the constant yield method. Common stocks of non-affiliates are stated at NAIC fair value. Redeemable preferred stocks (NAIC Class 1 and 2) are generally stated at amortized cost, whereas NAIC Class 3-6 are stated at the lower of cost, amortized cost, or NAIC fair value. Perpetual preferred stocks (NAIC Class 1 and 2) are generally stated at NAIC fair value, while NAIC Class 3-6 are stated at the lower of cost or NAIC fair value. Real estate is stated at depreciated cost, net of encumbrances and specific impairments.

Loan-backed and structured securities are amortized using the retrospective method. The effective yield used to determine amortization is calculated based on actual historical and projected future cash flows, which are obtained from a widely-accepted securities data provider. Investments in subsidiaries and affiliated entities are based on the net worth of the entity, determined in accordance with statutory accounting valuation methods. Dividends received from subsidiaries are recorded as net investment income and undistributed net income is recorded as net unrealized capital gains (losses). The Company’s investments in partnerships, joint ventures and limited liability companies are reported using the equity method of accounting, determined in accordance with statutory accounting valuation methods. Distributions of accumulated earnings received from these investments are recorded as net investment income and undistributed net income is recorded as net unrealized capital gains (losses). For accounting policy in regards to derivative instruments, see Note 8.

The Company utilizes anticipated investment income as a factor in the premium deficiency calculation. Property-casualty reserves are established for loss and LAE and include estimates of both reported and unreported claims incurred and related expenses. The reserves are regularly adjusted based upon experience. In determining loss and LAE reserves, the Company continually reviews its overall reserve position, its reserving techniques and its reinsurance. These reserves represent the estimated ultimate cost of all incurred losses and LAE net of reinsurance. Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are included in net income in the period in which the estimates are changed. Such changes may be material to net income and could occur in a future period. For a discussion of loss and LAE related to asbestos and environmental reserves, see Note 33. The Company has not modified its accounting policy regarding the capitalization of fixed assets from the prior period. 2. ACCOUNTING CHANGES AND CORRECTIONS OF ERRORS Not applicable. 3. BUSINESS COMBINATIONS AND GOODWILL Not applicable. 4. DISCONTINUED OPERATIONS Not applicable. 5. INVESTMENTS A. Mortgage Loans:

Not applicable. B. Debt Restructuring: Not applicable. C. Reverse Mortgages: Not applicable. D. Loan-Backed Securities: The Company applies the retrospective method of revaluing loan-backed securities. The Company’s loan-backed securities were recalculated using actual and anticipated cash flows, including anticipated prepayments, with the original cost. For collateralized mortgage obligations and asset-backed securities, the Smith Barney Mortgage Prepayment Model provided by Yield Book® is used to project prepayments whenever it is available. For pass-through certificates and when collateralized mortgage obligations and asset-backed

14

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS securities are not modeled in Yield Book® or no prepayment model is provided, a consensus forecast from Bloomberg L.P. is used if available, otherwise the average three-month prepayment history is used. When unit prices published by the Securities Valuation Office were not available, the Company used Bloomberg and Financial Times Interactive Data, as well as broker quotes in determining the fair value of its loan-backed securities. E. Repurchase Agreements: Not applicable. F. Real Estate: Not applicable. G. Investments in Low-Income Housing Tax Credits (LIHTC): Not applicable.

6. JOINT VENTURES, PARTNERSHIPS AND LIMITED LIABILITY COMPANIES Not applicable. 7. INVESTMENT INCOME A. Surplus excludes due and accrued investment income if amounts are over 90 days past due. B. At December 31, 2006, the Company had no past due accrued investment income. 8. DERIVATIVE INSTRUMENTS The Company uses financial futures contracts as a means of hedging exposure to interest rate risk on existing assets. The Company does not hold or issue derivative instruments for trading purposes. These derivative financial instruments have off-balance-sheet risk. Financial instruments with off-balance-sheet risk involve, to varying degrees, elements of credit and market risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of these instruments reflect the extent of involvement the Company has in a particular class of financial instrument. However, the maximum loss of cash flow associated with these instruments can be less than these amounts. Financial futures contracts have very little credit risk since organized exchanges are the counterparties. The Company uses exchange traded financial futures contracts in connection with macrohedges intended to reduce interest rate risk by adjusting portfolio duration. See Schedule DB - Part D for additional information. Margin payments are required to enter a futures contract and contract gains or losses are settled daily in cash. The contract amount of futures contracts represents the extent of the Company’s involvement, but not future cash requirements, as open positions are typically closed out prior to the delivery date of the contract. 9. INCOME TAXES A. The components of the net deferred tax asset (liability) recognized in the Company’s assets, liabilities, surplus and other funds are as follows: Total of gross deferred tax assets Total of deferred tax liabilities Net deferred tax asset (liability) Deferred tax asset nonadmitted Net admitted deferred tax asset (liability) (Increase) decrease in nonadmitted asset

December 31, 2006 $ 141,268,223 (21,732,647) 119,535,576 (74,012,503) $ 45,523,073 $

2,291,959

December 31, 2005 $ 143,235,075 (12,980,176) 130,254,899 (76,304,462) $ 53,950,437 $

(7,288,081)

B. Deferred tax liabilities not recognized for the following amounts: Not applicable. C. The provisions for incurred taxes on earnings are as follows: Federal Foreign Federal income taxes on net capital gains Federal and foreign income taxes incurred

December 31, 2006 $ 58,083,505 0 58,083,505 (1,354,601) $ 56,728,904

December 31, 2005 $ 30,739,174 397 30,739,571 (539,991) $ 30,199,580

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: December 31, 2006 Deferred tax assets: Claims and claim adjustment expense reserves Unearned premium reserves Nonadmitted assets Insurance related assessments Employee benefits Investments Other Total deferred tax assets Nonadmitted deferred tax assets Admitted deferred tax assets Deferred tax liabilities: Investments Guaranty fund assessment Depreciation Other Total deferred tax liabilities Net admitted tax asset

$

$

67,856,916 26,803,984 6,296,971 4,020,068 88,761 31,149,171 5,052,352 141,268,223 (74,012,503) 67,255,720 16,671,983 1,958,316 20,650 3,081,698 21,732,647 45,523,073

14.1

December 31, 2005 $

$

74,025,408 26,089,148 5,743,274 4,062,704 383,494 28,815,418 4,115,629 143,235,075 (76,304,462) 66,930,613 8,480,850 652,983 1,070,418 2,775,925 12,980,176 53,950,437

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS The change in net deferred income taxes is comprised of the following: Total deferred tax assets Total deferred tax liabilities Net deferred tax asset (liability) Tax effect of unrealized gains (losses) Liquidation of subsidiary Change in net deferred income taxes

December 31, 2006 $ 141,268,223 (21,732,647) $ 119,535,576

December 31, 2005 $ 143,235,075 (12,980,176) $ 130,254,899

Change (1,966,852) (8,752,471) (10,719,323) 4,904,946 (230,438) $ (6,044,815)

$

D. The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate before income tax. The significant items causing this difference are as follows: Pretax net income (loss)

December 31, 2006 $ 263,065,542

Taxes at statutory rate

$

Increase (decrease) attributable to: Nontaxable investment income Subsidiary Liquidation Other Total statutory income taxes

(33,596,498) 5,356,457 (1,059,180) $ 62,773,719

Federal and foreign taxes incurred Change in net deferred taxes Total statutory income taxes Effective tax rate

$ $

92,072,940

56,728,904 6,044,815 62,773,719 23.9%

E. 1. The Company has no operating loss or tax credit carryforwards available for tax purposes. 2. The Company has $60,264,731 and $26,493,858 of federal income tax from the current and prior tax year respectively, available for recoupment in the event of future losses. F. 1. The Company is included in a consolidated federal income tax return with its ultimate parent company, The St. Paul Travelers Companies, Inc. (STA). A list of the entities included with the Company in a consolidated federal income tax return filing is attached. 2. The Company is a party to the STA tax allocation agreement, which sets forth the manner in which the total consolidated federal income tax is allocated. Member companies of the STA consolidated return group pay taxes annually on their separate taxable income. Companies with a current federal income tax receivable from STA will receive settlement to the extent that such receivables are for tax benefits that have been utilized in the consolidated federal income tax return. Member companies are reimbursed by STA in the event the Internal Revenue Service levies upon a member’s assets for unpaid taxes in excess of the amount specifically allocated to a member.

In the event that the consolidated group develops an Alternative Minimum Tax (AMT), each company with an AMT on a separate company basis will be allocated a portion of the consolidated AMT. Settlement of the AMT will be made in the same manner and timing as the regular federal income tax. 10. INFORMATION CONCERNING PARENT, SUBSIDIARIES AND AFFILIATES A-C. The Company paid dividends of $75 million to its parent company, Travelers Insurance Group Holdings Inc. (TIGHI) in 2005. Schedule Y - Part 2 summarizes the net flow of funds among affiliates for various types of transactions between affiliates. Regulatory prior approval and/or prior notification has been satisfied for any transaction requiring such action. The following are general business arrangements that result in or are used for transactions with affiliates in the normal course of business:

1. The principal banking functions for the property-casualty operations of STA and some or all of its affiliated property-casualty insurance companies are handled by The Travelers Indemnity Company (Indemnity). Settlements between the companies are made at least monthly. 2. STA maintains a private short-term investment pool in which affiliated companies may participate. Effective January 1, 2005 the “Pooling Agreement for Travelers Money Market Liquidity” (MMLP) dated August 20, 2002 was amended to include additional STA entities. With this amendment the MMLP was renamed the “Pooling Agreement for St. Paul Travelers Money Market Liquidity” (STAMMLP). This pool is managed by Indemnity. Each company may convert its position in the pool into cash at any time and may also use its position in the pool to settle transactions with other affiliated participants in the pool. The position of each company in the pool is calculated and adjusted daily. Each participating insurance company carries its share of the pool as a short-term investment in Schedule DA. At December 31, 2006 and 2005, the STAMMLP totaled $4,146,238,219 and $3,775,854,353, respectively. D. At December 31, 2006 and 2005, the Company had $11,957,992 and $15,612,775 payable to affiliates, respectively. Accounts between and among the Company and its affiliates are settled on a daily basis through the STAMMLP or cash. Any items open at the end of the month are settled in the following month. E. The Company has not provided any guarantees for the benefit of an affiliate which would result in a material contingent exposure for the Company or any affiliated insurer’s assets to liabilities, to the extent not disclosed in Note 14. F. Material management or service contracts and cost sharing arrangements, involving the Company or any affiliate, other than cost allocation arrangements: TYPE OF CONTRACT AND DESCRIPTION

SERVICING COMPANY

OTHER PARTY

Service Expense Reimbursement

Travelers Property Casualty Corp.

The Travelers Indemnity Company

Expense Allocation

The Travelers Indemnity Company

Travelers P&C1

1 “Travelers P&C” includes Travelers Property Casualty Corp. and some or all of its indirectly owned insurance subsidiaries. G. All of the issued and outstanding common stock of the Company is owned by TIGHI, which in turn is indirectly owned by STA, a publicly traded insurance holding company, the organization of which is shown in Schedule Y - Part 1.

14.2

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS H. Not applicable. I.

Not applicable.

J. Not applicable. K. Not applicable. 11. DEBT Not applicable. 12. RETIREMENT PLANS, DEFERRED COMPENSATION, POSTEMPLOYMENT BENEFITS AND COMPENSATED ABSENCES AND OTHER POSTRETIREMENT BENEFIT PLANS A. Defined Benefit Plans: Not applicable. B. Defined Contribution Plans: Not applicable. C. Multiemployer Plans: Not applicable. D. Consolidated/Holding Company Plans: 1. Employee Retirement Plans: The Company participates in a qualified noncontributory defined benefit pension plan in the form of a cash balance sponsored by STA for substantially all employees of the Company and its property-casualty affiliates. In addition the Company participates in nonqualified defined benefit pension plans sponsored by STA and by Travelers Property Casualty Corp. (TPC) which covers certain highly-compensated employees of the Company and its property-casualty affiliates. The Company has no legal obligation for benefits under these plans. The Company is charged for its allocable share of pension expense for these plans based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. The Company’s allocated share of the pension expense was $1,255,076 and $960,695 for 2006 and 2005, respectively. 2. Postretirement Benefit Plan: The Company participates in a health care and life insurance benefit plan sponsored by STA for employees of the Company and its property-casualty affiliates that satisfy certain age and service requirements and for certain retirees. The Company has no legal obligation for benefits under this plan. The Company is charged for its allocable share of postretirement benefit expense for this plan based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. The Company’s allocated share of the postretirement benefit expense was $736,666 and $846,462 for 2006 and 2005, respectively. 3. Deferred Compensation Plans: The Company participates in a 401(k) savings plan sponsored by STA for substantially all employees of the Company and its property-casualty affiliates. STA, in September 2005, merged the 401(k) savings plan sponsored by TPC with its 401(k) to form one 401(k) savings plan. The Company has no legal obligation for benefits under this plan. The Company is charged for its allocable share of expense for this plan based on its allocated and/or direct salary costs in accordance with an expense allocation agreement. The Company’s allocated share of the 401(k) savings plan expense was $3,159,795 and $2,726,440 for 2006 and 2005, respectively. E. Postemployment Benefits and Compensated Absences: Not applicable. 13. CAPITAL AND SURPLUS, DIVIDEND RESTRICTIONS AND QUASI-REORGANIZATIONS The Company has 20,000 shares of common capital stock authorized, issued and outstanding with a par value of $250 per share. Dividends to shareholders and the proportion of the profits of the Company that may be paid to shareholders are not limited by charter. The maximum amount of dividends which can be paid by Connecticut insurance companies to shareholders without prior approval of the domiciliary Insurance Commissioner is subject to restrictions relating to statutory surplus or net income. The maximum amount of dividends to shareholders that can be made during 2007 without prior approval is $206,336,000. There are no restrictions on the use of the Company's unassigned surplus and such surplus is held for the benefit of the shareholder. The change in the balance of the special surplus funds is a result of retroactive reinsurance activity occurring in 2006. See Note 23F for additional detail. Unassigned funds or surplus has been increased by cumulative net unrealized gains of $279,024,186. 14. CONTINGENCIES A. Contingent Commitments: At December 31, 2006, the Company had commitments to fund investments of $57,736,777. B. Assessments: The Company has accrued liabilities of $13.2 million for guaranty fund and other insurance-related assessments (primarily second injury fund assessments) and related recoverables of $0.6 million at December 31, 2006. The assessments are expected to be paid over a period ranging from one year to the life expectancy of certain workers’ compensation claimants and the recoverables are expected to occur over the same period of time. C. Gain Contingencies: Not applicable. D. All Other Contingencies: The Company has purchased annuities from life insurance companies to fund structured settlements. For a discussion of the Company’s contingent liabilities for structured settlements, see Note 27.

14.3

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS In the ordinary course of business, the Company is a defendant or codefendant in various litigation matters. Although there can be no assurances, as of December 31, 2006, the Company believes, based on information currently available, that the ultimate resolution of these legal proceedings would not be likely to have a material adverse effect on its net income, financial condition or liquidity. For a discussion of contingencies related to asbestos and environmental reserves, see Note 33. 15. LEASES Not applicable. 16. INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK AND FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK

The Company uses financial futures contracts as a means of hedging exposure to interest rate risk on existing assets. These derivative financial instruments have off-balance-sheet risk. See Note 8 for a discussion of these financial instruments, including credit and market risk, cash requirements and related accounting policy. For further details of the above instruments, including contract or notional principal amounts, see Schedule DB. At December 31, 2006, the Company had no financial futures contracts open. In the normal course of business, the Company has unfunded commitments to partnerships and limited liability companies. The off-balance-sheet risks of these financial instruments were $57,736,777 at December 31, 2006. 17. SALE, TRANSFER AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS OF LIABILITIES A. Transfers of Receivables Reported as Sales: Not applicable. B. Transfer and Servicing of Financial Assets: The Company engages in securities lending activities from which it generates net investment income from the lending of certain of its investments to other institutions for short periods of time. Borrowers of these securities provide collateral equal to at least 102% of the market value of the loaned securities plus accrued interest. This collateral is held by a third party custodian, and the Company has the right to access the collateral only in the event that the institution borrowing the Company’s securities is in default under the lending agreement. Therefore, the Company does not recognize the receipt of the collateral held by the third party custodian or the obligation to return the collateral. The loaned securities remain a recorded asset of the Company. See Schedule LS for additional information. C. Wash Sales: Not applicable.

18. GAIN OR LOSS TO THE REPORTING ENTITY FROM UNINSURED PLANS AND THE UNINSURED PORTION OF PARTIALLY INSURED PLANS Not applicable. 19. DIRECT PREMIUMS WRITTEN/PRODUCED BY MANAGING GENERAL AGENTS/THIRD PARTY ADMINISTRATORS The Company’s direct premiums written through managing general agents (MGA) (as defined in Appendix A-225 of the NAIC Accounting Practices and Procedures Manual) or third party administrators (TPA) were as follows: Name and Address of MGA / TPA Covansys 7701 College Blvd., Suite 200 Overland Park, KS 66210

LEGEND: C CA I P U -

F.E.I.N.

Exclusive Contract

38-2606945

Yes

Type of Business Written

Type of Authority Granted

Direct Premiums Written

National Flood Insurance Program

C, CA, I, P, U

$168,746,601

Claims Payment Claims Adjustment Policy Issuance Premium Collection Underwriting

20. SEPTEMBER 11 EVENTS

Through December 31, 2006, the St. Paul Travelers Reinsurance Pool (STA Pool) has recorded the following charges, before tax, for the estimated ultimate loss for both reported and unreported claims and related LAE and reinstatement premiums associated with the terrorist attack on September 11, 2001. This estimate is based on a variety of actuarial techniques, coverage interpretation and claims estimation methodologies as well as ongoing analysis of both paid and reported claims related to the attack. Since the reserves and related reinsurance recoverables are based on estimates, the ultimate net liability may be more or less than these amounts. The Company’s pro rata participation percentage of the STA Pool is 5.03%.

(in millions) Gross Loss & LAE

Case + IBNR Reserve $

Ceded Loss & LAE Net Loss & LAE

719.2 (446.4)

$

272.8

Total Incurred $ 2,544.7 (1,538.5) $ 1,006.2

Additional & reinstatement premiums

(41.0)

Reduction in reinsurance contingent commission expense Total STA Pool Net Pretax Cost

(91.0) $

874.2

$

44.0

Company’s retention from 5.03% participation in the STA Pool

14.4

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS 21. OTHER ITEMS A. Extraordinary Items: Not applicable. B. Troubled Debt Restructuring: Not applicable. C. Other Disclosures: The Company elected to use rounding in reporting amounts in this statement. 2006 Schedule P: The 1996 and prior “Total Net Losses and Expenses Unpaid” (Schedule P - Part 1, Column 24, Line 1) is separately reported to accident year as follows (in thousands): Schedule P Part 1A Part 1B Part 1C Part 1D Part 1E Part 1F - Section 1 Part 1F - Section 2 Part 1G Part 1H - Section 1 Part 1H - Section 2 Part 1M Part 1N Part 1O Part 1P Part 1R - Section 1 Part 1R - Section 2

1996 $ 241 89 354 11,862 2,081 160 918 134 5,924 925 0 124 1,098 55 2,084 121

1995 $ 122 26 248 13,511 1,560 154 294 89 3,409 452 0 103 1,674 7 2,174 51

Accident Years 1994 $ 28 30 19 10,634 1,092 38 311 87 5,874 817 1 182 12,225 5 1,477 92

1993 $

35 33 163 11,488 1,096 60 123 19 14,146 610 8 7 505 0 1,250 30

1992 & Prior $ 119 15,042 985 141,462 17,256 684 783 296 139,759 1,086 113 269 32,489 21 75,821 361

The following loss and/or LAE reserves have been ceded under retroactive reinsurance agreements. They are reported here by line of business and accident year to facilitate loss discounting under Internal Revenue Code Section 846 (in thousands): 1997 Commercial Auto Workers’ Compensation Commercial Multiple Peril Medical Malpractice - CM Special Liability Other Liability - Occ Other Liability - CM Special Property Other Reinsurance A Reinsurance B

$

$ 0 0 0 0 (28) 0 0 0 0 0

2000 (214) (126) (2,195) (2,691) (76) (5,932) (1,206) 0 0 0 0

$

2001 (99) (512) 0 (951) 0 (1) (36) 0 0 0 0

$

2002 (126) (493) 0 0 (4) (778) (2) (31) (5) (230) (1,966)

D. Uncollectible Premium Balances: Not applicable. E. Business Interruption Insurance Recoveries: Not applicable. F. Hybrid Securities: At December 31, 2006 the Company held hybrid securities that are reported in Schedule D, Part 2, Section 1 as follows: CUSIP

Issuer/Description

Type

91731KAA8 Total

USB Capital IX

Non Redeemable

Carrying Value $ 1,011,350 $ 1,011,350

G. State Transferable Tax Credits: Not applicable. H. Impact of Medicare Modernization Act on Postretirement Benefits (INT 04-17): Not applicable. 22. EVENTS SUBSEQUENT On February 13, 2007, STA announced that it intends to change its name to The Travelers Companies, Inc. The name change is expected to be completed during the first quarter 2007. 23. REINSURANCE A. Unsecured Reinsurance Recoverables: 1. Affiliated Company Recoverables: The Company participates in the STA Pool (see Note 26) and/or other reinsurance programs with affiliates and takes credit for reinsurance ceded directly and indirectly to these companies. The unsecured aggregate recoverables for ceded losses, loss adjustment expenses and unearned premiums at December 31, 2006, in connection with reinsurance agreements among affiliated insurers, were as follows:

14.5

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

NOTES TO FINANCIAL STATEMENTS Reinsurance balances ceded to affiliates and recoverable by The Travelers Indemnity Company (06-0566050): Company St. Paul Fire and Marine Insurance Company Travelers Casualty and Surety Company The Phoenix Insurance Company The Standard Fire Insurance Company United States Fidelity and Guaranty Company Travelers Casualty Insurance Company of America Farmington Casualty Company The Travelers Indemnity Company of Connecticut The Automobile Insurance Company of Hartford, Connecticut The Charter Oak Fire Insurance Company St. Paul Surplus Lines Insurance Company The Travelers Indemnity Company of America St. Paul Protective Insurance Company Travelers Commercial Insurance Company Travelers Casualty Company of Connecticut Travelers Commercial Casualty Company Travelers Property Casualty Company of America Travelers Property Casualty Insurance Company Athena Assurance Company St. Paul Medical Liability Insurance Company Travelers Personal Security Insurance Company Travelers Personal Insurance Company Travelers Excess and Surplus Lines Company TravCo Insurance Company The Travelers Home and Marine Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company Total

F.E.I.N. 41-0406690 06-6033504 06-0303275 06-6033509 52-0515280 06-0876835 06-1067463 06-0336212 06-0848755 06-0291290 41-1230819 58-6020487 36-2542404 06-1286268 06-1286266 95-3634110 36-2719165 06-1286274 41-1435765 41-1435766 06-1286264 36-3703200 06-1203698 35-1838077 35-1838079 36-2999370 52-1925132

Amount $ 11,552,949,504 9,265,149,945 2,274,651,288 2,204,527,159 2,007,303,063 1,240,320,452 674,944,698 622,351,605 622,351,604 578,524,027 398,830,958 350,620,622 262,965,467 214,755,131 214,755,131 214,755,131 162,162,038 135,865,491 131,482,733 131,482,733 122,717,218 122,717,218 122,717,218 122,717,218 122,717,218 65,741,367 65,741,367 $ 34,005,817,604

Reinsurance balances assumed by The Travelers Indemnity Company and recoverable by the following affiliated insurers: Company St. Paul Fire and Marine Insurance Company Travelers Property Casualty Company of America Travelers Casualty and Surety Company United States Fidelity and Guaranty Company The Travelers Indemnity Company of Connecticut The Travelers Indemnity Company of America The Standard Fire Insurance Company The Charter Oak Fire Insurance Company The Phoenix Insurance Company The Automobile Insurance Company of Hartford, Connecticut Discover Property & Casualty Insurance Company St. Paul Surplus Lines Insurance Company Travelers Casualty Insurance Company of America Farmington Casualty Company Travelers Property Casualty Insurance Company The Travelers Home and Marine Insurance Company TravCo Insurance Company St. Paul Protective Insurance Company Travelers Commercial Casualty Company Travelers Personal Insurance Company Travelers Commercial Insurance Company Travelers Excess and Surplus Lines Company Travelers Casualty Company of Connecticut Athena Assurance Company Travelers Personal Security Insurance Company Discover Specialty Insurance Company St. Paul Medical Liability Insurance Company Total

F.E.I.N. 41-0406690 36-2719165 06-6033504 52-0515280 06-0336212 58-6020487 06-6033509 06-0291290 06-0303275 06-0848755 36-2999370 41-1230819 06-0876835 06-1067463 06-1286274 35-1838079 35-1838077 36-2542404 95-3634110 36-3703200 06-1286268 06-1203698 06-1286266 41-1435765 06-1286264 52-1925132 41-1435766

Amount $ 10,482,685,611 9,532,163,725 5,092,956,949 3,270,500,020 2,352,389,203 2,230,264,164 1,912,108,762 1,699,728,193 1,356,977,782 920,303,475 825,755,400 751,600,443 436,846,768 347,193,158 280,840,528 224,281,672 200,100,302 180,729,934 167,473,466 149,413,064 107,256,450 104,265,928 93,549,747 79,002,604 71,439,864 45,651,847 39,346,544 $ 42,954,825,603

2. Unaffiliated Company Recoverables: The unsecured aggregate recoverables for ceded losses, loss adjustment expenses and unearned premiums recoverable from any unaffiliated reinsurer at December 31, 2006, that exceeded 3% of the Company's surplus as regards policyholders, were as follows: NONE

Additional detail on reinsurance recoverable balances by reinsurer is shown in Schedule F - Part 3. B. Reinsurance Recoverable in Dispute: Not applicable. C. Reinsurance Assumed and Ceded: 1.

Assumed Reinsurance Premium Commission Reserve Equity Affiliates All Other Total

$ $

382,914,061 93,319,618 476,233,679

$ $

Direct Unearned Premium Reserve

45,828,071 11,168,715 56,996,786

Ceded Reinsurance Premium Commission Reserve Equity $ $

816,473,455 0 816,473,455

$

723,153,837

$ $

14.6

97,717,496 0 97,717,496

Net Premium Reserve $ (433,559,394) $ 93,319,618 $ (340,239,776) $

Commission Equity (51,889,425) 11,168,715 (40,720,710)

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS 2. Accruals for contingent, sliding scale adjustment and other profit sharing commissions, net of reinsurance assumed and ceded, amounted to $20,105,518 at December 31, 2006. This balance represents the Company's 5.03% pro rata share of the net amount of the STA Pool (see Note 26): Direct Business Add: Reinsurance Assumed Less: Reinsurance Ceded Net

$ 33,598,522 20,105,518 33,598,522 $ 20,105,518

D. Uncollectible Reinsurance: Not applicable. E. Commutation of Ceded Reinsurance: Not applicable. F. Retroactive Reinsurance: 1.

Assumed a. Reserves Transferred: (1) Initial Reserves (2) Adjustments - Prior Year(s) (3) Adjustments - Current Year (4) Current Total

$

472,820 (150,900) 0 321,920

$ 24,412,231 665,703 772,611 $ 25,850,545

525,891 0 0 525,891

$ 21,632,033 (71,778) 0 $ 21,560,255

189,222 3,265 192,487

$

$

$

53,071 150,900 0 203,971

$

0

$

$

b. Consideration Paid or Received: (1) Initial Consideration (2) Adjustments - Prior Year(s) (3) Adjustments - Current Year (4) Current Total

$ $

c. Paid Losses Reimbursed or Recovered: (1) Prior Year(s) (2) Current Year (3) Current Total

$ $

d. Special Surplus From Retroactive Reinsurance: (1) Initial Surplus Gain or Loss (2) Adjustments - Prior Year(s) (3) Adjustments - Current Year (4) Current Year Restricted Surplus (5) Cumulative Total Transferred to Unassigned Funds

Ceded

$

$

4,298,667 3,764,155 8,062,822

2,780,198 737,481 772,611 $4,688,201 (397,911)

e. List the other insurers included in the above transactions: Company Munich Reinsurance America, Inc. (10227) Commercial Risk Re-Insurance Co. (27955) General Reinsurance Corporation (22039) nSpire Re Limited (AA-1784124) Platinum Underwriters Reinsurance Inc. (10357) Various Total f.

Assumed $ 321,920 $ 321,920

Ceded $

588,510 15,090,000 3,681,508 5,360,911 1,129,616 $ 25,850,545

Paid Loss/LAE Recoverable: Company Platinum Underwriters Reinsurance Inc. (10357) Various Total

Paid Loss/LAE Recoverables $ 38,460 394,052 $ 432,512

Amount Over 90 Days Past Due $ 0 100,723 $ 100,723

Collateral Held $ $

0 22,305 22,305

G. Reinsurance Accounted for as a Deposit: Not applicable. 24. RETROSPECTIVELY RATED CONTRACTS AND CONTRACTS SUBJECT TO REDETERMINATION A. Accrued retrospective premiums (Page 2, Line 13.3) have been determined based upon loss experience on business subject to such experience rating adjustment. Accrued retrospectively rated premiums, including all of those relating to bulk IBNR, have been determined by or allocated to individual policyholder accounts. Ten percent of the amount not offset by retrospective return premiums, other liabilities to the same party (other than loss and loss expense reserves), or collateral as permitted by SSAP No. 66, Retrospectively Rated Contracts, has been nonadmitted. The amount shown in Part D below is the Company’s proportionate share of the accrued retrospective premiums of the STA Pool (see Note 26). B. The Company records accrued retrospective premium as an adjustment to earned premium. C. See Schedule P - Part 7A. D. Calculation of nonadmitted retrospective premium: 1. 2. 3. 4.

Total accrued retro premium Unsecured amount Less: Nonadmitted amount (10%) Admitted amount (1) - (3)

$ $

6,742,677 3,594,397 359,440 6,383,237

25. CHANGES IN INCURRED LOSSES AND LOSS ADJUSTMENT EXPENSES In 2006, reserves for incurred loss and loss adjustment expenses for claims arising in prior years decreased by $15,706,896, primarily due to homeowners/farmowners, private passenger auto liability, commercial auto liability, workers’ compensation, commercial multiple peril, special property and products liability – occurrence, partially offset by an increase in other liability – occurrence, other liability – claims made and reinsurance assumed liability loss and loss adjustment expense provisions.

14.7

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS The decrease in homeowners/farmowners is due to lower than expected additional living expenses related to Hurricane Katrina as well as better than expected non-catastrophe frequency and severity, due in part to changes in the marketplace, such as higher deductibles and fewer small-dollar claims, and continued evidence of a less than expected impact from demand surge. The decrease in private passenger auto liability is primarily driven by better than expected results from changes in claim handling practices as well as initiatives to fight fraud. The decrease in commercial auto liability is attributable to an improving tort environment, claim handling initiatives and improvements in auto safety technology. The decrease in workers’ compensation is due to a reduction in adjusting and other loss expense reserves. The decrease in commercial multiple peril is primarily due to an improving tort environment, as well as better than expected results from enhanced risk control, underwriting and claim process initiatives. The decrease in special property is primarily attributable to a smaller than expected impact of demand surge. The increase in other liability – claims made is due to worse than expected large loss activity and additional information from detailed claim reviews, primarily associated with accident years 2002 and 2003. The increase in reinsurance assumed liability is primarily due to changes in projected loss development driven by an unanticipated slowdown in the claim settlement patterns of the underlying casualty exposures. The increase in other liability - occurrence and the partially offsetting decrease in products liability – occurrence is primarily due to asbestos and environmental reserve changes including a reallocation between the lines of business. The remaining changes are generally the result of ongoing analysis of recent loss data and trends. A portion of the change from prior year effects relates to retrospectively rated policies and will not have a material impact on surplus due to accompanying premium adjustments. 26. INTERCOMPANY POOLING ARRANGEMENTS The Company is a participant in the St. Paul Travelers Reinsurance Pool (the STA Pool), an intercompany pooling arrangement. The lead company of the STA Pool is Indemnity. Under the terms of the arrangement, the property-casualty underwriting risks for substantially all lines of business of the intercompany pool participants are reinsured with Indemnity. The pool of net underwriting risks remaining after reinsurance is transacted with third parties by Indemnity is then retroceded to the pool participants based on pool participation percentages. The provision for reinsurance and the write-off of uncollectible reinsurance are reported in the statutory financial statements of Indemnity and are not allocated to the other pool participants.

The names, NAIC company codes and intercompany pool percentages of the companies participating in the STA Pool are as follows: STA Pool Participant St. Paul Fire and Marine Insurance Company The Travelers Indemnity Company Travelers Casualty and Surety Company The Phoenix Insurance Company The Standard Fire Insurance Company United States Fidelity and Guaranty Company Travelers Casualty Insurance Company of America Farmington Casualty Company The Automobile Insurance Company of Hartford, Connecticut The Travelers Indemnity Company of Connecticut The Charter Oak Fire Insurance Company St. Paul Surplus Lines Insurance Company The Travelers Indemnity Company of America St. Paul Protective Insurance Company Travelers Casualty Company of Connecticut Travelers Commercial Casualty Company Travelers Commercial Insurance Company Travelers Property Casualty Company of America Travelers Property Casualty Insurance Company Athena Assurance Company St. Paul Medical Liability Insurance Company TravCo Insurance Company Travelers Excess and Surplus Lines Company The Travelers Home and Marine Insurance Company Travelers Personal Security Insurance Company Travelers Personal Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company

NAIC Company Code 24767 25658 19038 25623 19070 25887 19046 41483 19062 25682 25615 30481 25666 19224 36170 40282 36137 25674 36161 41769 41750 28188 29696 27998 36145 38130 36463 10213

Pool Participation % 26.36 22.41 21.14 5.19 5.03 4.58 2.83 1.54 1.42 1.42 1.32 0.91 0.80 0.60 0.49 0.49 0.49 0.37 0.31 0.30 0.30 0.28 0.28 0.28 0.28 0.28 0.15 0.15

All of the above STA Pool companies are party to reinsurance agreements with non-affiliated reinsurers covering business subject to the pooling agreement and have contractual rights of direct recovery from the non-affiliated reinsurers under the terms of such reinsurance agreements. 27. STRUCTURED SETTLEMENTS The Company has purchased annuities from life insurance companies, under which the claimant is the payee and the Company is the owner of the annuity contract, to fund structured settlements. These annuity contracts are now the direct responsibility of the life insurance companies from whom they have been purchased and claims settled by the purchase of such annuity contracts are treated as closed claims. The following life insurance companies held reserves at December 31, 2006, for structured settlement annuities purchased by members of the STA Pool (see Note 26), of which $164,070,995 is attributable to the Company: Life Insurance Company and Location Fidelity and Guaranty Life Insurance Co, Baltimore, MD MetLife Life and Annuity Company of Connecticut, Hartford, CT Symetra Life Insurance Company, Bellevue, WA First Colony Life Insurance Company, Lynchburg, VA Genworth Life Insurance Company, Wilmington, DE All other companies

Licensed in Company’s State of Domicile Yes Yes Yes Yes Yes

Statement Value of Annuities $752,466,581 359,644,692 281,520,031 221,771,341 205,667,583 1,440,778,578

28. HEALTH CARE RECEIVABLES Not applicable. 29. PARTICIPATING POLICIES Not applicable. 30. PREMIUM DEFICIENCY RESERVES As of December 31, 2006, the Company had liabilities of $0 related to premium deficiency reserves. See Note 1 Part C, regarding the consideration of investment income in the calculation of this premium deficiency reserve.

14.8

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS 31. HIGH DEDUCTIBLES At December 31, 2006 the amount of reserve credit recorded by the Company for high deductible policies on unpaid claims was $374,760,175 and the amount billed and outstanding on paid claims was $5,515,405. These amounts represent the Company’s proportionate share of the STA Pool (see Note 26). 32. DISCOUNTING OF LIABILITIES FOR UNPAID LOSSES OR UNPAID LOSS ADJUSTMENT EXPENSES A. Tabular workers' compensation reserves have been discounted at a maximum rate of 5% using tables appropriate to the state laws under which the benefits are paid, generally the following United States Life Tables: Non-Fatal Cases:

United States Life Tables Total Population 1969-71 - MI United States Life Tables Total Population 1979-81 - TX United States Life Tables Total Population 1999 - FL, NJ & NY United States Life Tables Total Male or Total Female 1989-91 – CA & MA United States Life Tables Total Male or Total Female 2000 – MN United States Life Tables Total Male or Total Female 1999 – all other states

Fatal Cases:

United States Life Tables Total Female 1969-71 – MI * United States Life Tables Total Female 1979-81 – TX * United States Life Tables Total Female 1989-91 – CA & MA * * and the 1979 NCCI Remarriage Table New York Mandated Mortality & Remarriage Table – NY United States Life Tables Total Female 2000 – MN ** United States Life Tables Total Female 1999 – all other states ** ** and the Railroad Retirement Board Remarriage Table

Other liability reserves relating to excess coverage on workers’ compensation life table claims have been discounted on the same basis as workers’ compensation reserves.

The December 31, 2006 liabilities of the Company and its affiliates listed below included the following amounts of such discounted liabilities: Company St. Paul Fire and Marine Insurance Company The Travelers Indemnity Company Travelers Casualty and Surety Company The Phoenix Insurance Company The Standard Fire Insurance Company United States Fidelity and Guaranty Company Travelers Casualty Insurance Company of America Farmington Casualty Company The Automobile Insurance Company of Hartford, Connecticut The Travelers Indemnity Company of Connecticut The Charter Oak Fire Insurance Company St. Paul Surplus Lines Insurance Company The Travelers Indemnity Company of America St. Paul Protective Insurance Company Travelers Casualty Company of Connecticut Travelers Commercial Casualty Company Travelers Commercial Insurance Company Travelers Property Casualty Company of America Travelers Property Casualty Insurance Company St. Paul Medical Liability Insurance Company Athena Assurance Company TravCo Insurance Company Travelers Excess and Surplus Lines Company The Travelers Home and Marine Insurance Company Travelers Personal Security Insurance Company Travelers Personal Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company Total

Workers’ Compensation $ 426,354,230 362,465,793 341,924,447 83,944,554 81,356,668 74,078,239 45,773,235 24,908,403 22,967,489 22,967,489 21,350,060 14,718,602 12,939,430 9,704,573 7,925,401 7,925,401 7,925,401 5,984,487 5,014,029 4,852,286 4,852,286 4,528,801 4,528,801 4,528,801 4,528,801 4,528,801 2,426,143 2,426,143 $ 1,617,428,794

Other Liability $ 10,476,081 8,906,264 8,401,536 2,062,629 1,999,041 1,820,200 1,124,709 612,032 564,342 564,342 524,599 361,656 317,939 238,454 194,738 194,738 194,738 147,047 123,201 119,227 119,227 111,279 111,279 111,279 111,279 111,279 59,614 59,614 $ 39,742,363

The amount of tabular discount for workers' compensation and other liability reserves at December 31, 2006 was as follows: Tabular Discount Included in Schedule P - Part 1 Workers’ Compensation Company Case IBNR St. Paul Fire and Marine Insurance Company $ 135,691,527 $ 93,995,800 The Travelers Indemnity Company 115,358,388 79,910,699 Travelers Casualty and Surety Company 108,820,898 75,382,069 The Phoenix Insurance Company 26,716,200 18,506,762 The Standard Fire Insurance Company 25,892,579 17,936,226 United States Fidelity and Guaranty Company 23,576,145 16,331,593 Travelers Casualty Insurance Company of America 14,567,793 10,091,356 Farmington Casualty Company 7,927,350 5,491,409 The Automobile Insurance Company of Hartford, CT 7,309,635 5,063,507 The Travelers Indemnity Company of Connecticut 7,309,635 5,063,507 The Charter Oak Fire Insurance Company 6,794,872 4,706,922 St. Paul Surplus Lines Insurance Company 4,684,343 3,244,924 The Travelers Indemnity Company of America 4,118,104 2,852,680 St. Paul Protective Insurance Company 3,088,578 2,139,510 Travelers Casualty Company of Connecticut 2,522,339 1,747,267 Travelers Commercial Casualty Company 2,522,339 1,747,267 Travelers Commercial Insurance Company 2,522,339 1,747,267 Travelers Property Casualty Company of America 1,904,623 1,319,365 Travelers Property Casualty Insurance Company 1,595,765 1,105,414 St. Paul Medical Liability Insurance Company 1,544,289 1,069,755 Athena Assurance Company 1,544,289 1,069,755 TravCo Insurance Company 1,441,336 998,438 Travelers Excess and Surplus Lines Company 1,441,336 998,438 The Travelers Home and Marine Insurance Company 1,441,336 998,438

14.9

Other Liability Case IBNR $ 4,436,388 $ 1,758,212 3,771,603 1,494,747 3,557,862 1,410,038 873,477 346,173 846,549 335,501 770,814 305,486 476,289 188,761 259,182 102,718 238,986 94,714 238,986 94,714 222,156 88,044 153,153 60,697 134,640 53,360 100,980 40,020 82,467 32,683 82,467 32,683 82,467 32,683 62,271 24,679 52,173 20,677 50,490 20,010 50,490 20,010 47,124 18,676 47,124 18,676 47,124 18,676

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS Travelers Personal Security Insurance Company Travelers Personal Insurance Company Discover Property & Casualty Insurance Company Discover Specialty Insurance Company Total

1,441,336 998,438 1,441,336 998,438 772,145 534,878 772,145 534,878 $514,763,000 $356,585,000

47,124 18,676 47,124 18,676 25,245 10,005 25,245 10,005 $ 16,830,000 $ 6,670,000

B. Non-tabular reserves have not been discounted. C. No changes in the rates or other key assumptions used to discount prior accident year reserves have been made. 33. ASBESTOS/ENVIRONMENTAL RESERVES The following represents the Company’s allocable share of the pooled property-casualty business of the St Paul Travelers Insurance Pool (the STA Pool), based on its pro rata participation percentage of 5.03%. A. Does the company have on the books or has it ever written an insured for which you have identified a potential for the existence of a liability due to asbestos losses? Yes (X) No ( )

Exposure for asbestos losses arises from liability coverage written many years ago. The exposures include bodily injury and property damage losses. With respect to reserving procedures, the Special Liability Group staff members are in daily contact with each other on pending asbestos claim activities and anticipated development. The Company also conducts an annual in-depth review of the asbestos exposures with representatives of the claim, legal, reinsurance, finance and actuarial areas to specifically review pending asbestos claims, other relevant facts and applicable law. In addition, management reviews asbestos exposures on a quarterly basis. Based on these annual and quarterly reviews, asbestos reserves are established for the Company’s future exposure. Beginning in 2007 the Company will supplement the existing annual in-depth and quarterly asbestos review processes with additional aggregate quarterly reserve analyses. These additional analyses will enhance the Company’s ability to detect and respond to emerging trends on a quarterly basis. Because each policyholder presents different liability and coverage issues, the Company generally reviews the exposure presented by each policyholder annually on a policyholder-by-policyholder basis. In the course of this review, the Company considers, among other factors: available insurance coverage, including the role of any umbrella or excess insurance the Company has issued to the policyholder; limits and deductibles; an analysis of each policyholder’s potential liability; the jurisdictions involved; past and anticipated future claim activity and loss development on pending claims; past settlement values of similar claims; allocated claim adjustment expense; potential role of other insurance; the role, if any, of non-asbestos claims or potential non-asbestos claims in any resolution process; and applicable coverage defenses or determinations, if any, including the determination as to whether or not an asbestos claim is a products/completed operation claim subject to an aggregate limit and the available coverage, if any, for that claim. For those policyholders for which an estimate of the gross ultimate exposure for indemnity and related claim adjustment expense is determined, the Company calculates, by each policy year, a ceded reinsurance projection based on any applicable facultative and treaty reinsurance, past ceded experience and reinsurance collections. Conventional actuarial methods are not utilized to establish asbestos reserves. The Company’s evaluations have not resulted in any data from which a meaningful average asbestos defense or indemnity payment may be determined. The Company also compares its historical gross and net loss and expense paid experience, year-by-year, to assess any emerging trends, fluctuations, or characteristics suggested by the aggregate paid activity. 1. Direct Basis - Asbestos: a. b. c. d.

2002

2002

Beginning reserves: $ Incurred losses and LAE: Calendar year payments for losses and LAE: Ending reserves: $

3. Net of Ceded Reinsurance Basis - Asbestos: a. b. c. d.

2004

2005

Beginning reserves: $ 60,709,000 $ 249,427,000 $ 187,159,000 $ 205,173,000 $ Incurred losses and LAE: 224,316,000 7,035,000 40,960,000 39,105,000 Calendar year payments for losses and LAE: 35,598,000 69,303,000 22,946,000 21,891,000 Ending reserves: $ 249,427,000 $ 187,159,000 $ 205,173,000 $ 222,387,000 $

2. Assumed Reinsurance Basis - Asbestos: a. b. c. d.

2003

2003

12,325,000 $ 9,542,000 1,631,000 20,236,000 $

2002

20,236,000 $ 543,000 1,713,000 19,066,000 $

2003

2004 19,066,000 $ 7,160,000 1,454,000 24,772,000 $

2004

2005 24,772,000 $ 6,499,000 4,040,000 27,231,000 $

2005

Beginning reserves: $ 59,626,000 $ 209,110,000 $ 164,517,000 $ 194,050,000 $ Incurred losses and LAE: 179,672,000 5,393,000 45,635,000 45,018,000 Calendar year payments for losses and LAE: 30,188,000 49,986,000 16,102,000 20,094,000 Ending reserves: $ 209,110,000 $ 164,517,000 $ 194,050,000 $ 218,974,000 $

2006 222,387,000 3,913,000 21,102,000 205,198,000 2006 27,231,000 6,419,000 4,659,000 28,991,000

2006 218,974,000 8,244,000 23,573,000 203,645,000

B. Ending loss and LAE reserves for unreported claims included in Part A above: 1. Direct Basis: 2. Assumed Reinsurance Basis: 3. Net of Ceded Reinsurance Basis:

$ $ $

181,503,000 15,539,000 174,963,000

C. Ending LAE reserves for reported and unreported claims included in Part A above: 1. Direct Basis: 2. Assumed Reinsurance Basis: 3. Net of Ceded Reinsurance Basis

$ $ $

52,039,000 100,000 48,064,000

D. Does the company have on the books or has it ever written an insured for which you have identified a potential for the existence of a liability due to environmental losses? Yes (X) No ( ) Exposure for environmental losses arises from liability coverage written many years ago. The exposures include bodily injury and property damage losses. The Company’s reserves for environmental claims are not established on a claim-by-claim basis. The Company carries an aggregate bulk reserve for all of the Company’s environmental claims that are in dispute, until the dispute is resolved. This bulk reserve is established and adjusted based upon the aggregate volume of in-process environmental claims and the Company’s experience in resolving those claims and includes unresolved and incurred but not reported environmental claims for which the Company has not received any specific claims as well as for the anticipated cost of coverage litigation disputes relating to these claims. Case reserves are established solely for resolved claims. The resolution of environmental exposures by the Company generally occurs by settlement on a policyholder-by-policyholder basis as opposed to a claim-by-claim basis. Generally, the Company strives to extinguish any obligations it may have under any policy issued to the policyholder for past, present and future environmental liabilities and extinguish any pending coverage litigation dispute with the policyholder. This form of settlement is commonly referred to as a “buy-back” of policies for future environmental liability. In addition, many of the agreements have also extinguished any insurance obligation which the Company may have for other claims, including but not limited to asbestos and other cumulative injury claims. The Company and its policyholders may also agree to settlements which extinguish any future liability arising from known specified sites or claims.

14.10

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS Provisions of these agreements also include appropriate indemnities and hold harmless provisions to protect the Company. The Company’s general purpose in executing these agreements is to reduce the Company’s potential environmental exposure and eliminate the risks presented by coverage litigation with the policyholder and related costs. In establishing environmental reserves, the Company evaluates the exposure presented by each policyholder and the anticipated cost of resolution, if any. In the course of this analysis, the Company considers the probable liability, available coverage, relevant judicial interpretations and historical value of similar exposures. In addition, the Company considers the many variables presented, such as the nature of the alleged activities of the policyholder at each site; the allegations of environmental harm at each site; the number of sites; the total number of potentially responsible parties at each site; the nature of environmental harm and the corresponding remedy at each site; the nature of government enforcement activities at each site; the ownership and general use of each site; the overall nature of the insurance relationship between the Company and the policyholder, including the role of any umbrella or excess insurance the Company has issued to the policyholder; the involvement of other insurers; the potential for other available coverage, including the number of years of coverage; the role, if any, of non-environmental claims or potential non-environmental claims, in any resolution process; and the applicable law in each jurisdiction. Conventional actuarial techniques are not used to estimate these reserves. Historically, the Company's experience has indicated that policyholders with potentially significant environmental exposures may often have asbestos or other general liability exposures or claims pending with the Company. Due to this experience and the fact that settlement agreements with policyholders may extinguish the Company's obligations for all claims, the Company evaluates and considers the environmental reserves in conjunction with the asbestos and other general liability reserves.

The Company also compares its historical direct and net loss and expense paid experience year-by-year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid activity. 1. Direct Basis - Environmental: a. Beginning reserves:

2002 $

b. Incurred losses and LAE: c. Calendar year payments for losses and LAE: d. Ending reserves: $ 2. Assumed Reinsurance Basis- Environmental:

2003

44,189,000 $

31,408,000 $

(611,000)

4,824,000

12,170,000 31,408,000 $

14,425,000 21,807,000 $

2004 21,807,000 $ 14,421,000 9,616,000 26,612,000 $

2005

2006

26,612,000 $

17,010,000

2,169,000

5,492,000

11,771,000 17,010,000 $

8,988,000 13,514,000

2002

2003

2004

2005

2006

$

7,109,000 $

7,011,000 $

6,680,000 $

7,458,000 $

7,035,000

b. Incurred losses and LAE: c. Calendar year payments for losses and LAE: d. Ending reserves: $

1,010,000 1,108,000 7,011,000 $

500,000 831,000 6,680,000 $

1,660,000 882,000 7,458,000 $

217,000 640,000 7,035,000 $

78,000 478,000 6,635,000

2002

2003

2004

2005

2006

a. Beginning reserves:

3. Net of Ceded Reinsurance Basis- Environmental: a. Beginning reserves:

$

45,123,000 $

33,725,000 $

25,510,000 $

31,209,000 $

21,347,000

b. Incurred losses and LAE: c. Calendar year payments for losses and LAE: d. Ending reserves: $

103,000 11,501,000 33,725,000 $

3,815,000 12,030,000 25,510,000 $

13,787,000 8,088,000 31,209,000 $

2,507,000 12,369,000 21,347,000 $

6,083,000 6,388,000 21,042,000

E. Ending loss and LAE reserves for unreported claims included in Part D above: 1. Direct Basis: 2. Assumed Reinsurance Basis: 3. Net of Ceded Reinsurance Basis

$ $ $

11,419,000 4,354,000 16,943,000

F. Ending LAE reserves for reported and unreported claims included in Part D above: 1. Direct Basis: 2. Assumed Reinsurance Basis: 3. Net of Ceded Reinsurance Basis

$ $ $

4,337,000 4,320,000

As a result of the processes and procedures described above, management believes that the reserves carried for asbestos and environmental claims at December 31, 2006 are appropriately established based upon known facts, current law and management’s judgment. However, the uncertainties surrounding the final resolution of these claims continue, and it is difficult to determine the ultimate exposure for asbestos and environmental claims and related litigation. As a result, these reserves are subject to revision as new information becomes available and as claims develop. The continuing uncertainties include, without limitation, the risks and lack of predictability inherent in complex litigation, any impact from the bankruptcy protection sought by various asbestos producers and other asbestos defendants, a further increase or decrease in asbestos and environmental claims beyond that which is anticipated, the role of any umbrella or excess policies the Company has issued, the resolution or adjudication of some disputes pertaining to the amount of available coverage for asbestos and environmental claims in a manner inconsistent with the Company’s previous assessment of these claims, the number and outcome of direct actions against the Company and future developments pertaining to the Company’s ability to recover reinsurance for asbestos and environmental claims. In addition, the Company’s asbestos-related claims and claim adjustment expense experience has been impacted by the exhaustion or unavailability due to insolvency of other insurance sources potentially available to policyholders along with the insolvency or bankruptcy of other defendants, although the Company has noted a recent decrease in the number and volatility of asbestos-related bankruptcies. It is also not possible to predict changes in the legal and legislative environment and their impact on the future development of asbestos and environmental claims. This development will be affected by future court decisions and interpretations, as well as changes in applicable legislation, including legislation related to asbestos reform. It is also difficult to predict the ultimate outcome of large coverage disputes until settlement negotiations near completion and significant legal questions are resolved or, failing settlement, until the dispute is adjudicated. This is particularly the case with policyholders in bankruptcy where negotiations often involve a large number of claimants and other parties and require court approval to be effective. As part of its continuing analysis of asbestos reserves, which includes an annual ground-up review of asbestos policyholders, the Company continues to study the implications of these and other developments. Because of the uncertainties set forth above, additional liabilities may arise for amounts in excess of the current asbestos and environmental reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or increases in estimates could result in income statement charges that could be material to the Company’s operating results in future periods. 34. SUBSCRIBER SAVINGS ACCOUNTS Not applicable.

35. MULTIPLE PERIL CROP INSURANCE Not applicable.

14.11

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SUMMARY INVESTMENT SCHEDULE

Gross Investment Holdings 1 2 Amount Percentage

Investment Categories 1.

Admitted Assets as Reported in the Annual Statement 3 4 Amount Percentage

Bonds: 1.1

U.S. treasury securities............................................................................................................................................. .........170,422,866 ................5.2 .........170,422,866 ................5.2

1.2

U.S. government agency obligations (excluding mortgage-backed securities): 1.21 Issued by U.S. government agencies............................................................................................................ .............5,000,000 ................0.2 .............5,000,000 ................0.2 1.22 Issued by U.S. government sponsored agencies.......................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

1.3

Foreign government (including Canada, excluding mortgage-backed securities).................................................. .............7,266,201 ................0.2 .............7,266,201 ................0.2

1.4

Securities issued by states, territories and possessions and political subdivisions in the U.S.: 1.41 States, territories and possessions general obligations................................................................................ .........302,792,421 ................9.3 .........302,792,421 ................9.3 1.42 Political subdivisions of states, territories & possessions & political subdivisions general obligations........ .........497,995,017 ..............15.3 .........497,995,017 ..............15.3 1.43 Revenue and assessment obligations........................................................................................................... .........683,202,423 ..............21.0 .........683,202,423 ..............21.0 1.44 Industrial development and similar obligations.............................................................................................. ...........................0 ................0.0 ...........................0 ................0.0

1.5

Mortgage-backed securities (includes residential and commercial MBS): 1.51 Pass-through securities: 1.511 Issued or guaranteed by GNMA......................................................................................................... ................745,328 ................0.0 ................745,328 ................0.0 1.512 Issued or guaranteed by FNMA and FHLMC..................................................................................... ...........93,175,089 ................2.9 ...........93,175,089 ................2.9 1.513 All other............................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0 1.52 CMOs and REMICs: 1.521 Issued or guaranteed by GNMA, FNMA, FHLMC or VA.................................................................... .........128,683,684 ................4.0 .........128,683,684 ................4.0 1.522 Issued by non-U.S. Government issuers and collateralized by mortgage-backed securities issued or guaranteed by agencies shown in Line 1.521..................................................... ...........................0 ................0.0 ...........................0 ................0.0 1.523 All other............................................................................................................................................... ...........68,575,840 ................2.1 ...........68,575,840 ................2.1

2.

3.

Other debt and other fixed income securities (excluding short-term): 2.1

Unaffiliated domestic securities (includes credit tenant loans rated by the SVO)................................................... .........402,361,089 ..............12.4 .........402,361,089 ..............12.4

2.2

Unaffiliated foreign securities................................................................................................................................... ...........50,932,459 ................1.6 ...........50,932,459 ................1.6

2.3

Affiliated securities.................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

Equity interests: 3.1

Investments in mutual funds..................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

3.2

Preferred stocks: 3.21 Affiliated.......................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0 3.22 Unaffiliated...................................................................................................................................................... .............8,708,843 ................0.3 .............8,708,843 ................0.3

3.3

Publicly traded equity securities (excluding preferred stocks): 3.31 Affiliated.......................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0 3.32 Unaffiliated...................................................................................................................................................... ..................14,709 ................0.0 ..................14,709 ................0.0

3.4

Other equity securities: 3.41 Affiliated.......................................................................................................................................................... .........525,113,834 ..............16.2 .........525,113,834 ..............16.2 3.42 Unaffiliated...................................................................................................................................................... ..................49,873 ................0.0 ..................49,873 ................0.0

3.5

Other equity interests including tangible personal property under lease: 3.51 Affiliated.......................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0 3.52 Unaffiliated...................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

4.

5.

Mortgage loans: 4.1

Construction and land development......................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

4.2

Agricultural................................................................................................................................................................ ...........................0 ................0.0 ...........................0 ................0.0

4.3

Single family residential properties........................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

4.4

Multifamily residential properties.............................................................................................................................. ...........................0 ................0.0 ...........................0 ................0.0

4.5

Commercial loans..................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

4.6

Mezzanine real estate loans..................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

Real estate investments: 5.1

Property occupied by company................................................................................................................................ .............4,637,984 ................0.1 .............4,637,984 ................0.1

5.2

Property held for production of income (including $..........0 of property acquired in satisfaction of debt).............. ...........................0 ................0.0 ...........................0 ................0.0

5.3

Property held for sale (including $..........0 property acquired in satisfaction of debt).............................................. ...........................0 ................0.0 ...........................0 ................0.0

6.

Contract loans..................................................................................................................................................................... ...........................0 ................0.0 ...........................0 ................0.0

7.

Receivables for securities................................................................................................................................................... ..................26,200 ................0.0 ..................26,200 ................0.0

8.

Cash, cash equivalents and short-term investments......................................................................................................... .........110,290,484 ................3.4 .........110,290,484 ................3.4

9.

Other invested assets......................................................................................................................................................... .........187,208,358 ................5.8 .........187,208,358 ................5.8

10.

Total invested assets.......................................................................................................................................................... ......3,247,202,703 ............100.0 ......3,247,202,703 ............100.0

15

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES GENERAL 1.1 1.2

1.3 2.1 2.2 3.1 3.2 3.3 3.4 4.1

4.2

Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? If yes, did the reporting entity register and file with its domiciliary State Insurance Commissioner, Director or Superintendent or with such regulatory official of the state of domicile of the principal insurer in the Holding Company System, a registration statement providing disclosure substantially similar to the standards adopted by the National Association of Insurance Commissioners (NAIC) in its Model Insurance Holding Company System Regulatory Act and model regulations pertaining thereto, or is the reporting entity subject to standards and disclosure requirements substantially similar to those required by such Act and regulations? State regulating? Connecticut

Yes [ X ]

Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? If yes, date of change: State as of what date the latest financial examination of the reporting entity was made or is being made. State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). By what department or departments? Connecticut

N/A [ ]

Yes [ ]

No [ X ]

01/27/2006

During the period covered by this statement, did any agent, broker, sales representative, non-affiliated sales/service organization or any combination thereof under a common control (other than salaried employees of the reporting entity) receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4.11 sales of new business? 4.12 renewals? During the period covered by this statement, did any sales/service organization owned in whole or in part by the reporting entity or an affiliate, receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of: 4.21 sales of new business? 4.22 renewals?

6.1

Has the reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? If yes, give full information:

Does any foreign (non-United States) person or entity directly or indirectly control 10% or more of the reporting entity? If yes, 7.21 State the percentage of foreign control. 7.22 State the nationality(ies) of the foreign person(s) or entity(ies); or if the entity is a mutual or reciprocal, the nationality of its manager or attorney-in-fact and identify the type of entity(ies) (e.g., individual, corporation, government, manager or attorney-in-fact) 1 Nationality

No [ ]

12/31/2004

Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? If yes, provide the name of the entity, NAIC company code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation. 1 2 3 Name of Entity NAIC Co. Code State of Domicile 00000

7.1 7.2

No [ ]

12/31/2004

5.1 5.2

6.2

Yes [ X ]

Yes [ ] Yes [ ]

No [ X ] No [ X ]

Yes [ ] Yes [ ]

No [ X ] No [ X ]

Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

........................0.000 %

2 Type of Entity

8.1 8.2

Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? If response to 8.1 is yes, please identify the name of the bank holding company.

Yes [ ]

No [ X ]

8.3 8.4

Is the company affiliated with one or more banks, thrifts or securities firms? If response to 8.3 is yes, please provide the names and location (city and state of the main office) of any affiliates regulated by a federal financial regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator. 1 2 3 4 5 Affiliate Name Location (City, State) FRB OCC OTS

Yes [ ]

No [ X ]

9.

What is the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit? KPMG LLP, One Financial Plaza, 755 Main St., Hartford, CT 06103

10.

What is the name, address and affiliation (officer/employee of the reporting entity or actuary/consultant associated with an actuarial consulting firm) of the individual providing the statement of actuarial opinion/certification? Wade T. Overgaard, F.C.A.S. & M.A.A.A. (Senior Vice President and Chief Corporate Actuary) The St. Paul Travelers Companies, Inc. One Tower Square, Hartford, CT 06183

11.1 Does the reporting entity own any securities of a real estate holding company or otherwise hold real estate indirectly? 11.11 Name of real estate holding company AE Properties Inc 11.12 Number of parcels involved 11.13 Total book/adjusted carrying value 11.2 If yes, provide explanation. Holds Ground Leases

6 FDIC

7 SEC

Yes [ X ]

No [ ]

...................................2 $.................50,959,300

16

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES 12. FOR UNITED STATES BRANCHES OF ALIEN REPORTING ENTITIES ONLY: 12.1 What changes have been made during the year in the United States manager or the United States trustees of the reporting entity?

12.2 Does this statement contain all business transacted for the reporting entity through its United States Branch on risks wherever located? 12.3 Have there been any changes made to any of the trust indentures during the year? 12.4 If answer to (12.3) is yes, has the domiciliary or entry state approved the changes?

Yes [ ]

Yes [ ] Yes [ ] No [ ]

No [ ] No [ ] N/A [ ]

BOARD OF DIRECTORS 13.

Is the purchase or sale of all investments of the reporting entity passed upon either by the Board of Directors or a subordinate committee thereof?

Yes [ X ]

No [ ]

14.

Does the reporting entity keep a complete permanent record of the proceedings of its Board of Directors and all subordinate committees thereof?

Yes [ X ]

No [ ]

15.

Has the reporting entity an established procedure for disclosure to its Board of Directors or trustees of any material interest or affiliation on the part of any of its officers, directors, trustees or responsible employees that is in conflict or is likely to conflict with the official duties of such person?

Yes [ X ]

No [ ]

FINANCIAL 16.1 Total amount loaned during the year (inclusive of Separate Accounts, exclusive of policy loans): 16.11 To directors or other officers 16.12 To stockholders not officers 16.13 Trustees, supreme or grand (Fraternal only) 16.2 Total amount of loans outstanding at the end of year (inclusive of Separate Accounts, exclusive of policy loans): 16.21 To directors or other officers 16.22 To stockholders not officers 16.23 Trustees, supreme or grand (Fraternal only)

$.................................0 $.................................0 $.................................0 $.................................0 $.................................0 $.................................0

17.1 Were any assets reported in this statement subject to a contractual obligation to transfer to another party without the liability for such obligation being reported in the statement? 17.2 If yes, state the amount thereof at December 31 of the current year: 17.21 Rented from others 17.22 Borrowed from others 17.23 Leased from others 17.24 Other

Yes [ ]

No [ X ]

$.................................0 $.................................0 $.................................0 $.................................0

18.1 Does this statement include payments for assessments as described in the Annual Statement Instructions other than guaranty fund or guaranty association assessments? 18.2 If answer is yes: 18.21 Amount paid as losses or risk adjustment 18.22 Amount paid as expenses 18.23 Other amounts paid

$.................................0 $.................................0 $.................................0

19.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement? 19.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount.

Yes [ ] No [ X ] $.................................0

Yes [ ]

No [ X ]

INVESTMENT 20.1 Were all the stocks, bonds and other securities owned December 31 of current year, over which the reporting entity has exclusive control, in the actual possession of the reporting entity on said date, except as shown by Schedule E-Part 3-Special Deposits? 20.2 If no, give full and complete information relating thereto.

21.1 Were any of the stocks, bonds or other assets of the reporting entity owned at December 31 of the current year not exclusively under the control of the reporting entity, except as shown on Schedule E-Part 3-Special Deposits, or has the reporting entity sold or transferred any assets subject to a put option contract that is currently in force? (Exclude securities subject to Interrogatory 17.1) 21.2 If yes, state the amount thereof at December 31 of the current year: 21.21 Loaned to others 21.22 Subject to repurchase agreements 21.23 Subject to reverse repurchase agreements 21.24 Subject to dollar repurchase agreements 21.25 Subject to reverse dollar repurchase agreements 21.26 Pledged as collateral 21.27 Placed under option agreements 21.28 Letter stock or securities restricted as to sale 21.29 Other 21.3 For category (21.28) provide the following: 1 2 Nature of Restriction Description

Yes [ X ]

No [ ]

Yes [ X ]

No [ ]

$.................57,832,519 $.................................0 $.................................0 $.................................0 $.................................0 $.................................0 $.................................0 $.................................0 $.................................0 3 Amount 0

22.1 Does the reporting entity have any hedging transactions reported on Schedule DB? 22.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state? If no, attach a description with this statement. 23.1 Were any preferred stocks or bonds owned as of December 31 of the current year mandatorily convertible into equity, or, at the option of the issuer, convertible into equity? 23.2 If yes, state the amount thereof at December 31 of the current year:

16.1

Yes [ X ]

Yes [ X ] No [ ]

No [ ] N/A [ ]

Yes [ ] No [ X ] $.................................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES PART 1 - COMMON INTERROGATORIES 24.

Excluding items in Schedule E, real estate, mortgage loans and investments held physically in the reporting entity's offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held pursuant to a custodial agreement with a qualified bank or trust company in accordance with Part 1-General, Section IV.H-Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook?

Yes [ ]

No [ X ]

24.01 For agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following: 1 2 Name of Custodian(s) Custodian's Address JP Morgan Chase 3 Chase Metrotech Center, Brooklyn, NY 11245 24.02 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name, location and a complete explanation: 1 2 Name(s) Location(s) Citigroup Global Markets 233 South Wacker Drive Sears Tower, Chicago, IL 60606

3 Complete Explanation(s) Future Account Agreements

24.03 Have there been any changes, including name changes, in the custodian(s) identified in 24.01 during the current year? 24.04 If yes, give full and complete information relating thereto: 1 Old Custodian

2 New Custodian

Yes [ ] 3 Date of Change

4 Reason

24.05 Identify all investment advisors, brokers/dealers or individuals acting on behalf of broker/dealers that have access to the investment accounts, handle securities and have authority to make investments on behalf of the reporting entity: 1 2 Central Registration Depository Number(s) Name N/A

3 Address

25.1 Does the reporting entity have any diversified mutual funds reported in Schedule D, Part 2 (diversified according to the Securities and Exchange Commission (SEC) in the Investment Company Act of 1940 [Section 5(b)(1)])? 25.2 If yes, complete the following schedule: 1 CUSIP #

2 Name of Mutual Fund

Name of Mutual Fund (from the above table) 26.

Yes [ ]

No [ X ]

3 Book/Adj.Carrying Value 0 0

25.2999. TOTAL 25.3 For each mutual fund listed in the table above, complete the following schedule: 1

No [ X ]

2

Name of Significant Holding of the Mutual Fund

3 Amount of Mutual Fund's Book/Adjusted Carrying Value Attributable to Holding 0

4

Date of Valuation

Provide the following information for all short-term and long-term bonds and all preferred stocks. Do not substitute amortized value or statement value for fair value. 1 2 3 Excess of Statement Statement over Fair Value (-), (Admitted) Fair or Fair Value over Value Value Statement (+) 26.1 Bonds............................................................................................... ........2,519,524,157 ......2,564,268,572 .............44,744,415 26.2 Preferred stocks............................................................................... ...............8,708,843 .............8,708,843 ............................0 26.3 Totals............................................................................................... ........2,528,233,000 ......2,572,977,415 .............44,744,415 26.4 Describe the sources or methods utilized in determining the fair values: Fair values of bonds and preferred stocks are based on prices published in the NAIC Valuation of Securities. If this unit price is not available the fair value is based upon quoted market prices or dealer quotes, or, if quoted prices are not available, based on valuation determined, in good faith, by The St. Paul Travelers Companies, Inc.

27.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed? 27.2 If no, list exceptions:

Yes [ X ]

No [ ]

OTHER 28.1 Amount of payments to trade associations, service organizations and statistical or rating bureaus, if any? 28.2 List the name of the organization and the amount paid if any such payment represented 25% or more of the total payments to trade associations, service organizations and statistical or rating bureaus during the period covered by this statement. 1 Name Insurance Services Office 29.1 Amount of payments for legal expenses, if any? 29.2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payments for legal expenses during the period covered by this statement. 1 Name Simpson, Thatcher & Bartlett 30.1 Amount of payments for expenditures in connection with matters before legislative bodies, officers or departments of government, if any? 30.2 List the name of the firm and the amount paid if any such payment represented 25% or more of the total payment expenditures in connection with matters before legislative bodies, officers or departments of government during the period covered by this statement. 1 Name

$...................2,226,190

2 Amount Paid 1,098,015 $...................5,624,850

2 Amount Paid 1,943,621 $........................83,037

2 Amount Paid 0

16.2

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES (continued) PART 2 - PROPERTY AND CASUALTY INTERROGATORIES 1.1 1.2 1.3

Does the reporting entity have any direct Medicare Supplement Insurance in force? If yes, indicate premium earned on U.S. business only. What portion of item (1.2) is not reported on the Medicare Supplement Insurance Experience Exhibit? 1.31 Reason for excluding:

Yes [ ] No [ X ] $..................................0 $..................................0

1.4 1.5 1.6

Indicate amount of earned premium attributable to Canadian and/or Other Alien not included in Item (1.2) above. Indicate total incurred claims on all Medicare Supplement insurance. Individual policies: Most current three years: 1.61 Total premium earned 1.62 Total incurred claims 1.63 Number of covered lives All years prior to most current three years: 1.64 Total premium earned 1.65 Total incurred claims 1.66 Number of covered lives Group policies: Most current three years: 1.71 Total premium earned 1.72 Total incurred claims 1.73 Number of covered lives All years prior to most current three years: 1.74 Total premium earned 1.75 Total incurred claims 1.76 Number of covered lives

$..................................0 $..................................0

1.7

2.

Health test: 2.1 2.2 2.3 2.4 2.5 2.6

3.1 3.2

Premium Numerator........................................... Premium Denominator........................................ Premium Ratio (2.1/2.2)...................................... Reserve Numerator............................................ Reserve Denominator......................................... Reserve Ratio (2.4/2.5).......................................

$..................................0 $..................................0 ....................................0 $..................................0 $..................................0 ....................................0

$..................................0 $..................................0 ....................................0 $..................................0 $..................................0 ....................................0 1 Current Year $...............................0 $.............827,094,642 ..............................0.0 $...............................0 $..........2,204,527,159 ..............................0.0

2 Prior Year $..................................0 $................823,792,812 .................................0.0 $..................................0 $.............2,250,645,352 .................................0.0

Does the reporting entity issue both participating and non-participating policies? If yes, state the amount of calendar year premiums written on: 3.21 Participating 3.22 Non-participating policies

Yes [ X ]

$....................6,819,697 $................833,159,319

4. 4.1 4.2 4.3 4.4

For Mutual Reporting Entities and Reciprocal Exchanges only: Does the reporting entity issue assessable policies? Does the reporting entity issue non-assessable policies? If assessable policies are issued, what is the extent of the contingent liability of the policyholders? Total amount of assessments paid or ordered to be paid during the year on deposit notes or contingent premiums.

Yes [ ] No [ ] Yes [ ] No [ ] .............................0.0 % $..................................0

5. 5.1 5.2

5.3

For Reciprocal Exchanges only: Does the exchange appoint local agents? If yes, is the commission paid: 5.21 Out of Attorney's-in-fact compensation 5.22 As a direct expense of the exchange What expenses of the exchange are not paid out of the compensation of the Attorney-in-fact?

5.4 5.5

Has any Attorney-in-fact compensation, contingent on fulfillment of certain conditions been deferred? If yes, give full information:

Yes [ ] Yes [ ]

No [ ]

Yes [ ]

No [ ]

No [ ] No [ ]

N/A [ ] N/A [ ]

Yes [ ]

No [ ]

Yes [ X ]

No [ ]

6.1 What provision has this reporting entity made to protect itself from an excessive loss in the event of a catastrophe under a workers' compensation contract issued without limit of loss? In order to manage its risk, the Company monitors the concentration of insured employees on a location basis. Although the Company currently has no workers' compensation treaty reinsurance, the Company reviews available treaty reinsurance coverages quarterly and makes purchase decisions as it deems appropriate. Facultative reinsurance purchases are also made as deemed appropriate. 6.2 Describe the method used to estimate this reporting entity's probable maximum insurance loss, and identify the type of insured exposures comprising that probable maximum loss, the locations of concentrations of those exposures and the external resources (such as consulting firms or computer software models), if any, used in the estimation process: The Company uses Risk Link, a product developed by Risk Management Solutions, Inc., to estimate its Probable Maximum Loss (PML). Property exposures are modeled using Risk Link to determine locations of concentration including California, Florida, New Madrid, the Northeast, the Gulf States and the Mid Atlantic States. For terrorism risk, the Company uses RMS-PTM, a product developed by Risk Management Solutions, Inc. Conventional attack PML's are examined for combined property and workers' compensation exposures to be contained inside aggregate corporate guidelines. Buildings with large exposures have a site engineering analysis preformed. 6.3 What provision has this reporting entity made (such as a catastrophic reinsurance program) to protect itself from an excessive loss arising from the types and concentrations of insured exposures comprising its probable property insurance loss? The Company purchases both excess of loss and pro rata reinsurance to protect itself from an excessive catastrophe loss. 6.4 6.5

Does the reporting entity carry catastrophe reinsurance protection for at least one reinstatement, in an amount sufficient to cover its estimated probable maximum loss attributable to a single loss event or occurrence? If no, describe any arrangements or mechanisms employed by the reporting entity to supplement its catastrophe reinsurance program or to hedge its exposure to unreinsured catastrophic loss.

17

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES (continued) PART 2 - PROPERTY AND CASUALTY INTERROGATORIES 7.1

7.2 7.3 8.1 8.2

9.1

9.2

9.3

9.4

9.5 10.

Has the reporting entity reinsured any risk with any other entity under a quota share reinsurance contract that includes a provision that would limit the reinsurer's losses below the stated quota share percentage (e.g., a deductible, a loss ratio corridor, a loss cap, an aggregate limit or any similar provisions)? If yes, indicate the number of reinsurance contracts containing such provisions. If yes, does the amount of reinsurance credit taken reflect the reduction in quota share coverage caused by any applicable limiting provision(s)? Has this reporting entity reinsured any risk with any other entity and agreed to release such entity from liability, in whole or in part, from any loss that may occur on this risk, or portion thereof, reinsured? If yes, give full information:

Has the reporting entity ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates) for which during the period covered by the statement (i) it recorded a positive or negative underwriting result greater than 3% of prior year-end surplus as regards policyholders or it reported calendar year written premium ceded or year-end loss and loss expense reserves ceded greater than 3% of prior year-end surplus as regards policyholders; (ii) it accounted for that contract as reinsurance and not as a deposit; and (iii) the contract(s) contain one or more of the following features or other features that would have similar results: (a) A contract term longer than two years and the contract is noncancellable by the reporting entity during the contract term; (b) A limited or conditional cancellation provision under which cancellation triggers an obligation by the reporting entity, or an affiliate of the reporting entity, to enter into a new reinsurance contract with the reinsurer, or an affiliate of the reinsurer; (c) Aggregate stop loss reinsurance coverage; (d) An unconditional or unilateral right by either party to commute the reinsurance contract except for such provisions which are only triggered by a decline in the credit status of the other party; (e) A provision permitting reporting of losses, or payment of losses, less frequently than on a quarterly basis (unless there is no activity during the period); or (f) Payment schedule, accumulating retentions from multiple years or any features inherently designed to delay timing of the reimbursement to the ceding entity? Has the reporting entity during the period covered by the statement ceded any risk under any reinsurance contract (or under multiple contracts with the same reinsurer or its affiliates), excluding cessions to approved pooling arrangements or to captive insurance companies that are directly or indirectly controlling, controlled by, or under control with (i) one or more unaffiliated policyholders of the reporting entity, or (ii) an association of which one or more unaffiliated policyholders of the reporting entity is a member where: (a) The written premium ceded to the reinsurer by the reporting entity or its affiliate represents fifty percent (50%) or more of the entire direct and assumed premium written by the reinsurer based on its most recently available financial statement; or (b) Twenty-five percent (25%) or more of the written premium ceded to the reinsurer has been retroceded back to the reporting entity or its affiliates? If yes to 9.1 or 9.2, please provide the following information in the Reinsurance Summary Supplemental Filing for General Interrogatory 9: (a) The aggregate financial statement impact gross of all such ceded reinsurance contracts on the balance sheet and statement of income; (b) A summary of the reinsurance contract terms and indicate whether it applies to the contracts meeting the criteria in 9.1 or 9.2; and (c) A brief discussion of management's principle objectives in entering into the reinsurance contract including the economic purpose to be achieved. Except for transactions meeting the requirements of paragraph 30 of SSAP No. 62, Property and Casualty Reinsurance, has the reporting entity ceded any risk under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statement, and either: (a) Accounted for that contract as reinsurance (either prospective or retroactive) under statutory accounting principles ("SAP") and as a deposit under generally accepted accounting principles ("GAAP"); or (b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP? If yes to 9.4, explain in the Reinsurance Summary Supplemental Filing for General Interrogatory 9 (Section D) why the contract(s) is treated differently for GAAP and SAP. If the reporting entity has assumed risks from another entity, there should be charged on account of such reinsurance a reserve equal to that which the original entity would have been required to charge had it retained the risks. Has this been done? Yes [ X ]

11.1 Has this reporting entity guaranteed policies issued by any other reporting entity and now in force? 11.2 If yes, give full information:

12.1 If the reporting entity recorded accrued retrospective premiums on insurance contracts on Line 13.3 of the assets schedule, Page 2, state the amount of corresponding liabilities recorded for: 12.11 Unpaid losses 12.12 Unpaid underwriting expenses (including loss adjustment expenses) 12.2 Of the amount on Line 13.3, Page 2, state the amount which is secured by letters of credit, collateral and other funds: 12.3 If the reporting entity underwrites commercial insurance risks, such as workers' compensation, are premium notes or promissory notes accepted from its insureds covering unpaid premiums and/or unpaid losses? Yes [ ] 12.4 If yes, provide the range of interest rates charged under such notes during the period covered by this statement: 12.41 From 12.42 To 12.5 Are letters of credit or collateral and other funds received from insureds being utilized by the reporting entity to secure premium notes or promissory notes taken by a reporting entity, or to secure any of the reporting entity's reported direct unpaid loss reserves, including unpaid losses under loss deductible features of commercial policies? 12.6 If yes, state the amount thereof at December 31 of current year: 12.61 Letters of credit 12.62 Collateral and other funds 13.1 Largest net aggregate amount insured in any one risk (excluding workers' compensation): 13.2 Does any reinsurance contract considered in the calculation of this amount include an aggregate limit of recovery without also including a reinstatement provision? 13.3 State the number of reinsurance contracts (excluding individual facultative risk certificates, but including facultative programs, automatic facilities or facultative obligatory contracts) considered in the calculation of this amount.

17.1

Yes [ X ] No [ ] ..................................13 Yes [ X ] No [ ] Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

No [ ]

N/A [ ]

Yes [ ]

No [ X ]

$....................4,795,343 $....................1,198,836 $....................3,359,575 No [ X ]

N/A [ ]

.............................0.0 % .............................0.0 %

Yes [ X ]

No [ ]

$................328,806,369 $..................49,384,076 $.......................860,130 Yes [ ]

No [ X ]

....................................1

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

GENERAL INTERROGATORIES (continued) PART 2 - PROPERTY AND CASUALTY INTERROGATORIES 14.1 Is the company a cedant in a multiple cedant reinsurance contract? 14.2 If yes, please describe the method of allocating and recording reinsurance among the cedants: Per the Company's Reinsurance Allocation Agreement and Pooling Agreement.

Yes [ X ]

No [ ]

14.3 If the answer to 14.1 is yes, are the methods described in item 14.2 entirely contained in the respective multiple cedant reinsurance contracts? 14.4 If the answer to 14.3 is no, are all the methods described in 14.2 entirely contained in written agreements? 14.5 If the answer to 14.4 is no, please explain:

Yes [ ] Yes [ X ]

No [ X ] No [ ]

15.1 Has the reporting entity guaranteed any financial premium accounts? 15.2 If yes, give full information:

Yes [ ]

No [ X ]

16.1 Does the reporting entity write any warranty business? If yes, disclose the following information for each of the following types of warranty coverage: 1 2 3 Direct Losses Direct Losses Direct Written Incurred Unpaid Premium 16.11 Home......................................... .................................0 .................................0 .................................0 16.12 Products..................................... .................................0 .................................0 .................................0 16.13 Automobile................................. .................................0 .................................0 .................................0 16.14 Other*......................................... .................................0 .................................0 .................................0 * Disclose type of coverage: ................

Yes [ ]

No [ X ]

Yes [ ]

No [ X ]

4 Direct Premium Unearned .................................0 .................................0 .................................0 .................................0

5 Direct Premium Earned ....................................0 ....................................0 ....................................0 ....................................0

17.1 Does the reporting entity include amounts recoverable on unauthorized reinsurance in Schedule F-Part 3 that it excludes from Schedule F-Part 5? Incurred but not reported losses on contracts not in force on July 1, 1984 or subsequently renewed are exempt from inclusion in Schedule F-Part 5. Provide the following information for this exemption: 17.11 Gross amount of unauthorized reinsurance in Schedule F-Part 3 excluded from Schedule F-Part 5 17.12 Unfunded portion of Interrogatory 17.11 17.13 Paid losses and loss adjustment expenses portion of Interrogatory 17.11 17.14 Case reserves portion of Interrogatory 17.11 17.15 Incurred but not reported portion of Interrogatory 17.11 17.16 Unearned premium portion of Interrogatory 17.11 17.17 Contingent commission portion of Interrogatory 17.11 Provide the following information for all other amounts included in Schedule F-Part 3 and excluded from Schedule F-Part 5, not included above: 17.18 Gross amount of unauthorized reinsurance in Schedule F-Part 3 excluded from Schedule F-Part 5 17.19 Unfunded portion of Interrogatory 17.18 17.20 Paid losses and loss adjustment expenses portion of Interrogatory 17.18 17.21 Case reserves portion of Interrogatory 17.18 17.22 Incurred but not reported portion of Interrogatory 17.18 17.23 Unearned premium portion of Interrogatory 17.18 17.24 Contingent commission portion of Interrogatory 17.18

17.2

$..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0 $..................................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

FIVE-YEAR HISTORICAL DATA Show amounts in whole dollars only, no cents; show percentages to one decimal place, i.e. 17.6. 1

2

3

4

5

2006

2005

2004

2003

2002

Gross Premiums Written (Page 8, Part 1B, Cols. 1, 2 & 3) 1.

Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4)..................... .......731,246,923 .......707,788,101 .......603,842,702 .......496,583,071 .......429,365,093

2.

Property lines (Lines 1, 2, 9, 12, 21 & 26)...................................................................................... .......616,367,867 .......517,496,664 .......515,167,787 .......429,523,116 .......385,202,860

3.

Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27).................................................... ....1,169,138,694 ....1,015,409,984 ....1,099,613,084 .......927,646,163 .......783,353,597

4.

All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29 & 33).......................................................... ...........5,292,050 .........24,967,717 ..............136,267 ................48,854 .........(1,460,288)

5.

Non-proportional reinsurance lines (Lines 30, 31 & 32)................................................................. ...........1,669,335 ...........3,158,954 ...........1,223,343 ...........6,307,064 ...........4,748,448

6.

Total (Line 34)................................................................................................................................ ....2,523,714,869 ....2,268,821,420 ....2,219,983,184 ....1,860,108,267 ....1,601,209,710 Net Premiums Written (Page 8, Part 1B, Col. 6)

7.

Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4)..................... .......375,232,450 .......401,510,361 .......342,903,660 .......321,026,571 .......277,058,857

8.

Property lines (Lines 1, 2, 9, 12, 21 & 26)...................................................................................... .......158,648,094 .......137,068,386 .......177,625,118 .......169,908,506 .......157,287,198

9.

Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27).................................................... .......299,173,886 .......224,953,948 .......378,528,981 .......328,878,808 .......284,361,839

10.

All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29 & 33).......................................................... ...........5,255,252 .........24,957,276 ..............125,555 ................(6,963) .........(1,815,030)

11.

Non-proportional reinsurance lines (Lines 30, 31 & 32)................................................................. ...........1,669,335 ...........3,158,954 ...........1,223,343 ...........6,307,064 ...........4,748,448

12.

Total (Line 34)................................................................................................................................ .......839,979,016 .......791,648,925 .......900,406,657 .......826,113,985 .......721,641,311 Statement of Income (Page 4)

13.

Net underwriting gain (loss) (Line 8).............................................................................................. .......104,982,783 .......(21,734,271) .........82,806,476 .........57,989,359 .....(179,027,327)

14.

Net investment gain (loss) (Line 11).............................................................................................. .......159,996,156 .......199,854,862 .......164,285,952 .......135,060,596 .......143,382,901

15.

Total other income (Line 15).......................................................................................................... ..............205,970 ...........6,226,291 ...........3,732,459 ...........3,655,150 ...........3,742,612

16.

Dividends to policyholders (Line 17).............................................................................................. ..............764,766 ..............772,278 .........(1,469,807) ..............430,673 ..............916,057

17.

Federal and foreign income taxes incurred (Line 19).................................................................... .........58,083,505 .........30,739,571 .........67,515,205 .........36,902,028 ...........5,896,614

18.

Net income (Line 20)...................................................................................................................... .......206,336,638 .......152,835,033 .......184,779,488 .......159,372,404 .......(38,714,486) Balance Sheet Lines (Pages 2 and 3)

19.

Total admitted assets excluding protected cell business (Page 2, Line 24, Col. 3)....................... ....3,599,560,790 ....3,347,729,088 ....3,243,996,606 ....3,103,159,721 ....3,172,943,444

20.

Premiums and considerations (Page 2, Col. 3): 20.1 InIncourse courseofofcollection collection(Line (Line13.1) 13.1)........................................................................................ .........49,283,011 .........47,717,543 .........56,456,259 .........46,345,933 .........48,390,792 20.2 Deferred Deferredand andnot notyet yetdue due(Line (Line13.2) 13.2)................................................................................... .......190,550,979 .......185,060,005 .......210,914,604 .......210,000,489 .......188,323,687 20.3 Accrued Accruedretrospective retrospectivepremiums premiums(Line (Line13.3) 13.3)....................................................................... ...........6,383,237 ...........9,538,262 .........18,004,546 .........16,693,987 .........18,286,887

21.

Total liabilities excluding protected cell business (Page 3, Line 24).............................................. ....2,323,342,559 ....2,343,963,656 ....2,319,294,906 ....2,213,709,064 ....2,431,291,434

22.

Losses (Page 3, Line 1)................................................................................................................. ....1,490,205,486 ....1,541,202,501 ....1,438,207,088 ....1,385,513,981 ....1,365,556,143

23.

Loss adjustment expenses (Page 3, Line 3).................................................................................. .......331,407,612 .......336,740,717 .......315,854,155 .......297,422,316 .......309,743,724

24.

Unearned premiums (Page 3, Line 9)............................................................................................ .......382,914,061 .......372,702,134 .......411,538,790 .......378,342,532 .......331,937,338

25.

Capital paid up (Page 3, Lines 28 & 29)........................................................................................ ...........5,000,000 ...........5,000,000 ...........5,000,000 ...........5,000,000 ...........5,000,000

26.

Surplus as regards policyholders (Page 3, Line 35)...................................................................... ....1,276,218,231 ....1,003,765,432 .......924,701,700 .......889,450,657 .......741,652,010 Risk-Based Capital Analysis

27. 28.

Total adjusted capital..................................................................................................................... ....1,276,218,231 ....1,003,765,432 .......924,701,700 .......889,450,657 .......741,652,010 Authorized control level risk-based capital..................................................................................... .......224,570,915 .......224,661,932 .......196,815,679 .......180,279,141 .......185,319,864 Percentage Distribution of Cash, Cash Equivalents and Invested Assets (Page 2, Col. 3) (Item divided by Page 2, Line 10, Col. 3) x 100.0

29.

Bonds (Line 1)................................................................................................................................ ....................74.3 ....................73.9 ....................73.2 ....................71.5 ....................71.0

30.

Stocks (Lines 2.1 & 2.2)................................................................................................................. ....................16.4 ....................16.9 ....................18.1 ....................18.8 ....................16.7

31.

Mortgage loans on real estate (Lines 3.1 & 3.2)............................................................................ ......................0.0 ......................0.0 ......................0.6 ......................0.6 ......................0.6

32.

Real estate (Lines 4.1, 4.2 & 4.3).................................................................................................. ......................0.1 ......................0.2 ......................0.2 ......................0.1 ......................0.1

33.

Cash, cash equivalents and short-term investments (Line 5)........................................................ ......................3.4 ......................3.4 ......................3.8 ......................3.9 ......................5.4

34.

Contract loans (Line 6)................................................................................................................... ......................0.0 ......................0.0 ......................0.0 ......................0.0 .........XXX............

35.

Other invested assets (Line 7)....................................................................................................... ......................5.8 ......................5.7 ......................4.0 ......................4.7 ......................6.1

36.

Receivable for securities (Line 8)................................................................................................... ......................0.0 ......................0.0 ......................0.2 ......................0.4 ......................0.1

37.

Aggregate write-ins for invested assets (Line 9)............................................................................ ......................0.0 ......................0.0 ......................0.0 ......................0.0 ......................0.0

38.

Cash, cash equivalents and invested assets (Line 10).................................................................. ..................100.0 ..................100.0 ..................100.0 ..................100.0 ..................100.0 Investments in Parent, Subsidiaries and Affiliates

39.

Affiliated bonds (Sch. D, Summary, Line 25, Col. 1)...................................................................... .........................0 .........................0 .........................0 .........................0 .........................0

40.

Affiliated preferred stocks (Sch. D, Summary, Line 39, Col. 1)...................................................... .........................0 .........................0 .........................0 .........................0 .........................0

41.

Affiliated common stocks (Sch. D, Summary, Line 53, Col. 2)...................................................... .......525,113,835 .......490,042,049 .......495,387,305 .......489,764,194 .......431,264,895

42.

Affiliated short-term investments (subtotals included in Schedule DA, Part 2, Col. 5, Line 11)..... .........................0 .........................0 .........................0 .........................0 .........................0

43.

Affiliated mortgage loans on real estate......................................................................................... .........................0 .........................0 .........................0 .........................0 .........................0

44.

All other affiliated........................................................................................................................... ...........1,420,937 ...........1,143,762 .........34,773,550 .........38,798,470 .......100,617,347

45.

Total of above lines 39 to 44.......................................................................................................... .......526,534,772 .......491,185,811 .......530,160,855 .......528,562,664 .......531,882,242

46.

Percentage of investments in parent, subsidiaries and affiliates to surplus as regards policyholders (Line 45 above divided by Page 3, Col. 1, Line 35 x 100.0).................. ....................41.3 ....................48.9 ....................57.3 ....................59.4 ..................116.3

18

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

FIVE-YEAR HISTORICAL DATA (Continued) 1

2

3

4

5

2006

2005

2004

2003

2002

Capital and Surplus Accounts (Page 4) 47.

Net unrealized capital gains (losses) (Line 24).............................................................................. .........71,278,311 ...........1,205,463 ...........9,488,402 .........68,042,074 .......(31,353,314)

48.

Dividends to stockholders (Line 35)............................................................................................... .........................0 .......(75,000,000) .....(159,000,000) .......(74,000,000) .......(75,000,000)

49.

Change in surplus as regards policyholders for the year (Line 38)................................................ .......272,452,799 .........79,063,732 .........35,251,043 .......147,798,647 .....(113,231,453)

50.

Gross Losses Paid (Page 9, Part 2, Cols. 1 & 2) Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4)..................... .......401,194,938 .......401,077,267 .......345,125,405 .......346,489,145 .......333,049,691

51.

Property lines (Lines 1, 2, 9, 12, 21 & 26)...................................................................................... .......813,989,029 .......340,371,214 .......237,373,849 .......172,967,221 .......149,504,401

52.

Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27).................................................... .......587,034,337 .......535,375,366 .......409,174,595 .......422,783,052 .......386,003,980

53.

All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29 & 33).......................................................... ...........9,101,334 .......(24,323,291) ..............485,473 ..............227,536 ...........2,791,011

54.

Nonproportional reinsurance lines (Lines 30, 31 & 32).................................................................. .........14,581,425 .......(34,167,056) .........12,049,892 ...........9,352,722 .........13,401,809

55.

Total (Line 34)................................................................................................................................ ....1,825,901,062 ....1,218,333,501 ....1,004,209,214 .......951,819,676 .......884,750,892 Net Losses Paid (Page 9, Part 2, Col. 4)

56.

Liability lines (Lines 11.1, 11.2, 16, 17.1, 17.2, 18.1, 18.2, 19.1, 19.2 & 19.3, 19.4)..................... .......208,007,334 .......228,976,573 .......189,006,125 .......218,191,312 .......214,414,381

57.

Property lines (Lines 1, 2, 9, 12, 21 & 26)...................................................................................... .........73,113,321 .........61,393,927 .........66,454,437 .........69,380,075 .........65,768,270

58.

Property and liability combined lines (Lines 3, 4, 5, 8, 22 & 27).................................................... .......127,702,344 .......170,624,101 .......128,315,967 .......129,600,156 .......123,211,217

59.

All other lines (Lines 6, 10, 13, 14, 15, 23, 24, 28, 29 & 33).......................................................... ...........9,101,334 .......(24,323,291) ..............485,473 ..............231,536 ...........2,802,011

60.

Nonproportional reinsurance lines (Lines 30, 31 & 32).................................................................. .........14,581,425 .......(34,167,056) .........12,049,892 ...........9,352,722 .........13,401,809

61.

Total (Line 34)................................................................................................................................ .......432,505,757 .......402,504,255 .......396,311,895 .......426,755,801 .......419,597,688 Operating Percentages (Page 4) (Item divided by Page 4, Line 1) x 100.0

62.

Premiums earned (Line 1)............................................................................................................. ..................100.0 ..................100.0 ..................100.0 ..................100.0 ..................100.0

63.

Losses incurred (Line 2)................................................................................................................ ....................46.1 ....................61.4 ....................51.8 ....................57.7 ....................90.4

64.

Loss expenses incurred (Line 3).................................................................................................... ....................12.2 ....................13.8 ....................11.9 ......................9.1 ....................10.3

65.

Other underwriting expenses incurred (Line 4).............................................................................. ....................28.9 ....................27.5 ....................26.8 ....................25.8 ....................25.5

66.

Net underwriting gain (loss) (Line 8).............................................................................................. ....................12.7 ....................(2.6) ......................9.6 ......................7.5 ..................(26.2) Other Percentages

67.

Other underwriting expenses to net premiums written (Page 4, Lines 4 + 5 - 15 divided by Page 8, Part 1B, Col. 6, Line 34 x 100.0)..................................................................... ....................28.5 ....................27.9 ....................25.4 ....................23.7 ....................23.7

68.

Losses and loss expenses incurred to premiums earned (Page 4, Lines 2 + 3 divided by Page 4, Line 1 x 100.0)............................................................... ....................58.4 ....................75.1 ....................63.7 ....................66.7 ..................100.6

69.

Net premiums written to policyholders' surplus (Page 8, Part 1B, Col. 6, Line 34, divided by Page 3, Line 35, Col. 1 x 100.0).......................................................... ....................65.8 ....................78.9 ....................97.4 ....................92.9 ....................97.3 One Year Loss Development (000 omitted)

70.

Development in estimated losses and loss expenses incurred prior to current year (Schedule P, Part 2-Summary, Line 12, Col. 11)................................................... ..............(19,393) ................26,405 ..............(13,512) ..............(20,508) ..............236,190

71.

Percent of development of losses and loss expenses incurred to policyholders' surplus of prior year end (Line 70 above divided by Page 4, Line 21, Col. 1 x 100)...................................... ....................(1.9) ......................2.9 ....................(1.5) ....................(2.8) ....................27.6 Two Year Loss Development (000 omitted)

72.

Development in estimated losses and loss expenses incurred 2 years before the current year and prior year (Schedule P, Part 2-Summary, Line 12, Col. 12)............................... ................54,072 ..............190,191 ................16,475 ..............245,844 ..............225,405

73.

Percent of development of losses and loss expenses incurred to reported policyholders' surplus of second prior year end (Line 72 above divided by Page 4, Line 21, Col. 2 x 100.0).......................................................... ......................5.8 ....................21.4 ......................2.2 ....................28.8 ....................26.6

19

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

*19070200643059100*

EXHIBIT OF PREMIUMS AND LOSSES (Statutory Page 14) NAIC Group Code.....3548

20

1. 2.1 2.2 2.3 3. 4. 5.1 5.2 6. 8. 9. 10. 11. 12. 13. 14. 15.1 15.2 15.3 15.4 15.5 15.6 15.7 16. 17. 18. 19.1 19.2 19.3 19.4 21.1 21.2 22. 23. 24. 26. 27. 28. 33. 34. 3301. 3302. 3303. 3398. 3399. (a) (b)

NAIC Company Code....19070

BUSINESS IN GRAND TOTAL DURING THE YEAR

7

8

9

10

11

12

Direct Losses Incurred ..............4,008,433 ..............5,068,554 ............................0 ...........355,988,800 ............................0 ...........189,893,080 ....................(8,141) ................(477,118) ............................0 ............17,014,606 ..............3,883,298 ............................0 ...................16,138 ...................73,685 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 .............(1,154,753) ..............8,160,866 .............(3,485,769) ..............4,982,425 ...........107,938,298 ....................(6,576) ....................(8,464) ............68,147,103 ..................(15,926) ................(341,231) .....................4,128 ...................90,827 ........................662 ............................0 ............................0 ............................0 ...........759,772,926

Direct Losses Unpaid ..............2,298,334 ..............3,006,037 ............................0 ..............3,978,203 .......................(142) ...........326,838,440 .....................7,769 ..............5,678,790 ............................0 ............18,253,764 ..............1,057,001 ............................0 ..............3,477,029 ...................65,585 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ...........361,326,425 ............28,525,195 ............10,743,437 ............20,332,227 ...........149,272,701 ...................15,906 .................151,630 .................190,887 ...................14,238 ...................81,186 .....................4,215 .................108,116 ..........................60 ............................0 ............................0 ............................0 ...........935,427,033

Direct Defense and Cost Containment Expense Paid .................303,410 .................201,954 ............................0 ............18,819,977 ............................0 ..............9,552,739 ............................0 ..............2,401,551 ............................0 ..............2,543,818 .................106,349 ............................0 ...................36,240 ...................10,297 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ..............1,347,894 .................680,446 ..............1,349,582 .................561,676 ..............4,310,404 ............................0 ........................410 .................405,176 ............................0 ...................10,996 ............................0 ...................10,260 ..........................42 ............................0 ............................0 ............................0 ............42,653,220

Direct Defense and Cost Containment Expense Incurred .................333,469 .................200,556 ............................0 ............18,819,977 ............................0 ..............6,136,456 .......................(268) ..............1,676,766 ............................0 ..............3,070,158 .................171,859 ............................0 ..................(11,151) ...................12,975 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 .................128,468 .................600,973 ................(246,453) .................486,119 ..............3,383,389 .......................(443) ....................(3,347) .................619,765 .......................(208) ..................(41,345) ........................417 .....................9,795 ..........................59 ............................0 ............................0 ............................0 ............35,347,988

Direct Defense and Cost Containment Expense Unpaid .................209,874 .................399,495 ............................0 ............................0 ........................113 ............11,494,118 ........................104 ..............5,698,714 ............................0 ..............1,355,574 ...................68,476 ............................0 ..............1,095,276 .....................3,889 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............21,484,511 ..............4,258,043 ..............4,864,402 ..............1,316,581 ............14,213,469 ...................14,746 ...................40,852 .................378,264 ........................990 ...................11,892 ........................424 .....................4,233 ..........................32 ............................0 ............................0 ............................0 ............66,914,071

Commissions and Brokerage Expenses ..............2,130,070 ..............2,852,271 ...........................0 ............27,697,551 ...........................0 ..........172,472,327 ....................3,932 ..................10,996 ...........................0 ............14,929,143 ..............2,300,061 ...........................0 ...........................0 ..............1,994,785 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ..............2,140,977 ..............1,073,003 ...........................0 ..............1,268,792 ............30,982,617 ...........................0 ...........................0 ............21,013,453 ...........................0 ...........................0 ....................3,570 .......................501 ....................1,578 ...........................0 ...........................0 ...........................0 ..........280,875,626

Taxes, Licenses and Fees .................506,692 .................483,323 ...........................0 ..............4,210,218 ...........................0 ............19,756,168 ...........................0 ...........................0 ...........................0 ..............1,272,681 .................335,592 ...........................0 ...........................0 .................372,745 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0 .................534,516 .................246,027 ...........................0 .................256,907 ..............6,014,041 ...........................0 ...........................0 ..............4,417,558 ...........................0 ...........................0 ....................1,058 .........................54 ....................2,454 ...........................0 ...........................0 ...........................0 ............38,410,034

............................................................................................................ ............................0 ............................0 ...........................0 ............................0 ............................................................................................................ ............................0 ............................0 ...........................0 ............................0 ............................................................................................................ ............................0 ............................0 ...........................0 ............................0 Summary of remaining write-ins for Line 33 from overflow page.......... ............................0 ............................0 ...........................0 ............................0 TOTALS (Lines 3301 thru 3303 plus 3398) (Line 33 above)................. ............................0 ............................0 ...........................0 ............................0 Finance and service charges not included in Lines 1 to 34 $.....14,880,211. For health business on indicated lines report: Number of persons insured under PPO managed care products..........0 and number of persons insured under indemnity only products..........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

Line of Business Fire...................................................................................................... Allied lines........................................................................................... Multiple peril crop................................................................................ Federal flood....................................................................................... Farmowners multiple peril.................................................................... Homeowners multiple peril.................................................................. Commercial multiple peril (non-liability portion).................................... Commercial multiple peril (liability portion)........................................... Mortgage guaranty.............................................................................. Ocean marine...................................................................................... Inland marine...................................................................................... Financial guaranty............................................................................... Medical malpractice............................................................................. Earthquake.......................................................................................... Group accident and health (b)............................................................. Credit A & H (group and individual)...................................................... Collectively renewable A&H (b)........................................................... Non-cancelable A & H (b).................................................................... Guaranteed renewable A & H (b)......................................................... Non-renewable for stated reasons only (b).......................................... Other accident only............................................................................. All other A & H (b)............................................................................... Federal employees health benefits program premium (b).................... Workers' compensation....................................................................... Other liability....................................................................................... Products liability.................................................................................. Private passenger auto no-fault (personal injury protection)................. Other private passenger auto liability................................................... Commercial auto no-fault (personal injury protection).......................... Other commercial auto liability............................................................. Private passenger auto physical damage............................................. Commercial auto physical damage...................................................... Aircraft (all perils)................................................................................ Fidelity................................................................................................ Surety.................................................................................................. Burglary and theft................................................................................ Boiler and machinery........................................................................... Credit.................................................................................................. Aggregate write-ins for other lines of business..................................... TOTALS (a).........................................................................................

Gross Premiums, Including Policy and Membership Fees, Less Return Premiums and Premiums on Policies not Taken 1 2 Direct Premiums Direct Premiums Written Earned ............13,697,853 ............12,686,267 ............17,842,612 ............17,038,645 ............................0 ............................0 ...........168,746,601 ...........154,363,662 ............................0 ............................0 ...........793,585,269 ...........755,559,370 ...................42,982 ....................(2,889) .................116,253 .................172,904 ............................0 ............................0 ............73,781,407 ............71,829,288 ............13,049,793 ............12,305,134 ............................0 ............................0 ............................0 ............................0 ............11,827,305 ............10,703,363 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............16,761,478 ..............2,932,376 ..............9,463,788 ..............7,882,185 ............................0 ............................0 ..............8,180,511 ..............8,910,112 ...........197,444,040 ...........195,672,789 ............................0 ............................0 ............................0 ............................0 ...........136,474,827 ...........133,772,747 ............................0 ............................0 ............................0 ............................0 ...................34,748 ...................27,104 .....................2,050 .....................2,450 ...................10,945 ...................10,715 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ........1,461,062,461 ........1,383,866,220

3

Dividends Paid or Credited to Policyholders on Direct Business ...........................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 ...........................0

4

5

Direct Losses Direct Unearned Paid Premium Reserves (deducting salvage) ..............7,257,538 ..............4,614,986 ..............9,198,313 ..............6,833,335 ............................0 ............................0 ............89,474,542 ...........601,854,708 ............................0 ............................0 ...........424,191,797 ...........418,604,461 ...................45,870 ..........................60 ...................33,452 .................790,281 ............................0 ............................0 ............34,847,401 ............39,047,401 ..............6,819,251 ..............4,031,383 ............................0 ............................0 ............................0 ............................0 ..............6,227,522 .....................7,774 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ..............9,938,249 ............19,571,737 ..............5,371,957 ..............3,393,913 ............................0 .................896,942 ..............2,286,628 ..............5,792,583 ............75,640,357 ...........108,788,820 ............................0 ............................0 ............................0 .................100,000 ............51,798,364 ............68,904,569 ............................0 .........................(18) ............................0 .....................4,195 .....................7,644 ............................0 .....................1,293 ............................0 .....................5,285 ........................456 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ...........723,145,463 ........1,283,237,585 DETAILS OF WRITE-INS ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0 ............................0

6

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE A - VERIFICATION BETWEEN YEARS Real Estate

1.

Book/adjusted carrying value, December 31 of prior year.........................................................................................................................................................................

2.

Increase (decrease) by adjustment:

4,726,854

2.1

Totals, Part 1, Column 11................................................................................................................................................................................................................

(260,383)

2.2

Totals, Part 3, Column 7..................................................................................................................................................................................................................

0

3.

Cost of acquired (Totals, Part 2, Column 6, net of encumbrances (Column 7) and net of additions and permanent improvements (Column 9))....................................

0

4.

Cost of additions and permanent improvements: 4.1

Totals, Part 1, Column 14................................................................................................................................................................................................................

171,513

4.2

Totals, Part 3, Column 9..................................................................................................................................................................................................................

0

5.

Total profit (loss) on sales, Part 3, Column 14..........................................................................................................................................................................................

0

6.

Increase (decrease) by foreign exchange adjustment: 6.1

Totals, Part 1, Column 12................................................................................................................................................................................................................

0

6.2

Totals, Part 3, Column 8..................................................................................................................................................................................................................

0

7.

Amounts received on sales, Part 3, Column 11 and Part 1, Column 13...................................................................................................................................................

0

8.

Book/adjusted carrying value at end of current period..............................................................................................................................................................................

4,637,984

9.

Total valuation allowance..........................................................................................................................................................................................................................

0

10. Subtotal (Lines 8 plus 9)............................................................................................................................................................................................................................

4,637,984

11. Total nonadmitted amounts.......................................................................................................................................................................................................................

0

12. Statement value, current period (Page 2, real estate lines, Net Admitted Assets column).......................................................................................................................

4,637,984

SCHEDULE B - VERIFICATION BETWEEN YEARS Mortgage Loans

1.

Book value/recorded investment excluding accrued interest of mortgages owned, December 31 of prior year.......................................................................................

2.

Amount loaned during year: 2.1

Actual cost at time of acquisitions................................................................................................................................................

0

2.2

Additional investment made after acquisitions.............................................................................................................................

0

0

0

3.

Accrual of discount and mortgage interest points and commitment fees..................................................................................................................................................

0

4.

Increase (decrease) by adjustment...........................................................................................................................................................................................................

0

5.

Total profit (loss) on sale...........................................................................................................................................................................................................................

0

6.

Amounts paid on account or in full during the year...................................................................................................................................................................................

0

7.

Amortization of premium............................................................................................................................................................................................................................

0

8.

Increase (decrease) by foreign exchange adjustment...............................................................................................................................................................................

0

9.

Book value/recorded investment excluding accrued interest on mortgages owned at end of current period............................................................................................

0

10. Total valuation allowance..........................................................................................................................................................................................................................

0

11. Subtotal (Lines 9 plus 10)..........................................................................................................................................................................................................................

0

12. Total nonadmitted amounts.......................................................................................................................................................................................................................

0

13. Statement value of mortgages owned at end of current period (Page 2, mortgage lines, Net Admitted Assets column).........................................................................

0

SCHEDULE BA - VERIFICATION BETWEEN YEARS Long-Term Invested Assets 1.

Book/adjusted carrying value of long-term invested assets owned, December 31 of prior year...............................................................................................................

2.

Cost of acquisitions during year: 2.1

Actual cost at time of acquisitions................................................................................................................................................

459,047

2.2

Additional investment made after acquisitions.............................................................................................................................

29,349,010

168,502,004

29,808,057

3.

Accrual of discount....................................................................................................................................................................................................................................

0

4.

Increase (decrease) by adjustment...........................................................................................................................................................................................................

14,156,561

5.

Total profit (loss) on sale...........................................................................................................................................................................................................................

0

6.

Amounts paid on account or in full during the year...................................................................................................................................................................................

25,409,710

7.

Amortization of premium............................................................................................................................................................................................................................

8,791

8.

Increase (decrease) by foreign exchange adjustment...............................................................................................................................................................................

172,697

9.

Book/adjusted carrying value of long-term invested assets at end of current period................................................................................................................................

187,220,818

10. Total valuation allowance..........................................................................................................................................................................................................................

0

11. Subtotal (Lines 9 plus 10)..........................................................................................................................................................................................................................

187,220,818

12. Total nonadmitted amounts.......................................................................................................................................................................................................................

12,460

13. Statement value of long-term invested assets at end of current period (Page 2, Line 7, Column 3)........................................................................................................

187,208,358

21

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - SUMMARY BY COUNTRY Long-Term Bonds and Stocks OWNED December 31 of Current Year 1 Book/Adjusted Carrying Value

Description BONDS Governments

2

3

Fair Value

Actual Cost

4 Par Value of Bonds

1. United States....................... .....................176,168,194 .....................176,956,439 .....................176,216,916 .....................176,951,956 2. Canada................................ ............................999,478 ............................998,950 ............................999,500 .........................1,000,000

(Including all obligations guaranteed

3. Other Countries................... .........................6,266,723 .........................6,419,000 .........................6,349,000 .........................6,000,000

by governments)

4. Totals................................... .....................183,434,395 .....................184,374,389 .....................183,565,416 .....................183,951,956 5. United States....................... .....................302,792,421 .....................307,221,378 .....................308,633,638 .....................285,625,000

States, Territories and Possessions (Direct and guaranteed)

6. Canada................................ .......................................0 .......................................0 .......................................0 .......................................0 7. Other Countries................... .......................................0 .......................................0 .......................................0 .......................................0 8. Totals................................... .....................302,792,421 .....................307,221,378 .....................308,633,638 .....................285,625,000

Political Subdivisions of States,

9. United States....................... .....................497,995,017 .....................509,036,913 .....................496,579,423 .....................524,365,000

Territories and Possessions

10. Canada................................ .......................................0 .......................................0 .......................................0 .......................................0

(Direct and guaranteed)

11. Other Countries................... .......................................0 .......................................0 .......................................0 .......................................0 12. Totals................................... .....................497,995,017 .....................509,036,913 .....................496,579,423 .....................524,365,000

Special Revenue and Special Assessment

13. United States....................... .....................776,377,512 .....................798,482,243 .....................785,431,914 .....................788,706,300

Obligations and all Non-guaranteed Obligations

14. Canada................................ .......................................0 .......................................0 .......................................0 .......................................0

of Agencies and Authorities of Governments

15. Other Countries................... .......................................0 .......................................0 .......................................0 .......................................0

and their Political Subdivisions

16. Totals................................... .....................776,377,512 .....................798,482,243 .....................785,431,914 .....................788,706,300 17. United States....................... .......................91,809,224 .......................94,171,099 .......................91,898,782 .......................91,644,020

Public Utilities

18. Canada................................ .......................................0 .......................................0 .......................................0 .......................................0

(Unaffiliated)

19. Other Countries................... .......................16,907,864 .......................16,945,815 .......................16,663,280 .......................17,000,000 20. Totals................................... .....................108,717,088 .....................111,116,914 .....................108,562,062 .....................108,644,020

Industrial and Miscellaneous and

21. United States....................... .....................507,811,390 .....................511,280,509 .....................509,693,995 .....................507,303,880

Credit Tenant Loans

22. Canada................................ .........................7,430,562 .........................7,526,623 .........................7,426,080 .........................7,406,000

(Unaffiliated)

23. Other Countries................... .......................26,594,032 .......................26,857,864 .......................26,680,266 .......................27,131,000 24. Totals................................... .....................541,835,985 .....................545,664,996 .....................543,800,341 .....................541,840,880

Parent, Subsidiaries and Affiliates PREFERRED STOCKS Public Utilities

25. Totals................................... .......................................0 .......................................0 .......................................0 .......................................0 26. Total Bonds........................ ..................2,411,152,418 ..................2,455,896,833 ..................2,426,572,793 ..................2,433,133,156 27. United States....................... ............................631,868 ............................631,868 ............................621,947 28. Canada................................ .......................................0 .......................................0 .......................................0

(Unaffiliated)

29. Other Countries................... .......................................0 .......................................0 .......................................0 30. Totals................................... ............................631,868 ............................631,868 ............................621,947 31 United States....................... .........................7,065,625 .........................7,065,625 .........................7,023,100

Banks, Trust and Insurance Companies (Unaffiliated)

32. Canada................................ .......................................0 .......................................0 .......................................0 33. Other Countries................... .......................................0 .......................................0 .......................................0 34. Totals................................... .........................7,065,625 .........................7,065,625 .........................7,023,100 35. United States....................... .........................1,011,350 .........................1,011,350 .........................1,526,790

Industrial and Miscellaneous (Unaffiliated)

36. Canada................................ .......................................0 .......................................0 .......................................0 37. Other Countries................... .......................................0 .......................................0 .......................................0 38. Totals................................... .........................1,011,350 .........................1,011,350 .........................1,526,790

Parent, Subsidiaries and Affiliates COMMON STOCKS Public Utilities (Unaffiliated)

39. Totals................................... .......................................0 .......................................0 .......................................0 40. Total Preferred Stocks...... .........................8,708,843 .........................8,708,843 .........................9,171,837 41. United States....................... .......................................0 .......................................0 .......................................0 42. Canada................................ .......................................0 .......................................0 .......................................0 43. Other Countries................... .......................................0 .......................................0 .......................................0 44. Totals................................... .......................................0 .......................................0 .......................................0 45. United States....................... .......................................0 .......................................0 .......................................0

Banks, Trust and Insurance Companies (Unaffiliated)

46. Canada................................ .......................................0 .......................................0 .......................................0 47. Other Countries................... .......................................0 .......................................0 .......................................0 48. Totals................................... .......................................0 .......................................0 .......................................0 49. United States....................... ..............................14,709 ..............................14,709 ..............................10,021

Industrial and Miscellaneous (Unaffiliated)

50. Canada................................ .......................................0 .......................................0 .......................................0 51. Other Countries................... ..............................49,873 ..............................49,873 ..............................49,873 52. Totals................................... ..............................64,582 ..............................64,582 ..............................59,894

Parent, Subsidiaries and Affiliates

53. Totals................................... .....................525,113,835 .....................525,113,835 .....................281,035,733 54. Total Common Stocks....... .....................525,178,417 .....................525,178,417 .....................281,095,627 55. Total Stocks....................... .....................533,887,259 .....................533,887,260 .....................290,267,464 56. Total Bonds and Stocks.... ..................2,945,039,677 ..................2,989,784,093 ..................2,716,840,257

SCHEDULE D - VERIFICATION BETWEEN YEARS Bonds and Stocks 1. 2. 3. 4.

Book/adjusted carrying value of bonds and stocks, prior year......................... Cost of bonds and stocks acquired, Column 7, Part 3.................................... Accrual of discount......................................................................................... Increase (decrease) by adjustment: 4.1 Columns 12 - 14, Part 1.................................. (21,304) 4.2 Columns 15 - 17, Part 2, Section 1................. (49,530) 4.3 Column 15, Part 2, Section 2.......................... 44,792,196 4.4 Columns 11 - 13, Part 4.................................. 16,190,786 5. Total gain (loss), Column 19, Part 4............................................................... 6. Deduct consideration for bonds and stocks disposed of, Column 7, Part 4.....

2,698,812,890 490,849,495 4,187,223

60,912,149 (15,306,860) 284,189,962

22

7. Amortization of premium............................................................. 8. Foreign exchange adjustment: 8.1 Column 15, Part 1....................... 0 8.2 Column 19, Part 2, Section 1....... 0 8.3 Column 16, Part 2, Section 2....... 0 8.4 Column 15, Part 4....................... 0 9. Book/adjusted carrying value at end of current period................. 10. Total valuation allowance............................................................ 11. Subtotal (Lines 9 plus 10)........................................................... 12. Total nonadmitted amounts........................................................ 13. Statement value of bonds and stocks, current year.....................

10,225,258

0 2,945,039,677 0 2,945,039,677 0 2,945,039,677

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 1 Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations

1. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.

23

3.1 3.2 3.3 3.4 3.5 3.6 3.7 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7

Quality Rating per the NAIC Designation U.S. Governments, Schedules D & DA (Group 1) Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... All Other Governments, Schedules D & DA (Group 2) Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... States, Territories and Possessions, etc., Guaranteed, Schedules D & DA (Group 3) Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Political Subdivisions of States, Territories and Possessions, Guaranteed, Schedules D & DA (Group 4) Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Special Revenue & Special Assessment Obligations, etc., Non-Guaranteed, Schedules D & DA (Group 5) Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals....................................................................................................

1 1 Year or Less

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

...............62,313,338 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............62,313,338

.............107,781,585 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............107,781,585

.................6,072,483 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .................6,072,483

..........................787 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..........................787

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

.............176,168,194 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............176,168,194

...........................7.0 .............142,532,276 ...........................6.2 .............176,168,194 ...........................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 ...........................7.0 .............142,532,276 ...........................6.2 .............176,168,194

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

...................999,478 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...................999,478

..............................0 .................6,266,723 ..............................0 ..............................0 ..............................0 ..............................0 .................6,266,723

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

...................999,478 .................6,266,723 ..............................0 ..............................0 ..............................0 ..............................0 .................7,266,201

...........................0.0 .................5,000,000 ...........................0.2 ...................999,478 ...........................0.2 .................6,291,357 ...........................0.3 .................6,266,723 ...........................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 ...............11,291,357 ...........................0.5 .................7,266,201

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

.................1,201,981 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .................1,201,981

...............43,691,219 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............43,691,219

.............104,121,743 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............104,121,743

.............153,777,478 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............153,777,478

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

.............302,792,421 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............302,792,421

.........................12.0 .............258,511,382 .........................11.3 .............302,792,421 ...........................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 .........................12.0 .............258,511,382 .........................11.3 .............302,792,421

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

...............57,631,318 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............57,631,318

...............92,495,490 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............92,495,490

.............333,832,225 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............333,832,225

...............14,035,984 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............14,035,984

.............497,995,017 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............497,995,017

.........................19.8 .............369,738,353 .........................16.1 .............497,995,017 ...........................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 .........................19.8 .............369,738,353 .........................16.1 .............497,995,017

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0

...............12,302,715 ...................480,000 ..............................0 ..............................0 ...................127,510 ..............................0 ...............12,910,225

.............114,466,059 ...............10,495,600 ..............................0 ..............................0 ..............................0 ..............................0 .............124,961,659

.............277,991,295 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .............277,991,295

.............301,521,189 ...................402,224 ..............................0 ..............................0 .................1,740,093 ..............................0 .............303,663,507

...............56,850,827 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...............56,850,827

.............763,132,085 ...............11,377,824 ..............................0 ..............................0 .................1,867,603 ..............................0 .............776,377,512

.........................30.3 ...........................0.5 ...........................0.0 ...........................0.0 ...........................0.1 ...........................0.0 .........................30.8

.................3,751,348 .................1,092,224 ..............................0 ..............................0 ...................862,673 ..............................0 .................5,706,245

.............760,370,373 ...............10,786,600 ..............................0 ..............................0 .................2,484,604 .................1,380,186 .............775,021,762

9 % from Col. 7 Prior Year

.........................33.1 ...........................0.5 ...........................0.0 ...........................0.0 ...........................0.1 ...........................0.1 .........................33.8

10 Total Publicly Traded

.............759,380,737 ...............10,285,600 ..............................0 ..............................0 .................1,004,931 ..............................0 .............770,671,267

11 Total Privately Placed (a)

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 1 (continued) Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusting Carrying Values By Major Types of Issues and NAIC Designations Quality Rating per the NAIC Designation 6.

1 1 Year or Less

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

9 % from Col. 7 Prior Year

10 Total Publicly Traded

11 Total Privately Placed (a)

Public Utilities (Unaffiliated), Schedules D & DA (Group 6) 6.1 Class 1................................................................................................. ..............................0 .................6,124,552 ...............22,294,617 .................7,434,616 ..............................0 ...............35,853,785 ...........................1.4 ...............43,602,091 ...........................1.9 ...............32,853,785 .................3,000,000 6.2 Class 2................................................................................................. .................3,158,215 ...............18,940,652 ...............19,016,256 ..............................0 .................9,884,023 ...............50,999,146 ...........................2.0 ...............58,074,100 ...........................2.5 ...............50,999,146 ..............................0 6.3 Class 3................................................................................................. ..............................0 .................3,394,219 .................3,995,411 .................9,481,905 .................4,992,622 ...............21,864,157 ...........................0.9 ...............13,137,493 ...........................0.6 ...............21,864,157 ..............................0 6.4 Class 4................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

6.5 Class 5................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 6.6 Class 6................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

6.7 Totals.................................................................................................... .................3,158,215 ...............28,459,422 ...............45,306,285 ...............16,916,521 ...............14,876,645 .............108,717,088 ...........................4.3 .............114,813,685 ...........................5.0 .............105,717,088 .................3,000,000 7.

Industrial & Miscellaneous (Unaffiliated), Schedules D & DA (Group 7) 7.1 Class 1................................................................................................. .............120,998,429 .............252,748,763 ...............95,937,806 ...............21,615,828 ...............41,264,658 .............532,565,484 .........................21.1 .............497,143,005 .........................21.7 .............527,377,916 .................5,187,568 7.2 Class 2................................................................................................. .................1,817,189 ...............38,434,492 ...............27,488,661 .................5,959,758 .................5,169,246 ...............78,869,346 ...........................3.1 ...............85,218,194 ...........................3.7 ...............76,369,346 .................2,500,000 7.3 Class 3................................................................................................. ..............................0 ...............10,038,500 .................3,190,661 ..............................0 ...................184,120 ...............13,413,281 ...........................0.5 ...............20,235,431 ...........................0.9 ...............13,413,281 ..............................0 7.4 Class 4................................................................................................. ..............................0 ..............................0 ...............19,695,696 ...................270,000 .................5,393,917 ...............25,359,613 ...........................1.0 ...............18,994,095 ...........................0.8 ...............25,359,613 ..............................0 7.5 Class 5................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 .................1,688,750 ...........................0.1 7.6 Class 6................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

7.7 Totals.................................................................................................... .............122,815,618 .............301,221,755 .............146,312,824 ...............27,845,586 ...............52,011,941 .............650,207,724 .........................25.8 .............623,279,475 .........................27.2 .............642,520,156 .................7,687,568 8.

24 9.

Credit Tenant Loans, Schedules D & DA (Group 8) 8.1 Class 1................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 8.2 Class 2................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

8.3 Class 3................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

8.4 Class 4................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

8.5 Class 5................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 8.6 Class 6................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

8.7 Totals.................................................................................................... ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

Parent, Subsidiaries and Affiliates, Schedules D & DA (Group 9) 9.1 Class 1................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

9.2 Class 2................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 9.3 Class 3................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

9.4 Class 4................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

9.5 Class 5................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0

..............................0 ..............................0

9.6 Class 6................................................................................................. ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 9.7 Totals.................................................................................................... ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0

..............................0 ...........................0.0 ..............................0 ...........................0.0

..............................0 ..............................0 ..............................0 ..............................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 1 (continued) Quality and Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Types of Issues and NAIC Designations

25

10. 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 11. 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 12. 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 13. 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 (a) (b) (c)

Quality Rating per the NAIC Designation Total Bonds Current Year Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Line 10.7 as a % of Col. 6..................................................................... Total Bonds Prior Year Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Line 11.7 as a % of Col. 8..................................................................... Total Publicly Traded Bonds Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Line 12.7 as a % of Col. 6..................................................................... Line 12.7 as a % of Line 10.7, Col. 6, Section 10.................................. Total Privately Placed Bonds Class 1................................................................................................. Class 2................................................................................................. Class 3................................................................................................. Class 4................................................................................................. Class 5................................................................................................. Class 6................................................................................................. Totals.................................................................................................... Line 13.7 as a % of Col. 6..................................................................... Line 13.7 as a % of Line 10.7, Col. 6, Section 10..................................

1 1 Year or Less

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

9 % from Col. 7 Prior Year

10 Total Publicly Traded

11 Total Privately Placed (a)

.............196,816,464 .................5,455,404 ..............................0 ..............................0 ...................127,510 ..............................0 .............202,399,378 ...........................8.0

.............583,442,973 ...............67,870,744 ...............13,432,719 ..............................0 ..............................0 ..............................0 .............664,746,436 .........................26.4

.............598,913,435 ...............52,771,639 .................7,186,073 ...............19,695,696 ..............................0 ..............................0 .............678,566,843 .........................26.9

.............818,182,124 .................6,361,982 .................9,481,905 ...................270,000 .................1,740,093 ..............................0 .............836,036,104 .........................33.2

.............112,151,469 ...............15,053,269 .................5,176,743 .................5,393,917 ..............................0 ..............................0 .............137,775,397 ...........................5.5

..........2,309,506,464 .............147,513,038 ...............35,277,439 ...............25,359,613 (c).............1,867,603 (c)..........................0 (b)......2,519,524,157 .......................100.0

.........................91.7 ...........................5.9 ...........................1.4 ...........................1.0 ...........................0.1 ...........................0.0 .......................100.0 ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..........2,297,567,548 .............143,920,814 ...............35,277,439 ...............25,359,613 .................1,004,931 ..............................0 ..........2,503,130,345 .........................99.3

...............11,938,916 .................3,592,224 ..............................0 ..............................0 ...................862,673 ..............................0 ...............16,393,813 ...........................0.7

.............236,493,750 ...............18,076,678 ...................991,045 ..............................0 ..............................0 ..............................0 .............255,561,474 .........................11.1

.............273,909,723 ...............45,999,182 .................3,390,934 .....................98,047 ...................185,270 ...................960,000 .............324,543,156 .........................14.1

.............757,528,121 ...............54,422,179 ...............17,709,135 ...............18,896,049 .................1,688,750 ..............................0 .............850,244,234 .........................37.0

.............678,678,484 ...............11,613,141 .................5,261,001 ..............................0 .................2,299,334 ...................420,186 .............698,272,146 .........................30.4

.............130,287,401 ...............30,259,071 .................6,020,810 ..............................0 ..............................0 ..............................0 .............166,567,282 ...........................7.3

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..........2,076,897,480 .............160,370,251 ...............33,372,925 ...............18,994,095 (c).............4,173,354 (c).............1,380,186 (b)......2,295,188,291 .......................100.0

.........................90.5 ...........................7.0 ...........................1.5 ...........................0.8 ...........................0.2 ...........................0.1 .......................100.0 ..............XXX............

..........2,063,993,119 .............160,150,251 ...............33,372,925 ...............18,994,095 .................3,220,706 ..............................0 ..........2,279,731,097 .........................99.3

...............12,904,361 ...................220,000 ..............................0 ..............................0 ...................952,648 .................1,380,186 ...............15,457,195 ...........................0.7

.............196,033,599 .................4,975,404 ..............................0 ..............................0 ..............................0 ..............................0 .............201,009,003 ...........................8.0 ...........................8.0

.............580,400,910 ...............65,160,744 ...............13,432,719 ..............................0 ..............................0 ..............................0 .............658,994,373 .........................26.3 .........................26.2

.............594,550,794 ...............52,771,639 .................7,186,073 ...............19,695,696 ..............................0 ..............................0 .............674,204,202 .........................26.9 .........................26.8

.............814,430,776 .................5,959,758 .................9,481,905 ...................270,000 .................1,004,931 ..............................0 .............831,147,370 .........................33.2 .........................33.0

.............112,151,469 ...............15,053,269 .................5,176,743 .................5,393,917 ..............................0 ..............................0 .............137,775,397 ...........................5.5 ...........................5.5

..........2,297,567,548 .............143,920,814 ...............35,277,439 ...............25,359,613 .................1,004,931 ..............................0 ..........2,503,130,345 .......................100.0 .........................99.3

.........................91.2 ...........................5.7 ...........................1.4 ...........................1.0 ...........................0.0 ...........................0.0 .........................99.3 ..............XXX............ ..............XXX............

..........2,063,993,119 .............160,150,251 ...............33,372,925 ...............18,994,095 .................3,220,706 ..............................0 ..........2,279,731,097 ..............XXX............ ..............XXX............

.........................89.9 ...........................7.0 ...........................1.5 ...........................0.8 ...........................0.1 ...........................0.0 .........................99.3 ..............XXX............ ..............XXX............

..........2,297,567,548 .............143,920,814 ...............35,277,439 ...............25,359,613 .................1,004,931 ..............................0 ..........2,503,130,345 .......................100.0 .........................99.3

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

...................782,864 ...................480,000 ..............................0 ..............................0 ...................127,510 ..............................0 .................1,390,374 ...........................8.5 ...........................0.1

.................3,042,063 .................2,710,000 ..............................0 ..............................0 ..............................0 ..............................0 .................5,752,063 .........................35.1 ...........................0.2

.................4,362,641 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 .................4,362,641 .........................26.6 ...........................0.2

.................3,751,348 ...................402,224 ..............................0 ..............................0 ...................735,163 ..............................0 .................4,888,735 .........................29.8 ...........................0.2

..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ...........................0.0

...............11,938,916 .................3,592,224 ..............................0 ..............................0 ...................862,673 ..............................0 ...............16,393,813 .......................100.0 ...........................0.7

...........................0.5 ...........................0.1 ...........................0.0 ...........................0.0 ...........................0.0 ...........................0.0 ...........................0.7 ..............XXX............ ..............XXX............

...............12,904,361 ...................220,000 ..............................0 ..............................0 ...................952,648 .................1,380,186 ...............15,457,195 ..............XXX............ ..............XXX............

...........................0.6 ...........................0.0 ...........................0.0 ...........................0.0 ...........................0.0 ...........................0.1 ...........................0.7 ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

...............11,938,916 .................3,592,224 ..............................0 ..............................0 ...................862,673 ..............................0 ...............16,393,813 .......................100.0 ...........................0.7

Includes $.....55,337,334 freely tradable under SEC Rule 144 or qualified for resale under SEC Rule 144A. Includes $..........0 current year, $..........0 prior year of bonds with Z designations and $..........0 current year, $..........0 prior year of bonds with Z* designations. The letter "Z" means the NAIC designation was not assigned by the Securities Valuation Office (SVO) at the date of the statement. "Z*" means the SVO could not evaluate the obligation because valuation procedures for the security class are under regulatory review. Includes $.....1,867,603 current year, $.....2,484,604 prior year of bonds with 5* designations and $..........0 current year, $.....1,380,186 prior year of bonds with 6* designations. "5*" means the NAIC designation was assigned by the SVO in reliance on the insurer's certification that the issuer is current in all principal and interest payments. "6*" means the NAIC designation was assigned by the SVO due to inadequate certification of principal and interest payments.

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 2 Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Type and Subtype of Issues

1.

2.

1.1 1.2 1.7 2.1 2.2 2.3 2.4

3.

2.5 2.6 2.7 3.1 3.2 3.3 3.4

26 4.

3.5 3.6 3.7 4.1 4.2 4.3 4.4

5.

4.5 4.6 4.7 5.1 5.2 5.3 5.4 5.5 5.6 5.7

Distribution by Type U.S. Governments, Schedules D & DA (Group 1) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... Totals...................................................................................................... All Other Governments, Schedules D & DA (Group 2) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals...................................................................................................... States, Territories and Possessions, Guaranteed, Schedules D & DA (Group 3) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals...................................................................................................... Political Subdivisions of States, Territories and Possessions, Guaranteed, Schedules D & DA (Group 4) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals...................................................................................................... Special Revenue & Special Assessment Obligations, etc., Non-Guaranteed, Schedules D & DA (Group 5) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals......................................................................................................

1 1 Year or Less

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

9 % from Col. 7 Prior Year

10 Total Publicly Traded

11 Total Privately Placed

..............61,946,140 ............107,422,287 ................6,054,439 ..............................0 ..............................0 ............175,422,866 ...........................7.0 ............141,213,798 ...........................6.2 ............175,422,866 ..............................0 ...................367,199 ...................359,298 .....................18,045 ..........................787 ..............................0 ...................745,328 ...........................0.0 ................1,318,478 ...........................0.1 ...................745,328 ..............................0 ..............62,313,338 ............107,781,585 ................6,072,483 ..........................787 ..............................0 ............176,168,194 ...........................7.0 ............142,532,276 ...........................6.2 ............176,168,194 ..............................0 ..............................0 ..............................0 ................6,266,723 ..............................0 ..............................0 ................6,266,723 ...........................0.2 ..............11,291,357 ...........................0.5 ................6,266,723 ..............................0 ..............................0 ...................999,478 ..............................0 ..............................0 ..............................0 ...................999,478 ...........................0.0 ..............................0 ...........................0.0 ...................999,478 ..............................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 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............................0 ...........................0.0 ..............................0 ..............................0 ..............................0 ...................999,478 ................6,266,723 ..............................0 ..............................0 ................7,266,201 ...........................0.3 ..............11,291,357 ...........................0.5 ................7,266,201 ..............................0 ................1,201,981 ..............43,691,219 ............104,121,743 ............153,777,478 ..............................0 ............302,792,421 .........................12.0 ............258,511,382 .........................11.3 ............302,792,421 ..............................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 ..............................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 ................1,201,981 ..............43,691,219 ............104,121,743 ............153,777,478 ..............................0 ............302,792,421 .........................12.0 ............258,511,382 .........................11.3 ............302,792,421 ..............................0 ..............................0 ..............57,631,318 ..............92,495,490 ............333,832,225 ..............14,035,984 ............497,995,017 .........................19.8 ............369,738,353 .........................16.1 ............497,995,017 ..............................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 ..............................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 ..............57,631,318 ..............92,495,490 ............333,832,225 ..............14,035,984 ............497,995,017 .........................19.8 ............369,738,353 .........................16.1 ............497,995,017 ..............................0 ...................667,470 ..............89,192,123 ............254,289,853 ............279,988,463 ..............44,154,744 ............668,292,653 .........................26.5 ............649,848,038 .........................28.3 ............666,337,756 ................1,954,897 ..............12,242,756 ..............35,769,536 ..............23,701,441 ..............22,670,113 ..............12,696,082 ............107,079,928 ...........................4.3 ............114,886,583 ...........................5.0 ............103,328,580 ................3,751,348 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............................0 ...........................0.0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ................1,004,931 ..............................0 ................1,004,931 ...........................0.0 ..............10,287,142 ...........................0.4 ................1,004,931 ..............................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 ..............12,910,225 ............124,961,659 ............277,991,295 ............303,663,507 ..............56,850,827 ............776,377,512 .........................30.8 ............775,021,762 .........................33.8 ............770,671,267 ................5,706,245

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 2 (continued) Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Type and Subtype of Issues

6. 6.1 6.2 6.3 6.4

6.5 6.6 6.7 7. 7.1 7.2 7.3 7.4

27

7.5 7.6 7.7 8. 8.1 8.7 9. 9.1 9.2 9.3 9.4

9.5 9.6 9.7

Distribution by Type Public Utilities (Unaffiliated), Schedules D & DA (Group 6) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals...................................................................................................... Industrial & Miscellaneous (Unaffiliated), Schedules D & DA (Group 7) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals...................................................................................................... Credit Tenant Loans, Schedules D & DA (Group 8) Issuer Obligations................................................................................... Totals...................................................................................................... Parent, Subsidiaries and Affiliates, Schedules D & DA (Group 9) Issuer Obligations................................................................................... Single Class Mortgage-Backed/Asset-Backed Securities......................... MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: Defined................................................................................................... Other....................................................................................................... Totals......................................................................................................

1 1 Year or Less

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

9 % from Col. 7 Prior Year

10 Total Publicly Traded

11 Total Privately Placed

................3,158,215 ..............28,459,422 ..............45,306,285 ..............16,916,521 ..............14,876,645 ............108,717,088 ...........................4.3 ............114,813,685 ...........................5.0 ............105,717,088 ................3,000,000 ..............................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

..............................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 ................3,158,215 ..............28,459,422 ..............45,306,285 ..............16,916,521 ..............14,876,645 ............108,717,088 ...........................4.3 ............114,813,685 ...........................5.0 ............105,717,088 ................3,000,000

............122,815,618 ............248,273,571 ............140,377,275 ..............17,883,017 ..............19,341,402 ............548,690,881 .........................21.8 ............514,935,730 .........................22.4 ............541,003,313 ................7,687,568 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............................0 ...........................0.0 ..............................0 ..............................0 ..............................0 ..............41,858,404 ................3,928,806 ..............................0 ..............................0 ..............45,787,210 ...........................1.8 ..............................0 ...........................0.0 ..............45,787,210 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............43,890,279 ...........................1.9 ..............................0 ..............................0

..............................0 ..............11,089,780 ................2,006,743 ................9,962,570 ..............32,670,539 ..............55,729,632 ...........................2.2 ..............................0 ...........................0.0 ..............55,729,632 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............64,453,466 ...........................2.8 ..............................0 ..............................0 ............122,815,618 ............301,221,755 ............146,312,824 ..............27,845,586 ..............52,011,941 ............650,207,724 .........................25.8 ............623,279,475 .........................27.2 ............642,520,156 ................7,687,568 ..............................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 ..............................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

..............................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

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE D - PART 1A - SECTION 2 (continued) Maturity Distribution of All Bonds Owned December 31, At Book/Adjusted Carrying Values By Major Type and Subtype of Issues 1 1 Year or Less

28

Distribution by Type 10. Total Bonds Current Year 10.1 Issuer Obligations................................................................................... ............189,789,424 10.2 Single Class Mortgage-Backed/Asset-Backed Securities......................... ..............12,609,954 MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: 10.3 Defined................................................................................................... ..............................0 10.4 Other....................................................................................................... ..............................0 MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: 10.5 Defined................................................................................................... ..............................0 10.6 Other....................................................................................................... ..............................0 10.7 Totals...................................................................................................... ............202,399,378 10.8 Line 10.7 as a % of Col. 6....................................................................... ...........................8.0 11. Total Bonds Prior Year 11.1 Issuer Obligations................................................................................... ............241,903,690 11.2 Single Class Mortgage-Backed/Asset-Backed Securities......................... ..............13,657,784 MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: 11.3 Defined................................................................................................... ..............................0 11.4 Other....................................................................................................... ..............................0 MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: 11.5 Defined................................................................................................... ..............................0 11.6 Other....................................................................................................... ..............................0 11.7 Totals...................................................................................................... ............255,561,474 11.8 Line 11.7 as a % of Col. 8....................................................................... .........................11.1 12. Total Publicly Traded Bonds 12.1 Issuer Obligations................................................................................... ............188,399,049 12.2 Single Class Mortgage-Backed/Asset-Backed Securities......................... ..............12,609,954 MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: 12.3 Defined................................................................................................... ..............................0 12.4 Other....................................................................................................... ..............................0 MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: 12.5 Defined................................................................................................... ..............................0 12.6 Other....................................................................................................... ..............................0 12.7 Totals...................................................................................................... ............201,009,003 12.8 Line 12.7 as a % of Col. 6....................................................................... ...........................8.0 12.9 Line 12.7 as a % of Line 10.7, Col. 6, Section 10.................................... ...........................8.0 13. Total Privately Placed Bonds 13.1 Issuer Obligations................................................................................... ................1,390,374 13.2 Single Class Mortgage-Backed/Asset-Backed Securities......................... ..............................0 MULTI-CLASS RESIDENTIAL MORTGAGE-BACKED SECURITIES: 13.3 Defined................................................................................................... ..............................0 13.4 Other....................................................................................................... ..............................0 MULTI-CLASS COMMERCIAL MORTGAGE-BACKED/ ASSET-BACKED SECURITIES: 13.5 Defined................................................................................................... ..............................0 13.6 Other....................................................................................................... ..............................0 13.7 Totals...................................................................................................... ................1,390,374 13.8 Line 13.7 as a % of Col. 6....................................................................... ...........................8.5 13.9 Line 13.7 as a % of Line 10.7, Col. 6, Section 10.................................... ...........................0.1

2 Over 1 Year Through 5 Years

3 Over 5 Years Through 10 Years

4 Over 10 Years Through 20 Years

5 Over 20 Years

6 Total Current Year

7 Column 6 as a % of Line 10.7

8 Total from Column 6 Prior Year

9 % from Col. 7 Prior Year

10 Total Publicly Traded

11 Total Privately Placed

............574,669,939 ............648,911,807 ............802,397,704 ..............92,408,775 ..........2,308,177,649 .........................91.6 ..............XXX............ ..............XXX............ ..........2,295,535,184 ..............12,642,465 ..............37,128,312 ..............23,719,486 ..............22,670,900 ..............12,696,082 ............108,824,735 ...........................4.3 ..............XXX............ ..............XXX............ ............105,073,387 ................3,751,348 ..............41,858,404 ................3,928,806 ..............................0 ..............................0 ..............45,787,210 ...........................1.8 ..............XXX............ ..............XXX............ ..............45,787,210 ..............................0 ..............................0 ..............................0 ................1,004,931 ..............................0 ................1,004,931 ...........................0.0 ..............XXX............ ..............XXX............ ................1,004,931 ..............................0 ..............11,089,780 ..............................0 ............664,746,436 .........................26.4

................2,006,743 ..............................0 ............678,566,843 .........................26.9

................9,962,570 ..............................0 ............836,036,104 .........................33.2

..............32,670,539 ..............................0 ............137,775,397 ...........................5.5

..............55,729,632 ..............................0 ..........2,519,524,157 .......................100.0

...........................2.2 ...........................0.0 .......................100.0 ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............55,729,632 ..............................0 ..........2,503,130,345 .........................99.3

..............................0 ..............................0 ..............16,393,813 ...........................0.7

............232,362,351 ............811,593,997 ............656,214,913 ............118,277,392 ..............XXX............ ..............XXX............ ..........2,060,352,343 .........................89.8 ..........2,049,084,031 ..............11,268,312 ..............42,999,271 ..............28,640,978 ..............26,383,256 ................4,523,772 ..............XXX............ ..............XXX............ ............116,205,061 ...........................5.1 ............112,436,365 ................3,768,696 ..............................0 ..............................0 ..............................0 ..............................0 ..............XXX............ ..............XXX............ ..............................0 ...........................0.0 ..............................0 ..............................0 ..............39,205,956 ................4,684,323 ................2,787,142 ................7,500,000 ..............XXX............ ..............XXX............ ..............54,177,421 ...........................2.4 ..............53,757,235 ...................420,186 ..............................0 ................9,975,578 ............324,543,156 .........................14.1

..............................0 ................5,324,937 ............850,244,234 .........................37.0

..............................0 ..............12,886,834 ............698,272,146 .........................30.4

..............................0 ..............36,266,118 ............166,567,282 ...........................7.3

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............................0 ..............64,453,466 ..........2,295,188,291 .......................100.0

...........................0.0 ...........................2.8 .......................100.0 ..............XXX............

..............................0 ..............64,453,466 ..........2,279,731,097 .........................99.3

..............................0 ..............................0 ..............15,457,195 ...........................0.7

............568,917,876 ............644,549,167 ............801,260,317 ..............92,408,775 ..........2,295,535,184 .........................91.1 ..........2,049,084,031 .........................89.3 ..........2,295,535,184 ..............XXX............ ..............37,128,312 ..............23,719,486 ..............18,919,552 ..............12,696,082 ............105,073,387 ...........................4.2 ............112,436,365 ...........................4.9 ............105,073,387 ..............XXX............ ..............41,858,404 ................3,928,806 ..............................0 ..............................0 ..............45,787,210 ...........................1.8 ..............................0 ...........................0.0 ..............45,787,210 ..............XXX............ ..............................0 ..............................0 ................1,004,931 ..............................0 ................1,004,931 ...........................0.0 ..............53,757,235 ...........................2.3 ................1,004,931 ..............XXX............ ..............11,089,780 ..............................0 ............658,994,373 .........................26.3 .........................26.2

................2,006,743 ..............................0 ............674,204,202 .........................26.9 .........................26.8

................9,962,570 ..............................0 ............831,147,370 .........................33.2 .........................33.0

..............32,670,539 ..............................0 ............137,775,397 ...........................5.5 ...........................5.5

..............55,729,632 ..............................0 ..........2,503,130,345 .......................100.0 .........................99.3

...........................2.2 ...........................0.0 .........................99.3 ..............XXX............ ..............XXX............

..............................0 ..............64,453,466 ..........2,279,731,097 ..............XXX............ ..............XXX............

...........................0.0 ...........................2.8 .........................99.3 ..............XXX............ ..............XXX............

..............55,729,632 ..............................0 ..........2,503,130,345 .......................100.0 .........................99.3

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

................5,752,063 ................4,362,641 ................1,137,387 ..............................0 ..............12,642,465 ...........................0.5 ..............11,268,312 ...........................0.5 ..............XXX............ ..............12,642,465 ..............................0 ..............................0 ................3,751,348 ..............................0 ................3,751,348 ...........................0.1 ................3,768,696 ...........................0.2 ..............XXX............ ................3,751,348 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ..............................0 ...........................0.0 ..............XXX............ ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ..............................0 ...........................0.0 ...................420,186 ...........................0.0 ..............XXX............ ..............................0 ..............................0 ..............................0 ................5,752,063 .........................35.1 ...........................0.2

..............................0 ..............................0 ................4,362,641 .........................26.6 ...........................0.2

..............................0 ..............................0 ................4,888,735 .........................29.8 ...........................0.2

..............................0 ..............................0 ..............................0 ...........................0.0 ...........................0.0

..............................0 ..............................0 ..............16,393,813 .......................100.0 ...........................0.7

...........................0.0 ...........................0.0 ...........................0.7 ..............XXX............ ..............XXX............

..............................0 ..............................0 ..............15,457,195 ..............XXX............ ..............XXX............

...........................0.0 ...........................0.0 ...........................0.7 ..............XXX............ ..............XXX............

..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............ ..............XXX............

..............................0 ..............................0 ..............16,393,813 .......................100.0 ...........................0.7

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE DA - PART 2 - VERIFICATION BETWEEN YEARS Short-Term Investments 1

Total

2

Bonds

3

4

5

Mortgage Loans

Other Short-term Investment Assets (a)

Investments in Parent, Subsidiaries and Affiliates

1. Book/adjusted carrying value December 31 of prior year...................................................................................................... ..........................................98,924,731 ..........................................98,924,731 ..........................................................0 ..........................................................0 ..........................................................0 2. Cost of short-term investments acquired................................................................................................................................ .....................................1,800,887,343 .....................................1,800,887,343 ..........................................................0 ..........................................................0 ..........................................................0 3. Increase (decrease) by adjustment........................................................................................................................................ ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 4. Increase (decrease) by foreign exchange adjustment........................................................................................................... ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 5. Total profit (loss) on disposal of short-term investments........................................................................................................ ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 6. Consideration received on disposal of short-term investments.............................................................................................. .....................................1,791,440,334 .....................................1,791,440,334 ..........................................................0 ..........................................................0 ..........................................................0

29

7. Book/adjusted carrying value, current year............................................................................................................................ ........................................108,371,740 ........................................108,371,740 ..........................................................0 ..........................................................0 ..........................................................0 8. Total valuation allowance....................................................................................................................................................... ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 9. Subtotal (Lines 7 plus 8)......................................................................................................................................................... ........................................108,371,740 ........................................108,371,740 ..........................................................0 ..........................................................0 ..........................................................0 10. Total nonadmitted amounts.................................................................................................................................................... ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 ..........................................................0 11. Statement value (Lines 9 minus 10)....................................................................................................................................... ........................................108,371,740 ........................................108,371,740 ..........................................................0 ..........................................................0 ..........................................................0 12. Income collected during year ................................................................................................................................................ ............................................4,484,029 ............................................4,484,029 ..........................................................0 ..........................................................0 ..........................................................0 13. Income earned during year.................................................................................................................................................... ............................................4,484,029 ............................................4,484,029 ..........................................................0 ..........................................................0 ..........................................................0 (a) Indicate the category of such assets, for example, joint ventures, transportation equipment:..........................................

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE DB - PART A - VERIFICATION BETWEEN YEARS Options, Caps, Floors and Insurance Futures Options Owned 1.

Book value, December 31, prior year (Line 8, prior year).........................................................................................................................................................................

0

2.

Cost/option premium (Section 2, Column 7).............................................................................................................................................................................................

0

3.

Increase/(decrease) by adjustment (Section 1, Column 12) plus (Section 3, Column 13)........................................................................................................................

0

4.

Gain/(loss) on termination:

NONE

4.1

Recognized (Section 3, Column 14)..............................................................................................................................................

0

4.2

Used to adjust basis of hedged item (Section 3, Column 15)........................................................................................................

0

0

5.

Consideration received on terminations (Section 3, Column 12)..............................................................................................................................................................

0

6.

Used to adjust basis on open contracts (Section 1, Column 13)..............................................................................................................................................................

0

7.

Disposition of deferred amount on contracts terminated in prior year:

8.

7.1

Recognized....................................................................................................................................................................................

0

7.2

Used to adjust basis of hedged item..............................................................................................................................................

0

Book value, December 31, current year (Lines 1 + 2 + 3 + 4 - 5 - 6 - 7)...................................................................................................................................................

0 0

SCHEDULE DB - PART B - VERIFICATION BETWEEN YEARS Options, Caps, Floors and Insurance Futures Options Written 1.

Book value, December 31, prior year (Line 8, prior year).........................................................................................................................................................................

0

2.

Consideration received (Section 2, Column 7)..........................................................................................................................................................................................

0

3.

Increase/(decrease) by adjustment (Section 1, Column 12) plus (Section 3, Column 13)........................................................................................................................

0

4.

Gain/(loss) on termination:

5.

4.1

Recognized (Section 3, Column 14)..............................................................................................................................................

0

4.2

Used to adjust basis (Section 3, Column 15).................................................................................................................................

0

0

Consideration paid on terminations (Section 3, Column 12).....................................................................................................................................................................

0

6.

Used to adjust basis on open contracts (Section 1, Column 13)..............................................................................................................................................................

0

7.

Disposition of deferred amount on contracts terminated in prior year:

8.

NONE

7.1

Recognized....................................................................................................................................................................................

0

7.2

Used to adjust basis.......................................................................................................................................................................

0

Book value, December 31, current year....................................................................................................................................................................................................

30

0 0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE DB - PART C - VERIFICATION BETWEEN YEARS Swaps and Forwards 1.

Book value, December 31, prior year (Line 8, prior year).........................................................................................................................................................................

0

2.

Cost or (consideration received) (Section 2, Column 7)...........................................................................................................................................................................

0

3.

Increase/(decrease) by adjustment (Section 1, Column 12) plus (Section 3, Column 13)........................................................................................................................

0

4.

Gain/(loss) on termination:

5.

NONE

4.1

Recognized (Section 3, Column 14)..............................................................................................................................................

0

4.2

Used to adjust basis of hedged item (Section 3, Column 15)........................................................................................................

0

0

Consideration received (or paid) on terminations (Section 3, Column 12)................................................................................................................................................

0

6.

Used to adjust basis of hedged item on open contracts (Section 1, Column 13)......................................................................................................................................

0

7.

Disposition of deferred amount on contracts terminated in prior year:

8.

7.1

Recognized....................................................................................................................................................................................

0

7.2

Used to adjust basis of hedged item..............................................................................................................................................

0

Book value, December 31, current year (Lines 1 + 2 + 3 + 4 - 5 - 6 - 7)...................................................................................................................................................

0 0

SCHEDULE DB - PART D - VERIFICATION BETWEEN YEARS Futures Contracts and Insurance Futures Contracts 1.

Book value, December 31, prior year (Line 8, prior year).........................................................................................................................................................................

845,953

2.

Change in total variation margin on open contracts (difference between years - Section 1, Column 6)...................................................................................................

845,953

3.1 Change in variation margin on open contracts used to adjust basis of hedged item (Section 1, Column 11)..........................................................................................

0

3.2 Change in variation margin on open contracts recognized (difference between years - Section 1, Column 10)......................................................................................

0

4.1 Variation margin on contracts terminated during the year (Section 3, Column 6)...................................................................................

2,691,837

4.2 Less: 4.21 Gain/(loss) recognized in current year (Section 3, Column 11)........................................................

2,691,837

4.22 Gain/(loss) used to adjust basis of hedge (Section 3, Column 12)...................................................

0

2,691,837

4.3 Subtotal (Line 4.1 minus Line 4.2)............................................................................................................................................................................................................ 5.1 Net additions to cash deposits (Section 2, Column 7).............................................................................................................................

0

5.2 Less: Net reductions to cash deposits (Section 3, Column 9)................................................................................................................

0

6.

Subtotal (Lines 1 - 2 + 3.1 + 3.2 - 4.3 + 5.2).............................................................................................................................................................................................

7.

Disposition of gain/(loss) on contracts terminated in prior year:

8.

7.1

Recognized....................................................................................................................................................................................

0

7.2

Used to adjust basis of hedged item..............................................................................................................................................

0

Book value, December 31, current year (Lines 6 + 7.1 + 7.2)..................................................................................................................................................................

0 0 0

0 0

SCHEDULE DB - PART E - VERIFICATION Statement Value and Fair Value of Open Contracts Statement Value 1.

Part A, Section 1, Column 10...................................................................................................................................................................

0

2.

Part B, Section 1, Column 10...................................................................................................................................................................

0

3.

Part C, Section 1, Column 10..................................................................................................................................................................

0

4.

Part D, Section 1, Column 9 - 12.............................................................................................................................................................

0

5.

Lines (1) - (2) + (3) + (4)............................................................................................................................................................................................................................

6.

Part E, Section 1, Column 4.....................................................................................................................................................................

0

7.

Part E, Section 1, Column 5.....................................................................................................................................................................

0

8.

Lines (5) - (6) - (7).....................................................................................................................................................................................................................................

9.

NONE

0

Fair Value

Part A, Section 1, Column 11...................................................................................................................................................................

0

10. Part B, Section 1, Column 11...................................................................................................................................................................

0

11. Part C, Section 1, Column 11..................................................................................................................................................................

0

12. Part D, Section 1, Column 9....................................................................................................................................................................

0

13. Lines (9) - (10) + (11) + (12)...................................................................................................................................................................................................................... 14. Part E, Section 1, Column 7.....................................................................................................................................................................

0

15. Part E, Section 1, Column 8.....................................................................................................................................................................

0

16. Lines (13) - (14) - (15)...............................................................................................................................................................................................................................

31

0

0

0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

Sch. DB-Pt. F-Sn. 1 NONE

Sch. DB-Pt. F-Sn. 2 NONE

32, 33

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE F - PART 1 Assumed Reinsurance as of December 31, Current Year (000 Omitted) 1

2

Federal ID Number

NAIC Company Code

3

Name of Reinsured

4

Domiciliary Jurisdiction

34

Affiliated - U. S. Intercompany Pooling: 06-0566050.... 25658...... TRAVELERS INDEMNITY COMPANY.......................................................... ......CT........... 0199999. Affiliated - U. S. Intercompany Pooling..................................................................................................... Affiliated - U.S. Non-Pool: 06-0907370.... 31194...... TRAVELERS CASUALTY AND SURETY OF AMERICA.............................. ......CT........... 0299999. Affiliated - U.S. Non-Pool.......................................................................................................................... 0499999. Total Affiliates............................................................................................................................................ Other U. S. Unaffiliated Insurers: 75-0773333.... 29246...... CONSUMER COUNTY MUTUAL INSURANCE CO...................................... ......TX........... 0599998. Other U. S. Unaffiliated Insurers for which the total of column 8 is less than $100,000........................... 0599999. Other U. S. Unaffiliated Insurers............................................................................................................... Pools and Associations - Mandatory Pools: AA-9991300... 0.............. ALABAMA BEACH PLAN............................................................................... ......AL........... AA-9991216... 0.............. MISSISSIPPI FAIR PLAN.............................................................................. ......MS.......... AA-9991222... 0.............. OHIO FAIR PLAN........................................................................................... ......OH.......... AA-9991225... 0.............. RHODE ISLAND FAIR PLAN......................................................................... ......RI............ 0699998. Pools and Associations for which the total of column 8 is less than $100,000-Mandatory....................... 0699999. Pools and Associations - Mandatory Pools............................................................................................... Pools and Associations - Voluntary Pools: 0799998. Pools and Associations for which the total of column 8 is less than $100,000-Voluntary......................... 0799999. Pools and Associations - Voluntary Pools................................................................................................. 0899999. Total Pools and Associations.................................................................................................................... 9999999. Totals........................................................................................................................................................

5

Assumed Premium

6

Reinsurance On 7

Paid Losses and Loss Adjustment Expenses

Known Case Losses and LAE

8 Cols. 6+7

9

10

Contingent Commissions Payable

Assumed Premiums Receivable

11

12

13

Unearned Premium

Funds Held by or Deposited With Reinsured Companies

Letters of Credit Posted

14 Amount of Assets Pledged or Compensating Balances to Secure Letters of Credit

15 Amount of Assets Pledged or Collateral Held in Trust

.............839,929 ........................0 .............739,628 .............739,628 ...............20,106 .............228,992 .............382,914 ........................0 ........................0 ...........................0 ........................0 .............839,929 ........................0 .............739,628 .............739,628 ...............20,106 .............228,992 .............382,914 ........................0 ........................0 ...........................0 ........................0 ......................50 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ...........................0 ........................0 ......................50 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ........................0 ...........................0 ........................0 .............839,979 ........................0 .............739,628 .............739,628 ...............20,106 .............228,992 .............382,914 ........................0 ........................0 ...........................0 ........................0 .............212,547 ........................0 ...............28,532 ...............28,532 ........................0 ...............55,192 ...............87,081 ........................0 ........................0 ...........................0 ........................0 ....................773 ........................0 ........................0 ........................0 ........................0 ........................0 .................1,169 ........................0 ........................0 ...........................0 ........................0 .............213,320 ........................0 ...............28,532 ...............28,532 ........................0 ...............55,192 ...............88,250 ........................0 ........................0 ...........................0 ........................0 ....................138 ....................189 ....................432 ....................590 .................7,895 .................9,244

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

....................377 ...............13,326 ....................101 ....................369 ....................671 ...............14,844

....................377 ...............13,326 ....................101 ....................369 ....................671 ...............14,844

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

....................216 ....................298 ....................224 ....................423 .................3,849 .................5,009

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

...........................0 ...........................0 ...........................0 ...........................0 ...........................0 ...........................0

........................0 ........................0 ........................0 ........................0 ........................0 ........................0

....................110 ....................110 .................9,354 ..........1,062,652

........................0 ........................0 ........................0 ........................0

......................84 ......................84 ...............14,928 .............783,088

......................84 ......................84 ...............14,928 .............783,088

........................0 ........................0 ........................0 ...............20,106

........................0 ........................0 ........................0 .............284,183

......................61 ......................61 .................5,070 .............476,234

........................0 ........................0 ........................0 ........................0

........................0 ........................0 ........................0 ........................0

...........................0 ...........................0 ...........................0 ...........................0

........................0 ........................0 ........................0 ........................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE F - PART 2 Premium Portfolio Reinsurance Effected or (Canceled) during Current Year 1 Federal ID Number

2 NAIC Company Code

3

4

5

6

Name of Company

Date of Contract

Original Premium

Reinsurance Premium

NONE

35

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE F - PART 3 Ceded Reinsurance as of December 31, Current Year (000 Omitted) 1

Federal ID Number

2

NAIC Company Code

3

Name of Reinsurer

4

Domiciliary Jurisdiction

5 6 Reinsurance Contracts Ceding 75% or More of Direct Reinsurance Premiums Premiums Written Ceded

Authorized Affiliates-U.S. Intercompany Pooling 06-0566050 25658....... TRAVELERS INDEMNITY COMPANY........................................................... ......CT.......... ........................ 0199999. Total Authorized Affiliates - U.S. Intercompany Pooling....................................................................................................... Affiliates-U.S. Non-Pool 06-0907370 31194....... TRAVELERS CASUALTY AND SURETY OF AMERICA................................ ......CT.......... ........................ 0299999. Total Authorized Affiliates - U.S. Non-Pool.......................................................................................................................... 0499999. Total Authorized Affiliates................................................................................................................................................... 0999999. Total Authorized.................................................................................................................................................................. 1999999. Total Authorized and Unauthorized..................................................................................................................................... 9999999. Totals..................................................................................................................................................................................

7

Paid Losses

8

9

Paid LAE

Known Case Loss Reserves

Reinsurance Recoverable on 10 11 12 Known Case LAE Reserves

IBNR Loss Reserves

IBNR LAE Reserves

13

14

Unearned Contingent Premiums Commissions

15 Cols. 7 thru 14 Totals

Reinsurance Payable 16 17 Ceded Balances Payable

18

19

Net Amount Funds Held Other Recoverable By Company Amounts From Under Due to Reinsurers Reinsurance Reinsurers Col. 15-[16+17] Treaties

...1,683,663 ................0 ................0 ......483,171 ........32,467 ......495,265 ........84,741 ......816,465 ........33,598 ...1,945,707 ........17,323 ................0 .......1,928,384 ..................0 ...1,683,663 ................0 ................0 ......483,171 ........32,467 ......495,265 ........84,741 ......816,465 ........33,598 ...1,945,707 ........17,323 ................0 .......1,928,384 ..................0 ..............73 ..............73 ...1,683,736 ...1,683,736 ...1,683,736 ...1,683,736

................0 ................0 ................0 ................0 ................0 ................0

................0 ................0 ................0 ................0 ................0 ................0

Report the five largest provisional commission rates included in the cedant's reinsurance treaties. The commission rate to be reported is by contract with ceded premium in excess of $50,000. 1 2 3 Commission Ceded Name of Reinsurer Rate Premium (1) ......................................................................................................................................... ..................0.0 ................0 (2) ......................................................................................................................................... ..................0.0 ................0 (3) ......................................................................................................................................... ..................0.0 ................0 (4) ......................................................................................................................................... ..................0.0 ................0 (5) ......................................................................................................................................... ..................0.0 ................0

Note B:

Report the five largest reinsurance recoverables reported in Column 15, due from any one reinsurer (based on the total recoverables, Line 9999999, Column 15), the amount of ceded premium, and indicate whether the recoverables are due from an affiliated insurer. 1 2 3 4 Total Ceded Name of Reinsurer Recoverables Premiums Affiliated (1) ......................................................................................................................................... .....................0 ................0 Yes [ ] No [ ] (2) ......................................................................................................................................... .....................0 ................0 Yes [ ] No [ ] (3) ......................................................................................................................................... .....................0 ................0 Yes [ ] No [ ] (4) ......................................................................................................................................... .....................0 ................0 Yes [ ] No [ ] (5) ......................................................................................................................................... .....................0 ................0 Yes [ ] No [ ]

36

Note A:

................0 ................0 ......483,171 ......483,171 ......483,171 ......483,171

................0 ................0 ........32,467 ........32,467 ........32,467 ........32,467

.............139 .............139 ......495,404 ......495,404 ......495,404 ......495,404

..............10 ..............10 ........84,751 ........84,751 ........84,751 ........84,751

................9 ................9 ......816,474 ......816,474 ......816,474 ......816,474

................0 ................0 ........33,598 ........33,598 ........33,598 ........33,598

.............158 .............158 ...1,945,865 ...1,945,865 ...1,945,865 ...1,945,865

................0 ................0 ........17,323 ........17,323 ........17,323 ........17,323

................0 ................0 ................0 ................0 ................0 ................0

.................158 .................158 .......1,928,542 .......1,928,542 .......1,928,542 .......1,928,542

..................0 ..................0 ..................0 ..................0 ..................0 ..................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

Sch. F-Pt. 4 NONE

Sch. F-Pt. 5 NONE

Sch. F-Pt. 6 NONE

Sch. F-Pt. 7 NONE

37, 38, 39, 40

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE F - PART 8 Restatement of Balance Sheet to Identify Net Credit for Reinsurance 1 As Reported (Net of Ceded)

2 Restatement Adjustments

3 Restated (Gross of Ceded)

ASSETS (Page 2, Col. 3) 1.

Cash and invested assets (Line 10)............................................................................................ .........................3,247,202,704 ..............................................0 .........................3,247,202,704

2.

Premiums and considerations (Line 13)...................................................................................... ............................246,217,228 ..............................................0 ............................246,217,228

3.

Reinsurance recoverable on loss and loss adjustment expense payments (Line 14.1)............. ..............................................0 ..............................................0 ..............................................0

4.

Funds held by or deposited with reinsured companies (Line 14.2)............................................. ..............................................0 ..............................................0 ..............................................0

5.

Other assets................................................................................................................................ ............................106,140,859 ..............................................0 ............................106,140,859

6.

Net amount recoverable from reinsurers..................................................................................... ..............................................0 .........................1,928,542,242 .........................1,928,542,242

7.

Protected cell assets (Line 25).................................................................................................... ..............................................0 ..............................................0 ..............................................0

8.

Totals (Line 26)........................................................................................................................... .........................3,599,560,790 .........................1,928,542,242 .........................5,528,103,032 LIABILITIES (Page 3)

9.

Losses and loss adjustment expenses (Lines 1 through 3)........................................................ .........................1,821,613,098 .........................1,095,793,096 .........................2,917,406,194

10.

Taxes, expenses, and other obligations (Lines 4 through 8)...................................................... ..............................74,377,494 ..............................33,598,522 ............................107,976,016

11.

Unearned premiums (Line 9)...................................................................................................... ............................382,914,061 ............................816,473,455 .........................1,199,387,516

12.

Advance premiums (Line 10)...................................................................................................... ..............................................0 ..............................................0 ..............................................0

13.

Dividends declared and unpaid (Line 11.1 and 11.2).................................................................. ................................1,081,775 ..............................................0 ................................1,081,775

14.

Ceded reinsurance premiums payable (net of ceding commissions) (Line 12).......................... ..............................17,322,831 .............................(17,322,831) .............................................(0)

15.

Funds held by company under reinsurance treaties (Line 13).................................................... ..............................................0 ..............................................0 ..............................................0

16.

Amounts withheld or retained by company for account of others (Line 14)................................ ................................4,975,403 ..............................................0 ................................4,975,403

17.

Provision for reinsurance (Line 16)............................................................................................. ..............................................0 ..............................................0 ..............................................0

18.

Other liabilities (Lines 15 and 17 through 23)............................................................................. ..............................21,057,897 ..............................................0 ..............................21,057,897

19.

Total liabilities excluding protected cell business (Line 24)......................................................... .........................2,323,342,559 .........................1,928,542,242 .........................4,251,884,801

20.

Protected cell liabilities (Line 25)................................................................................................. ..............................................0 ..............................................0 ..............................................0

21.

Surplus as regards policyholders (Line 35)................................................................................. .........................1,276,218,231 ......................XXX.................... .........................1,276,218,231

22.

Totals (Line 36)........................................................................................................................... .........................3,599,560,790 .........................1,928,542,242 .........................5,528,103,032

NOTE: Is the restatement of this exhibit the result of grossing up balances ceded to affiliates under 100 percent reinsurance or pooling arrangements?..Yes [ X ] No [ ] If yes, give full explanation: The Company participates in the St. Paul Travelers Reinsurance Pool, an intercompany reinsurance pooling arrangement (see Note 26). Under the terms of the reinsurance agreement, the property-casualty underwriting risks of the participants are reinsured with The Travelers Indemnity Company. After the reinsurance from/to third parties and other affiliates, the business retained is reinsured from The Travelers Indemnity Company to the other participants on a pro rata basis. A significant portion of the reinsurance ceded balances of the Company are attributable to this pooling arrangement.

41

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

Sch. H-Pt. 1 NONE

Sch. H-Pt. 2 NONE

Sch. H-Pt. 3 NONE

Sch. H-Pt. 4 NONE

Sch. H-Pt. 5 NONE

42, 43, 44

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES SCHEDULE P - PART 1 - SUMMARY ($000 Omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior......... .........XXX....... .........XXX....... .........XXX....... ........47,731 ........10,367 ........13,003 .............818 ..........8,081 .............778 .............296 ...........56,852 ......XXX....... 2. 1997......... .........769,110

.........140,736 .........628,374 ......475,458 ........80,290 ........51,164 ..........5,842 ........43,086 ..........3,023 ........15,578 .........480,553 ......XXX.......

3. 1998......... .........758,574 .........128,093 .........630,481 ......568,418 ......117,538 ........54,124 ..........7,428 ........41,488 ..........3,572 ........16,122 .........535,493 ......XXX....... 4. 1999......... .........739,925 .........128,087 .........611,838 ......583,298 ......146,661 ........56,378 ..........8,653 ........31,286 ..........4,163 ........16,646 .........511,485 ......XXX....... 5. 2000......... .........764,911 .........165,993 .........598,917 ......531,504 ......133,867 ........55,122 ..........7,780 ........30,380 ..........4,670 ........18,853 .........470,690 ......XXX....... 6. 2001......... .........823,829 .........152,999 .........670,830 ......607,358 ......166,685 ........53,359 ..........8,953 ........33,278 ..........5,029 ........15,327 .........513,329 ......XXX....... 7. 2002......... .........919,269 .........184,951 .........734,318 ......399,434 ........77,684 ........42,495 ..........4,590 ........27,624 ..........3,622 ........13,761 .........383,656 ......XXX....... 8. 2003......... ......1,005,156 .........211,828 .........793,328 ......369,187 ........55,232 ........33,207 ..........2,761 ........26,538 ..........2,695 ........12,502 .........368,244 ......XXX....... 9. 2004......... ......1,017,606 .........186,359 .........831,247 ......322,069 ........46,467 ........22,271 ..........1,840 ........29,637 ..........2,370 ........11,538 .........323,300 ......XXX....... 10. 2005......... .........958,736 .........134,944 .........823,793 ......333,085 ........78,314 ........13,107 ..........1,386 ........29,823 ..........1,714 ........10,200 .........294,601 ......XXX....... 11. 2006......... .........925,259 ...........98,165 .........827,095 ......152,911 ........10,141 ..........4,603 .............235 ........28,661 .............515 ..........6,018 .........175,284 ......XXX....... 12. Totals....... .........XXX....... .........XXX....... .........XXX....... ...4,390,453 ......923,245 ......398,833 ........50,285 ......329,882 ........32,151 ......136,842 ......4,113,488 ......XXX.......

Adjusting and Other 23 24 25 Defense and Cost Containment Unpaid Unpaid Total Case Basis Bulk + IBNR Case Basis Bulk + IBNR 21 22 Net Number of 13 14 15 16 17 18 19 20 Salvage Losses Claims Direct Direct Direct Direct Direct and and Outstandingand and and and and Subrogation Expenses Direct and Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Assumed Ceded Anticipated Unpaid Assumed 1. Prior..... ......265,945 ........82,263 ......317,946 ........63,012 ........29,392 ..........2,373 ........57,392 ..........3,756 ........21,849 .............185 .............351 .........540,935 ......XXX....... Losses Unpaid

2. 1997..... ........24,966 ........10,476 ........15,907 .............841 ..........4,028 ..........2,311 ..........2,400 .............217 ..........2,125 .............116 .............150 ...........35,465 ......XXX....... 3. 1998..... ........23,700 ..........5,185 ........18,366 ..........2,870 ..........2,293 .............457 ..........3,322 .............283 ..........1,347 .................8 .............282 ...........40,227 ......XXX....... 4. 1999..... ........34,043 ..........7,970 ........26,674 ..........7,800 ..........3,673 .............927 ..........3,953 .............158 ..........1,919 .................6 .............469 ...........53,401 ......XXX....... 5. 2000..... ........53,181 ........11,392 ........45,141 ........11,601 ..........5,017 ..........1,152 ..........4,512 .............823 ..........1,992 .................5 .............922 ...........84,871 ......XXX....... 6. 2001..... ........81,409 ........32,531 ........54,011 ........20,614 ..........7,042 ..........2,274 ..........6,957 ..........1,802 ..........4,009 ...............25 ..........2,071 ...........96,183 ......XXX....... 7. 2002..... ........60,573 ........12,652 ........55,972 ........18,313 ..........6,574 .............434 ..........8,759 ..........2,309 ..........4,570 .............(12) ..........2,208 .........102,752 ......XXX....... 8. 2003..... ........67,773 ........10,510 ........64,149 ........21,548 ..........8,382 .............335 ........15,108 ..........3,981 ..........8,371 .............(33) ..........4,945 .........127,443 ......XXX....... 9. 2004..... ........79,721 ........15,270 ........94,446 ........20,082 ..........9,394 .............520 ........25,984 ..........2,666 ..........6,843 .............(66) ..........6,460 .........177,916 ......XXX....... 10. 2005..... ........98,394 ........28,049 ......175,840 ........47,627 ..........9,114 .............591 ........28,633 ..........2,670 ..........8,435 ...........(124) ..........8,537 .........241,603 ......XXX....... 11. 2006..... ........98,169 ........13,135 ......203,394 ........25,774 ..........7,905 .............255 ........35,271 ..........1,931 ........17,011 ...........(162) ........12,054 .........320,817 ......XXX....... 12. Totals... ......887,874 ......229,433 ...1,071,846 ......240,081 ........92,816 ........11,628 ......192,292 ........20,596 ........78,471 .............(53) ........38,450 ......1,821,613 ......XXX.......

34 Loss and Loss Expense Percentage Nontabular Net Balance Sheet (Incurred/Premiums Earned) Discount Reserves after Discount 26 28 29 30 31 32 33 Inter-Company 35 36 Direct Direct Pooling Loss and and Loss Participation Losses Expenses Assumed Ceded Net Assumed Ceded Net Loss Expense Percentage Unpaid Unpaid 1. Prior.. ........XXX......... .........XXX........ .........XXX........ .........XXX........ .........XXX........ .........XXX........ .....................0 .....................0 ........XXX......... ..........438,616 ..........102,319 Total Losses and Loss Expenses Incurred 27

2. 1997. ..........619,134 ..........103,116 ..........516,018 ................80.5 ................73.3 ................82.1 .....................0 .....................0 ................5.03 ............29,556 ..............5,909 3. 1998. ..........713,060 ..........137,340 ..........575,720 ................94.0 ..............107.2 ................91.3 .....................0 .....................0 ................5.03 ............34,011 ..............6,215 4. 1999. ..........741,223 ..........176,337 ..........564,885 ..............100.2 ..............137.7 ................92.3 .....................0 .....................0 ................5.03 ............44,947 ..............8,454 5. 2000. ..........726,851 ..........171,290 ..........555,561 ................95.0 ..............103.2 ................92.8 .....................0 .....................0 ................5.03 ............75,328 ..............9,543 6. 7. 8. 9.

2001. 2002. 2003. 2004.

..........847,424 ..........606,001 ..........592,714 ..........590,366

..........237,912 ..........119,593 ............97,027 ............89,150

..........609,512 ..........486,408 ..........495,687 ..........501,216

..............102.9 ................65.9 ................59.0 ................58.0

..............155.5 ................64.7 ................45.8 ................47.8

................90.9 ................66.2 ................62.5 ................60.3

.....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

................5.03 ................5.03 ................5.03 ................5.03

............82,275 ............85,580 ............99,864 ..........138,815

............13,908 ............17,172 ............27,579 ............39,101

10. 2005. ..........696,432 ..........160,228 ..........536,204 ................72.6 ..............118.7 ................65.1 .....................0 .....................0 ................5.03 ..........198,558 ............43,044 11. 2006. ..........547,926 ............51,824 ..........496,102 ................59.2 ................52.8 ................60.0 .....................0 .....................0 ................5.03 ..........262,655 ............58,163 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .......1,490,205 ..........331,408 Note: Parts 2 and 4 are gross of all discounting, including tabular discounting. Part 1 is gross of only nontabular discounting, which is reported in Columns 32 and 33 of Part 1. The tabular discount, if any, is reported in the Notes to Financial Statements which will reconcile Part 1 with Parts 2 and 4.

45

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 2 - SUMMARY Years in Which Losses Were Incurred

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1

1997

1998

1999

2000

2001

2002

2003

2004

DEVELOPMENT 11 12

10

2005

One Year

2006

Two Year

1. Prior..... .....1,375,959 .....1,331,684 .....1,306,066 .....1,266,708 .....1,239,711 .....1,384,987 .....1,395,335 .....1,462,938 .....1,518,387 .....1,537,384 ..........18,997 ..........74,446 2. 1997.... ........459,931 ........467,112 ........461,366 ........459,394 ........463,724 ........463,937 ........465,938 ........469,884 ........473,399 ........474,990 ............1,591 ............5,105 3. 1998.... ........XXX....... ........487,552 ........488,759 ........497,689 ........510,453 ........519,434 ........524,004 ........530,560 ........534,905 ........537,448 ............2,543 ............6,887 4. 1999.... ........XXX....... ........XXX....... ........450,830 ........461,053 ........481,520 ........500,772 ........518,051 ........529,727 ........530,700 ........537,046 ............6,346 ............7,319 5. 2000.... ........XXX....... ........XXX....... ........XXX....... ........432,473 ........450,230 ........464,050 ........490,629 ........517,375 ........521,553 ........529,284 ............7,731 ..........11,909 6. 2001.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........544,419 ........546,494 ........567,250 ........577,973 ........571,286 ........578,919 ............7,632 ...............946 7. 2002.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........478,512 ........435,676 ........448,464 ........455,588 ........459,860 ............4,272 ..........11,396 8. 2003.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........486,253 ........459,490 ........467,510 ........466,597 .............(913) ............7,107 9. 2004.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........541,808 ........491,296 ........470,763 ........(20,533) ........(71,044) 10. 2005.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........549,647 ........502,587 ........(47,060) ........XXX....... 11. 2006.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........453,763 ........XXX....... ........XXX....... 12. Totals...... ........(19,393) ..........54,072

SCHEDULE P - PART 3 - SUMMARY Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1 Years in Which Losses Were Incurred

1997

1998

1999

2000

2001

2002

2003

2004

10

2005

2006

11 Number of Claims Closed With Loss Payment

12 Number of Claims Closed Without Loss Payment

1. Prior..... ........000........ ........235,834 ........405,461 ........529,529 ........628,469 ........725,699 ........834,248 ........887,371 ........944,784 ........994,333 ........XXX....... ........XXX....... 2. 1997.... ........138,184 ........231,549 ........290,776 ........343,004 ........382,083 ........405,169 ........423,224 ........431,730 ........435,932 ........440,490 ........XXX....... ........XXX....... 3. 1998.... ........XXX....... ........162,104 ........265,423 ........342,123 ........396,129 ........436,302 ........463,748 ........479,302 ........488,143 ........497,576 ........XXX....... ........XXX....... 4. 1999.... ........XXX....... ........XXX....... ........157,790 ........269,268 ........348,926 ........411,363 ........441,977 ........460,032 ........474,992 ........484,362 ........XXX....... ........XXX....... 5. 2000.... ........XXX....... ........XXX....... ........XXX....... ........148,916 ........257,351 ........333,441 ........388,187 ........404,914 ........428,582 ........444,980 ........XXX....... ........XXX....... 6. 2001.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........158,342 ........287,856 ........367,732 ........423,205 ........464,439 ........485,080 ........XXX....... ........XXX....... 7. 2002.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........134,824 ........226,501 ........281,515 ........327,036 ........359,655 ........XXX....... ........XXX....... 8. 2003.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........141,053 ........241,754 ........306,509 ........344,401 ........XXX....... ........XXX....... 9. 2004.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........143,583 ........246,945 ........296,033 ........XXX....... ........XXX....... 10. 2005.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........154,181 ........266,493 ........XXX....... ........XXX....... 11. 2006.... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........XXX....... ........147,138 ........XXX....... ........XXX.......

SCHEDULE P - PART 4 - SUMMARY Years in Which Losses Were Incurred

1

1997

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

1.

Prior......... ............775,007 ............606,583 ............501,641 ............409,705 ............327,863 ............373,215 ............301,154 ............316,901 ............331,264 ............310,565

2.

1997........ ............197,463 ............121,273 ..............76,890 ..............47,972 ..............34,303 ..............24,937 ..............17,852 ..............16,886 ..............16,503 ..............17,612

3.

1998........ ..........XXX......... ............194,954 ............107,643 ..............63,720 ..............45,147 ..............32,106 ..............24,330 ..............23,157 ..............22,535 ..............18,929

4.

1999........ ..........XXX......... ..........XXX......... ............171,516 ..............76,065 ..............34,910 ..............14,364 ..............33,261 ..............27,611 ..............19,388 ..............23,315

5.

2000........ ..........XXX......... ..........XXX......... ..........XXX......... ............166,802 ..............83,336 ..............38,187 ..............47,657 ..............54,267 ..............36,429 ..............38,005

6.

2001........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............250,235 ............133,005 ..............93,105 ..............58,808 ..............37,624 ..............39,626

7.

2002........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............238,464 ............108,658 ..............75,158 ..............54,768 ..............45,612

8.

2003........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............246,036 ............120,445 ..............80,237 ..............56,237

9.

2004........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............292,664 ............156,383 ............100,869

10. 2005........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............254,021 ............157,084 11. 2006........ ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ..........XXX......... ............213,879

46

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ ...............42 ................(0) ...............23 ................(0) ...............27 .................0 .................7 ...................93 ......XXX....... 2. 1997....... ............62,546 ............14,254 ............48,293 ........31,496 ..........5,808 ..........1,228 ...............65 ..........3,338 ...............26 .............424 ............30,163 ........11,667 3. 1998....... ............64,171 ............13,734 ............50,436 ........41,310 ..........7,234 ..........1,217 ...............86 ..........3,934 .............117 .............428 ............39,024 ........13,929 4. 1999....... ............66,678 ..............7,614 ............59,064 ........41,803 ..........2,556 ..........1,332 ...............76 ..........2,135 .............104 .............573 ............42,534 ........15,368 5. 2000....... ............69,553 ............12,893 ............56,660 ........46,529 ..........7,864 ..........1,552 .............225 ..........3,419 .............372 .............678 ............43,039 ........15,696 6. 2001....... ............70,838 ............11,815 ............59,023 ........47,760 ..........8,639 ..........1,614 .............229 ..........3,992 .............608 .............804 ............43,891 ........14,754 7. 2002....... ............71,303 ..............6,247 ............65,056 ........36,010 ..........2,816 ..........1,292 .............166 ..........3,664 .............163 .............578 ............37,820 ........11,761 8. 2003....... ............84,114 ..............6,279 ............77,835 ........41,708 ..........2,213 ..........1,349 .............137 ..........4,352 .................1 .............546 ............45,058 ........13,248 9. 2004....... ..........101,704 ..............4,098 ............97,606 ........49,558 ..........2,372 ..........2,353 .............156 ..........4,930 .................1 .............508 ............54,312 ........11,031 10. 2005....... ..........116,291 ..............4,620 ..........111,671 ........52,561 ..........5,354 ..........1,268 ...............33 ..........5,954 .................5 .............458 ............54,391 ........13,288 11. 2006....... ..........123,593 ..............2,847 ..........120,746 ........34,454 .................9 .............529 .................0 ..........6,240 .................1 .............221 ............41,214 ........10,760 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......423,231 ........44,864 ........13,756 ..........1,172 ........41,984 ..........1,397 ..........5,225 ..........431,538 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... .............141 .................0 .............282 .................1 ...............35 .................0 .................4 .................4 ...............88 .................0 .................2 .................545 ...............10 2. 1997..... ...............37 .................2 ...............48 ...............(0) .................8 .................2 .................7 .................0 ...............26 .................0 .................1 .................121 .................1 3. 1998..... ...............51 .................0 ...............29 .................4 ...............11 .................0 .................6 .................1 ...............33 .................0 .................2 .................124 .................2 4. 1999..... ...............75 .................1 .............121 ...............64 ...............14 .................0 ...............28 ...............24 ...............39 .................0 ...............12 .................188 .................5 5. 2000..... .............152 ...............49 .............104 .............105 ...............30 ...............12 ...............25 ...............18 ...............50 .................0 ...............13 .................179 .................7 6. 2001..... .............242 ...............59 .............293 .............221 ...............40 .................9 ...............82 ...............83 ...............65 .................0 ...............28 .................350 ...............13 7. 2002..... .............338 ...............30 .............211 ...............20 ...............53 .................7 ...............52 ...............83 .............421 .................0 ...............67 .................934 ...............83 8. 2003..... .............711 ...............35 .............160 .............(31) .............128 .................1 ...............13 ...............16 .............163 .................0 .............146 ..............1,155 ...............46 9. 2004..... ..........1,612 ...............57 .............895 .............231 .............184 .................5 ...............37 ...............11 .............268 .................0 .............338 ..............2,690 ...............78 10. 2005..... ..........3,259 ..........1,494 ........14,498 ..........5,723 .............286 .................1 .............390 .................2 .............527 .................0 .............590 ............11,740 .............168 11. 2006..... ..........7,371 .................0 ..........7,811 .............113 .............265 .................0 .............884 .................5 ..........1,727 .................0 .............777 ............17,941 .............568 12. Totals... ........13,990 ..........1,728 ........24,452 ..........6,451 ..........1,054 ...............38 ..........1,528 .............247 ..........3,407 .................0 ..........1,976 ............35,968 .............981

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................421 .................123 2. 1997. ............36,188 ..............5,903 ............30,285 ................57.9 ................41.4 ................62.7 .....................0 .....................0 ................5.03 ...................83 ...................39 3. 1998. ............46,591 ..............7,442 ............39,149 ................72.6 ................54.2 ................77.6 .....................0 .....................0 ................5.03 ...................76 ...................48 4. 1999. ............45,547 ..............2,826 ............42,721 ................68.3 ................37.1 ................72.3 .....................0 .....................0 ................5.03 .................131 ...................57 5. 2000. ............51,862 ..............8,644 ............43,218 ................74.6 ................67.0 ................76.3 .....................0 .....................0 ................5.03 .................103 ...................77 6. 2001. ............54,089 ..............9,848 ............44,241 ................76.4 ................83.3 ................75.0 .....................0 .....................0 ................5.03 .................255 ...................95 7. 2002. ............42,039 ..............3,285 ............38,754 ................59.0 ................52.6 ................59.6 .....................0 .....................0 ................5.03 .................500 .................434 8. 2003. ............48,583 ..............2,370 ............46,213 ................57.8 ................37.7 ................59.4 .....................0 .....................0 ................5.03 .................868 .................287 9. 2004. ............59,836 ..............2,834 ............57,003 ................58.8 ................69.1 ................58.4 .....................0 .....................0 ................5.03 ..............2,218 .................472 10. 2005. ............78,743 ............12,612 ............66,131 ................67.7 ..............273.0 ................59.2 .....................0 .....................0 ................5.03 ............10,540 ..............1,200 11. 2006. ............59,282 .................128 ............59,155 ................48.0 ..................4.5 ................49.0 .....................0 .....................0 ................5.03 ............15,069 ..............2,871 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............30,263 ..............5,705

47

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............511 .............134 ...............25 .................0 ...............13 .................0 .................5 .................415 ......XXX....... 2. 1997....... ............72,029 ..............1,124 ............70,905 ........47,337 .............366 ..........2,539 .................2 ..........4,791 .............217 .............675 ............54,083 ........13,103 3. 1998....... ............72,572 .................657 ............71,915 ........49,936 .............268 ..........2,883 .................5 ..........4,232 .............314 .............761 ............56,464 ........13,877 4. 1999....... ............72,947 ..............4,059 ............68,888 ........53,330 ..........2,669 ..........3,299 .............149 ..........4,168 .............543 .............826 ............57,437 ........14,735 5. 2000....... ............68,870 ............12,656 ............56,214 ........53,828 ..........9,306 ..........3,511 .............664 ..........3,749 .............645 .............824 ............50,474 ........14,523 6. 2001....... ............67,436 ..............9,809 ............57,627 ........48,895 ..........7,014 ..........3,410 .............468 ..........4,437 .............347 .............802 ............48,912 ........12,934 7. 2002....... ............68,232 ..............1,672 ............66,560 ........40,874 ..........1,060 ..........2,967 ...............95 ..........4,716 .............178 .............675 ............47,223 ........11,062 8. 2003....... ............65,107 .................339 ............64,768 ........36,940 .............147 ..........2,485 .................1 ..........4,280 ...............29 .............650 ............43,527 ........10,764 9. 2004....... ............74,554 .................428 ............74,127 ........36,300 .............318 ..........1,716 .................3 ..........4,664 ...............23 .............641 ............42,335 ........11,303 10. 2005....... ............78,564 .................923 ............77,640 ........30,294 .............196 ..........1,007 .................2 ..........5,598 ...............22 .............580 ............36,678 ........11,485 11. 2006....... ............85,076 .................890 ............84,186 ........18,688 ...............70 .............372 .................0 ..........5,890 ...............18 .............321 ............24,863 ........10,541 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......416,933 ........21,548 ........24,214 ..........1,388 ........46,539 ..........2,337 ..........6,761 ..........462,413 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........9,310 ..........3,013 ..........8,417 ...........(192) .............171 .................4 ...............(9) .................0 .............156 .................0 .................9 ............15,220 ...............62 2. 1997..... .............113 .................0 .............157 ...............(1) ...............17 .................0 ...............(1) .................0 ...............27 .................0 .................6 .................312 .................8 3. 1998..... .............134 .................0 ...............34 ...............(4) ...............45 .................0 .................4 ...............(5) ...............49 .................0 .................8 .................274 ...............18 4. 1999..... .............217 ...............18 .............290 .............272 .............130 .................3 ...............69 ...............46 .............126 .................0 ...............14 .................493 ...............54 5. 2000..... .............500 .............110 .............366 .............242 .............269 ...............18 ...............43 ...............12 .............231 .................0 ...............29 ..............1,026 .............104 6. 2001..... .............830 .............114 .............552 .............363 .............457 ...............21 .............124 ...............40 .............351 .................0 ...............43 ..............1,775 .............158 7. 2002..... ..........1,554 ...............40 .............473 .............143 .............606 .................7 .............115 ...............20 .............414 .................0 ...............68 ..............2,950 .............198 8. 2003..... ..........3,119 .................0 .............397 .................8 .............817 .................0 .............279 .................0 .............480 .................0 .............117 ..............5,083 .............255 9. 2004..... ..........5,198 .................0 ..........1,407 ...............38 .............855 .................0 .............693 ...............(0) .............573 .................0 .............222 ..............8,689 .............342 10. 2005..... ..........9,385 .................0 ..........7,030 .............161 .............760 .................0 ..........1,474 ...............33 .............791 .................0 .............395 ............19,247 .............635 11. 2006..... ........14,678 .................0 ........16,231 .............462 .............652 .................0 ..........2,307 ...............26 ..........3,318 .................0 .............670 ............36,698 ..........2,316 12. Totals... ........45,038 ..........3,295 ........35,354 ..........1,493 ..........4,778 ...............53 ..........5,098 .............172 ..........6,514 .................0 ..........1,581 ............91,769 ..........4,150

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............14,906 .................315 2. 1997. ............54,979 .................584 ............54,395 ................76.3 ................52.0 ................76.7 .....................0 .....................0 ................5.03 .................270 ...................42 3. 1998. ............57,316 .................578 ............56,738 ................79.0 ................87.9 ................78.9 .....................0 .....................0 ................5.03 .................172 .................103 4. 1999. ............61,630 ..............3,700 ............57,930 ................84.5 ................91.2 ................84.1 .....................0 .....................0 ................5.03 .................217 .................275 5. 2000. ............62,496 ............10,996 ............51,500 ................90.7 ................86.9 ................91.6 .....................0 .....................0 ................5.03 .................514 .................513 6. 2001. ............59,056 ..............8,368 ............50,688 ................87.6 ................85.3 ................88.0 .....................0 .....................0 ................5.03 .................905 .................870 7. 2002. ............51,718 ..............1,544 ............50,174 ................75.8 ................92.3 ................75.4 .....................0 .....................0 ................5.03 ..............1,844 ..............1,107 8. 2003. ............48,796 .................186 ............48,611 ................74.9 ................54.8 ................75.1 .....................0 .....................0 ................5.03 ..............3,508 ..............1,575 9. 2004. ............51,407 .................383 ............51,024 ................69.0 ................89.5 ................68.8 .....................0 .....................0 ................5.03 ..............6,568 ..............2,121 10. 2005. ............56,339 .................413 ............55,925 ................71.7 ................44.8 ................72.0 .....................0 .....................0 ................5.03 ............16,255 ..............2,992 11. 2006. ............62,137 .................575 ............61,561 ................73.0 ................64.7 ................73.1 .....................0 .....................0 ................5.03 ............30,447 ..............6,251 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............75,605 ............16,164

48

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............263 ...............29 ...............88 .................3 .............186 .................1 .................1 .................503 ......XXX....... 2. 1997....... ............73,578 ..............8,571 ............65,007 ........59,720 ..........8,134 ..........4,576 .............371 ..........6,670 .............389 .............616 ............62,071 ..........9,618 3. 1998....... ............68,276 ..............7,472 ............60,804 ........59,490 ..........8,445 ..........4,529 .............499 ..........5,215 .............351 .............542 ............59,939 ..........9,620 4. 1999....... ............62,375 ..............8,129 ............54,245 ........58,908 ........13,163 ..........4,286 .............480 ..........4,232 .............446 .............383 ............53,337 ..........8,619 5. 2000....... ............70,786 ............12,646 ............58,141 ........56,940 ........13,549 ..........4,236 .............770 ..........4,002 .............506 .............364 ............50,353 ..........8,378 6. 2001....... ............78,080 ............16,942 ............61,138 ........53,512 ........11,708 ..........3,989 .............907 ..........3,513 .............457 .............344 ............47,941 ..........7,652 7. 2002....... ............89,490 ............18,690 ............70,800 ........42,390 ..........7,165 ..........3,107 .............558 ..........3,329 .............329 .............348 ............40,774 ..........6,702 8. 2003....... ............96,715 ............21,527 ............75,188 ........34,188 ..........5,461 ..........2,226 .............306 ..........2,869 .............154 .............240 ............33,361 ..........6,169 9. 2004....... ............88,858 ............21,571 ............67,288 ........23,573 ..........2,229 ..........1,308 .............108 ..........2,995 .............106 .............144 ............25,432 ..........5,502 10. 2005....... ............84,370 ............14,965 ............69,404 ........13,437 .............818 .............512 ...............24 ..........2,863 .............101 .............119 ............15,868 ..........4,083 11. 2006....... ............65,151 ..............3,500 ............61,651 ..........5,884 .............265 .............138 .................7 ..........2,379 ...............64 ...............84 ..............8,064 ..........3,426 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......408,302 ........70,968 ........28,993 ..........4,033 ........38,253 ..........2,905 ..........3,184 ..........397,643 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........1,141 .............443 .............768 .............(20) .............112 .............(37) .............128 ...............76 ...............86 .................2 .................4 ..............1,770 ...............75 2. 1997..... .............782 .............691 .............214 ...............66 ...............27 ...............(1) ...............46 ...............20 ...............21 .................0 .................2 .................315 .................6 3. 1998..... .............267 ...............67 .............413 ...............72 ...............40 .................4 ...............90 ...............16 ...............59 .................0 .................2 .................710 ...............26 4. 1999..... .............774 .............184 .............662 ...............91 ...............66 .................5 ...............91 ...............35 ...............39 .................0 .................5 ..............1,317 ...............10 5. 2000..... ..........1,675 .............379 ..........1,402 .............250 .............124 ...............17 .............153 ...............34 ...............84 .................0 ...............13 ..............2,758 ...............21 6. 2001..... ..........2,369 .............426 ..........2,630 .............445 .............241 ...............16 .............241 ...............36 .............122 .................0 ...............31 ..............4,679 ...............29 7. 2002..... ..........3,057 .............226 ..........2,740 .............307 .............383 ...............23 .............491 ...............46 .............179 .................0 ...............45 ..............6,247 ...............63 8. 2003..... ..........5,940 .............638 ..........4,170 ..........1,016 .............705 ...............58 .............887 .............169 .............259 .................0 ...............72 ............10,081 .............108 9. 2004..... ..........8,428 .............637 ..........5,847 ..........1,988 .............967 ...............45 ..........1,612 .............365 .............360 .................0 ...............95 ............14,179 .............192 10. 2005..... ........10,794 .............805 ........11,803 ..........2,205 .............910 ...............53 ..........1,773 .............253 .............392 .................0 .............135 ............22,356 .............317 11. 2006..... ..........9,746 .............417 ........17,888 ..........1,562 .............522 ...............19 ..........1,838 .............137 ..........1,090 .................1 .............236 ............28,948 .............935 12. Totals... ........44,972 ..........4,913 ........48,536 ..........7,982 ..........4,098 .............202 ..........7,352 ..........1,188 ..........2,690 .................5 .............640 ............93,359 ..........1,782

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............1,486 .................285 2. 1997. ............72,056 ..............9,670 ............62,385 ................97.9 ..............112.8 ................96.0 .....................0 .....................0 ................5.03 .................239 ...................76 3. 1998. ............70,103 ..............9,454 ............60,649 ..............102.7 ..............126.5 ................99.7 .....................0 .....................0 ................5.03 .................540 .................170 4. 1999. ............69,058 ............14,404 ............54,654 ..............110.7 ..............177.2 ..............100.8 .....................0 .....................0 ................5.03 ..............1,161 .................156 5. 2000. ............68,615 ............15,505 ............53,110 ................96.9 ..............122.6 ................91.3 .....................0 .....................0 ................5.03 ..............2,448 .................310 6. 2001. ............66,615 ............13,995 ............52,620 ................85.3 ................82.6 ................86.1 .....................0 .....................0 ................5.03 ..............4,127 .................552 7. 2002. ............55,675 ..............8,654 ............47,021 ................62.2 ................46.3 ................66.4 .....................0 .....................0 ................5.03 ..............5,263 .................983 8. 2003. ............51,244 ..............7,803 ............43,442 ................53.0 ................36.2 ................57.8 .....................0 .....................0 ................5.03 ..............8,457 ..............1,624 9. 2004. ............45,090 ..............5,478 ............39,612 ................50.7 ................25.4 ................58.9 .....................0 .....................0 ................5.03 ............11,650 ..............2,529 10. 2005. ............42,483 ..............4,260 ............38,224 ................50.4 ................28.5 ................55.1 .....................0 .....................0 ................5.03 ............19,588 ..............2,768 11. 2006. ............39,485 ..............2,473 ............37,012 ................60.6 ................70.7 ................60.0 .....................0 .....................0 ................5.03 ............25,655 ..............3,293 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............80,613 ............12,745

49

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1D - WORKERS' COMPENSATION Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ ........15,453 ..........4,580 ..........1,192 ...............83 ..........1,595 .............699 ...............88 ............12,877 ......XXX....... 2. 1997....... ............90,058 ............17,331 ............72,727 ........52,044 ........10,276 ..........5,118 .............691 ..........2,300 .............781 ..........1,893 ............47,714 ........12,247 3. 1998....... ............91,681 ............17,232 ............74,450 ........63,107 ........14,681 ..........6,095 .............686 .............635 .............752 ..........1,666 ............53,718 ........13,936 4. 1999....... ............93,146 ............19,530 ............73,616 ........75,192 ........23,095 ..........7,152 ..........1,007 .........(1,219) .............765 ..........1,364 ............56,258 ........14,484 5. 2000....... ............95,072 ............24,095 ............70,977 ........74,346 ........24,005 ..........7,013 .............935 ............(563) .............786 ..........1,591 ............55,070 ........13,594 6. 2001....... ..........107,324 ............27,609 ............79,715 ........61,589 ........15,517 ..........6,470 .............584 ............(176) ..........1,131 ..........1,239 ............50,651 ........11,848 7. 2002....... ..........119,357 ............37,671 ............81,686 ........51,196 ........16,063 ..........5,626 .............610 .........(1,242) ..........1,822 .............949 ............37,084 ........10,539 8. 2003....... ..........143,053 ............44,710 ............98,343 ........47,415 ........16,596 ..........5,524 .............585 .........(1,901) ..........1,613 .............627 ............32,244 ..........9,462 9. 2004....... ..........154,819 ............50,347 ..........104,472 ........37,713 ........12,754 ..........4,776 .............278 .........(2,111) ..........1,513 .............276 ............25,835 ..........8,181 10. 2005....... ..........138,857 ............39,172 ............99,685 ........25,334 ..........9,353 ..........3,484 .............174 ...............80 ..........1,196 .............100 ............18,174 ..........6,132 11. 2006....... ..........126,557 ............30,487 ............96,070 ........11,693 ..........3,863 ..........1,712 ...............61 .............723 .............379 .................9 ..............9,824 ..........4,839 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......515,081 ......150,785 ........54,163 ..........5,693 .........(1,880) ........11,438 ..........9,803 ..........399,448 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ......191,500 ........63,003 ........88,854 ........42,670 ..........7,437 .............432 ..........5,318 .............180 ..........2,185 ...............52 .............125 ..........188,958 ..........1,276 2. 1997..... ........12,048 ..........3,368 ..........5,767 ..........1,199 .............609 .............120 .............226 ...............60 .............140 .................6 ...............34 ............14,038 ...............57 3. 1998..... ........12,515 ..........3,873 ..........6,795 ..........1,148 .............665 .............162 .............385 ...............54 .............121 .................9 ...............94 ............15,234 ...............76 4. 1999..... ........15,337 ..........4,845 ..........6,661 ..........1,159 .............941 .............303 .............593 ...............68 .............109 .................5 .............165 ............17,260 .............106 5. 2000..... ........19,291 ..........7,386 ..........8,397 ..........1,479 ..........1,166 .............420 .............757 ...............54 .............190 .................5 .............233 ............20,458 .............124 6. 2001..... ........19,318 ..........6,654 ........10,806 ..........2,327 ..........1,233 .............308 ..........1,300 .............176 .............375 ...............28 .............397 ............23,540 .............162 7. 2002..... ........16,029 ..........4,088 ........14,292 ..........3,088 ..........1,024 ...............93 ..........1,768 .............184 .............658 .............(12) .............517 ............26,330 .............171 8. 2003..... ........18,335 ..........3,864 ........18,990 ..........4,069 ..........1,310 ...............61 ..........1,879 .............280 ..........1,145 .............(37) .............808 ............33,424 .............236 9. 2004..... ........20,398 ..........6,926 ........27,102 ..........5,226 ..........1,624 ...............81 ..........3,394 .............201 ..........1,873 .............(60) ..........1,150 ............42,018 .............331 10. 2005..... ........18,727 ..........6,815 ........42,539 ..........9,798 ..........1,952 ...............77 ..........3,831 .............255 ..........2,388 .............(96) ..........1,488 ............52,590 .............466 11. 2006..... ........22,210 ..........7,489 ........52,673 ..........9,387 ..........2,933 ...............77 ..........4,846 .............210 ..........3,265 ...........(129) ..........1,798 ............68,894 ..........1,322 12. Totals... ......365,709 ......118,310 ......282,877 ........81,549 ........20,894 ..........2,135 ........24,298 ..........1,721 ........12,450 ...........(229) ..........6,810 ..........502,743 ..........4,327

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..........174,682 ............14,276 2. 1997. ............78,253 ............16,501 ............61,752 ................86.9 ................95.2 ................84.9 .....................0 .....................0 ................5.03 ............13,248 .................790 3. 1998. ............90,318 ............21,365 ............68,953 ................98.5 ..............124.0 ................92.6 .....................0 .....................0 ................5.03 ............14,289 .................945 4. 1999. ..........104,766 ............31,248 ............73,518 ..............112.5 ..............160.0 ................99.9 .....................0 .....................0 ................5.03 ............15,993 ..............1,267 5. 2000. ..........110,598 ............35,070 ............75,528 ..............116.3 ..............145.6 ..............106.4 .....................0 .....................0 ................5.03 ............18,824 ..............1,634 6. 2001. ..........100,915 ............26,725 ............74,191 ................94.0 ................96.8 ................93.1 .....................0 .....................0 ................5.03 ............21,144 ..............2,396 7. 2002. ............89,350 ............25,936 ............63,414 ................74.9 ................68.8 ................77.6 .....................0 .....................0 ................5.03 ............23,145 ..............3,185 8. 2003. ............92,698 ............27,030 ............65,668 ................64.8 ................60.5 ................66.8 .....................0 .....................0 ................5.03 ............29,393 ..............4,031 9. 2004. ............94,770 ............26,917 ............67,852 ................61.2 ................53.5 ................64.9 .....................0 .....................0 ................5.03 ............35,349 ..............6,669 10. 2005. ............98,336 ............27,572 ............70,764 ................70.8 ................70.4 ................71.0 .....................0 .....................0 ................5.03 ............44,654 ..............7,936 11. 2006. ..........100,055 ............21,337 ............78,718 ................79.1 ................70.0 ................81.9 .....................0 .....................0 ................5.03 ............58,008 ............10,886 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..........448,728 ............54,016

50

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ ..........2,015 ...............22 ..........1,787 ...............30 .............407 ...............10 .................7 ..............4,147 ......XXX....... 2. 1997....... ..........103,118 ..............9,828 ............93,290 ........55,873 ..........4,792 ..........7,725 .............253 ..........5,648 ...............64 ..........2,021 ............64,137 ..........8,595 3. 1998....... ..........107,689 ..............8,357 ............99,332 ........75,579 ..........9,078 ........10,378 .............630 ..........8,785 .............168 ..........2,778 ............84,866 ........11,676 4. 1999....... ..........105,505 ..............9,281 ............96,224 ........72,674 ........12,232 ........11,148 ..........1,037 ..........6,094 .............152 ..........2,644 ............76,494 ........11,512 5. 2000....... ..........105,676 ..............8,286 ............97,390 ........59,873 ..........4,488 ..........9,919 .............344 ..........5,052 .............116 ..........2,214 ............69,897 ..........8,863 6. 2001....... ..........114,089 ..............9,918 ..........104,171 ........92,484 ........33,062 ..........9,421 .............385 ..........6,292 .............912 ..........2,156 ............73,839 ........10,443 7. 2002....... ..........128,881 ............11,873 ..........117,008 ........43,018 ..........2,265 ..........6,093 .............182 ..........3,284 ...............47 ..........1,632 ............49,901 ..........6,215 8. 2003....... ..........149,750 ............15,004 ..........134,746 ........42,892 ..........2,266 ..........5,029 ...............47 ..........3,210 ...............54 ..........1,440 ............48,764 ..........4,943 9. 2004....... ..........158,057 ............11,951 ..........146,106 ........44,025 ..........1,952 ..........3,333 ...............36 ..........3,396 ...............26 .............982 ............48,741 ..........4,496 10. 2005....... ..........151,069 ............11,077 ..........139,992 ........69,448 ........14,445 ..........2,121 ...............82 ..........3,659 ...............33 .............705 ............60,668 ..........4,527 11. 2006....... ..........158,810 ............10,784 ..........148,026 ........20,103 .............441 .............629 .................6 ..........2,542 .................2 .............239 ............22,825 ..........3,578 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......577,983 ........85,041 ........67,582 ..........3,032 ........48,370 ..........1,584 ........16,817 ..........604,278 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........3,076 ...............31 ..........9,124 ...............60 ..........2,944 .................9 ..........5,350 ...............57 ..........2,747 .................0 ...............66 ............23,084 ..........9,036 2. 1997..... .............636 ...............62 ..........1,470 ...............31 .............216 .................1 .............467 .................1 .............197 .................0 ...............34 ..............2,892 ...............44 3. 1998..... ..........1,001 ...............21 ..........2,339 .............207 .............457 .................1 .............677 ...............23 .............663 .................0 ...............70 ..............4,887 .............481 4. 1999..... ..........2,392 .............281 ..........3,596 .............661 .............768 .............147 .............440 ...............18 .............976 .................0 .............107 ..............7,065 .............728 5. 2000..... ..........2,692 .............148 ..........5,093 .............718 .............725 ...............85 .............264 .................9 .............372 .................0 .............233 ..............8,186 .............205 6. 2001..... ..........3,830 .............502 ..........3,275 .............179 ..........1,011 .............104 .............516 ...............41 ..........1,198 ...............(3) .............463 ..............9,006 .............862 7. 2002..... ..........4,545 ...............43 ..........4,752 .............383 .............958 ...............22 .............657 ...............16 .............538 .................0 .............480 ............10,987 .............233 8. 2003..... ..........7,135 ...............24 ..........5,683 .............335 ..........1,563 .................6 ..........2,211 ...............29 .............411 ...............(1) .............777 ............16,610 .............194 9. 2004..... ..........9,293 .............124 ........12,092 .............290 ..........1,792 .................7 ..........5,264 ...............74 .............928 ...............(2) ..........1,289 ............28,875 .............317 10. 2005..... ........17,675 ..........5,215 ........25,924 ..........8,647 ..........1,684 ...............58 ..........6,705 ...............88 .............875 .............(12) ..........2,201 ............38,867 .............333 11. 2006..... ........15,848 .............896 ........27,263 .............898 ..........1,124 ...............23 ..........8,914 .............100 ..........1,644 ...............(5) ..........2,155 ............52,881 .............675 12. Totals... ........68,123 ..........7,347 ......100,611 ........12,409 ........13,243 .............463 ........31,466 .............456 ........10,549 .............(23) ..........7,876 ..........203,340 ........13,108

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............12,110 ............10,975 2. 1997. ............72,232 ..............5,203 ............67,029 ................70.0 ................52.9 ................71.8 .....................0 .....................0 ................5.03 ..............2,013 .................879 3. 1998. ............99,880 ............10,127 ............89,753 ................92.7 ..............121.2 ................90.4 .....................0 .....................0 ................5.03 ..............3,113 ..............1,774 4. 1999. ............98,088 ............14,529 ............83,559 ................93.0 ..............156.6 ................86.8 .....................0 .....................0 ................5.03 ..............5,046 ..............2,018 5. 2000. ............83,990 ..............5,908 ............78,082 ................79.5 ................71.3 ................80.2 .....................0 .....................0 ................5.03 ..............6,919 ..............1,267 6. 2001. ..........118,026 ............35,181 ............82,845 ..............103.5 ..............354.7 ................79.5 .....................0 .....................0 ................5.03 ..............6,423 ..............2,583 7. 2002. ............63,845 ..............2,958 ............60,888 ................49.5 ................24.9 ................52.0 .....................0 .....................0 ................5.03 ..............8,871 ..............2,116 8. 2003. ............68,134 ..............2,760 ............65,373 ................45.5 ................18.4 ................48.5 .....................0 .....................0 ................5.03 ............12,459 ..............4,151 9. 2004. ............80,123 ..............2,507 ............77,617 ................50.7 ................21.0 ................53.1 .....................0 .....................0 ................5.03 ............20,970 ..............7,905 10. 2005. ..........128,091 ............28,556 ............99,536 ................84.8 ..............257.8 ................71.1 .....................0 .....................0 ................5.03 ............29,737 ..............9,130 11. 2006. ............78,067 ..............2,361 ............75,706 ................49.2 ................21.9 ................51.1 .....................0 .....................0 ................5.03 ............41,317 ............11,564 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..........148,978 ............54,362

51

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............134 ..............(90) ...............55 .................2 ...............37 .................1 .................0 .................314 ......XXX....... 2. 1997....... ..............3,045 .................239 ..............2,805 ........10,026 .............510 ..........1,808 ...............46 .............770 ...............51 ...............40 ............11,997 .............132 3. 1998....... ..............2,934 .................225 ..............2,709 ..........7,108 .............394 ..........1,365 ...............86 .............411 .................6 ...............63 ..............8,398 .............102 4. 1999....... ..............4,428 .................246 ..............4,182 ..........7,171 .............778 ..........1,852 ...............72 .............411 .................3 ...............11 ..............8,583 .............124 5. 2000....... ..............3,837 .................490 ..............3,347 ..........5,172 .............954 ..........1,049 ...............91 .............234 .................5 .................8 ..............5,405 ...............77 6. 2001....... ..............5,954 ..............1,833 ..............4,121 ..........3,996 .............203 ..........1,038 ...............30 .............169 ...............13 .................4 ..............4,958 ...............83 7. 2002....... ..............8,977 ..............2,375 ..............6,602 ..........4,375 ...............57 ..........1,673 ...............12 .............449 .................5 ...............10 ..............6,423 .............110 8. 2003....... ..............1,968 .................568 ..............1,400 .............509 ...............55 .............283 ...............33 .............212 .................1 .................0 .................915 ...............11 9. 2004....... ............(1,976) ...................85 ............(2,061) .................4 ...............62 .................8 .................6 .............172 .................0 .................0 .................116 .................0 10. 2005....... ...................42 ...................55 .................(13) .................0 .................2 .................0 .................0 ...............11 .................0 .................0 .....................9 .................0 11. 2006....... ...................61 ...................(6) ...................67 .................0 .................0 .................0 .................0 .................6 .................0 .................0 .....................6 .................0 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ........38,496 ..........2,923 ..........9,131 .............377 ..........2,882 ...............84 .............136 ............47,125 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... .............518 .................0 .............293 .................5 .............103 .................0 ...............91 .................0 ...............96 .................0 .................5 ..............1,096 ...............21 2. 1997..... .............391 .................7 ...............17 .................1 ...............53 .................1 ...............(1) .................0 ...............11 .................0 .................3 .................460 .................5 3. 1998..... .............243 .................0 ...............(8) ...............15 ...............44 .................0 ...............(5) .................0 ...............15 .................0 .................4 .................273 .................7 4. 1999..... .............600 .................2 .............(77) ...............22 ...............89 .................0 ...............(9) .................0 ...............20 .................0 .................7 .................599 .................7 5. 2000..... ..........1,043 .................4 .............(54) ...............23 .............111 .................1 .............(20) .................0 ...............22 .................0 .................7 ..............1,074 ...............14 6. 2001..... ..........1,545 .............186 ...........(132) .............151 .............167 ...............10 .............(36) .................4 ...............31 .................0 .................9 ..............1,225 ...............16 7. 2002..... ..........5,216 ...............23 .............(31) .............669 .............527 .................7 .............(93) ...............29 ...............15 .................0 ...............20 ..............4,906 ...............10 8. 2003..... .............758 ...............12 ..........2,714 ..........2,440 ...............80 .................0 .............122 ...............96 .................4 .................0 .................4 ..............1,131 .................0 9. 2004..... ...............16 ...............56 .............372 .............242 .................4 .................0 ...............70 ...............38 .................4 .................0 .................1 .................130 .................0 10. 2005..... .................9 .................5 ...............19 ...............10 .................0 .................0 .................4 .................4 .................4 .................0 .................0 ...................18 .................0 11. 2006..... .................0 .................0 .................7 ...............(6) .................0 .................0 .................0 .................0 .................4 .................0 .................0 ...................17 .................0 12. Totals... ........10,340 .............295 ..........3,119 ..........3,572 ..........1,179 ...............18 .............124 .............172 .............225 .................0 ...............61 ............10,930 ...............80

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................806 .................290 2. 1997. ............13,073 .................616 ............12,457 ..............429.3 ..............257.3 ..............444.0 .....................0 .....................0 ................5.03 .................399 ...................61 3. 1998. ..............9,173 .................502 ..............8,672 ..............312.6 ..............223.0 ..............320.1 .....................0 .....................0 ................5.03 .................219 ...................54 4. 1999. ............10,058 .................877 ..............9,181 ..............227.2 ..............356.6 ..............219.6 .....................0 .....................0 ................5.03 .................499 ...................99 5. 2000. ..............7,557 ..............1,078 ..............6,479 ..............197.0 ..............220.2 ..............193.6 .....................0 .....................0 ................5.03 .................962 .................112 6. 2001. ..............6,778 .................595 ..............6,183 ..............113.8 ................32.5 ..............150.0 .....................0 .....................0 ................5.03 ..............1,077 .................148 7. 2002. ............12,131 .................801 ............11,330 ..............135.1 ................33.7 ..............171.6 .....................0 .....................0 ................5.03 ..............4,494 .................412 8. 2003. ..............4,682 ..............2,636 ..............2,046 ..............237.8 ..............463.9 ..............146.1 .....................0 .....................0 ................5.03 ..............1,020 .................110 9. 2004. .................650 .................404 .................246 ...............(32.9) ..............473.3 ...............(11.9) .....................0 .....................0 ................5.03 ...................90 ...................41 10. 2005. ...................47 ...................20 ...................27 ..............110.7 ................36.4 .............(211.9) .....................0 .....................0 ................5.03 ...................13 .....................5 11. 2006. ...................17 ....................(6) ...................23 ................28.2 ..............101.2 ................34.7 .....................0 .....................0 ................5.03 ...................13 .....................4 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............9,593 ..............1,337

52

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............465 .................9 .............103 .................1 .............143 ...............25 .................2 .................676 ......XXX....... 2. 1997....... ............31,991 ..............4,396 ............27,595 ........30,920 ..........6,821 ..........5,910 .............478 ..........1,972 .............177 ............(110) ............31,326 .............592 3. 1998....... ............33,611 ..............4,411 ............29,200 ........41,560 ..........9,765 ..........6,996 .............604 ..........2,200 .............243 ...............49 ............40,144 .............616 4. 1999....... ............31,812 ..............5,205 ............26,607 ........38,410 ........10,397 ..........6,957 .............615 ..........1,836 .............199 .............140 ............35,992 .............620 5. 2000....... ............30,511 ..............9,272 ............21,239 ........32,768 ..........9,877 ..........7,075 .............476 ..........1,786 .............262 ...............34 ............31,015 .............659 6. 2001....... ............27,428 .................666 ............26,762 ........33,307 ..........4,864 ..........6,140 .............381 ..........2,004 .............195 .............148 ............36,010 .............507 7. 2002....... ............17,261 ..............6,211 ............11,049 ........13,083 ..........1,698 ..........3,282 .............254 ..........1,101 .............148 ...............17 ............15,367 .............283 8. 2003....... ..............2,931 ..............1,250 ..............1,682 .............623 .............189 .............335 .............162 .............117 ...............30 .................0 .................694 ...............25 9. 2004....... ..............3,674 .................980 ..............2,694 .............212 .............101 .............148 ...............74 ...............42 ...............15 .................0 .................213 ...............16 10. 2005....... .................720 .................534 .................186 ...............61 ...............31 ...............61 ...............30 .................5 ...............17 .................0 ...................49 ...............12 11. 2006....... ...................23 ...................(9) ...................32 ................(8) .................0 ...............10 .................0 .................1 .................0 .................0 .....................3 .................0 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......191,402 ........43,753 ........37,018 ..........3,076 ........11,208 ..........1,311 .............280 ..........191,488 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........2,219 .............103 .............167 .............149 ...............98 .................4 ...............47 .................3 .............158 .................0 .................2 ..............2,429 ...............50 2. 1997..... .............787 ...............27 ...............20 ...............85 ...............80 .................0 ...............(4) .................3 ...............23 .................0 .................1 .................791 .................5 3. 1998..... ..........1,706 .............243 .............(41) ...............90 .............107 .................4 .................5 .................4 ...............10 .................0 .................3 ..............1,445 .................8 4. 1999..... ..........1,588 .............127 .............278 .............365 .............169 ...............36 .............(25) .................7 .............119 .................0 .................6 ..............1,595 ...............14 5. 2000..... ..........3,771 .............304 ...........(134) .............301 .............293 ...............(4) .............(56) ...............13 ...............54 .................0 .................9 ..............3,313 ...............18 6. 2001..... ..........4,617 .............487 .............606 .............574 .............379 ...............38 .............(98) .................0 ...............52 .................0 ...............17 ..............4,458 ...............20 7. 2002..... ..........3,305 .............161 ...........(354) .............101 .............331 ...............11 .............(70) .................3 ...............18 .................0 ...............12 ..............2,954 .................7 8. 2003..... .............277 .............103 ...............87 ...............46 ...............32 .................0 ...............(5) .................0 .................4 .................0 .................1 .................246 .................2 9. 2004..... .............154 ...............85 .............272 .............131 .................2 .................0 .................6 .................2 .................4 .................0 .................1 .................219 .................3 10. 2005..... .............118 ...............60 .............189 .............133 .................2 .................0 ...............11 ...............10 .................4 .................0 .................0 .................122 .................3 11. 2006..... ...............17 ...............(2) ...............55 ...............10 ...............24 .................2 .............(15) .................0 .................4 .................0 .................0 ...................75 .................0 12. Totals... ........18,560 ..........1,698 ..........1,147 ..........1,987 ..........1,518 ...............92 ...........(205) ...............45 .............448 .................0 ...............52 ............17,647 .............130

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............2,134 .................295 2. 1997. ............39,709 ..............7,591 ............32,117 ..............124.1 ..............172.7 ..............116.4 .....................0 .....................0 ................5.03 .................695 ...................96 3. 1998. ............52,542 ............10,953 ............41,589 ..............156.3 ..............248.3 ..............142.4 .....................0 .....................0 ................5.03 ..............1,332 .................114 4. 1999. ............49,334 ............11,747 ............37,587 ..............155.1 ..............225.7 ..............141.3 .....................0 .....................0 ................5.03 ..............1,375 .................221 5. 2000. ............45,558 ............11,229 ............34,328 ..............149.3 ..............121.1 ..............161.6 .....................0 .....................0 ................5.03 ..............3,032 .................281 6. 2001. ............47,007 ..............6,539 ............40,468 ..............171.4 ..............982.2 ..............151.2 .....................0 .....................0 ................5.03 ..............4,163 .................295 7. 2002. ............20,696 ..............2,376 ............18,320 ..............119.9 ................38.3 ..............165.8 .....................0 .....................0 ................5.03 ..............2,688 .................265 8. 2003. ..............1,470 .................531 .................940 ................50.2 ................42.5 ................55.9 .....................0 .....................0 ................5.03 .................215 ...................31 9. 2004. .................841 .................409 .................432 ................22.9 ................41.8 ................16.0 .....................0 .....................0 ................5.03 .................210 .....................9 10. 2005. .................452 .................281 .................171 ................62.7 ................52.6 ................92.0 .....................0 .....................0 ................5.03 .................115 .....................7 11. 2006. ...................88 ...................10 ...................77 ..............381.7 .............(113.0) ..............240.4 .....................0 .....................0 ................5.03 ...................64 ...................10 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............16,023 ..............1,624

53

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............175 ............(108) ...............29 .................0 .................4 .................8 ..............(36) .................307 ......XXX....... 2. 1997....... ............28,037 ............13,239 ............14,798 ........14,771 ..........5,962 ..........1,207 .............513 .............759 ...............87 .............362 ............10,176 ......XXX....... 3. 1998....... ............25,710 ............11,171 ............14,539 ........16,203 ..........7,043 .............878 .............384 ..........1,120 .............179 .............490 ............10,595 ......XXX....... 4. 1999....... ............23,549 ..............9,576 ............13,973 ........13,179 ..........5,665 .............759 .............325 .............852 .............158 .............394 ..............8,643 ......XXX....... 5. 2000....... ............20,337 ..............7,377 ............12,960 ........11,837 ..........5,044 .............838 .............435 .............817 .............136 ..........1,148 ..............7,876 ......XXX....... 6. 2001....... ............22,952 ..............9,812 ............13,140 ........13,305 ..........6,238 .............871 .............410 .............717 ...............31 .............388 ..............8,214 ......XXX....... 7. 2002....... ............29,581 ............12,661 ............16,920 ..........8,900 ..........2,693 .............647 .............176 .............625 ...............32 .............402 ..............7,272 ......XXX....... 8. 2003....... ............22,659 ..............5,628 ............17,031 ..........6,429 ..........1,171 .............396 ...............46 .............863 ...............38 .............370 ..............6,434 ......XXX....... 9. 2004....... ............24,676 ..............4,973 ............19,702 ..........8,902 ..........1,863 .............400 .............118 .............831 .................7 .............316 ..............8,145 ......XXX....... 10. 2005....... ............24,552 ..............3,287 ............21,265 ........10,179 ..........3,007 .............273 .................6 .............592 .................7 .............424 ..............8,024 ......XXX....... 11. 2006....... ............24,313 ..............1,606 ............22,707 ..........3,852 ...............71 .............150 .................0 .............485 .................8 ...............56 ..............4,406 ......XXX....... 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......107,733 ........38,649 ..........6,447 ..........2,413 ..........7,664 .............691 ..........4,314 ............80,091 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... .............936 .............244 .............130 .............228 ...............47 ...............25 .................2 .................7 ...............20 .................6 .................0 .................625 ...............19 2. 1997..... .............208 ...............41 .............132 ...............65 ...............11 .................7 .................9 .................3 .................5 .................0 .................0 .................250 .................1 3. 1998..... .............368 .............184 .............101 ...............66 ...............17 ...............10 ...............10 .................2 .................2 .................0 .................0 .................236 .................0 4. 1999..... .............287 .............122 .............129 ...............71 ...............23 ...............16 ...............22 .................0 ...............11 .................0 .................0 .................264 .................1 5. 2000..... .............390 .............189 .............349 ...............82 ...............72 ...............46 ...............90 .................8 .................5 .................0 ...............27 .................581 .................1 6. 2001..... ..........5,154 ..........4,837 .............635 .............186 ..........1,380 ..........1,317 ...............35 .................8 ...............13 .................0 ...............50 .................870 .................1 7. 2002..... .............692 .............391 .............170 .............417 ...............92 ...............81 .............115 ...............52 ...............25 .................0 ...............53 .................153 .................3 8. 2003..... .............620 .............167 .............239 .............265 ...............47 .................8 .............183 ...............61 ...............35 .................1 ...............91 .................623 .................7 9. 2004..... ..........1,560 .............642 .............493 .............497 .............117 ...............11 ...............86 ...............29 ...............63 .................1 .............237 ..............1,141 ...............16 10. 2005..... ..........2,046 .............987 ..........2,153 ..........1,547 .............191 ...............66 .............311 ...............60 .............148 .................3 .............390 ..............2,185 ...............44 11. 2006..... ..........2,919 ...............41 ..........2,928 ...............63 .............130 .................2 .............384 ...............11 .............452 .................5 .............595 ..............6,690 .............104 12. Totals... ........15,180 ..........7,843 ..........7,460 ..........3,485 ..........2,127 ..........1,590 ..........1,249 .............242 .............780 ...............17 ..........1,444 ............13,618 .............197

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

Inter-Company Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................593 ...................32 2. 1997. ............17,103 ..............6,678 ............10,425 ................61.0 ................50.4 ................70.5 .....................0 .....................0 ................5.03

.................234 ...................15

3. 1998. ............18,698 ..............7,867 ............10,831 ................72.7 ................70.4 ................74.5 .....................0 .....................0 ................5.03 .................219 ...................17 4. 1999. ............15,263 ..............6,356 ..............8,906 ................64.8 ................66.4 ................63.7 .....................0 .....................0 ................5.03 .................224 ...................40 5. 2000. ............14,397 ..............5,939 ..............8,457 ................70.8 ................80.5 ................65.3 .....................0 .....................0 ................5.03 .................468 .................113 6. 2001. ............22,110 ............13,026 ..............9,084 ................96.3 ..............132.8 ................69.1 .....................0 .....................0 ................5.03 .................767 .................103 7. 2002. ............11,268 ..............3,843 ..............7,425 ................38.1 ................30.4 ................43.9 .....................0 .....................0 ................5.03 ...................54 ...................99 8. 2003. ..............8,812 ..............1,756 ..............7,057 ................38.9 ................31.2 ................41.4 .....................0 .....................0 ................5.03 .................428 .................195 9. 2004. ............12,452 ..............3,166 ..............9,285 ................50.5 ................63.7 ................47.1 .....................0 .....................0 ................5.03 .................914 .................227 10. 2005. ............15,893 ..............5,684 ............10,209 ................64.7 ..............172.9 ................48.0 .....................0 .....................0 ................5.03 ..............1,665 .................520 11. 2006. ............11,299 .................203 ............11,097 ................46.5 ................12.6 ................48.9 .....................0 .....................0 ................5.03 ..............5,743 .................947 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............11,311 ..............2,307

54

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ ........22,667 ..........5,074 ..........6,705 .............502 ..........3,166 .................3 ...............13 ............26,958 ......XXX....... 2. 1997....... ............66,509 ............13,261 ............53,248 ........37,862 ..........7,163 ..........9,451 .............997 ..........5,514 .............459 .............780 ............44,207 ..........5,108 3. 1998....... ............64,795 ............16,245 ............48,550 ........42,720 ........14,082 ..........9,984 ..........2,367 ..........4,069 .............617 .............396 ............39,707 ..........4,870 4. 1999....... ............54,419 ............15,432 ............38,987 ........43,879 ........17,251 ........10,246 ..........3,070 ..........3,947 .............825 .............459 ............36,925 ..........3,806 5. 2000....... ............61,508 ............19,079 ............42,429 ........42,039 ........16,695 ..........9,150 ..........1,541 ..........3,415 .............814 .............423 ............35,554 ..........3,441 6. 2001....... ............74,469 ............16,539 ............57,931 ........35,410 ..........7,490 ..........8,993 ..........1,407 ..........2,888 .............363 .............376 ............38,031 ..........3,385 7. 2002....... ............92,065 ............21,897 ............70,168 ........29,115 ..........7,022 ..........8,086 .............911 ..........2,919 .............272 .............225 ............31,915 ..........3,218 8. 2003....... ..........108,604 ............26,597 ............82,007 ........19,806 ..........2,612 ..........6,467 .............220 ..........3,427 .............270 ...............38 ............26,598 ..........3,465 9. 2004....... ............98,512 ............17,903 ............80,610 ........11,791 ..........1,042 ..........2,335 ...............54 ..........2,961 .............168 ...............71 ............15,822 ..........1,991 10. 2005....... ..........100,646 ............17,714 ............82,932 ..........3,911 .............280 .............848 ...............12 ..........2,487 ...............21 .................8 ..............6,935 .............857 11. 2006....... ..........101,422 ............15,273 ............86,150 .............967 .............109 ...............90 .................1 ..........1,746 ..............(13) .................1 ..............2,705 .............560 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......290,165 ........78,821 ........72,355 ........11,082 ........36,539 ..........3,798 ..........2,790 ..........305,358 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ........27,896 ........11,349 ......124,810 ........12,734 ..........9,804 .............877 ........24,282 ..........2,428 ..........9,759 ...............85 ...............88 ..........169,078 ........46,767 2. 1997..... ..........1,308 .............450 ..........3,471 .............318 .............198 ...............27 .............817 ...............46 ..........1,034 .............112 ...............36 ..............5,875 .............236 3. 1998..... .............953 .............267 ..........5,594 ..........1,003 .............201 ...............48 ..........1,487 ...............29 .............194 .................0 ...............48 ..............7,082 .................9 4. 1999..... ..........3,288 .............362 ..........7,717 .............779 .............711 ...............39 ..........1,936 .............263 .............273 .................0 ...............80 ............12,481 ...............19 5. 2000..... ..........3,918 .............833 ..........7,762 .............399 .............673 ...............94 ..........2,019 .............252 .............458 .................0 ...............96 ............13,250 ...............34 6. 2001..... ..........7,371 ..........1,684 ........12,168 ..........2,094 .............909 ...............83 ..........2,015 .............358 ..........1,333 .................0 .............160 ............19,577 ...............71 7. 2002..... ..........8,394 ..........1,964 ........15,590 ..........4,551 ..........1,408 ...............78 ..........3,093 .............620 ..........1,708 .................0 .............254 ............22,979 .............132 8. 2003..... ........11,367 .............997 ........15,030 ..........2,397 ..........2,048 ...............60 ..........5,115 .............835 ..........4,899 .................5 .............452 ............34,166 .............358 9. 2004..... ........10,975 .............610 ........22,103 ..........2,720 ..........2,022 ...............41 ..........7,708 .............597 ..........1,724 .................0 .............508 ............40,563 .............155 10. 2005..... ..........9,311 .............865 ........38,597 ..........6,557 ..........1,461 ...............59 ..........8,107 ..........1,105 ..........1,713 .................0 .............581 ............50,602 .............141 11. 2006..... ..........5,478 .............147 ........47,854 ..........8,738 .............570 ...............13 ..........9,541 .............819 ..........1,943 .................0 .............630 ............55,670 .............160 12. Totals... ........90,260 ........19,529 ......300,696 ........42,289 ........20,004 ..........1,418 ........66,119 ..........7,353 ........25,037 .............204 ..........2,934 ..........431,323 ........48,082

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..........128,622 ............40,456 2. 1997. ............59,656 ..............9,573 ............50,083 ................89.7 ................72.2 ................94.1 .....................0 .....................0 ................5.03 ..............4,011 ..............1,864 3. 1998. ............65,203 ............18,414 ............46,789 ..............100.6 ..............113.4 ................96.4 .....................0 .....................0 ................5.03 ..............5,277 ..............1,804 4. 1999. ............71,996 ............22,589 ............49,406 ..............132.3 ..............146.4 ..............126.7 .....................0 .....................0 ................5.03 ..............9,864 ..............2,617 5. 2000. ............69,434 ............20,629 ............48,804 ..............112.9 ..............108.1 ..............115.0 .....................0 .....................0 ................5.03 ............10,447 ..............2,803 6. 2001. ............71,087 ............13,479 ............57,608 ................95.5 ................81.5 ................99.4 .....................0 .....................0 ................5.03 ............15,762 ..............3,815 7. 2002. ............70,311 ............15,417 ............54,894 ................76.4 ................70.4 ................78.2 .....................0 .....................0 ................5.03 ............17,469 ..............5,510 8. 2003. ............68,159 ..............7,395 ............60,764 ................62.8 ................27.8 ................74.1 .....................0 .....................0 ................5.03 ............23,003 ............11,163 9. 2004. ............61,619 ..............5,233 ............56,386 ................62.5 ................29.2 ................69.9 .....................0 .....................0 ................5.03 ............29,748 ............10,816 10. 2005. ............66,435 ..............8,899 ............57,536 ................66.0 ................50.2 ................69.4 .....................0 .....................0 ................5.03 ............40,486 ............10,116 11. 2006. ............68,188 ..............9,813 ............58,375 ................67.2 ................64.3 ................67.8 .....................0 .....................0 ................5.03 ............44,448 ............11,222 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..........329,137 ..........102,186

55

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .............158 ...............25 ...............11 .................1 ...............22 .................2 ................(0) .................163 ......XXX....... 2. 1997....... ............22,540 ..............9,480 ............13,060 ........10,359 ..........5,390 ..........2,269 .............279 .............790 ...............89 ...............30 ..............7,662 .............269 3. 1998....... ............19,517 ..............6,613 ............12,904 ........14,082 ..........6,678 ..........2,578 .............393 .............878 ...............89 ...............15 ............10,379 .............318 4. 1999....... ............20,106 ..............7,407 ............12,699 ........19,105 ........10,145 ..........3,262 .............577 .............763 .............113 .............183 ............12,295 .............321 5. 2000....... ............25,448 ..............9,504 ............15,944 ........17,656 ..........9,100 ..........2,954 .............395 .............639 .............136 ..............(12) ............11,617 .............335 6. 2001....... ............19,541 ..............2,161 ............17,380 ........30,519 ........17,676 ..........3,988 .............852 ..........1,334 .............171 .............295 ............17,141 .............431 7. 2002....... ............38,962 ............16,324 ............22,638 ........28,594 ........14,709 ..........3,964 .............786 .............970 .............156 ...............43 ............17,877 .............496 8. 2003....... ............55,871 ............23,713 ............32,158 ........16,452 ..........3,663 ..........3,149 .............484 ..........1,384 .............377 .................0 ............16,461 .............525 9. 2004....... ............56,666 ............19,499 ............37,167 ..........6,689 ..........1,253 ..........2,161 .............141 ..........1,646 .............369 .................9 ..............8,733 .............464 10. 2005....... ............45,487 ..............7,025 ............38,463 ..........4,037 .............354 .............974 ...............30 ..........1,018 .............161 ...............50 ..............5,485 .............273 11. 2006....... ............42,370 ..............6,106 ............36,263 ..........1,019 ...............13 .............204 .................0 .............623 .................6 ...............15 ..............1,827 .............214 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ......148,670 ........69,005 ........25,515 ..........3,938 ........10,066 ..........1,668 .............629 ..........109,640 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........2,221 ..........1,201 ..........1,680 ...........(547) ...............24 .................1 .............622 ...............68 .............100 .................0 .................2 ..............3,924 .................0 2. 1997..... .............109 ...............59 ..........1,527 .............533 ...............13 .................0 .............319 ...............63 ...............24 .................0 .................2 ..............1,337 .................1 3. 1998..... .............206 ...............51 .............424 ...............91 ...............10 .................0 .............143 ...............13 ...............24 .................0 .................3 .................652 .................1 4. 1999..... ..........2,711 ..........1,379 .............731 .............273 ...............29 .................0 .............243 .............(24) ...............35 .................0 .................4 ..............2,120 .................4 5. 2000..... ..........2,718 ..........1,607 ..........2,304 .............593 ...............35 .................0 .............594 .............286 ...............35 .................0 .................4 ..............3,198 .................8 6. 2001..... ..........4,944 ..........2,264 ..........6,932 ..........5,057 .............198 .................1 ..........1,785 ..........1,125 ...............57 .................0 ...............42 ..............5,469 ...............15 7. 2002..... ..........6,501 ..........2,808 ..........9,872 ..........4,826 .............459 ...............43 ..........1,263 .............980 .............153 .................0 ...............57 ..............9,591 ...............27 8. 2003..... ..........6,983 ..........2,869 ........10,434 ..........5,988 .............347 .................2 ..........2,116 ..........1,687 .............227 .................0 ...............64 ..............9,561 ...............43 9. 2004..... ..........9,074 ..........3,813 ........10,090 ..........4,993 .............633 .............137 ..........2,914 .............779 .............352 .................0 ...............73 ............13,340 ...............63 10. 2005..... ..........4,141 .............811 ........12,573 ..........3,454 .............711 .................3 ..........2,896 .............398 .............502 .................0 ...............84 ............16,156 .............102 11. 2006..... ..........2,022 ...............26 ........18,770 ..........4,266 .............899 .................0 ..........3,981 .............515 .............711 .................0 .............134 ............21,577 .............165 12. Totals... ........41,629 ........16,890 ........75,338 ........29,528 ..........3,358 .............188 ........16,876 ..........5,890 ..........2,219 .................0 .............468 ............86,924 .............429

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............3,246 .................678 2. 1997. ............15,411 ..............6,412 ..............8,998 ................68.4 ................67.6 ................68.9 .....................0 .....................0 ................5.03 ..............1,044 .................293 3. 1998. ............18,345 ..............7,314 ............11,031 ................94.0 ..............110.6 ................85.5 .....................0 .....................0 ................5.03 .................488 .................164 4. 1999. ............26,878 ............12,464 ............14,415 ..............133.7 ..............168.3 ..............113.5 .....................0 .....................0 ................5.03 ..............1,790 .................330 5. 2000. ............26,934 ............12,119 ............14,815 ..............105.8 ..............127.5 ................92.9 .....................0 .....................0 ................5.03 ..............2,821 .................377 6. 2001. ............49,757 ............27,146 ............22,610 ..............254.6 ...........1,256.0 ..............130.1 .....................0 .....................0 ................5.03 ..............4,555 .................914 7. 2002. ............51,776 ............24,309 ............27,468 ..............132.9 ..............148.9 ..............121.3 .....................0 .....................0 ................5.03 ..............8,738 .................853 8. 2003. ............41,092 ............15,071 ............26,021 ................73.5 ................63.6 ................80.9 .....................0 .....................0 ................5.03 ..............8,560 ..............1,001 9. 2004. ............33,559 ............11,486 ............22,073 ................59.2 ................58.9 ................59.4 .....................0 .....................0 ................5.03 ............10,357 ..............2,983 10. 2005. ............26,852 ..............5,211 ............21,641 ................59.0 ................74.2 ................56.3 .....................0 .....................0 ................5.03 ............12,449 ..............3,707 11. 2006. ............28,230 ..............4,826 ............23,404 ................66.6 ................79.0 ................64.5 .....................0 .....................0 ................5.03 ............16,501 ..............5,076 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............70,549 ............16,375

56

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY AND THEFT) ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1

Direct and Assumed

3 Loss Payments 4 5 Direct and Assumed Ceded

Net (Cols. 1 - 2)

Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... ........XXX......... ........XXX......... ........XXX......... ..........9,460 ..........7,405 .............865 ..........1,795 .............388 ...............19 ..........1,444 ..............1,494 ......XXX....... 2. 2005...... ..........110,358 ............27,138 ............83,220 ........84,960 ........42,883 ..........1,870 .............950 ..........2,413 ...............68 .............584 ............45,342 ......XXX....... 3. 2006...... ..........109,073 ............22,708 ............86,364 ........20,199 ..........4,392 .............485 .............148 ..........1,993 ...............15 .............194 ............18,122 ......XXX....... 4. Totals..... ........XXX......... ........XXX......... ........XXX......... ......114,620 ........54,680 ..........3,220 ..........2,893 ..........4,793 .............102 ..........2,221 ............64,958 ......XXX.......

Losses Unpaid Case Basis 13 14 Direct and Assumed Ceded 1. 2. 3. 4.

Prior..... 2005... 2006... Totals...

........20,725 ........18,376 ........12,565 ........51,666

........15,879 ..........9,279 ..........3,020 ........28,177

Bulk + IBNR 15 16 Direct and Assumed Ceded ..........8,621 ........11,635 ..........9,117 ........29,373

Adjusting and Other Unpaid 21 22

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

..........1,606 ..........7,309 .............601 ..........9,516

.............504 .............552 .............362 ..........1,418

.............563 .............169 ...............63 .............795

.............654 .............647 .............790 ..........2,091

...........(127) .............115 .............117 .............105

23

Direct and Assumed

Ceded

Salvage and Subrogation Anticipated

..........1,021 .............611 ..........1,992 ..........3,625

.............(18) .............(15) .............(34) .............(67)

..........1,753 ..........1,812 ..........1,527 ..........5,091

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

............13,622 ............14,964 ............21,061 ............49,646

...............35 ...............62 .............181 .............278

34

26 Direct and Assumed 1. 2. 3. 4.

Prior.. 2005 2006 Totals

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

........XXX......... ............60,758 ..............8,321 ........XXX.........

........XXX......... ............60,306 ............39,183 ........XXX.........

........XXX......... ..........121,064 ............47,504 ........XXX.........

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net ........XXX......... ..............109.7 ................43.6 ........XXX.........

........XXX......... ..............223.9 ................36.6 ........XXX.........

........XXX......... ................72.5 ................45.4 ........XXX.........

57

Nontabular Discount 32

33

Loss

Loss Expense

Inter-Company Pooling Participation Percentage

.....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

........XXX......... ................5.03 ................5.03 ........XXX.........

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid ............11,861 ............13,423 ............18,061 ............43,345

..............1,761 ..............1,541 ..............2,999 ..............6,301

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1

Direct and Assumed

Ceded

3

Net (Cols. 1 - 2)

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... ........XXX......... ........XXX......... ........XXX......... .............296 ...............33 ...............25 .................2 ...............78 .................1 .............390 ................363 ......XXX....... 2. 2005...... ............68,892 ..............2,306 ............66,586 ........32,086 .............581 .............143 .................5 ..........4,589 ...............38 ..........7,087 ...........36,194 ........25,264 3. 2006...... ............69,400 .................684 ............68,717 ........32,764 .............258 .............129 .................3 ..........5,689 ...............25 ..........4,873 ...........38,296 ........24,904 4. Totals..... ........XXX......... ........XXX......... ........XXX......... ........65,146 .............872 .............297 ...............10 ........10,356 ...............64 ........12,350 ...........74,854 ......XXX.......

Losses Unpaid

1. 2. 3. 4.

Prior... 2005.. 2006.. Totals.

Case Basis 13 14 Direct and Assumed Ceded .............756 ...............43 ...............91 .................5 ..........1,133 .................6 ..........1,981 ...............54

Bulk + IBNR 15 16 Direct and Assumed Ceded ..........1,807 .............253 ..........1,798 .............320 .............969 .............218 ..........4,574 .............790

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded ...............20 ...............(1) .............298 ...............71 .................7 .................0 .............270 ...............25 ...............36 .................2 .............547 ...............23 ...............63 .................1 ..........1,115 .............118

Adjusting and Other Unpaid 21 22 Direct and Assumed .............207 ...............71 .............675 .............953

Ceded .................0 .................0 .................0 .................0

23

Salvage and Subrogation Anticipated .............567 .............530 ..........3,136 ..........4,234

24 Total Net Losses and Expenses Unpaid ..............2,722 ..............1,887 ..............3,111 ..............7,721

25 Number of Claims OutstandingDirect and Assumed .............269 .............172 ..........1,065 ..........1,506

34 Loss and Loss Expense Percentage Nontabular Net Balance Sheet (Incurred/Premiums Earned) Discount Reserves after Discount 26 28 29 30 31 32 33 Inter-Company 35 36 Direct Direct Pooling Loss and and Loss Participation Losses Expenses Assumed Ceded Net Assumed Ceded Net Loss Expense Percentage Unpaid Unpaid 1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............2,268 .................454 2. 2005 ............39,056 .................974 ............38,082 ................56.7 ................42.2 ................57.2 .....................0 .....................0 ................5.03 ..............1,564 .................324 Total Losses and Loss Expenses Incurred 27

3. 2006 ............41,942 .................534 ............41,407 ................60.4 ................78.2 ................60.3 .....................0 .....................0 ................5.03 ..............1,878 ..............1,233 4. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............5,710 ..............2,011

58

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1K - FIDELITY/SURETY ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1

Direct and Assumed

3 Loss Payments 4 5 Direct and Assumed Ceded

Net (Cols. 1 - 2)

Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... ........XXX......... ........XXX......... ........XXX......... ..........4,867 ..........2,443 ..........1,879 .............252 .............164 ...............11 ..........3,505 ..............4,203 ......XXX....... 2. 2005...... ............20,481 ..............3,559 ............16,922 ..........5,475 .............811 .............352 ...............32 .............117 ...............12 ...............83 ..............5,090 ......XXX....... 3. 2006...... ............10,272 ..............1,934 ..............8,338 ..........3,160 .............640 .............113 .................9 ...............15 .................0 .................4 ..............2,639 ......XXX....... 4. Totals..... ........XXX......... ........XXX......... ........XXX......... ........13,502 ..........3,893 ..........2,344 .............293 .............296 ...............23 ..........3,593 ............11,932 ......XXX.......

Losses Unpaid Case Basis 13 14 Direct and Assumed Ceded 1. 2. 3. 4.

Prior..... 2005... 2006... Totals...

........26,179 ..........2,755 ..........3,533 ........32,467

..........8,635 ..........1,565 ..........1,079 ........11,278

Bulk + IBNR 15 16 Direct and Assumed Ceded ..........8,024 .............905 ........(2,504) ..........6,424

Adjusting and Other Unpaid 21 22

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

..........3,587 .............296 ...........(788) ..........3,095

..........4,336 .............197 .............227 ..........4,760

..........2,395 ...............50 ...............51 ..........2,496

..........1,156 .............254 .............(42) ..........1,368

.............960 ...............35 .............(48) .............948

23

Direct and Assumed

Ceded

Salvage and Subrogation Anticipated

..........1,139 .............140 ...............54 ..........1,332

.................2 .................0 .................0 .................3

..........3,865 .............169 .............288 ..........4,321

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

............25,253 ..............2,305 .................974 ............28,532

.............134 ...............17 ...............19 .............170

34

26 Direct and Assumed 1. 2. 3. 4.

Prior.. 2005 2006 Totals

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

........XXX......... ..............2,801 .................943 ........XXX.........

........XXX......... ..............7,395 ..............3,613 ........XXX.........

........XXX......... ............10,195 ..............4,556 ........XXX.........

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net ........XXX......... ................49.8 ................44.4 ........XXX.........

........XXX......... ................78.7 ................48.8 ........XXX.........

........XXX......... ................43.7 ................43.3 ........XXX.........

59

Nontabular Discount 32

33

Loss

Loss Expense

Inter-Company Pooling Participation Percentage

.....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

........XXX......... ................5.03 ................5.03 ........XXX.........

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid ............21,981 ..............1,799 .................738 ............24,518

..............3,272 .................506 .................236 ..............4,014

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1

Direct and Assumed

3 Loss Payments 4 5 Direct and Assumed Ceded

Net (Cols. 1 - 2)

Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... ........XXX......... ........XXX......... ........XXX......... ...............53 .................0 ...............11 .................0 .................3 .................0 .................0 ...................67 ......XXX....... 2. 2005...... ...................42 ...................(0) ...................43 .................0 .................0 .................0 .................0 ................(0) .................0 .................0

...................(0) ......XXX.......

3. 2006...... ...................23 .....................0 ...................23 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 ......XXX....... 4. Totals..... ........XXX......... ........XXX......... ........XXX......... ...............53 .................0 ...............11 .................0 .................3 .................0 .................0 ...................67 ......XXX.......

Losses Unpaid Case Basis 13 14 Direct and Assumed Ceded 1. 2. 3. 4.

Prior..... 2005... 2006... Totals...

.............476 .................0 .................0 .............476

.................0 .................0 .................0 .................0

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded .............100 ...............30 ...............23 .............153

.................2 .................0 .................0 .................2

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

...............(0) .................0 .................0 ...............(0)

.................0 .................0 .................0 .................0

Adjusting and Other Unpaid 21 22

23

Direct and Assumed

Ceded

Salvage and Subrogation Anticipated

.................0 .................0 .................6 .................6

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

.................575 ...................30 ...................29 .................634

.................0 .................0 .................0 .................0

34

26 Direct and Assumed 1. 2. 3. 4.

Prior.. 2005 2006 Totals

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

........XXX......... .....................0 .....................0 ........XXX.........

........XXX......... ...................30 ...................29 ........XXX.........

........XXX......... ...................30 ...................29 ........XXX.........

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net ........XXX......... ................70.8 ..............127.8 ........XXX.........

........XXX......... ..................0.0 ..................0.0 ........XXX.........

........XXX......... ................70.5 ..............127.8 ........XXX.........

60

Nontabular Discount 32

33

Loss

Loss Expense

Inter-Company Pooling Participation Percentage

.....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

........XXX......... ................5.03 ................5.03 ........XXX.........

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid .................575 ...................30 ...................23 .................627

....................(0) .....................0 .....................6 .....................6

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1M - INTERNATIONAL Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .................0 .................1 .................0 .................0 .................1 .................0 .................0 .....................1 ......XXX....... 2. 1997....... ..............5,740 ...................45 ..............5,695 ..........3,293 ...............19 ...............31 ................(0) .................0 .................0 .................0 ..............3,306 ......XXX....... 3. 1998....... ..............4,036 .................694 ..............3,342 ..........1,606 .............178 .................4 .................0 .................0 .................0 .................0 ..............1,432 ......XXX....... 4. 1999....... .................798 .................175 .................624 .............487 .............171 ...............40 .................0 .................1 .................1 .................0 .................356 ......XXX....... 5. 2000....... .................582 .................121 .................462 .............508 ...............83 ...............75 .................5 .................1 .................1 .................1 .................495 ......XXX....... 6. 2001....... .................783 .................134 .................649 ..........2,051 ...............61 ...............37 .................5 .................1 .................0 .................0 ..............2,022 ......XXX....... 7. 2002....... ..............1,157 .................176 .................981 .................7 .................0 ...............17 .................0 .................1 .................0 .................0 ...................24 ......XXX....... 8. 2003....... ............11,587 .................277 ............11,310 ..........6,095 .................0 .................1 .................0 .................2 .................0 .................0 ..............6,098 ......XXX....... 9. 2004....... ............14,748 .....................0 ............14,748 ..........2,611 .................0 .................0 .................0 ...............31 ................(0) .................0 ..............2,643 ......XXX....... 10. 2005....... ..............1,488 .....................0 ..............1,488 .............453 .................0 .................0 .................0 .................1 .................0 .................0 .................453 ......XXX....... 11. 2006....... ...............(342) .....................0 ...............(342) ................(0) .................0 .................0 .................0 .................0 .................0 .................0 ...................(0) ......XXX....... 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ........17,111 .............513 .............204 ...............10 ...............38 .................2 .................1 ............16,829 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ...............53 .................0 ...............58 .................1 .................2 .................0 .................4 .................0 .................5 .................0 .................0 .................121 .................0 2. 1997..... .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 .................0 3. 1998..... .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 .................0 4. 1999..... ...............57 .................0 .................6 .................0 .................0 .................0 ...............(1) .................0 .................0 .................0 .................0 ...................62 .................0 5. 2000..... .............123 .................0 ...............23 .................0 .................0 .................0 ...............(2) .................0 .................0 .................0 .................0 .................144 .................0 6. 2001..... ...............40 .................0 .................6 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ...................46 .................0 7. 2002..... .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 .................0 8. 2003..... .................0 .................0 .................1 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................1 .................0 9. 2004..... .............938 .................0 ..........3,482 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ..............4,420 .................0 10. 2005..... .................0 .................0 .................7 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................7 .................0 11. 2006..... .................0 .................0 ...............48 .................0 .................0 .................0 ...............(0) .................0 .................0 .................0 .................0 ...................48 .................0 12. Totals... ..........1,211 .................0 ..........3,632 .................1 .................2 .................0 .................2 .................0 .................5 .................0 .................0 ..............4,851 .................0

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

Inter-Company Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................111 ...................11 2. 1997. ..............3,325 ...................19 ..............3,306 ................57.9 ................41.3 ................58.1 .....................0 .....................0 ................5.03

.....................0 .....................0

3. 1998. ..............1,610 .................178 ..............1,432 ................39.9 ................25.7 ................42.8 .....................0 .....................0 ................5.03 .....................0 .....................0 4. 1999. .................590 .................172 .................419 ................73.9 ................98.3 ................67.1 .....................0 .....................0 ................5.03 ...................63 ....................(1) 5. 2000. .................728 ...................89 .................639 ..............125.0 ................73.6 ..............138.5 .....................0 .....................0 ................5.03 .................146 ....................(2) 6. 2001. ..............2,134 ...................66 ..............2,068 ..............272.6 ................49.7 ..............318.5 .....................0 .....................0 ................5.03 ...................46 .....................0 7. 2002. ...................24 .....................0 ...................24 ..................2.1 ..................0.1 ..................2.4 .....................0 .....................0 ................5.03 .....................0 .....................0 8. 2003. ..............6,099 .....................0 ..............6,099 ................52.6 ..................0.0 ................53.9 .....................0 .....................0 ................5.03 .....................1 .....................0 9. 2004. ..............7,063 ....................(0) ..............7,063 ................47.9 ..................0.0 ................47.9 .....................0 .....................0 ................5.03 ..............4,420 .....................0 10. 2005. .................460 .....................0 .................460 ................30.9 ..................0.0 ................30.9 .....................0 .....................0 ................5.03 .....................7 .....................0 11. 2006. ...................48 .....................0 ...................48 ...............(14.2) ..................0.0 ...............(14.2) .....................0 .....................0 ................5.03 ...................48 .....................0 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............4,842 .....................9

61

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1N - REINSURANCE NONPROPORTIONAL ASSUMED PROPERTY ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1 Direct and Assumed

Ceded

3

Net (Cols. 1 - 2)

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior......... ........XXX......... ........XXX......... ........XXX......... ...............18 ................(0) .................0 .................0 .............248 .................0 .................0 ................266 ......XXX....... 2. 1997......... ..............4,371 ..............2,446 ..............1,925 ..........3,309 .............160 ...............58 .................5 ...............19 .................0 .................0 .............3,221 ......XXX....... 3. 1998......... ..............4,336 ..............1,389 ..............2,947 ..........6,024 .............889 ...............34 .................0 ...............61 .................4 .................0 .............5,225 ......XXX....... 4. 1999......... ............10,942 ..............4,196 ..............6,747 ........18,426 ..........4,761 ...............49 .................0 ...............38 .................7 ................(5) ...........13,745 ......XXX....... 5. 2000......... ............14,632 ..............1,092 ............13,540 ..........5,266 .............214 ...............14 .................0 ...............38 .................0 ................(1) .............5,104 ......XXX....... 6. 2001......... ............28,206 ..............1,581 ............26,625 ........32,786 ..........1,402 ...............16 ................(0) ...............89 .................4 ................(1) ...........31,485 ......XXX....... 7. 2002......... ............16,664 ..............1,911 ............14,754 ..........3,499 .............899 .................5 .................0 ...............51 .................2 .................0 .............2,654 ......XXX....... 8. 2003......... ..............8,344 ..............3,543 ..............4,801 .............880 .............428 .................5 .................0 .................9 .................3 .................0 ................462 ......XXX....... 9. 2004......... ..............4,843 ..............2,568 ..............2,274 .............158 .................8 .................2 .................0 .................0 .................0 .................0 ................153 ......XXX....... 10. 2005......... .................243 ...............(123) .................366 .............228 ...............44 .................0 .................0 .................5 .................0 .................0 ................189 ......XXX....... 11. 2006......... .................367 .................102 .................266 ...............21 .................0 .................0 .................0 .................0 .................0 .................0 ..................21 ......XXX....... 12. Totals....... .........XXX........ .........XXX........ .........XXX........ ........70,615 ..........8,803 .............182 .................5 .............558 ...............21 ................(7) ...........62,526 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... .............154 .................8 ...............59 .................5 .................0 .................0 ...............24 .................0 .............462 .................0 .................0 .................686 ......XXX....... 2. 1997..... ...............44 .................3 ...............94 .................7 .................0 .................0 ...............35 .................0 .................0 .................0 .................0 .................163 ......XXX....... 3. 1998..... .............803 .................5 ...............39 ...............31 .................0 .................0 ...............12 .................0 .................0 .................0 .................0 .................818 ......XXX....... 4. 1999..... .............397 ...............86 .............308 ...............14 .................0 .................0 ...............24 ...............(0) .................0 .................0 .................0 .................628 ......XXX....... 5. 2000..... .............823 ...............23 ..........1,354 .................0 .................0 .................0 ...............65 ...............(0) .................0 .................0 .................0 ..............2,220 ......XXX....... 6. 2001..... ..........2,321 ...............13 ..........2,664 .............206 .................0 .................0 .............104 .................0 .................0 .................0 .................0 ..............4,870 ......XXX....... 7. 2002..... .............900 .............372 .............956 ...............58 .................0 .................0 ...............81 .................0 .................0 .................0 .................0 ..............1,508 ......XXX....... 8. 2003..... .............317 .............219 .............427 .............128 .................0 .................0 .................6 .................0 .................0 .................0 .................0 .................402 ......XXX....... 9. 2004..... ...............27 .................2 ...............92 .................2 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................115 ......XXX....... 10. 2005..... .............113 .................0 ...............15 ...............(3) .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................132 ......XXX....... 11. 2006..... .................0 .................0 .............327 ...............47 .................0 .................0 .................3 .................3 .................0 .................0 .................0 .................280 ......XXX....... 12. Totals... ..........5,899 .............729 ..........6,334 .............496 .................0 .................0 .............353 .................3 .............463 .................0 .................0 ............11,821 ......XXX.......

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

Inter-Company Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................200 .................485 2. 1997. ..............3,559 .................175 ..............3,384 ................81.4 ..................7.1 ..............175.8 .....................0 .....................0 ................5.03 .................128 ...................35 3. 1998. ..............6,972 .................929 ..............6,043 ..............160.8 ................66.9 ..............205.1 .....................0 .....................0 ................5.03 .................806 ...................12 4. 1999. ............19,241 ..............4,868 ............14,374 ..............175.8 ..............116.0 ..............213.0 .....................0 .....................0 ................5.03 .................605 ...................24 5. 2000. ..............7,561 .................237 ..............7,324 ................51.7 ................21.7 ................54.1 .....................0 .....................0 ................5.03 ..............2,155 ...................65 6. 2001. ............37,979 ..............1,625 ............36,355 ..............134.6 ..............102.7 ..............136.5 .....................0 .....................0 ................5.03 ..............4,766 .................104 7. 2002. ..............5,493 ..............1,331 ..............4,162 ................33.0 ................69.6 ................28.2 .....................0 .....................0 ................5.03 ..............1,427 ...................81 8. 2003. ..............1,643 .................779 .................863 ................19.7 ................22.0 ................18.0 .....................0 .....................0 ................5.03 .................396 .....................6 9. 2004. .................280 ...................12 .................268 ..................5.8 ..................0.5 ................11.8 .....................0 .....................0 ................5.03 .................115 .....................0 10. 2005. .................361 ...................40 .................321 ..............148.7 ...............(32.9) ................87.8 .....................0 .....................0 ................5.03 .................131 .....................0 11. 2006. .................351 ...................50 .................301 ................95.5 ................49.3 ..............113.2 .....................0 .....................0 ................5.03 .................280 .....................0 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............11,008 .................813

62

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1O - REINSURANCE NONPROPORTIONAL ASSUMED LIABILITY ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1 Direct and Assumed

Ceded

3

Net (Cols. 1 - 2)

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior......... ........XXX......... ........XXX......... ........XXX......... ..........3,579 .............235 .............276 ...............11 ...............19 .................0 .................0 .............3,629 ......XXX....... 2. 1997......... ............24,618 ..............8,644 ............15,973 ........18,221 ..........4,575 ..........1,114 ...............18 ...............19 .................0 .................7 ...........14,761 ......XXX....... 3. 1998......... ............25,493 ..............7,515 ............17,978 ........27,996 ..........6,608 ..........1,176 ...............53 .............164 .................1 .................7 ...........22,674 ......XXX....... 4. 1999......... ............25,803 ..............4,679 ............21,124 ........20,886 ..........8,418 .............436 .................1 ...............20 .................2 .................8 ...........12,921 ......XXX....... 5. 2000......... ............16,201 ..............1,856 ............14,346 ........16,710 ..........2,724 .............503 .................2 ...............28 ...............34 .................8 ...........14,481 ......XXX....... 6. 2001......... ............15,966 ..............3,164 ............12,802 ..........8,940 ............(443) .............125 .................0 ...............33 ................(2) .................3 .............9,544 ......XXX....... 7. 2002......... ............10,244 ..............1,328 ..............8,916 ..........5,191 .............539 .............104 .................0 ...............68 ................(1) .................0 .............4,826 ......XXX....... 8. 2003......... ............10,893 ..............7,932 ..............2,961 ..........1,536 ...............55 ...............28 .................0 .................1 .................3 .................0 .............1,508 ......XXX....... 9. 2004......... ..............1,935 .................635 ..............1,299 .............114 .................5 .................1 .................0 ...............26 ...............18 .................0 ................118 ......XXX....... 10. 2005......... ..............2,757 ..............1,002 ..............1,754 ...............68 ...............63 .................0 .................0 .................0 .................0 .................0 ....................5 ......XXX....... 11. 2006......... ..............2,380 .................862 ..............1,518 .................8 .................0 .................0 .................0 .................0 .................0 .................0 ....................8 ......XXX....... 12. Totals....... .........XXX........ .........XXX........ .........XXX........ ......103,249 ........22,777 ..........3,763 ...............85 .............379 ...............55 ...............33 ...........84,474 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ........20,064 .............915 ........29,756 ..........1,674 .............205 .................0 .............253 ...............(6) .............296 .................0 .................0 ............47,991 ......XXX....... 2. 1997..... ..........2,572 .............131 .............760 .............288 .................0 .................0 .................9 .................0 .................3 .................0 .................0 ..............2,926 ......XXX....... 3. 1998..... ..........4,553 .............264 ..........1,122 .............184 .................2 .................0 .................6 .................0 .................3 .................0 .................0 ..............5,237 ......XXX....... 4. 1999..... ..........4,036 .............199 ..........4,018 ..........3,581 .................7 .................0 ...............12 ...............(0) .................3 .................0 .................0 ..............4,296 ......XXX....... 5. 2000..... ........12,720 .............207 ........14,692 ..........7,817 .................0 .................0 ...............20 .................0 .............234 .................0 .................0 ............19,642 ......XXX....... 6. 2001..... ..........9,839 ..........1,097 ..........7,740 ..........7,635 .................0 .................0 ...............42 ...............(0) .................3 .................0 .................0 ..............8,891 ......XXX....... 7. 2002..... ..........3,776 .............963 ..........2,567 ..........2,165 .................0 .................0 .............132 .................0 .................3 .................0 .................0 ..............3,351 ......XXX....... 8. 2003..... ..........1,833 .............246 ..........1,082 .............588 .................0 .................0 ...............36 .................0 .................3 .................0 .................0 ..............2,120 ......XXX....... 9. 2004..... .............473 ...............13 .............749 ...............91 .................0 .................0 .............119 .................3 .................3 .................0 .................0 ..............1,235 ......XXX....... 10. 2005..... ...............28 .................0 ..........1,448 .............350 .................0 .................0 ...............57 .................7 .................3 .................0 .................0 ..............1,178 ......XXX....... 11. 2006..... ...............10 ...............10 ..........1,764 .............152 .................0 .................0 ...............40 .................8 .................3 .................0 .................0 ..............1,647 ......XXX....... 12. Totals... ........59,903 ..........4,044 ........65,697 ........24,525 .............214 .................0 .............727 ...............12 .............553 .................0 .................0 ............98,515 ......XXX.......

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

Inter-Company Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............47,231 .................760 2. 1997. ............22,699 ..............5,012 ............17,687 ................92.2 ................58.0 ..............110.7 .....................0 .....................0 ................5.03 ..............2,914 ...................12 3. 1998. ............35,021 ..............7,110 ............27,911 ..............137.4 ................94.6 ..............155.3 .....................0 .....................0 ................5.03 ..............5,226 ...................11 4. 1999. ............29,418 ............12,201 ............17,217 ..............114.0 ..............260.8 ................81.5 .....................0 .....................0 ................5.03 ..............4,274 ...................22 5. 2000. ............44,907 ............10,784 ............34,123 ..............277.2 ..............581.2 ..............237.9 .....................0 .....................0 ................5.03 ............19,388 .................254 6. 2001. ............26,722 ..............8,286 ............18,436 ..............167.4 ..............261.9 ..............144.0 .....................0 .....................0 ................5.03 ..............8,847 ...................44 7. 2002. ............11,842 ..............3,665 ..............8,177 ..............115.6 ..............275.9 ................91.7 .....................0 .....................0 ................5.03 ..............3,216 .................135 8. 2003. ..............4,519 .................891 ..............3,628 ................41.5 ................11.2 ..............122.5 .....................0 .....................0 ................5.03 ..............2,081 ...................39 9. 2004. ..............1,484 .................131 ..............1,353 ................76.7 ................20.6 ..............104.1 .....................0 .....................0 ................5.03 ..............1,117 .................118 10. 2005. ..............1,603 .................420 ..............1,183 ................58.2 ................41.9 ................67.4 .....................0 .....................0 ................5.03 ..............1,125 ...................53 11. 2006. ..............1,825 .................170 ..............1,654 ................76.7 ................19.8 ..............109.0 .....................0 .....................0 ................5.03 ..............1,612 ...................35 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............97,032 ..............1,483

63

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1P - REINSURANCE NONPROPORTIONAL ASSUMED FINANCIAL LINES ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1 Direct and Assumed

Ceded

3

Net (Cols. 1 - 2)

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior......... ........XXX......... ........XXX......... ........XXX......... ................(0) .................0 ................(0) .................0 .................0 .................0 .................0 ...................(0) ......XXX....... 2. 1997......... .................(19) ...................23 .................(42) ...............21 ...............27 .................0 .................0 .................0 .................0 .................0 ...................(6) ......XXX....... 3. 1998......... ...................11 ...................15 ...................(4) ...............35 ...............25 .................0 .................0 .................0 .................1 .................0 ....................9 ......XXX....... 4. 1999......... .................291 ...................19 .................272 .............349 .............173 ...............27 .................5 .................0 .................9 ..............(50) ................190 ......XXX....... 5. 2000......... .................491 .....................5 .................486 .............988 ...............77 ................(0) .................0 .................1 ...............42 ..............(30) ................869 ......XXX....... 6. 2001......... .................664 ...................59 .................605 ..........2,380 .............127 .................0 .................0 .................3 ...............11 ..............(32) .............2,244 ......XXX....... 7. 2002......... .................149 ...................88 ...................61 .............545 ...............53 .................0 .................0 .................7 .................0 .................0 ................499 ......XXX....... 8. 2003......... .................447 .................173 .................274 .................9 .................0 .................0 .................0 .................0 .................0 .................0 ....................9 ......XXX....... 9. 2004......... .................704 .................(14) .................718 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ....................0 ......XXX....... 10. 2005......... .................219 ...................26 .................193 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ....................0 ......XXX....... 11. 2006......... .................(52) ...................(7) .................(45) .................0 .................0 .................0 .................0 .................0 .................0 .................0 ....................0 ......XXX....... 12. Totals....... .........XXX........ .........XXX........ .........XXX........ ..........4,327 .............481 ...............28 .................5 ...............11 ...............64 ............(112) .............3,815 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ...............14 .................0 ...............74 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ...................88 ......XXX....... 2. 1997..... ...............13 .................0 ...............56 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ...................68 ......XXX....... 3. 1998..... .................0 .................0 ...............57 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ...................57 ......XXX....... 4. 1999..... ...............87 ...............22 .............199 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................264 ......XXX....... 5. 2000..... .............137 .................0 .............255 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................392 ......XXX....... 6. 2001..... .............114 .................0 .............268 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................382 ......XXX....... 7. 2002..... .............280 ...............39 .............153 .................3 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................391 ......XXX....... 8. 2003..... ...............18 .................0 ...............29 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 ...................47 ......XXX....... 9. 2004..... ...............58 .................0 ...............13 .................0 .................0 .................0 .................1 .................0 .................0 .................0 .................0 ...................73 ......XXX....... 10. 2005..... .................0 .................0 .............124 .................8 .................0 .................0 .................6 .................1 .................0 .................0 .................0 .................122 ......XXX....... 11. 2006..... .................0 .................0 ...............38 .................0 .................0 .................0 .................2 .................0 .................0 .................0 .................0 ...................40 ......XXX....... 12. Totals... .............721 ...............61 ..........1,266 ...............11 .................0 .................0 .................9 .................1 .................0 .................0 .................0 ..............1,924 ......XXX.......

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

Inter-Company Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ...................88 .....................0 2. 1997. ...................90 ...................27 ...................63 .............(472.8) ..............120.3 .............(150.8) .....................0 .....................0 ................5.03 ...................68 .....................0 3. 1998. ...................91 ...................25 ...................66 ..............807.3 ..............168.7 ..........(1,762.8) .....................0 .....................0 ................5.03 ...................57 .....................0 4. 1999. .................663 .................209 .................454 ..............227.7 ...........1,084.5 ..............166.9 .....................0 .....................0 ................5.03 .................264 .....................0 5. 2000. ..............1,381 .................119 ..............1,262 ..............281.1 ...........2,378.6 ..............259.4 .....................0 .....................0 ................5.03 .................392 .....................0 6. 2001. ..............2,765 .................138 ..............2,626 ..............416.0 ..............233.0 ..............434.0 .....................0 .....................0 ................5.03 .................382 .....................0 7. 2002. .................985 ...................95 .................890 ..............660.9 ..............108.2 ...........1,449.6 .....................0 .....................0 ................5.03 .................391 .....................0 8. 2003. ...................56 .....................0 ...................56 ................12.6 ..................0.0 ................20.5 .....................0 .....................0 ................5.03 ...................47 .....................0 9. 2004. ...................73 .....................0 ...................73 ................10.3 ..................0.0 ................10.1 .....................0 .....................0 ................5.03 ...................72 .....................1 10. 2005. .................130 .....................8 .................122 ................59.4 ................31.7 ................63.2 .....................0 .....................0 ................5.03 .................116 .....................5 11. 2006. ...................40 .....................0 ...................40 ...............(76.5) ..................0.0 ...............(88.9) .....................0 .....................0 ................5.03 ...................38 .....................2 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............1,915 .....................8

64

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ ..........1,945 ...............29 ..........2,668 .............170 ..........2,151 ...............16 ..............(30) ..............6,549 ......XXX....... 2. 1997....... ............12,712 ..............2,370 ............10,342 ........10,189 ..........2,236 ..........4,247 .............629 ..........1,958 ...............84 .............189 ............13,445 ..........4,741 3. 1998....... ............11,514 ..............1,636 ..............9,878 ..........6,763 ..........1,315 ..........3,171 .............855 .............878 ...............55 .............208 ..............8,586 .............580 4. 1999....... ..............9,051 ..............1,399 ..............7,652 ..........7,152 ..........2,948 ..........2,629 .............781 .............750 ...............30 .............282 ..............6,772 .............541 5. 2000....... ..............9,705 ..............1,127 ..............8,578 ..........5,784 ..........1,796 ..........3,306 ..........1,059 .............649 ...............47 .............159 ..............6,838 .............401 6. 2001....... ............11,534 ..............1,209 ............10,326 ..........3,414 .............383 ..........2,292 .............465 .............531 ...............38 ...............89 ..............5,351 .............570 7. 2002....... ............17,416 ..............3,105 ............14,311 ..........5,973 ..........1,868 ..........2,175 .............156 .............637 ...............40 ...............68 ..............6,721 .............477 8. 2003....... ............21,774 ..............4,128 ............17,647 ..........4,342 .............905 ..........1,210 ...............74 .............453 ...............67 ...............16 ..............4,959 .............622 9. 2004....... ............22,468 ..............3,709 ............18,759 ..........1,846 .............141 .............658 ...............10 .............370 ...............47 .................5 ..............2,675 .............469 10. 2005....... ............12,785 ..............1,540 ............11,246 .............545 ...............91 .............182 .................4 .............428 ...............35 .................1 ..............1,024 .............118 11. 2006....... ..............6,024 .................392 ..............5,632 .............109 ...............11 ...............41 .................0 .............325 .................7 .................0 .................457 ...............57 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ........48,063 ........11,723 ........22,579 ..........4,204 ..........9,128 .............466 .............989 ............63,376 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ..........5,281 ..........1,538 ........52,219 ..........5,933 ..........8,255 ..........1,000 ........21,028 .............929 ..........5,469 ...............46 ...............22 ............82,807 ........41,510 2. 1997..... .............544 .............126 .............889 .............216 .............309 ...............25 .............433 ...............11 .............497 .................0 ...............10 ..............2,294 ..........2,721 3. 1998..... .............410 ...............52 ..........1,021 .............(82) .............577 .............170 .............440 .............105 ...............13 .................0 .................9 ..............2,216 ...............11 4. 1999..... ..........1,162 .............249 ..........1,625 .............406 .............629 .............355 .............458 ...........(303) ...............19 ...............(0) ...............13 ..............3,186 ...............22 5. 2000..... ..........1,204 .............(16) ..........1,135 ...........(239) ..........1,302 .............416 .............502 .............143 ...............30 ...............(0) ...............37 ..............3,869 ...............13 6. 2001..... ..........1,025 ...............27 ..........1,496 .............219 .............357 .................4 .............670 ...............90 .............142 .................0 ...............76 ..............3,351 ...............71 7. 2002..... ..........2,003 .............187 ..........1,685 .............648 .............520 ...............16 .............838 .............100 .............169 ...............(0) .............116 ..............4,265 ...............32 8. 2003..... ..........2,508 .............181 ..........1,927 ..........1,034 .............761 ...............16 ..........1,230 .............160 .............204 ...............(0) .............156 ..............5,239 ...............34 9. 2004..... ..........2,995 .............308 ..........4,553 ..........1,422 .............657 ...............30 ..........3,320 .............370 .............188 ...............(1) .............220 ..............9,586 ...............44 10. 2005..... ..........1,298 .............142 ..........4,505 ..........1,076 .............361 ...............55 ..........1,821 .............272 .............236 ...............(5) .............158 ..............6,680 ...............30 11. 2006..... .............625 .................7 ..........1,910 ...............45 .............158 .................3 ..........1,098 .................5 .............111 ...............(2) .............103 ..............3,844 ...............21 12. Totals... ........19,058 ..........2,799 ........72,965 ........10,678 ........13,886 ..........2,090 ........31,837 ..........1,881 ..........7,077 ...............38 .............920 ..........127,337 ........44,509

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............50,030 ............32,777 2. 1997. ............19,065 ..............3,327 ............15,739 ..............150.0 ..............140.3 ..............152.2 .....................0 .....................0 ................5.03 ..............1,091 ..............1,203 3. 1998. ............13,272 ..............2,470 ............10,802 ..............115.3 ..............151.0 ..............109.4 .....................0 .....................0 ................5.03 ..............1,462 .................754 4. 1999. ............14,423 ..............4,465 ..............9,959 ..............159.4 ..............319.0 ..............130.1 .....................0 .....................0 ................5.03 ..............2,132 ..............1,054 5. 2000. ............13,911 ..............3,204 ............10,707 ..............143.3 ..............284.2 ..............124.8 .....................0 .....................0 ................5.03 ..............2,595 ..............1,274 6. 2001. ..............9,928 ..............1,226 ..............8,701 ................86.1 ..............101.5 ................84.3 .....................0 .....................0 ................5.03 ..............2,275 ..............1,075 7. 2002. ............14,001 ..............3,015 ............10,985 ................80.4 ................97.1 ................76.8 .....................0 .....................0 ................5.03 ..............2,853 ..............1,412 8. 2003. ............12,635 ..............2,438 ............10,197 ................58.0 ................59.1 ................57.8 .....................0 .....................0 ................5.03 ..............3,220 ..............2,019 9. 2004. ............14,588 ..............2,326 ............12,262 ................64.9 ................62.7 ................65.4 .....................0 .....................0 ................5.03 ..............5,820 ..............3,767 10. 2005. ..............9,375 ..............1,671 ..............7,704 ................73.3 ..............108.5 ................68.5 .....................0 .....................0 ................5.03 ..............4,585 ..............2,095 11. 2006. ..............4,378 ...................77 ..............4,301 ................72.7 ................19.6 ................76.4 .....................0 .....................0 ................5.03 ..............2,483 ..............1,361 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ............78,546 ............48,791

65

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE Years in Which Premiums Were Earned and Losses Were Incurred

($000 omitted)

Premiums Earned 2

1 Direct and Assumed

3

Net (Cols. 1 - 2)

Ceded

Loss Payments 4 5 Direct and Assumed Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... .........XXX........ .........XXX........ .........XXX........ .................1 .................0 .................9 ..............(11) .................1 .................0 ................(0) ...................22 ......XXX....... 2. 1997....... ..............1,260 .................207 ..............1,053 .............629 ...............81 .............335 ...............32 ...............26 .................0 ................(4) .................876 .................4 3. 1998....... ..............1,282 .................260 ..............1,022 ..........1,638 .............827 .............467 .............289 ...............34 .................0 .................1 ..............1,023 .................3 4. 1999....... .................955 ...................91 .................864 .............396 .................3 .............220 .................3 ...............30 .................1 ...............56 .................639 .................1 5. 2000....... .................948 .................107 .................841 .............937 .............202 .............209 ...............14 ...............43 .................1 .................2 .................972 .................0 6. 2001....... .................844 .................119 .................726 .............484 ..............(67) .............241 .................3 ...............26 .................0 .................0 .................816 .................0 7. 2002....... ..............1,286 .................259 ..............1,027 .............135 ...............10 .............109 ...............25 ...............11 .................0 .................0 .................220 .................1 8. 2003....... ..............1,657 .................247 ..............1,411 .............219 .............218 ...............87 ...............42 ...............18 .................0 .................1 ...................64 .................3 9. 2004....... ..............1,542 .................345 ..............1,198 .............166 .............284 ...............31 ...............48 .................9 .................0 .................2 ...............(127) .................1 10. 2005....... .................873 .................123 .................750 .................8 .................1 ...............14 .................0 .................4 .................0 .................0 ...................24 .................1 11. 2006....... .................740 ...................14 .................725 .................0 .................0 .................1 .................0 .................4 .................0 .................0 .....................4 .................0 12. Totals..... .........XXX........ .........XXX........ .........XXX........ ..........4,615 ..........1,560 ..........1,724 .............446 .............205 .................4 ...............57 ..............4,533 ......XXX.......

Losses Unpaid

Case Basis 13 14 Direct and Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Adjusting and Other Unpaid 21 22 Direct and Assumed

Ceded

23 Salvage and Subrogation Anticipated

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

1. Prior..... ...............37 .................0 .............317 .............(71) ...............26 .................0 .............156 .............(25) ...............24 .................0 .................3 .................655 .................0 2. 1997..... ...............12 .................0 .............108 .................1 .................3 .................5 ...............38 ...............(5) .................4 .................0 .................2 .................164 .................0 3. 1998..... ...............90 ...............49 .............103 ...............64 ...............68 ...............44 ...............58 ...............33 .................4 .................0 .................3 .................134 .................0 4. 1999..... ...............38 .................0 ...............99 ...............21 ...............42 .................0 ...............17 .................3 .................4 .................0 .................4 .................177 .................0 5. 2000..... ...............16 .................0 ...............92 ...............28 .................2 .................0 ...............44 .................4 .................6 .................0 .................6 .................128 .................0 6. 2001..... ...............64 .................0 ...............45 ...............12 ...............12 .................0 ...............17 .................2 ...............10 .................0 .................6 .................134 .................0 7. 2002..... ...............40 .................3 .............202 ...............32 ...............14 .................0 ...............69 .................3 .................9 .................0 .................4 .................297 .................0 8. 2003..... ...............87 .............195 .............339 ...............32 .................4 .................0 .............161 .................9 ...............19 .................0 .................4 .................374 .................1 9. 2004..... ...............28 .............196 .............263 ...............58 .................3 .................0 ...............97 ...............11 ...............17 .................0 .................0 .................143 .................0 10. 2005..... .............267 .................0 ...............48 ...............39 ...............40 .................0 ...............75 .................7 ...............31 .................0 .................4 .................415 .................1 11. 2006..... ...............12 .................0 .............222 .................7 .................4 .................0 .............151 .................1 ...............10 .................0 .................5 .................392 .................0 12. Totals... .............691 .............443 ..........1,838 .............223 .............219 ...............49 .............884 ...............42 .............137 .................0 ...............42 ..............3,013 .................2

26 Direct and Assumed

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net

32 Loss

Nontabular Discount

34 33

Loss Expense

InterCompany Pooling Participation Percentage

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid

1. Prior.. ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... .................424 .................231 2. 1997. ..............1,155 .................115 ..............1,040 ................91.7 ................55.8 ................98.8 .....................0 .....................0 ................5.03 .................119 ...................45 3. 1998. ..............2,463 ..............1,306 ..............1,157 ..............192.1 ..............502.2 ..............113.2 .....................0 .....................0 ................5.03 ...................80 ...................54 4. 1999. .................847 ...................31 .................816 ................88.7 ................33.7 ................94.5 .....................0 .....................0 ................5.03 .................117 ...................60 5. 2000. ..............1,349 .................249 ..............1,100 ..............142.3 ..............232.8 ..............130.7 .....................0 .....................0 ................5.03 ...................80 ...................48 6. 2001. .................900 ..................(49) .................950 ..............106.6 ...............(41.7) ..............130.9 .....................0 .....................0 ................5.03 ...................97 ...................37 7. 2002. .................590 ...................73 .................517 ................45.9 ................28.3 ................50.3 .....................0 .....................0 ................5.03 .................207 ...................90 8. 2003. .................934 .................496 .................438 ................56.4 ..............201.1 ................31.1 .....................0 .....................0 ................5.03 .................199 .................175 9. 2004. .................614 .................598 ...................16 ................39.8 ..............173.7 ..................1.3 .....................0 .....................0 ................5.03 ...................37 .................106 10. 2005. .................487 ...................48 .................439 ................55.8 ................38.7 ................58.5 .....................0 .....................0 ................5.03 .................275 .................140 11. 2006. .................404 .....................7 .................397 ................54.6 ................51.8 ................54.7 .....................0 .....................0 ................5.03 .................227 .................165 12. Totals ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 ........XXX......... ..............1,863 ..............1,150

66

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY ($000 omitted) Years in Which Premiums Were Earned and Losses Were Incurred

Premiums Earned 2

1

Direct and Assumed

3 Loss Payments 4 5 Direct and Assumed Ceded

Net (Cols. 1 - 2)

Ceded

Loss and Loss Expense Payments Defense and Cost Adjusting and Other Containment Payments Payments 6 7 8 9 Direct Direct and and Assumed Ceded Assumed Ceded

10

11

Salvage and Subrogation Received

Total Net Paid (Cols. 4 - 5 + 6 - 7 + 8 - 9)

12 Number of Claims ReportedDirect and Assumed

1. Prior....... ........XXX......... ........XXX......... ........XXX......... .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 ......XXX....... 2. 2005...... .....................0 .....................0 .....................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 ......XXX....... 3. 2006...... .....................0 .....................0 .....................0 .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 ......XXX....... 4. Totals..... ........XXX......... ........XXX......... ........XXX......... .................0 .................0 .................0 .................0 .................0 .................0 .................0 .....................0 ......XXX.......

Losses Unpaid Case Basis 13 14 Direct and Assumed Ceded 1. 2. 3. 4.

Prior..... 2005... 2006... Totals...

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

Defense and Cost Containment Unpaid Case Basis Bulk + IBNR 17 18 19 20 Direct Direct and and Assumed Ceded Assumed Ceded

Bulk + IBNR 15 16 Direct and Assumed Ceded .................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

Adjusting and Other Unpaid 21 22

23

Direct and Assumed

Ceded

Salvage and Subrogation Anticipated

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

.................0 .................0 .................0 .................0

24 Total Net Losses and Expenses Unpaid

25 Number of Claims OutstandingDirect and Assumed

.....................0 .....................0 .....................0 .....................0

.................0 .................0 .................0 .................0

34

26 Direct and Assumed 1. 2. 3. 4.

Prior.. 2005 2006 Totals

Total Losses and Loss Expenses Incurred 27

28

Ceded

Net

........XXX......... .....................0 .....................0 ........XXX.........

........XXX......... .....................0 .....................0 ........XXX.........

........XXX......... .....................0 .....................0 ........XXX.........

Loss and Loss Expense Percentage (Incurred/Premiums Earned) 29 30 31 Direct and Assumed Ceded Net ........XXX......... ..................0.0 ..................0.0 ........XXX.........

........XXX......... ..................0.0 ..................0.0 ........XXX.........

........XXX......... ..................0.0 ..................0.0 ........XXX.........

67

Nontabular Discount 32

33

Loss

Loss Expense

Inter-Company Pooling Participation Percentage

.....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

........XXX......... ................5.03 ................5.03 ........XXX.........

Net Balance Sheet Reserves after Discount 35 36 Loss Losses Expenses Unpaid Unpaid .....................0 .....................0 .....................0 .....................0

.....................0 .....................0 .....................0 .....................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS Years in Which Losses Were Incurred

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 3 4 5 6 7 8 9

1

2

1997

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

Development 11 12 One Year

Two Year

1. Prior..... ..........13,171 ..........11,861 ..........11,207 ..........10,323 ............9,891 ............9,201 ............9,233 ............9,214 ............9,110 ............9,247 ...............137 .................33 2. 1997.... ..........29,916 ..........29,381 ..........28,088 ..........27,573 ..........27,306 ..........27,017 ..........27,010 ..........26,983 ..........27,063 ..........26,946 .............(117) ...............(37) 3. 1998.... .......XXX........ ..........36,346 ..........36,427 ..........36,083 ..........35,848 ..........35,486 ..........35,419 ..........35,407 ..........35,306 ..........35,299 .................(7) .............(108) 4. 1999.... .......XXX........ .......XXX........ ..........39,827 ..........40,936 ..........41,161 ..........40,891 ..........40,729 ..........40,627 ..........40,651 ..........40,651 ...................0 .................24 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........38,778 ..........40,347 ..........40,909 ..........40,466 ..........40,221 ..........40,478 ..........40,121 .............(357) .............(101) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........41,908 ..........42,939 ..........41,741 ..........41,384 ..........40,904 ..........40,792 .............(112) .............(592) 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........42,413 ..........36,045 ..........34,845 ..........34,848 ..........34,833 ...............(14) ...............(12) 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........50,377 ..........42,074 ..........42,489 ..........41,699 .............(790) .............(374) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........50,924 ..........51,825 ..........51,805 ...............(19) ...............881 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........69,155 ..........59,654 ..........(9,501) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........51,188 .......XXX........ .......XXX........ 12. Totals

........(10,779) .............(285)

SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL 1. 2. 3. 4.

Prior..... 1997.... 1998.... 1999....

..........67,578 ..........51,867 .......XXX........ .......XXX........

..........63,016 ..........51,827 ..........52,707 .......XXX........

..........56,772 ..........50,884 ..........52,022 ..........51,765

..........53,803 ..........50,904 ..........53,175 ..........53,854

..........53,631 ..........50,348 ..........53,280 ..........54,650

..........55,189 ..........49,871 ..........53,154 ..........54,694

..........57,667 ..........49,783 ..........53,025 ..........54,284

..........60,810 ..........49,798 ..........52,872 ..........54,324

..........67,155 ..........49,829 ..........52,814 ..........54,190

..........67,093 ..........49,793 ..........52,771 ..........54,178

...............(62) ...............(36) ...............(42) ...............(12)

............6,282 .................(5) .............(100) .............(146)

5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........47,945 ..........49,921 ..........48,755 ..........48,720 ..........48,180 ..........48,298 ..........48,166 .............(132) ...............(15) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........49,902 ..........50,199 ..........46,845 ..........46,483 ..........46,408 ..........46,248 .............(160) .............(235) 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........50,722 ..........50,755 ..........47,456 ..........45,377 ..........45,222 .............(154) ..........(2,233) 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........53,051 ..........48,675 ..........44,597 ..........43,880 .............(717) ..........(4,795) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........54,532 ..........47,601 ..........45,811 ..........(1,790) ..........(8,721) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........52,219 ..........49,559 ..........(2,660) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........52,370 .......XXX........ .......XXX........ 12. Totals

..........(5,765) ..........(9,968)

SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL 1. Prior..... ..........75,364 ..........74,531 ..........74,830 ..........71,638 ..........70,146 ..........69,805 ..........68,412 ..........67,369 ..........67,684 ..........67,402 .............(283) .................33 2. 1997.... ..........54,334 ..........56,585 ..........54,192 ..........55,520 ..........55,915 ..........56,693 ..........56,560 ..........56,082 ..........56,153 ..........56,084 ...............(68) ...................2 3. 1998.... .......XXX........ ..........51,156 ..........50,003 ..........52,547 ..........55,082 ..........56,739 ..........56,338 ..........55,802 ..........55,828 ..........55,726 .............(101) ...............(76) 4. 1999.... .......XXX........ .......XXX........ ..........42,660 ..........46,127 ..........47,616 ..........50,649 ..........50,551 ..........50,466 ..........50,715 ..........50,828 ...............114 ...............362 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........41,608 ..........43,132 ..........46,354 ..........49,001 ..........49,483 ..........49,919 ..........49,530 .............(388) .................47 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........45,403 ..........45,035 ..........49,416 ..........48,959 ..........49,246 ..........49,443 ...............197 ...............485 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........47,107 ..........44,581 ..........44,618 ..........43,976 ..........43,842 .............(134) .............(776) 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........47,347 ..........43,957 ..........41,645 ..........40,468 ..........(1,177) ..........(3,489) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........47,466 ..........38,803 ..........36,363 ..........(2,440) ........(11,103) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........39,606 ..........35,070 ..........(4,536) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........33,608 .......XXX........ .......XXX........ 12. Totals

..........(8,817) ........(14,516)

SCHEDULE P - PART 2D - WORKERS' COMPENSATION 1. Prior..... ........459,753 ........445,220 ........437,842 ........421,601 ........400,757 ........394,014 ........393,116 ........397,825 ........396,312 ........400,393 ............4,081 ............2,567 2. 1997.... ..........55,335 ..........57,877 ..........58,373 ..........58,439 ..........58,645 ..........58,638 ..........57,971 ..........58,746 ..........60,832 ..........61,127 ...............295 ............2,381 3. 1998.... .......XXX........ ..........62,216 ..........63,505 ..........64,429 ..........67,147 ..........66,493 ..........68,841 ..........68,565 ..........69,486 ..........69,942 ...............456 ............1,377 4. 1999.... .......XXX........ .......XXX........ ..........61,271 ..........66,152 ..........68,267 ..........71,072 ..........74,381 ..........75,292 ..........74,586 ..........76,596 ............2,011 ............1,304 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........62,603 ..........68,137 ..........68,791 ..........74,612 ..........76,320 ..........76,690 ..........78,112 ............1,423 ............1,793 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........76,702 ..........75,361 ..........76,608 ..........75,825 ..........73,987 ..........76,791 ............2,804 ...............966 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........66,630 ..........62,649 ..........65,931 ..........66,786 ..........67,844 ............1,057 ............1,913 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........77,643 ..........68,813 ..........70,141 ..........71,155 ............1,014 ............2,343 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........88,000 ..........80,685 ..........73,265 ..........(7,419) ........(14,734) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........78,629 ..........72,445 ..........(6,184) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........77,962 .......XXX........ .......XXX........ 12. Totals

.............(462) ...............(92)

SCHEDULE P - PART 2E - COMMERCIAL MULTIPLE PERIL 1. Prior..... ........132,637 ........131,874 ........129,172 ........123,277 ........117,463 ........116,514 ........118,121 ........118,404 ........121,248 ........127,771 ............6,523 ............9,367 2. 1997.... ..........65,148 ..........66,133 ..........62,899 ..........62,498 ..........62,607 ..........60,982 ..........60,513 ..........60,501 ..........60,342 ..........61,248 ...............905 ...............746 3. 4. 5. 6. 7. 8. 9. 10.

1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005....

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........81,322 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........78,577 ..........74,191 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........78,866 ..........73,099 ..........67,897 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........79,936 ..........72,989 ..........67,020 ..........80,579 .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........81,406 ..........75,357 ..........71,212 ..........78,064 ..........66,311 .......XXX........ .......XXX........ .......XXX........

..........78,930 ..........76,282 ..........73,170 ..........80,051 ..........63,057 ..........73,040 .......XXX........ .......XXX........

..........78,901 ..........75,256 ..........72,383 ..........79,689 ..........60,771 ..........68,429 ..........81,860 .......XXX........

..........79,578 ..........75,658 ..........72,670 ..........77,193 ..........58,053 ..........64,975 ..........74,887 ........106,894

..........80,472 ..........76,641 ..........72,775 ..........76,264 ..........57,112 ..........61,806 ..........73,315 ..........95,023

...............895 ...............983 ...............104 .............(929) .............(940) ..........(3,170) ..........(1,571) ........(11,871)

............1,572 ............1,385 ...............392 ..........(3,425) ..........(3,659) ..........(6,623) ..........(8,545) .......XXX........

11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........71,517 .......XXX........ .......XXX........ 12. Totals

68

..........(9,072) ..........(8,791)

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE Years in Which Losses Were Incurred

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 3 4 5 6 7 8 9

1

2

1997

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

Development 11 12 One Year

Two Year

1. Prior..... ..........17,454 ..........19,472 ..........21,103 ..........22,031 ..........23,903 ..........22,283 ..........22,602 ..........21,724 ..........20,861 ..........21,046 ...............185 .............(678) 2. 1997.... ............4,429 ............5,330 ............7,734 ............9,606 ..........11,966 ..........11,486 ..........12,078 ..........11,991 ..........11,704 ..........11,728 .................24 .............(263) 3. 1998.... .......XXX........ ............3,084 ............4,006 ............5,750 ............8,983 ............8,324 ............8,675 ............8,484 ............8,203 ............8,251 .................48 .............(233) 4. 1999.... .......XXX........ .......XXX........ ............4,546 ............5,412 ............7,654 ............7,199 ............9,139 ............9,006 ............8,876 ............8,753 .............(123) .............(253) 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ............2,580 ............4,692 ............4,396 ............6,168 ............6,312 ............5,887 ............6,229 ...............342 ...............(83) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............4,236 ............3,400 ............5,597 ............5,505 ............5,655 ............5,996 ...............341 ...............491 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............8,210 ............9,797 ............9,875 ............9,630 ..........10,871 ............1,241 ...............996 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,955 ............2,210 ............2,660 ............1,830 .............(829) .............(379) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............166 ...............115 .................70 ...............(45) ...............(96) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................(8) .................12 .................21 .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................13 .......XXX........ .......XXX........ 12. Totals

............1,205 .............(498)

SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE 1. 2. 3. 4.

Prior..... 1997.... 1998.... 1999....

..........58,498 ..........28,861 .......XXX........ .......XXX........

..........55,407 ..........27,881 ..........29,485 .......XXX........

..........53,796 ..........27,345 ..........29,161 ..........22,789

..........53,696 ..........27,972 ..........33,472 ..........24,362

..........58,367 ..........30,385 ..........36,334 ..........33,022

..........58,210 ..........30,242 ..........37,446 ..........30,767

..........59,297 ..........30,690 ..........38,349 ..........33,007

..........58,801 ..........30,741 ..........38,664 ..........33,765

..........58,595 ..........30,453 ..........39,658 ..........35,059

..........59,038 ..........30,300 ..........39,622 ..........35,831

...............443 .............(153) ...............(36) ...............773

...............238 .............(441) ...............958 ............2,066

5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........18,509 ..........30,001 ..........30,834 ..........35,483 ..........30,087 ..........31,380 ..........32,750 ............1,370 ............2,664 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........25,725 ..........30,475 ..........34,436 ..........36,215 ..........38,981 ..........38,607 .............(374) ............2,392 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........13,984 ..........15,636 ..........16,204 ..........17,092 ..........17,349 ...............256 ............1,145 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,604 ...............820 ............1,282 ...............849 .............(433) .................29 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............352 ...............569 ...............401 .............(168) .................49 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............211 ...............179 ...............(32) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................73 .......XXX........ .......XXX........ 12. Totals

............1,646 ............9,099

SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER & MACHINERY) 1. Prior..... ............8,096 ............8,193 ............7,800 ............7,907 ............7,366 ............7,135 ............7,234 ............7,020 ............7,000 ............7,098 .................98 .................78 2. 1997.... ............9,721 ............9,721 ............9,741 ............9,846 ............9,749 ............9,820 ............9,641 ............9,687 ............9,733 ............9,749 .................16 .................61 3. 1998.... .......XXX........ ..........10,501 ..........10,602 ..........10,864 ..........10,262 ..........10,067 ............9,911 ............9,870 ............9,830 ............9,888 .................58 .................18 4. 1999.... .......XXX........ .......XXX........ ............8,379 ............8,728 ............8,233 ............8,346 ............8,050 ............8,241 ............8,162 ............8,201 .................39 ...............(39) 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ............7,692 ............7,475 ............7,616 ............7,407 ............7,796 ............7,717 ............7,771 .................54 ...............(25) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............7,681 ............8,064 ............8,166 ............9,676 ............9,670 ............8,386 ..........(1,284) ..........(1,290) 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............8,807 ............7,952 ............7,116 ............6,774 ............6,806 .................33 .............(310) 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............8,755 ............6,688 ............6,270 ............6,197 ...............(73) .............(491) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........11,574 ............8,152 ............8,400 ...............247 ..........(3,174) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........12,313 ............9,478 ..........(2,835) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........10,174 .......XXX........ .......XXX........ 12. Totals

..........(3,647) ..........(5,172)

SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE 1. Prior..... ........303,837 ........295,444 ........302,603 ........305,000 ........309,161 ........357,998 ........364,266 ........402,368 ........430,399 ........465,040 ..........34,642 ..........62,672 2. 1997.... ..........43,911 ..........45,905 ..........44,034 ..........42,647 ..........42,407 ..........43,951 ..........42,303 ..........43,652 ..........43,996 ..........44,121 ...............125 ...............469 3. 1998.... .......XXX........ ..........38,943 ..........38,500 ..........38,493 ..........39,376 ..........41,766 ..........40,462 ..........43,113 ..........43,812 ..........43,142 .............(669) .................30 4. 1999.... .......XXX........ .......XXX........ ..........29,548 ..........27,998 ..........32,972 ..........38,645 ..........38,110 ..........42,732 ..........44,341 ..........46,011 ............1,670 ............3,280 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........28,805 ..........29,311 ..........35,949 ..........39,720 ..........45,143 ..........44,991 ..........45,745 ...............754 ...............603 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........40,531 ..........42,691 ..........52,306 ..........53,895 ..........52,946 ..........53,750 ...............804 .............(145) 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........44,359 ..........43,611 ..........47,174 ..........49,355 ..........50,539 ............1,184 ............3,365 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........53,323 ..........48,311 ..........50,956 ..........52,713 ............1,757 ............4,403 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........54,000 ..........52,121 ..........51,870 .............(252) ..........(2,131) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........55,782 ..........53,357 ..........(2,425) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........54,673 .......XXX........ .......XXX........ 12. Totals

..........37,590 ..........72,545

SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE 1. Prior..... ..........20,509 ..........19,808 ..........19,607 ..........19,138 ..........18,503 ..........18,354 ..........15,938 ..........16,406 ..........15,429 ..........16,289 ...............861 .............(116) 2. 1997.... ............9,202 ............8,697 ............8,417 ............7,741 ............7,591 ............7,370 ............7,374 ............7,361 ............7,745 ............8,273 ...............527 ...............912 3. 4. 5. 6. 7. 8. 9. 10.

1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005....

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............8,859 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............9,747 ............8,329 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............9,180 ............8,588 ..........10,024 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............9,138 ............9,329 ............9,990 ..........11,481 .......XXX........ .......XXX........ .......XXX........ .......XXX........

............9,135 ..........10,773 ..........10,265 ............9,837 ..........14,871 .......XXX........ .......XXX........ .......XXX........

............9,002 ..........11,773 ..........11,584 ..........15,132 ..........12,049 ..........18,860 .......XXX........ .......XXX........

............9,295 ..........12,601 ..........13,449 ..........18,783 ..........20,657 ..........17,100 ..........25,675 .......XXX........

............9,838 ..........13,200 ..........14,479 ..........20,619 ..........24,032 ..........20,390 ..........20,508 ..........22,544

..........10,218 ..........13,730 ..........14,278 ..........21,390 ..........26,501 ..........24,788 ..........20,444 ..........20,282

...............380 ...............529 .............(201) ...............771 ............2,469 ............4,398 ...............(63) ..........(2,263)

...............923 ............1,128 ...............828 ............2,607 ............5,844 ............7,688 ..........(5,231) .......XXX........

11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........22,076 .......XXX........ .......XXX........ 12. Totals

69

............7,409 ..........14,583

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY AND THEFT) Years in Which Losses Were Incurred

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 3 4 5 6 7 8 9

1

2

1997

1998

1999

2000

2001

2002

2003

2004

10

2005

2006

Development 11 12 One Year

Two Year

1. Prior..... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........53,198 ..........34,279 ..........31,665 ..........(2,614) ........(21,533) 2. 2005.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........61,763 ..........57,334 ..........(4,428) ......XXX......... 3. 2006.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........35,178 ......XXX......... ......XXX......... 4. Totals

..........(7,042) ........(21,533)

SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE 1. Prior..... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............9,670 ............6,089 ............5,593 .............(496) ..........(4,078) 2. 2005.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........33,567 ..........33,459 .............(108) ......XXX......... 3. 2006.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........35,069 ......XXX......... ......XXX......... 4. Totals

.............(604) ..........(4,078)

SCHEDULE P - PART 2K - FIDELITY/SURETY 1. Prior..... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ..........43,220 ..........47,379 ..........47,269 .............(110) 2. 2005.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............6,773 ............7,150 ...............377 3. 2006.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............3,544 ......XXX......... 4. Totals ...............267

............4,049 ......XXX......... ......XXX......... ............4,049

SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) 1. Prior..... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ...............581 ...............675 ...............675 ...................0 .................94 2. 2005.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... .................30 .................30 .................(0) ......XXX......... 3. 2006.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... .................23 ......XXX......... ......XXX......... 4. Totals

...................0 .................94

SCHEDULE P - PART 2M - INTERNATIONAL 1. Prior..... ............4,588 ............2,311 ............1,608 ............1,595 ............1,241 ............1,193 ............1,185 ............1,188 ............1,188 ............1,190 ...................2 ...................1 2. 1997.... ............4,971 ............5,951 ............3,312 ............3,312 ............3,311 ............3,311 ............3,306 ............3,306 ............3,306 ............3,306 ...................0 .................(0) 3. 1998.... ......XXX......... ............3,094 ............1,431 ............1,431 ............1,432 ............1,432 ............1,432 ............1,432 ............1,432 ............1,432 ...................0 .................(0) 4. 1999.... ......XXX......... ......XXX......... ...............204 ...............208 ...............273 ...............370 ...............444 ...............476 ...............367 ...............418 .................51 ...............(58) 5. 2000.... ......XXX......... ......XXX......... ......XXX......... ...............208 ...............214 ...............333 ...............496 ...............620 ...............532 ...............639 ...............107 .................19 6. 2001.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............2,816 ............2,731 ............2,874 ............3,096 ............2,029 ............2,067 .................38 ..........(1,029) 7. 2002.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ...............249 ...............388 .................24 .................19 .................24 ...................5 .................(0) 8. 2003.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............5,318 ............5,236 ............5,737 ............6,097 ...............360 ...............861 9. 2004.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ............9,540 ............9,088 ............7,032 ..........(2,056) ..........(2,509) 10. 2005.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... .............(103) ...............460 ...............563 ......XXX......... 11. 2006.... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... ......XXX......... .................48 ......XXX......... ......XXX......... 12. Totals

70

.............(929) ..........(2,715)

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 2N - REINSURANCE NONPROPORTIONAL ASSUMED PROPERTY Years in Which Losses Were Incurred

1

1997

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

Development 11 12 One Year

Two Year

1. Prior..... ............3,541 ............2,510 ............3,090 ............1,513 ............1,872 ............1,833 ............2,717 ............2,342 ............2,382 ............2,467 .................86 ...............125 2. 1997.... ............2,222 ............1,944 ............4,813 ............3,257 ............3,302 ............3,524 ............3,257 ............3,347 ............3,411 ............3,366 ...............(46) .................19 3. 1998.... .......XXX........ ............2,561 ............3,594 ............4,848 ............4,849 ............4,739 ............5,426 ............5,637 ............5,767 ............5,987 ...............219 ...............349 4. 1999.... .......XXX........ .......XXX........ ............5,895 ............8,728 ............9,932 ..........11,738 ..........12,315 ..........14,105 ..........14,337 ..........14,343 ...................6 ...............237 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ............9,986 ..........10,174 ............5,362 ............7,202 ............6,837 ............7,141 ............7,286 ...............145 ...............449 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........47,530 ..........45,649 ..........42,066 ..........36,125 ..........36,333 ..........36,269 ...............(64) ...............144 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........13,197 ............5,705 ............3,887 ............4,037 ............4,113 .................75 ...............226 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............2,611 ...............860 ...............845 ...............857 .................13 .................(3) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,771 ............1,208 ...............267 .............(940) ..........(1,503) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............466 ...............315 .............(150) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............301 .......XXX........ .......XXX........ 12. Totals

.............(656) .................43

SCHEDULE P - PART 2O - REINSURANCE NONPROPORTIONAL ASSUMED LIABILITY 1. Prior..... ..........74,257 ..........74,207 ..........65,262 ..........60,206 ..........59,294 ..........61,929 ..........60,336 ..........67,121 ..........91,115 ..........90,315 .............(800) ..........23,194 2. 1997.... ..........14,475 ..........13,314 ..........17,409 ..........15,507 ..........15,991 ..........16,081 ..........15,833 ..........17,029 ..........16,937 ..........17,665 ...............728 ...............636 3. 1998.... .......XXX........ ..........17,434 ..........19,140 ..........17,777 ..........18,420 ..........21,324 ..........22,138 ..........24,444 ..........27,460 ..........27,745 ...............285 ............3,301 4. 1999.... .......XXX........ .......XXX........ ..........23,420 ..........18,955 ..........13,856 ..........16,568 ..........18,455 ..........17,178 ..........17,898 ..........17,197 .............(701) .................19 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ..........21,186 ..........12,058 ..........10,665 ............9,815 ..........25,517 ..........30,108 ..........33,895 ............3,787 ............8,378 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........13,291 ..........16,200 ..........11,805 ..........14,720 ..........11,783 ..........18,398 ............6,615 ............3,678 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........15,333 ............5,230 ............4,085 ............9,540 ............8,105 ..........(1,435) ............4,020 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,086 ............1,842 ............3,067 ............3,627 ...............560 ............1,784 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,334 ............1,344 ............1,343 .................(1) ...................9 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,401 ............1,180 .............(221) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,652 .......XXX........ .......XXX........ 12. Totals

............8,815 ..........45,021

SCHEDULE P - PART 2P - REINSURANCE NONPROPORTIONAL ASSUMED FINANCIAL LINES 1. Prior..... .................64 .................31 .................43 .................45 .................29 .................29 .................16 .................21 .................95 .................96 ...................1 .................75 2. 1997.... .................65 .................57 .................49 .................47 .................37 .................36 ...................9 ...................9 .................76 .................63 ...............(14) .................54 3. 1998.... .......XXX........ .................64 .................42 .................31 .................30 .................31 .................10 .................11 .................81 .................67 ...............(14) .................56 4. 1999.... .......XXX........ .......XXX........ .................25 .................78 ...............674 .................82 ...............242 ...............200 ...............457 ...............463 ...................6 ...............264 5. 2000.... .......XXX........ .......XXX........ .......XXX........ .................97 ............1,726 ...............628 ............1,284 ............1,150 ............1,304 ............1,303 .................(0) ...............153 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............2,639 ............1,344 ............2,317 ............2,600 ............2,637 ............2,635 .................(2) .................35 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,384 ...............723 ...............705 ...............906 ...............883 ...............(23) ...............178 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................41 .................56 .................56 .................56 ...................0 ...................0 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................42 .................48 .................73 .................25 .................30 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............122 ...............122 .................(0) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................40 .......XXX........ .......XXX........ 12. Totals

71

...............(21) ...............845

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE Years in Which Losses Were Incurred

Incurred Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 3 4 5 6 7 8 9

1

2

1997

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

Development 11 12 One Year

Two Year

1. Prior..... ........105,055 ........101,738 ..........99,753 ..........94,423 ..........87,671 ........187,746 ........187,762 ........204,324 ........206,916 ........180,956 ........(25,960) ........(23,368) 2. 1997.... ..........11,341 ..........11,157 ..........11,791 ..........12,077 ..........12,042 ..........11,401 ..........12,813 ..........14,214 ..........13,943 ..........13,369 .............(574) .............(845) 3. 1998.... .......XXX........ ............8,984 ............8,950 ............8,902 ............8,506 ............8,502 ............8,895 ............9,964 ..........10,274 ............9,966 .............(307) ...................2 4. 1999.... .......XXX........ .......XXX........ ............5,851 ............5,026 ............6,088 ............5,432 ............6,541 ............7,486 ............7,868 ............9,219 ............1,352 ............1,733 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ............6,988 ............6,843 ............7,313 ............7,794 ..........10,392 ..........10,175 ..........10,075 .............(101) .............(317) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............7,843 ............6,848 ............6,366 ............7,975 ............8,417 ............8,067 .............(350) .................92 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............8,242 ............6,494 ............9,249 ............9,648 ..........10,220 ...............571 ...............971 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........10,041 ............8,271 ............9,546 ............9,607 .................61 ............1,336 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........14,803 ..........13,950 ..........11,750 ..........(2,201) ..........(3,054) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............7,875 ............7,071 .............(804) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............3,871 .......XXX........ .......XXX........ 12. Totals

........(28,313) ........(23,450)

SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE 1. Prior..... ............3,283 ............3,569 ............3,561 ............3,217 ............3,035 ............2,749 ............2,882 ............3,182 ............2,978 ............3,092 ...............114 ...............(90) 2. 1997.... ...............936 ...............944 ...............873 ............1,053 ............1,038 ...............966 ...............870 ...............919 ...............989 ............1,011 .................21 .................92 3. 1998.... .......XXX........ ...............861 ...............763 ...............864 ............1,036 ...............944 ............1,133 ............1,213 ............1,205 ............1,120 ...............(85) ...............(93) 4. 1999.... .......XXX........ .......XXX........ ...............690 ...............671 ...............718 ...............590 ...............601 ...............691 ...............757 ...............783 .................27 .................92 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ...............630 ...............949 ...............997 ............1,081 ............1,088 ............1,077 ............1,053 ...............(25) ...............(35) 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............479 ...............594 ...............893 ...............960 ...............891 ...............914 .................23 ...............(46) 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............491 ...............477 ...............459 ...............515 ...............496 ...............(19) .................37 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............509 ...............651 ...............616 ...............401 .............(215) .............(250) 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............806 .................45 ...............(10) ...............(55) .............(815) 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............408 ...............405 .................(3) .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............384 .......XXX........ .......XXX........ 12. Totals

.............(217) ..........(1,109)

SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY 1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 ...................0 ...................0 ...................0 ...................0 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 ...................0 ...................0 .......XXX........ 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 .......XXX........ .......XXX........

NONE

72

4. Totals

...................0 ...................0

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS Years in Which Losses Were Incurred 1. Prior..... 2. 1997.... 3. 1998.... 4. 1999.... 5. 2000.... 6. 2001.... 7. 2002.... 8. 2003.... 9. 2004.... 10. 2005.... 11. 2006....

1

1997 ........000........ ..........19,434 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998 ............3,384 ..........24,074 ..........24,544 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1999 ............5,617 ..........25,227 ..........31,972 ..........28,221 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2000 ............6,965 ..........25,931 ..........33,452 ..........37,049 ..........26,709 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2001 ............7,682 ..........26,460 ..........34,383 ..........38,779 ..........36,527 ..........27,031 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2002 ............8,104 ..........26,580 ..........34,733 ..........39,640 ..........38,326 ..........37,403 ..........23,223 .......XXX........ .......XXX........ .......XXX........ .......XXX........

2003 ............8,403 ..........26,725 ..........34,999 ..........40,096 ..........39,228 ..........39,088 ..........31,786 ..........28,679 .......XXX........ .......XXX........ .......XXX........

2004 ............8,590 ..........26,791 ..........35,129 ..........40,345 ..........39,644 ..........39,958 ..........33,183 ..........38,293 ..........30,689 .......XXX........ .......XXX........

2005 ............8,725 ..........26,819 ..........35,169 ..........40,446 ..........39,823 ..........40,314 ..........33,899 ..........39,985 ..........46,552 ..........34,986 .......XXX........

10

2006 ............8,790 ..........26,851 ..........35,208 ..........40,503 ..........39,992 ..........40,506 ..........34,320 ..........40,707 ..........49,383 ..........48,441 ..........34,975

11 Number of Claims Closed With Loss Payment ...................0 ............9,650 ..........11,058 ..........11,382 ..........11,467 ..........10,798 ............8,387 ............9,458 ............7,821 ............9,368 ............7,289

12 Number of Claims Closed Without Loss Payment ...................0 ............2,016 ............2,869 ............3,981 ............4,222 ............3,943 ............3,291 ............3,744 ............3,132 ............3,752 ............2,903

SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ..........15,669 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........23,164 ..........31,184 ..........17,173 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ..........11,530 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........25,581 ..........24,077 ..........11,018 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ............9,796 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........40,695 ..........22,890 ..........12,760 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ..........21,671 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........28,744 ..........34,243 ..........28,736 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........36,562 ..........39,585 ..........33,853 ..........18,621 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........42,573 ..........44,245 ..........42,102 ..........35,100 ..........16,901 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........46,053 ..........47,178 ..........47,498 ..........44,278 ..........31,808 ..........16,135 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........48,727 ..........48,480 ..........50,489 ..........49,280 ..........39,703 ..........30,472 ..........15,797 .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........50,136 ..........49,036 ..........51,696 ..........51,667 ..........43,876 ..........37,638 ..........29,920 ..........15,541 .......XXX........ .......XXX........ .......XXX........

..........50,817 ..........49,312 ..........52,185 ..........52,921 ..........45,847 ..........41,537 ..........37,140 ..........28,708 ..........16,854 .......XXX........ .......XXX........

..........51,627 ..........49,458 ..........52,408 ..........53,453 ..........46,829 ..........43,880 ..........40,794 ..........35,485 ..........30,633 ..........17,634 .......XXX........

..........52,029 ..........49,508 ..........52,546 ..........53,811 ..........47,370 ..........44,823 ..........42,686 ..........39,277 ..........37,695 ..........31,103 ..........18,990

...................0 ............9,978 ............9,898 ..........10,033 ............9,817 ............8,609 ............7,161 ............6,914 ............7,211 ............7,138 ............5,411

...................0 ............3,117 ............3,961 ............4,648 ............4,602 ............4,167 ............3,703 ............3,595 ............3,750 ............3,712 ............2,814

SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL ..........43,949 ..........35,787 ..........23,436 ............9,605 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........54,263 ..........45,102 ..........36,468 ..........22,249 ............9,514 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........59,809 ..........50,681 ..........44,533 ..........34,834 ..........22,188 ............9,157 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........62,547 ..........53,663 ..........50,852 ..........43,946 ..........34,006 ..........21,211 ............7,683 .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........64,243 ..........54,918 ..........53,398 ..........46,992 ..........41,327 ..........31,499 ..........17,951 ............7,081 .......XXX........ .......XXX........ .......XXX........

..........64,825 ..........55,279 ..........54,244 ..........47,599 ..........43,699 ..........38,547 ..........26,406 ..........15,213 ............6,613 .......XXX........ .......XXX........

..........65,397 ..........55,585 ..........54,692 ..........49,058 ..........46,093 ..........42,596 ..........33,647 ..........24,812 ..........14,858 ............5,707 .......XXX........

..........65,715 ..........55,791 ..........55,075 ..........49,550 ..........46,856 ..........44,886 ..........37,774 ..........30,646 ..........22,543 ..........13,106 ............5,749

...................0 ............6,539 ............6,128 ............5,511 ............5,348 ............5,014 ............4,362 ............3,906 ............3,416 ............2,238 ............1,370

...................0 ............3,073 ............3,466 ............3,098 ............3,009 ............2,609 ............2,277 ............2,155 ............1,894 ............1,528 ............1,121

...................0 ............9,435 ..........10,293 ..........10,452 ..........10,046 ............8,528 ............7,617 ............6,598 ............5,665 ............4,286 ............2,525

...................0 ............2,755 ............3,567 ............3,926 ............3,424 ............3,158 ............2,751 ............2,628 ............2,185 ............1,380 ...............992

...................0 ............5,408 ............5,813 ............5,206 ............4,684 ............3,982 ............2,920 ............2,596 ............2,332 ............2,229 ............1,470

...................0 ............3,143 ............5,382 ............5,578 ............3,974 ............5,599 ............3,062 ............2,153 ............1,847 ............1,965 ............1,433

SCHEDULE P - PART 3D - WORKERS' COMPENSATION ..........73,087 ..........30,725 ..........27,414 ..........12,711 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........98,170 ..........35,410 ..........36,243 ..........29,017 ..........12,657 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........119,951 ..........38,444 ..........42,147 ..........39,476 ..........29,795 ..........12,956 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........136,871 ..........40,939 ..........45,947 ..........46,466 ..........40,533 ..........28,962 ..........10,888 .......XXX........ .......XXX........ .......XXX........ .......XXX........

........153,085 ..........42,813 ..........48,890 ..........50,753 ..........47,485 ..........39,258 ..........24,505 ..........10,938 .......XXX........ .......XXX........ .......XXX........

........166,633 ..........44,096 ..........50,923 ..........53,649 ..........50,815 ..........44,355 ..........31,431 ..........23,822 ..........10,667 .......XXX........ .......XXX........

........178,974 ..........45,129 ..........52,499 ..........56,180 ..........54,232 ..........48,862 ..........36,852 ..........31,097 ..........22,656 ............9,551 .......XXX........

........190,955 ..........46,195 ..........53,835 ..........58,242 ..........56,419 ..........51,958 ..........40,148 ..........35,758 ..........29,458 ..........19,290 ............9,481

SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL ..........51,042 ..........41,518 ..........45,406 ..........26,670 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........66,712 ..........47,158 ..........53,921 ..........42,078 ..........23,062 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........78,879 ..........51,816 ..........61,755 ..........50,854 ..........38,374 ..........26,769 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........87,971 ..........54,377 ..........67,910 ..........58,985 ..........47,579 ..........44,133 ..........19,542 .......XXX........ .......XXX........ .......XXX........ .......XXX........

73

..........95,398 ..........56,227 ..........71,317 ..........63,691 ..........55,138 ..........52,911 ..........31,269 ..........20,994 .......XXX........ .......XXX........ .......XXX........

..........99,921 ..........57,544 ..........74,177 ..........66,461 ..........59,816 ..........60,158 ..........37,940 ..........33,796 ..........22,199 .......XXX........ .......XXX........

........103,684 ..........58,154 ..........75,239 ..........68,830 ..........62,987 ..........65,695 ..........42,963 ..........40,101 ..........38,894 ..........25,708 .......XXX........

........107,433 ..........58,552 ..........76,249 ..........70,552 ..........64,961 ..........68,459 ..........46,664 ..........45,608 ..........45,371 ..........57,042 ..........20,285

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 1

2

3

4

5

6

7

8

9

10

11

12

Number of

Number of

Years in

Claims

Claims

Which

Closed

Closed

With Loss

Without Loss

Payment ...................0 .................56 .................36 .................38 .................21 .................13 .................18 ...................1 ...................0 ...................0 ...................0

Payment ...................0 .................71 .................59 .................79 .................42 .................54 .................82 .................10 ...................0 ...................0 ...................0

Losses Were Incurred 1. Prior..... 2. 1997.... 3. 1998.... 4. 1999.... 5. 2000.... 6. 2001.... 7. 2002.... 8. 2003.... 9. 2004.... 10. 2005.... 11. 2006....

1997 ........000........ ...................1 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1998 ............6,283 ...............779 .................47 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1999 ..........10,425 ............3,144 ...............701 .................60 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2000 ..........14,548 ............6,095 ............2,560 ...............992 .................20 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2001 ..........17,032 ............8,895 ............5,088 ............3,209 ...............673 .................15 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

2002 ..........18,679 ............9,936 ............6,572 ............5,542 ............2,193 ...............345 ...............329 .......XXX........ .......XXX........ .......XXX........ .......XXX........

2003 ..........19,655 ..........10,640 ............7,264 ............7,038 ............3,349 ............1,425 ............1,505 .................30 .......XXX........ .......XXX........ .......XXX........

2004 ..........19,445 ..........11,093 ............7,651 ............7,409 ............4,230 ............2,800 ............3,294 ...............307 .................(1) .......XXX........ .......XXX........

2005 ..........19,768 ..........11,189 ............7,904 ............8,021 ............4,760 ............4,193 ............4,860 ...............591 ...............(31) .................(2) .......XXX........

2006 ..........20,046 ..........11,278 ............7,993 ............8,174 ............5,177 ............4,802 ............5,979 ...............704 ...............(56) .................(2) ...................0

SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ............1,291 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........19,101 ............6,998 ............1,650 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........29,521 ..........13,079 ............8,485 ...............945 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........38,495 ..........18,576 ..........17,412 ............7,769 ............2,345 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........46,423 ..........23,415 ..........24,687 ..........17,680 ............9,959 ............1,829 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........51,510 ..........26,051 ..........30,209 ..........25,478 ..........20,380 ..........11,718 ...............960 .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........54,318 ..........28,001 ..........34,060 ..........29,168 ..........29,543 ..........20,675 ............5,017 ...............136 .......XXX........ .......XXX........ .......XXX........

..........55,349 ..........28,556 ..........36,120 ..........30,781 ..........24,691 ..........27,631 ............9,302 ...............315 .................28 .......XXX........ .......XXX........

..........56,209 ..........29,053 ..........37,112 ..........32,906 ..........27,243 ..........32,893 ..........12,214 ...............478 .................94 .................14 .......XXX........

..........56,767 ..........29,531 ..........38,187 ..........34,355 ..........29,491 ..........34,201 ..........14,413 ...............607 ...............185 .................61 ...................2

...................0 ...............121 ...............129 ...............129 ...............126 ...............115 .................45 ...................3 ...................2 ...................2 ...................0

...................0 ...............466 ...............479 ...............477 ...............515 ...............372 ...............231 .................20 .................11 ...................7 ...................0

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ............3,611 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ............2,126 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Prior..... 1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005.... 2006....

........000........ ...............123 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............2,584 ............6,508 ............3,684 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............4,225 ............7,717 ............7,035 ............2,853 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............5,221 ............8,499 ............8,174 ............5,610 ............3,089 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............5,686 ............8,868 ............8,816 ............6,916 ............5,286 ............3,094 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............5,818 ............9,027 ............9,114 ............7,757 ............6,380 ............5,642 ............3,086 .......XXX........ .......XXX........ .......XXX........ .......XXX........

............6,030 ............9,163 ............9,307 ............7,750 ............6,850 ............6,449 ............5,439 ............2,370 .......XXX........ .......XXX........ .......XXX........

............6,146 ............9,287 ............9,522 ............7,790 ............6,954 ............7,086 ............6,005 ............4,655 ............4,056 .......XXX........ .......XXX........

............6,175 ............9,458 ............9,579 ............7,883 ............7,110 ............7,261 ............6,377 ............5,462 ............6,597 ............4,650 .......XXX........

............6,487 ............9,504 ............9,654 ............7,948 ............7,195 ............7,529 ............6,678 ............5,608 ............7,321 ............7,439 ............3,930

SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE ..........55,145 ............6,692 ............1,929 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........103,813 ..........13,335 ............6,751 ............1,654 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........134,990 ..........21,460 ..........15,611 ............6,352 ............2,318 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........163,550 ..........28,969 ..........22,196 ..........15,319 ............8,167 ............2,058 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

........196,102 ..........33,035 ..........27,385 ..........23,492 ..........16,134 ............8,083 ............2,177 .......XXX........ .......XXX........ .......XXX........ .......XXX........

........230,501 ..........35,798 ..........31,387 ..........25,525 ..........23,513 ..........17,574 ............6,477 ............1,635 .......XXX........ .......XXX........ .......XXX........

........252,179 ..........37,564 ..........33,875 ..........28,539 ..........25,932 ..........25,413 ..........14,852 ............7,538 ............1,355 .......XXX........ .......XXX........

........280,673 ..........38,169 ..........35,245 ..........32,540 ..........30,297 ..........30,256 ..........22,710 ..........15,626 ............5,358 ............1,136 .......XXX........

........304,469 ..........39,152 ..........36,255 ..........33,803 ..........32,953 ..........35,506 ..........29,268 ..........23,441 ..........13,030 ............4,468 ...............946

...................0 ............2,507 ............2,600 ............1,829 ............1,514 ............1,458 ............1,269 ...............950 ...............664 ...............259 ...............102

...................0 ............2,365 ............2,261 ............1,958 ............1,893 ............1,856 ............1,817 ............2,157 ............1,172 ...............457 ...............298

SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE ............3,455 ............1,549 ...............414 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............7,187 ............3,173 ............2,240 ...............541 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............9,131 ............4,718 ............4,924 ............2,561 ...............795 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........10,916 ............5,371 ............6,490 ............4,859 ............3,575 ...............691 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........11,287 ............6,127 ............7,495 ............8,541 ............6,951 ............4,128 ............1,209 .......XXX........ .......XXX........ .......XXX........ .......XXX........

74

..........11,812 ............6,434 ............8,043 ............9,994 ............8,966 ............7,009 ............4,984 ...............917 .......XXX........ .......XXX........ .......XXX........

..........12,068 ............6,568 ............8,339 ..........10,309 ............9,645 ..........10,543 ............8,398 ............3,363 ...............524 .......XXX........ .......XXX........

..........12,322 ............6,723 ............8,559 ..........10,627 ..........10,074 ..........14,152 ..........13,200 ..........10,793 ............2,934 ...............861 .......XXX........

..........12,465 ............6,960 ............9,590 ..........11,645 ..........11,114 ..........15,978 ..........17,063 ..........15,454 ............7,457 ............4,627 ............1,210

...................0 .................81 .................75 .................78 .................76 .................92 .................96 .................80 .................55 .................26 .................16

...................0 ...............187 ...............242 ...............239 ...............251 ...............324 ...............373 ...............402 ...............346 ...............145 .................33

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY AND THEFT) Years in Which Losses Were Incurred

1

1997

Cumulative Paid Net Losses and Defense and Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998

1999

2000

2001

2002

2003

2004

10

2005

2006

11 Number of Claims Closed With Loss Payment

12 Number of Claims Closed Without Loss Payment

1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ........000........ ..........17,957 ..........19,082 .......XXX........ .......XXX........ 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........21,689 ..........42,997 .......XXX........ .......XXX........ 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........16,144 .......XXX........ .......XXX........

SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE 1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ........000........ ............2,791 ............3,077 ...................0 ...................0 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........29,917 ..........31,643 ..........17,277 ............7,815 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ..........32,632 ..........16,189 ............7,650

SCHEDULE P - PART 3K - FIDELITY/SURETY 1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ........000........ ..........19,101 ..........23,152 .......XXX........ .......XXX........ 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,613 ............4,985 .......XXX........ .......XXX........ 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............2,624 .......XXX........ .......XXX........

SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) 1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ........000........ .................37 ...............100 .......XXX........ .......XXX........ 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 ...................0 .......XXX........ .......XXX........ 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 .......XXX........ .......XXX........

SCHEDULE P - PART 3M - INTERNATIONAL 1. Prior..... ........000........ ............1,060 ............1,059 ............1,058 ............1,068 ............1,073 ............1,073 ............1,074 ............1,074 ............1,073 .......XXX........ .......XXX........ 2. 1997.... ............1,542 ............3,310 ............3,311 ............3,311 ............3,311 ............3,306 ............3,306 ............3,306 ............3,306 ............3,306 .......XXX........ .......XXX........ 3. 4. 5. 6.

1998.... 1999.... 2000.... 2001....

.......XXX........ .......XXX........ .......XXX........ .......XXX........

............1,431 .......XXX........ .......XXX........ .......XXX........

............1,432 ...................8 .......XXX........ .......XXX........

............1,432 .................10 ...................8 .......XXX........

............1,432 .................44 .................15 ...................8

............1,432 ...............143 ...............104 ............1,877

............1,432 ...............209 ...............195 ............1,956

............1,432 ...............238 ...............317 ............1,996

............1,432 ...............292 ...............421 ............2,007

............1,432 ...............356 ...............494 ............2,021

.......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........

7. 8. 9. 10. 11.

2002.... 2003.... 2004.... 2005.... 2006....

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

...................6 .......XXX........ .......XXX........ .......XXX........ .......XXX........

...................7 ...............934 .......XXX........ .......XXX........ .......XXX........

.................24 ............4,727 ...............134 .......XXX........ .......XXX........

.................24 ............6,093 ............1,816 ...............453 .......XXX........

.................24 ............6,096 ............2,611 ...............453 .................(0)

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

75

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 3N - REINSURANCE NONPROPORTIONAL ASSUMED PROPERTY Years in Which Losses Were Incurred

1

1997

Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

11 Number of Claims Closed With Loss Payment

12 Number of Claims Closed Without Loss Payment

1. Prior..... .......000......... ...............270 ...............573 ...............833 ............1,253 ............1,266 ............1,717 ............2,219 ............2,225 ............2,243 .......XXX........ .......XXX........ 2. 1997.... ...............172 ...............699 ............2,236 ............2,563 ............2,692 ............2,948 ............3,129 ............3,208 ............3,223 ............3,203 .......XXX........ .......XXX........ 3. 1998.... .......XXX........ ...............619 ............2,522 ............3,488 ............3,905 ............4,088 ............4,706 ............4,903 ............5,083 ............5,168 .......XXX........ .......XXX........ 4. 1999.... .......XXX........ .......XXX........ ............2,211 ............6,951 ..........10,690 ..........12,093 ..........12,390 ..........13,251 ..........13,435 ..........13,715 .......XXX........ .......XXX........ 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ............1,166 ............2,747 ............3,856 ............4,897 ............4,593 ............4,810 ............5,066 .......XXX........ .......XXX........ 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............3,552 ..........14,979 ..........25,261 ..........28,781 ..........30,903 ..........31,400 .......XXX........ .......XXX........ 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ............1,034 ............2,022 ............2,555 ............2,444 ............2,605 .......XXX........ .......XXX........ 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............124 ...............388 ...............463 ...............456 .......XXX........ .......XXX........ 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................36 ...............151 ...............152 .......XXX........ .......XXX........ 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................58 ...............184 .......XXX........ .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .................21 .......XXX........ .......XXX........

SCHEDULE P - PART 3O - REINSURANCE NONPROPORTIONAL ASSUMED LIABILITY 1. Prior..... .......000......... ............7,615 ............9,965 ..........17,069 ..........21,404 ..........26,472 ..........29,867 ..........33,591 ..........39,011 ..........42,620 .......XXX........ .......XXX........ 2. 3. 4. 5. 6. 7. 8. 9. 10.

1997.... 1998.... 1999.... 2000.... 2001.... 2002.... 2003.... 2004.... 2005....

...............582 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............2,369 ............1,240 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............1,622 ............2,002 ...............(31) .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............5,395 ............7,902 ............3,767 ...............287 .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

............7,999 ..........11,022 ............6,473 ...............955 ...............238 .......XXX........ .......XXX........ .......XXX........ .......XXX........

..........10,383 ..........14,134 ............9,445 ............2,619 ............2,346 ...............(99) .......XXX........ .......XXX........ .......XXX........

..........12,055 ..........16,086 ..........11,730 ............4,415 ............4,265 ...............900 .................50 .......XXX........ .......XXX........

..........13,181 ..........18,111 ..........11,317 ............7,327 ............5,729 ............1,741 ...............280 ...................6 .......XXX........

..........14,014 ..........20,239 ..........13,016 ..........11,419 ............7,836 ............2,716 ...............989 .................19 ...................0

..........14,742 ..........22,511 ..........12,904 ..........14,487 ............9,509 ............4,757 ............1,509 ...............110 ...................5

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................8 .......XXX........ .......XXX........

SCHEDULE P - PART 3P - REINSURANCE NONPROPORTIONAL ASSUMED FINANCIAL LINES 1. Prior..... .......000......... ...................9 .................13 .................18 .................13 .................13 ...................9 ...................7 ...................8 ...................8 .......XXX........ .......XXX........ 2. 1997.... ...................1 ...................8 .................16 .................16 .................17 .................(2) .................(6) .................(6) .................(6) .................(6) .......XXX........ .......XXX........ 3. 1998.... .......XXX........ ...................7 .................22 .................24 .................24 .................24 .................10 .................10 .................10 .................10 .......XXX........ .......XXX........ 4. 1999.... .......XXX........ .......XXX........ .................18 ...............102 ...............207 ...............269 ...............209 ...............180 ...............193 ...............199 .......XXX........ .......XXX........ 5. 6. 7. 8. 9.

2000.... 2001.... 2002.... 2003.... 2004....

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.................25 .......XXX........ .......XXX........ .......XXX........ .......XXX........

...............655 ...............199 .......XXX........ .......XXX........ .......XXX........

...............866 ...............607 ...............177 .......XXX........ .......XXX........

...............893 ............1,497 ...............452 ...................0 .......XXX........

...............915 ............2,210 ...............439 ...................0 ...................0

...............922 ............2,285 ...............483 ...................0 ...................0

...............911 ............2,253 ...............492 ...................9 ...................0

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

.......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........

10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 ...................0 .......XXX........ .......XXX........ 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 .......XXX........ .......XXX........

76

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 3R-SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE Years in Which Losses Were Incurred

1

1997

Cumulative Paid Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1998

1999

2000

2001

2002

2003

2004

2005

10

2006

11 Number of Claims Closed With Loss Payment

12 Number of Claims Closed Without Loss Payment

1. Prior..... ........000........ ..........12,326 ..........21,201 ..........29,972 ..........38,221 ..........57,120 ..........88,366 ..........93,526 ..........99,158 ........103,572 ...................0 ...................0 2. 1997.... ...............476 ............1,971 ............3,829 ............6,224 ............8,360 ............9,459 ..........10,228 ..........10,891 ..........11,355 ..........11,571 ...............278 ............1,742 3. 1998.... .......XXX........ ...............299 ............1,003 ............2,488 ............3,777 ............5,516 ............6,377 ............7,016 ............7,438 ............7,763 ...............209 ...............360 4. 1999.... .......XXX........ .......XXX........ ...............188 ...............807 ............1,906 ............3,048 ............4,176 ............4,973 ............5,375 ............6,052 ...............171 ...............348 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ...............199 ...............922 ............2,297 ............3,629 ............4,545 ............5,382 ............6,235 ...............159 ...............229 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............211 ...............989 ............2,009 ............2,844 ............4,073 ............4,858 ...............175 ...............324 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............363 ...............970 ............1,999 ............3,814 ............6,124 ...............179 ...............266 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............223 ...............965 ............3,057 ............4,573 ...............204 ...............384 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............173 ...............836 ............2,352 ...............116 ...............309 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............203 ...............632 .................32 .................56 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...............139 ...................9 .................27

SCHEDULE P - PART 3R-SECTION 2 - PRODUCTS LIABILITY- CLAIMS-MADE 1. Prior..... ........000........ ...............816 ............1,550 ............1,677 ............1,646 ............1,351 ............1,460 ............2,252 ............2,440 ............2,461 ...................0 ...................0 2. 1997.... .................13 ...............158 ...............209 ...............602 ...............713 ...............765 ...............741 ...............809 ...............847 ...............851 ...................1 ...................3 3. 1998.... .......XXX........ ...................7 .................66 ...............347 ...............357 ...............532 ...............801 ...............741 ...............962 ...............990 ...................1 ...................2 4. 1999.... .......XXX........ .......XXX........ .................17 ...............196 ...............331 ...............362 ...............418 ...............425 ...............466 ...............610 ...................0 ...................1 5. 2000.... .......XXX........ .......XXX........ .......XXX........ ...................2 ...............353 ...............766 ...............891 ...............854 ...............901 ...............931 ...................0 ...................0 6. 2001.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................4 .................78 ...............345 ...............621 ...............741 ...............789 ...................0 ...................0 7. 2002.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................1 .................76 ...............128 ...............253 ...............209 ...................0 ...................1 8. 2003.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................7 ...............(36) ...............164 .................46 ...................0 ...................2 9. 2004.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................3 ...................2 .............(136) ...................0 ...................1 10. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................2 .................20 ...................0 ...................0 11. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................1 ...................0 ...................0

SCHEDULE P - PART 3S - FINANCIAL GUARANTY/MORTGAGE GUARANTY 1. Prior..... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ........000........ ...................0 ...................0 .......XXX........ .......XXX........ 2. 2005.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 ...................0 .......XXX........ .......XXX........ 3. 2006.... .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ .......XXX........ ...................0 .......XXX........ .......XXX........

NONE

77

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS Years in Which Losses Were Incurred

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9

1 1997

1998

1999

2000

2001

2002

2003

2004

2005

10 2006

1. Prior............... ................6,602 ................4,036 ................2,401 ................1,300 ...................857 ...................492 ...................387 ...................319 ...................160 ...................281 2. 1997............. ................5,951 ................3,341 ................1,609 ...................700 ...................272 ...................122 .....................75 .....................88 ...................153 .....................54 3. 1998............. ........XXX........... ................6,402 ................2,308 ................1,276 ...................617 ...................265 ...................117 .....................87 .....................56 .....................30 4. 1999............. ........XXX........... ........XXX........... ................5,643 ................1,785 ................1,003 ...................479 ...................260 .....................62 .....................42 .....................61 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ................6,562 ................1,769 ................1,373 ...................569 ...................163 ...................417 .......................7 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................9,097 ................3,455 ................1,263 ...................547 ...................160 .....................72 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............13,784 ................2,254 ...................506 ...................279 ...................159 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............15,275 ................1,294 ................1,124 ...................188 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............13,117 ................1,833 ...................689 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............25,422 ................9,163 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................8,577

SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL 1. 2. 3. 4. 5. 6.

Prior............... 1997............. 1998............. 1999............. 2000............. 2001.............

..............31,532 ..............21,637 ........XXX........... ........XXX........... ........XXX........... ........XXX...........

..............16,527 ................8,948 ..............20,615 ........XXX........... ........XXX........... ........XXX...........

................5,519 ................3,315 ................5,902 ..............18,016 ........XXX........... ........XXX...........

................1,085 ................1,660 ................3,111 ................6,221 ..............17,318 ........XXX...........

...................318 ...................808 ................1,235 ................2,795 ................7,378 ..............20,653

...................793 ...................269 ...................471 ................1,185 ................2,450 ................9,320

................1,650 ...................183 ...................291 ...................422 ...................933 ................2,091

................3,282 ...................137 ...................109 ...................165 ...................181 ...................563

................9,216 ...................184 .....................39 .....................34 ...................196 ...................326

................8,600 ...................156 .....................47 .....................41 ...................154 ...................273

7. 8. 9. 10. 11.

2002............. 2003............. 2004............. 2005............. 2006.............

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

..............21,884 ........XXX........... ........XXX........... ........XXX........... ........XXX...........

................9,745 ..............23,376 ........XXX........... ........XXX........... ........XXX...........

................3,566 ................9,001 ..............22,879 ........XXX........... ........XXX...........

...................619 ................2,223 ................6,293 ..............19,850 ........XXX...........

...................424 ...................668 ................2,062 ................8,311 ..............18,050

SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL 1. Prior............... ..............30,721 ..............21,116 ..............15,262 ................8,388 ................5,156 ................2,927 ................1,829 ...................940 ................1,077 ...................840 2. 1997............. ..............22,918 ..............13,887 ................5,531 ................2,644 ................1,531 ...................891 ...................558 ...................292 ...................248 ...................175 3. 1998............. ........XXX........... ..............23,482 ................9,177 ................4,189 ................2,786 ................1,553 ................1,090 ...................660 ...................733 ...................416 4. 5. 6. 7.

1999............. 2000............. 2001............. 2002.............

........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX...........

..............17,545 ........XXX........... ........XXX........... ........XXX...........

................7,875 ..............18,195 ........XXX........... ........XXX...........

...................965 ................6,148 ..............22,288 ........XXX...........

..............(1,017) ...................993 ................8,698 ..............25,810

................1,403 ................2,949 ................6,571 ..............11,383

...................976 ................2,080 ................3,840 ................6,900

...................731 ................1,816 ................2,850 ................4,117

...................627 ................1,271 ................2,390 ................2,878

8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............27,601 ..............13,630 ................6,680 ................3,872 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............28,679 ..............11,089 ................5,106 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............22,894 ..............11,117 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............18,027

SCHEDULE P - PART 4D - WORKERS' COMPENSATION 1. Prior............... ............218,216 ............179,641 ............166,027 ............147,637 ............116,665 ..............95,768 ..............73,650 ..............67,439 ..............58,181 ..............52,982 2. 1997............. ..............32,426 ..............20,168 ..............15,719 ..............13,754 ..............11,770 ................9,346 ................6,025 ................5,111 ................6,062 ................5,096 3. 1998............. ........XXX........... ..............31,117 ..............19,531 ..............15,636 ..............14,352 ..............10,324 ..............10,417 ................8,073 ................6,879 ................6,371 4. 1999............. ........XXX........... ........XXX........... ..............30,522 ..............19,193 ..............14,086 ..............11,307 ..............12,214 ..............10,131 ................7,147 ................6,673 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ..............29,347 ..............19,578 ..............11,903 ..............14,473 ..............11,554 ................9,253 ................8,397 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............44,094 ..............26,969 ..............20,705 ..............15,384 ..............10,338 ..............10,677 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............38,014 ..............21,671 ..............19,462 ..............17,306 ..............14,291 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............49,425 ..............27,596 ..............23,496 ..............19,029 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............60,425 ..............43,109 ..............28,257 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............54,708 ..............39,226 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............50,842

SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL 1. Prior............... ..............77,964 ..............62,231 ..............45,254 ..............33,981 ..............22,306 ..............16,142 ..............13,141 ..............10,189 ..............10,884 ..............14,358 2. 1997............. ..............27,446 ..............19,789 ..............10,205 ................7,065 ................5,366 ................3,115 ................1,654 ................1,263 ................1,160 ................1,905 3. 1998............. ........XXX........... ..............32,311 ..............17,503 ..............11,773 ................7,767 ................6,315 ................2,752 ................2,067 ................2,249 ................2,787 4. 1999............. ........XXX........... ........XXX........... ..............28,849 ..............16,416 ................8,761 ................5,122 ................5,945 ................2,913 ................2,722 ................3,356 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ..............28,223 ..............14,859 ................9,910 ................7,500 ................4,484 ................4,087 ................4,630 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............33,209 ..............19,299 ..............13,801 ................8,926 ................4,532 ................3,571 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............32,906 ..............19,713 ..............11,071 ................6,471 ................5,010 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............36,319 ..............21,642 ..............13,675 ................7,529 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............39,941 ..............22,997 ..............16,991 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............39,706 ..............23,894 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............35,180

78

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE 1

Years in Which Losses Were Incurred

1997

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1998

1999

2000

2001

2002

2003

2004

10

2005

2006

1. Prior............... ................6,215 ................5,099 ................4,423 ................2,657 ................2,657 ................1,076 ................1,474 ................1,360 ...................298 ...................379 2. 1997............. ................2,677 ...................970 ...................835 ...................160 ...................812 .....................66 ...................618 ...................451 ...................(87) .....................15 3. 1998............. ........XXX........... ................1,906 ................1,117 ...................186 ................1,266 .....................66 ...................588 ...................390 ...................(70) ...................(29) 4. 1999............. ........XXX........... ........XXX........... ................3,000 ...................544 .................(333) ..............(1,483) ...................617 ...................441 .................(307) .................(108) 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ................1,993 ................1,473 .................(237) ................1,242 ...................721 .................(362) ...................(98) 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................3,328 ...................592 ................1,369 ...................665 .................(622) .................(323) 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................5,931 ................3,725 ................1,284 ..............(1,493) .................(823) 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,311 ................1,102 ................1,016 ...................301 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................223 ...................157 ...................162 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................(5) .....................10 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................13

SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE 1. 2. 3. 4. 5. 6.

Prior............... 1997............. 1998............. 1999............. 2000............. 2001.............

..............12,456 ................7,395 ........XXX........... ........XXX........... ........XXX........... ........XXX...........

................6,931 ................2,180 ................7,668 ........XXX........... ........XXX........... ........XXX...........

................4,050 ................1,763 ................2,748 ................6,296 ........XXX........... ........XXX...........

................1,922 ...................178 ...................454 ..............(1,464) .................(891) ........XXX...........

................2,484 ................1,175 ...................952 .................(932) .......................8 ................4,494

................1,132 ...................759 ...................747 ..............(4,083) ..............(4,232) ...................672

................1,980 ................1,328 ................1,413 ................1,423 ................2,807 ................2,757

...................850 ...................994 ...................477 ...................535 ...................623 ................1,663

...................115 .....................84 ...................(56) .................(856) ..............(1,284) .................(839)

.....................62 ...................(71) .................(130) .................(119) .................(504) ...................(66)

7. 8. 9. 10. 11.

2002............. 2003............. 2004............. 2005............. 2006.............

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

................1,849 ........XXX........... ........XXX........... ........XXX........... ........XXX...........

................1,590 ...................976 ........XXX........... ........XXX........... ........XXX...........

...................545 ...................173 ...................213 ........XXX........... ........XXX...........

..............(1,452) ...................450 ...................343 ...................109 ........XXX...........

.................(528) .....................37 ...................144 .....................58 .....................29

SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT (ALL PERILS), BOILER AND MACHINERY) 1. Prior............... ................2,902 ................1,659 ...................861 ...................644 ...................357 ...................333 ...................233 ...................110 .....................96 .................(104) 2. 1997............. ................2,536 ................1,183 ...................562 ...................372 ...................233 ...................137 .....................64 .....................40 .....................59 .....................74 3. 1998............. ........XXX........... ................2,818 ................1,200 ...................893 ...................519 ...................360 ...................300 .....................76 .....................54 .....................42 4. 5. 6. 7.

1999............. 2000............. 2001............. 2002.............

........XXX........... ........XXX........... ........XXX........... ........XXX...........

........XXX........... ........XXX........... ........XXX........... ........XXX...........

................2,173 ........XXX........... ........XXX........... ........XXX...........

...................949 ................1,683 ........XXX........... ........XXX...........

...................(15) ...................710 ................2,143 ........XXX...........

.................(201) ...................285 ................1,003 ................3,387

...................175 ...................352 ...................390 ................1,221

...................145 ...................470 ................1,718 ...................334

.....................75 ...................340 ................1,822 ...................(28)

.....................80 ...................349 ...................477 .................(184)

8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................4,141 ...................694 ...................169 .....................97 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................5,036 ...................270 .....................54 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................5,151 ...................857 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................3,238

SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE 1. Prior............... ............218,673 ............170,327 ............143,932 ............122,596 ............105,836 ............123,974 ..............95,075 ............109,598 ............119,215 ............134,266 2. 1997............. ..............31,988 ..............25,635 ..............16,883 ................9,992 ................6,634 ................6,300 ................3,715 ................3,981 ................4,398 ................3,924 3. 1998............. ........XXX........... ..............26,666 ..............19,444 ..............11,393 ................7,879 ................7,057 ................4,222 ................6,024 ................6,834 ................6,049 4. 1999............. ........XXX........... ........XXX........... ..............18,195 ................7,888 ................5,131 ................3,773 ................6,333 ................8,126 ................7,056 ................8,610 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ..............15,734 ................7,770 ................5,772 ................8,070 ..............10,368 ................9,278 ................9,129 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............26,345 ..............17,815 ..............16,883 ..............15,117 ..............13,038 ..............11,731 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............31,324 ..............19,856 ..............16,076 ..............13,968 ..............13,512 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............39,290 ..............25,197 ..............20,601 ..............16,913 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............44,152 ..............34,019 ..............26,494 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............47,885 ..............39,042 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............47,838

SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE 1. Prior............... ..............12,320 ................8,806 ................6,640 ................5,956 ................5,558 ................5,762 ................3,083 ................3,462 ................2,265 ................2,781 2. 1997............. ................6,390 ................3,905 ................2,556 ................1,655 ................1,212 ...................811 ...................643 ...................565 ...................739 ................1,250 3. 1998............. ........XXX........... ................6,008 ................4,557 ................2,334 ................1,357 ...................778 ...................486 ...................431 ...................536 ...................464 4. 1999............. ........XXX........... ........XXX........... ................5,517 ................2,859 ................1,214 .................(623) ...................356 ...................543 ...................725 ...................724 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ................6,218 ................2,835 ...................791 ................1,212 ................2,272 ................2,318 ................2,018 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................7,643 ................2,631 ................3,262 ................2,728 ................2,574 ................2,535 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............11,025 ................3,342 ................6,414 ................5,454 ................5,329 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............15,820 ................8,431 ................5,355 ................4,875 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............22,593 ..............13,610 ................7,232 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............18,870 ..............11,617 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............17,971

79

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE, EARTHQUAKE, BURGLARY AND THEFT) Years in Which Losses Were Incurred

1 1997

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1998

1999

2000

2001

2002

2003

2004

10

2005

2006

1. Prior............... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............25,313 ................8,705 ................7,796 2. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................5,106 ................4,857 3. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................9,189

SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE 1. Prior............... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................8,309 ................2,579 ................1,781 2. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................2,886 ................1,724 3. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,275

SCHEDULE P - PART 4K - FIDELITY/SURETY 1. Prior............... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............13,773 ................1,389 ................4,632 2. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................2,862 ...................828 3. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............(1,710)

SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH) 1. Prior............... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .................(484) ...................117 .....................98 2. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................30 .....................30 3. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................23

SCHEDULE P - PART 4M - INTERNATIONAL 1. Prior............... ................1,334 ...................637 ...................472 ...................476 ...................103 .....................50 .....................60 .....................58 .....................61 .....................62 2. 1997............. ................1,997 ...................235 .......................1 .......................2 .....................(0) .......................5 .......................0 .......................0 .......................0 .......................0 3. 4. 5. 6. 7. 8. 9. 10.

1998............. 1999............. 2000............. 2001............. 2002............. 2003............. 2004............. 2005.............

........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

...................666 ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

.....................(1) ...................196 ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

.....................(1) ...................196 ...................195 ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX...........

.....................(0) ...................196 ...................195 ................2,696 ........XXX........... ........XXX........... ........XXX........... ........XXX...........

.......................0 ...................173 ...................195 ...................825 ...................243 ........XXX........... ........XXX........... ........XXX...........

.......................0 ...................197 ...................200 ...................873 ...................381 ................3,611 ........XXX........... ........XXX...........

.......................0 ...................196 ...................195 ................1,056 .......................0 .......................1 ................7,819 ........XXX...........

.......................0 .......................1 .......................0 .......................0 .....................(5) .................(356) ................5,685 .................(304)

.......................0 .......................6 .....................21 .......................6 .......................0 .......................1 ................3,482 .......................7

11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................48

80

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 4N - REINSURANCE NONPROPORTIONAL ASSUMED PROPERTY Years in Which Losses Were Incurred

1 1997

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1998

1999

2000

2001

2002

2003

2004

2005

10 2006

1. Prior............... ................2,773 ................1,750 ................1,523 ...................115 ...................285 ...................284 ...................773 .......................0 .....................33 .....................78 2. 1997............. ................1,715 ...................844 ...................470 ...................417 ...................318 ...................300 .....................38 .....................59 ...................141 ...................122 3. 1998............. ........XXX........... ................1,365 ...................(68) ...................492 ...................525 ...................385 .....................30 .....................58 .......................1 .....................20 4. 1999............. ........XXX........... ........XXX........... ................1,754 ..............(2,308) ..............(3,305) ..............(2,171) ...................537 ...................173 ...................357 ...................317 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ................7,743 ................6,191 ...................467 ...................786 ................1,359 ................1,587 ................1,419 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............34,232 ..............19,401 ..............10,446 ................3,550 ................2,723 ................2,561 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............10,790 ................3,386 ...................584 ................1,048 ...................980 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................2,422 ...................443 ...................255 ...................304 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,681 ................1,044 .....................90 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................169 .....................18 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................280

SCHEDULE P - PART 4O - REINSURANCE NONPROPORTIONAL ASSUMED LIABILITY 1. Prior............... ..............57,318 ..............49,203 ..............36,674 ..............26,398 ..............21,563 ..............21,378 ..............16,673 ..............18,335 ..............32,459 ..............28,341 2. 1997............. ..............12,443 ................7,730 ..............10,782 ................5,338 ................2,161 ................1,504 ...................621 ................1,057 ...................515 ...................481 3. 1998............. ........XXX........... ..............14,069 ..............12,296 ................6,009 ................2,187 ................1,490 ...................676 ................2,220 ................3,588 ...................944 4. 1999............. ........XXX........... ........XXX........... ..............21,213 ..............13,017 ................2,817 ................1,769 ................1,196 ...................742 .....................93 ...................450 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ..............18,936 ................9,063 ................5,026 ................1,063 ..............12,920 ................4,986 ................6,895 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............11,713 ................8,783 ...................607 ...................790 ..............(4,855) ...................147 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............14,873 ................2,947 ...................529 ................3,788 ...................535 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................826 ...................730 ...................572 ...................531 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,248 ................1,144 ...................773 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,398 ................1,148 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................1,644

SCHEDULE P - PART 4P - REINSURANCE NONPROPORTIONAL ASSUMED FINANCIAL LINES 1. Prior............... .....................52 .....................17 .....................25 .....................21 .......................9 .......................9 .......................1 .......................1 .....................72 .....................74 2. 1997............. .....................61 .....................34 .....................23 .....................18 .......................7 .....................28 .......................0 .....................(4) .....................69 .....................56 3. 1998............. ........XXX........... .....................43 .....................13 .......................7 .......................6 .......................7 .......................0 .......................0 .....................71 .....................57 4. 1999............. ........XXX........... ........XXX........... ...................(34) ...................(66) ...................340 .................(238) .....................56 .....................52 ...................200 ...................199 5. 2000............. ........XXX........... ........XXX........... ........XXX........... .......................0 ...................885 .................(580) ...................206 .....................93 ...................233 ...................255 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................2,368 ...................355 ...................422 ...................196 ...................217 ...................268 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................843 .....................97 .....................60 ...................244 ...................150 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................41 .....................56 .....................29 .....................29 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................42 .....................13 .....................14 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................122 ...................122 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .....................40

81

THE STANDARD FIRE INSURANCE COMPANY

Annual Statement for the year 2006 of

SCHEDULE P - PART 4R-SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE Years in Which Losses Were Incurred

1 1997

Bulk and IBNR Reserves on Net Losses and Defense and Cost Containment Expenses Reported at Year End ($000 omitted) 2 3 4 5 6 7 8 9 1998

1999

2000

2001

2002

2003

2004

2005

10 2006

1. Prior............... ..............78,692 ..............68,626 ..............61,826 ..............51,480 ..............39,091 ..............97,694 ..............87,921 ..............98,203 ..............95,291 ..............66,385 2. 1997............. ................9,134 ................5,881 ................4,002 ................2,612 ................1,414 ...................339 ................1,215 ................2,428 ................1,792 ................1,095 3. 1998............. ........XXX........... ................7,283 ................5,611 ................3,952 ................2,749 ................1,358 ...................830 ................1,742 ................2,180 ................1,439 4. 1999............. ........XXX........... ........XXX........... ................4,611 ................3,004 ................2,471 ................1,085 ...................938 ................1,692 ...................769 ................1,980 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ................5,664 ................4,004 ................2,150 ................1,678 ................3,309 ................2,869 ................1,733 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................6,390 ................3,813 ................1,686 ................1,521 ................2,454 ................1,857 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................6,715 ................2,842 ................3,675 ................1,982 ................1,776 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................8,544 ................5,090 ................3,613 ................1,962 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ..............13,301 ..............10,206 ................6,082 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................6,825 ................4,977 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ................2,958

SCHEDULE P - PART 4R-SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE 1. Prior............... ................1,825 ................1,718 ................1,430 ................1,192 ...................986 ................1,203 ................1,261 ...................462 ...................475 ...................569 2. 1997............. ...................572 ...................465 ...................360 ...................275 ...................235 ...................158 ...................134 ...................103 ...................135 ...................150 3. 1998............. ........XXX........... ...................589 ...................381 ...................303 ...................251 ...................113 ...................103 .....................96 ...................124 .....................64 4. 1999............. ........XXX........... ........XXX........... ...................516 ...................376 ...................316 ...................149 ...................140 ...................125 ...................132 .....................93 5. 2000............. ........XXX........... ........XXX........... ........XXX........... ...................542 ...................461 ...................126 ...................218 ...................170 ...................134 ...................104 6. 2001............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................411 ...................217 ...................235 ...................184 .....................80 .....................48 7. 2002............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................461 ...................215 ...................236 ...................225 ...................236 8. 2003............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................442 ...................443 ...................451 ...................459 9. 2004............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................767 ...................298 ...................291 10. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................336 .....................77 11. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ...................366

SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY 1. Prior............... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .......................0 .......................0 .......................0 2. 2005............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .......................0 .......................0 3. 2006............. ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... ........XXX........... .......................0

NONE

82

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5A - HOMEOWNERS/FARMOWNERS SECTION 1 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............1,828 .................287 ...................89 ...................37 ...................28 ...................65 ...................11 ...................11 ...................11 .....................1

2.

1997................... ..............8,213 ..............9,403 ..............9,512 ..............9,556 ..............9,580 ..............9,634 ..............9,644 ..............9,648 ..............9,650 ..............9,650

3.

1998................... ........XXX......... ..............9,140 ............10,767 ............10,913 ............10,964 ............11,032 ............11,050 ............11,056 ............11,057 ............11,058

4.

1999................... ........XXX......... ........XXX......... ..............9,683 ............11,178 ............11,296 ............11,347 ............11,368 ............11,379 ............11,380 ............11,382

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............9,276 ............11,244 ............11,385 ............11,432 ............11,454 ............11,461 ............11,467

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............9,031 ............10,602 ............10,724 ............10,763 ............10,790 ............10,798

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............6,815 ..............8,233 ..............8,334 ..............8,374 ..............8,387

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............8,135 ..............9,313 ..............9,425 ..............9,458

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............6,327 ..............7,709 ..............7,821

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............7,925 ..............9,368

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............7,289

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .................376 .................244 .................180 .................145 .................110 ...................37 ...................24 ...................11 ...................12 ...................10

2.

1997................... .................776 .................210 .................134 .................102 ...................79 ...................20 .....................6 .....................3 .....................2 .....................1

3.

1998................... ........XXX......... .................998 .................232 .................138 ...................99 ...................28 ...................12 .....................6 .....................5 .....................2

4.

1999................... ........XXX......... ........XXX......... .................921 .................173 ...................86 ...................44 ...................24 ...................12 .....................7 .....................5

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................993 .................192 ...................87 ...................50 ...................27 ...................16 .....................7

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................899 .................164 ...................76 ...................42 ...................25 ...................13

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................792 .................221 .................123 ...................99 ...................83

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................771 .................154 ...................83 ...................46

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................880 .................216 ...................78

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,103 .................168

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................568

SECTION 3 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............1,528 .................231 ...................57 ...................12 ....................(2) ....................(5) .....................0 ....................(1) ...................13 ....................(1)

2.

1997................... ............10,641 ............11,577 ............11,639 ............11,660 ............11,666 ............11,666 ............11,664 ............11,666 ............11,668 ............11,667

3.

1998................... ........XXX......... ............12,444 ............13,799 ............13,892 ............13,916 ............13,925 ............13,930 ............13,931 ............13,931 ............13,929

4.

1999................... ........XXX......... ........XXX......... ............13,928 ............15,257 ............15,333 ............15,358 ............15,368 ............15,371 ............15,367 ............15,368

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ............13,696 ............15,571 ............15,663 ............15,691 ............15,698 ............15,697 ............15,696

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............13,197 ............14,634 ............14,711 ............14,732 ............14,754 ............14,754

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............10,274 ............11,684 ............11,727 ............11,759 ............11,761

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............12,123 ............13,155 ............13,239 ............13,248

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............9,727 ............11,013 ............11,031

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............12,208 ............13,288

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............10,760

83

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL SECTION 1 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............3,996 ..............2,170 .................708 .................304 .................173 .................207 ...................61 ...................88 ...................73 .....................8

2.

1997................... ..............5,501 ..............8,547 ..............9,300 ..............9,581 ..............9,741 ..............9,898 ..............9,949 ..............9,969 ..............9,975 ..............9,978

3.

1998................... ........XXX......... ..............5,536 ..............8,548 ..............9,299 ..............9,594 ..............9,775 ..............9,844 ..............9,884 ..............9,881 ..............9,898

4.

1999................... ........XXX......... ........XXX......... ..............5,591 ..............8,712 ..............9,518 ..............9,797 ..............9,926 ............10,003 ............10,000 ............10,033

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............5,543 ..............8,676 ..............9,339 ..............9,592 ..............9,736 ..............9,778 ..............9,817

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,951 ..............7,627 ..............8,181 ..............8,429 ..............8,537 ..............8,609

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,092 ..............6,292 ..............6,810 ..............7,048 ..............7,161

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,924 ..............6,124 ..............6,724 ..............6,914

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,561 ..............6,812 ..............7,211

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,050 ..............7,138

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,411

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............2,408 ..............1,391 .................862 .................627 .................456 .................224 .................167 ...................79 ...................77 ...................62

2.

1997................... ..............3,061 ..............1,197 .................613 .................403 .................266 .................101 ...................46 ...................26 ...................15 .....................8

3.

1998................... ........XXX......... ..............2,889 ..............1,153 .................590 .................338 .................162 ...................94 ...................57 ...................39 ...................18

4.

1999................... ........XXX......... ........XXX......... ..............3,071 ..............1,250 .................569 .................322 .................197 .................116 ...................92 ...................54

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............3,121 ..............1,171 .................574 .................358 .................208 .................148 .................104

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,716 ..............1,043 .................594 .................357 .................237 .................158

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,275 ..............1,015 .................506 .................315 .................198

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,239 .................826 .................437 .................255

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,175 .................703 .................342

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,981 .................635

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,316

SECTION 3 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............2,748 ..............1,600 .................445 .................148 ...................48 ...................28 ...................14 ...................28 .................104 ....................(7)

2.

1997................... ............10,213 ............12,428 ............12,850 ............12,999 ............13,064 ............13,093 ............13,101 ............13,108 ............13,105 ............13,103

3.

1998................... ........XXX......... ............10,529 ............13,162 ............13,645 ............13,780 ............13,852 ............13,875 ............13,895 ............13,872 ............13,877

4.

1999................... ........XXX......... ........XXX......... ............11,192 ............13,976 ............14,465 ............14,647 ............14,719 ............14,752 ............14,723 ............14,735

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ............11,181 ............13,873 ............14,272 ............14,441 ............14,506 ............14,507 ............14,523

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............9,987 ............12,344 ............12,733 ............12,864 ............12,905 ............12,934

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............8,488 ............10,563 ............10,838 ............11,008 ............11,062

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............8,203 ............10,134 ............10,657 ............10,764

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............9,107 ............11,057 ............11,303

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............9,657 ............11,485

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ............10,541

84

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 1 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............2,838 .................779 .................360 .................173 ...................72 ...................24 ...................36 .....................6 .....................0 ...................44

2.

1997................... ..............4,215 ..............5,844 ..............6,206 ..............6,397 ..............6,474 ..............6,506 ..............6,531 ..............6,537 ..............6,537 ..............6,539

3.

1998................... ........XXX......... ..............3,971 ..............5,386 ..............5,768 ..............5,927 ..............6,009 ..............6,091 ..............6,109 ..............6,120 ..............6,128

4.

1999................... ........XXX......... ........XXX......... ..............3,509 ..............4,823 ..............5,135 ..............5,289 ..............5,416 ..............5,459 ..............5,506 ..............5,511

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............3,342 ..............4,639 ..............4,936 ..............5,111 ..............5,274 ..............5,336 ..............5,348

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,118 ..............4,252 ..............4,525 ..............4,924 ..............4,996 ..............5,014

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,636 ..............3,648 ..............4,218 ..............4,318 ..............4,362

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,375 ..............3,689 ..............3,842 ..............3,906

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,682 ..............3,292 ..............3,416

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,756 ..............2,238

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,370

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............1,646 .................826 .................442 .................215 .................168 ...................81 ...................45 .................116 .................111 ...................75

2.

1997................... ..............1,828 .................678 .................345 .................186 .................126 ...................57 ...................28 .....................8 .....................7 .....................6

3.

1998................... ........XXX......... ..............1,466 .................594 .................320 .................225 .................105 ...................69 ...................24 ...................22 ...................26

4.

1999................... ........XXX......... ........XXX......... ..............1,133 .................513 .................293 .................143 ...................68 ...................22 .....................7 ...................10

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................925 .................619 .................286 .................166 ...................93 ...................17 ...................21

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,062 .................387 .................216 .................124 ...................34 ...................29

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................771 .................389 .................308 ...................68 ...................63

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................744 .................578 .................124 .................108

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,286 .................210 .................192

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................466 .................317

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................935

SECTION 3 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............2,744 .................191 .................153 ...................27 ...................46 ..................(34) ...................11 ...................87 .....................3 .....................9

2.

1997................... ..............7,947 ..............9,226 ..............9,431 ..............9,536 ..............9,580 ..............9,608 ..............9,624 ..............9,615 ..............9,616 ..............9,618

3.

1998................... ........XXX......... ..............7,747 ..............9,076 ..............9,387 ..............9,522 ..............9,539 ..............9,612 ..............9,594 ..............9,603 ..............9,620

4.

1999................... ........XXX......... ........XXX......... ..............6,696 ..............8,142 ..............8,409 ..............8,462 ..............8,556 ..............8,567 ..............8,609 ..............8,619

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............6,207 ..............7,951 ..............8,035 ..............8,170 ..............8,319 ..............8,357 ..............8,378

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,970 ..............6,962 ..............7,212 ..............7,630 ..............7,631 ..............7,652

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,870 ..............6,037 ..............6,770 ..............6,649 ..............6,702

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,453 ..............6,360 ..............6,097 ..............6,169

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,568 ..............5,325 ..............5,502

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,408 ..............4,083

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,426

85

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5D - WORKERS' COMPENSATION SECTION 1 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............8,189 ..............1,791 ..............1,236 ..............1,233 .................373 .................308 .................142 ...................99 ...................80 .................165

2.

1997................... ..............5,016 ..............7,866 ..............8,466 ..............9,101 ..............9,255 ..............9,417 ..............9,382 ..............9,396 ..............9,404 ..............9,435

3.

1998................... ........XXX......... ..............5,323 ..............8,657 ..............9,634 ..............9,934 ............10,244 ............10,173 ............10,212 ............10,226 ............10,293

4.

1999................... ........XXX......... ........XXX......... ..............5,545 ..............9,240 ..............9,846 ............10,385 ............10,272 ............10,352 ............10,390 ............10,452

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............5,675 ..............8,751 ............10,198 ..............9,733 ..............9,894 ..............9,953 ............10,046

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,636 ..............8,097 ..............8,023 ..............8,319 ..............8,426 ..............8,528

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,255 ..............6,791 ..............7,332 ..............7,508 ..............7,617

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,811 ..............6,100 ..............6,438 ..............6,598

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,747 ..............5,375 ..............5,665

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,843 ..............4,286

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,525

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............5,760 ..............3,848 ..............3,321 ..............2,482 ..............2,188 ..............1,866 ..............1,728 ..............1,590 ..............1,487 ..............1,276

2.

1997................... ..............2,460 .................854 .................536 .................313 .................207 .................135 ...................97 ...................87 ...................72 ...................57

3.

1998................... ........XXX......... ..............2,436 .................945 .................546 .................326 .................214 .................157 .................124 ...................97 ...................76

4.

1999................... ........XXX......... ........XXX......... ..............2,326 ..............1,021 .................575 .................361 .................245 .................180 .................134 .................106

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............2,596 ..............1,053 .................644 .................398 .................281 .................180 .................124

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,369 ..............1,108 .................644 .................446 .................240 .................162

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,228 .................975 .................603 .................268 .................171

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,035 .................876 .................398 .................236

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,995 .................639 .................331

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,438 .................466

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,322

SECTION 3 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............7,071 .................300 ..............1,531 .................983 .................191 .................117 ...................74 ...................17 ....................(7) .................116

2.

1997................... ..............9,078 ............10,895 ............11,480 ............12,069 ............12,139 ............12,274 ............12,229 ............12,235 ............12,229 ............12,247

3.

1998................... ........XXX......... ..............9,616 ............12,757 ............13,561 ............13,689 ............13,953 ............13,886 ............13,895 ............13,885 ............13,936

4.

1999................... ........XXX......... ........XXX......... ............10,017 ............13,906 ............14,168 ............14,558 ............14,400 ............14,424 ............14,442 ............14,484

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ............10,532 ............12,778 ............14,005 ............13,479 ............13,536 ............13,542 ............13,594

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............8,705 ............12,032 ............11,727 ............11,865 ............11,793 ............11,848

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............8,123 ............10,297 ............10,543 ............10,417 ............10,539

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............7,483 ..............9,329 ..............9,242 ..............9,462

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............7,316 ..............7,967 ..............8,181

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,217 ..............6,132

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,839

86

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL SECTION 1 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............2,655 .................866 .................593 .................271 .................493 .................181 .................321 .................310 .................360 .................168

2.

1997................... ..............3,513 ..............4,839 ..............5,121 ..............5,238 ..............5,287 ..............5,319 ..............5,394 ..............5,400 ..............5,404 ..............5,408

3.

1998................... ........XXX......... ..............3,628 ..............5,053 ..............5,296 ..............5,420 ..............5,504 ..............5,574 ..............5,604 ..............5,609 ..............5,813

4.

1999................... ........XXX......... ........XXX......... ..............3,317 ..............4,487 ..............4,741 ..............4,906 ..............5,014 ..............5,076 ..............5,052 ..............5,206

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............2,961 ..............4,122 ..............4,387 ..............4,553 ..............4,659 ..............4,652 ..............4,684

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,589 ..............3,540 ..............3,766 ..............3,905 ..............3,921 ..............3,982

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,928 ..............2,622 ..............2,801 ..............2,855 ..............2,920

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,684 ..............2,369 ..............2,502 ..............2,596

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,550 ..............2,175 ..............2,332

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,392 ..............2,229

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,470

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............4,990 ..............5,466 ..............5,928 ..............6,044 ..............5,386 ..............5,826 ............10,138 ............11,957 ............11,236 ..............9,036

2.

1997................... ..............1,586 .................646 .................399 .................219 .................175 .................125 ...................56 ...................38 ...................42 ...................44

3.

1998................... ........XXX......... ..............1,602 .................653 .................387 .................319 .................201 .................300 .................851 ..............1,160 .................481

4.

1999................... ........XXX......... ........XXX......... ..............1,349 .................543 .................697 .................545 .................942 ..............1,173 ..............1,586 .................728

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............1,193 .................571 .................364 .................513 .................669 .................465 .................205

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,241 .................627 .................915 ..............2,120 ..............2,081 .................862

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................781 .................457 .................406 .................381 .................233

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................791 .................416 .................352 .................194

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................789 .................290 .................317

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................972 .................333

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................675

SECTION 3 Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............3,580 ..............1,895 ..............2,007 .................536 .................925 .................847 ..............5,414 ..............3,653 ..............2,232 .................407

2.

1997................... ..............7,045 ..............8,303 ..............8,536 ..............8,519 ..............8,556 ..............8,562 ..............8,575 ..............8,570 ..............8,587 ..............8,595

3.

1998................... ........XXX......... ..............7,679 ..............9,141 ..............9,265 ..............9,420 ..............9,471 ..............9,689 ............10,332 ............10,806 ............11,676

4.

1999................... ........XXX......... ........XXX......... ..............7,035 ..............8,220 ..............8,853 ..............9,065 ..............9,661 ............10,219 ............10,918 ............11,512

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............6,198 ..............7,650 ..............7,891 ..............8,297 ..............8,637 ..............8,854 ..............8,863

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............5,772 ..............7,011 ..............8,285 ..............9,869 ............10,355 ............10,443

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............4,284 ..............5,492 ..............5,994 ..............6,185 ..............6,215

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,822 ..............4,640 ..............4,872 ..............4,943

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,625 ..............4,221 ..............4,496

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,644 ..............4,527

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............3,578

87

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE SECTION 1A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ...................37 ...................29 ...................18 ...................15 ...................11 .....................6 .....................3 .....................1 .....................0 .....................0

2.

1997................... .....................8 ...................18 ...................27 ...................36 ...................47 ...................51 ...................54 ...................56 ...................56 ...................56

3.

1998................... ........XXX......... .....................5 ...................13 ...................20 ...................26 ...................31 ...................35 ...................36 ...................36 ...................36

4.

1999................... ........XXX......... ........XXX......... .....................5 ...................13 ...................22 ...................30 ...................34 ...................36 ...................37 ...................38

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .....................3 .....................7 ...................13 ...................16 ...................19 ...................20 ...................21

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................2 .....................4 .....................7 .....................9 ...................12 ...................13

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................5 ...................11 ...................17 ...................18

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................1 .....................1

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 2A

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .................118 ...................87 ...................61 ...................43 ...................32 ...................22 ...................18 .....................9 .....................7 ...................21

2.

1997................... ...................30 ...................31 ...................25 ...................22 ...................16 ...................10 .....................8 .....................5 .....................4 .....................5

3.

1998................... ........XXX......... ...................22 ...................24 ...................21 ...................17 ...................10 .....................6 .....................4 .....................1 .....................7

4.

1999................... ........XXX......... ........XXX......... ...................46 ...................41 ...................36 ...................24 ...................14 .....................8 .....................5 .....................7

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................25 ...................24 ...................20 ...................16 ...................11 .....................6 ...................14

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................15 ...................23 ...................35 ...................25 ...................18 ...................16

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................22 ...................74 ...................60 ...................38 ...................10

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................15 .....................8 .....................7 .....................0

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 3A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ...................59 ...................23 .....................7 ...................19 ...................21 .....................6 .....................3 ....................(7) ....................(3) ...................14

2.

1997................... ...................46 ...................72 ...................87 .................101 .................123 .................125 .................129 .................131 .................131 .................132

3.

1998................... ........XXX......... ...................33 ...................55 ...................66 ...................90 ...................94 ...................98 ...................98 ...................96 .................102

4.

1999................... ........XXX......... ........XXX......... ...................62 ...................80 .................107 .................118 .................120 .................121 .................121 .................124

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................33 ...................48 ...................60 ...................67 ...................70 ...................68 ...................77

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................24 ...................47 ...................76 ...................80 ...................83 ...................83

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................27 .................108 .................128 .................137 .................110

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................18 ...................15 ...................18 ...................11

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

88

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS-MADE SECTION 1B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... .................111 ...................75 ...................51 ...................35 ...................15 ...................10 .....................5 .....................2 .....................0 .....................1

2.

1997................... ...................16 ...................47 ...................73 ...................92 .................106 .................114 .................118 .................120 .................120 .................121

3.

1998................... ........XXX......... ...................12 ...................42 ...................72 ...................98 .................114 .................123 .................126 .................128 .................129

4.

1999................... ........XXX......... ........XXX......... ...................11 ...................42 ...................76 .................101 .................117 .................123 .................127 .................129

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................12 ...................47 ...................82 .................106 .................118 .................123 .................126

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................13 ...................44 ...................76 .................102 .................113 .................115

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................7 ...................22 ...................36 ...................45 ...................45

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................1 .....................2 .....................3

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................1 .....................2

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................2

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 2B

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .................484 .................242 .................157 ...................92 ...................57 ...................29 ...................17 .....................7 .....................5 ...................50

2.

1997................... .................334 .................185 .................120 ...................66 ...................42 ...................22 ...................10 .....................7 .....................4 .....................5

3.

1998................... ........XXX......... .................318 .................200 .................123 ...................72 ...................35 ...................18 .....................9 .....................4 .....................8

4.

1999................... ........XXX......... ........XXX......... .................279 .................197 .................129 ...................73 ...................40 ...................23 ...................13 ...................14

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................302 .................237 .................127 ...................77 ...................46 ...................29 ...................18

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................280 .................186 .................117 ...................69 ...................42 ...................20

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................147 ...................87 ...................57 ...................31 .....................7

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................6 .....................8 .....................3 .....................2

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................7 .....................5 .....................3

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................6 .....................3

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 3B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .................219 ..................(35) ...................29 ...................24 ...................32 .....................0 .....................2 ....................(5) .....................0 ...................46

2.

1997................... .................480 .................528 .................548 .................555 .................591 .................590 .................589 .................591 .................590 .................592

3.

1998................... ........XXX......... .................439 .................512 .................539 .................605 .................609 .................614 .................612 .................611 .................616

4.

1999................... ........XXX......... ........XXX......... .................399 .................485 .................602 .................609 .................615 .................617 .................617 .................620

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................407 .................636 .................641 .................656 .................661 .................665 .................659

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................399 .................471 .................502 .................518 .................524 .................507

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................214 .................282 .................302 .................304 .................283

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................9 ...................23 ...................23 ...................25

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................13 ...................15 ...................16

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................10 ...................12

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

89

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE SECTION 1A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ..............1,865 ..............1,214 ..............1,407 .................968 ..............1,082 ..............1,056 .................898 ..............1,234 .................916 .................825

2.

1997................... .................929 ..............1,494 ..............1,686 ..............1,928 ..............2,128 ..............2,357 ..............2,468 ..............2,508 ..............2,507 ..............2,507

3.

1998................... ........XXX......... .................811 ..............1,267 ..............1,563 ..............1,817 ..............2,174 ..............2,402 ..............2,556 ..............2,598 ..............2,600

4.

1999................... ........XXX......... ........XXX......... .................690 ..............1,164 ..............1,368 ..............1,566 ..............1,694 ..............1,783 ..............1,822 ..............1,829

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................726 ..............1,180 ..............1,343 ..............1,432 ..............1,489 ..............1,508 ..............1,514

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................688 ..............1,155 ..............1,304 ..............1,407 ..............1,447 ..............1,458

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................628 ..............1,014 ..............1,193 ..............1,251 ..............1,269

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................431 .................840 .................918 .................950

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................457 .................631 .................664

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................191 .................259

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................102

SECTION 2A

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ............27,410 ............30,059 ............31,453 ............37,719 ............38,302 ............43,896 ............57,346 ............53,673 ............54,256 ............46,767

2.

1997................... ..............1,021 .................509 .................338 .................219 .................170 .................108 ...................67 ...................41 ...................45 .................236

3.

1998................... ........XXX......... .................870 .................424 .................289 .................243 .................139 ...................81 ...................41 ...................23 .....................9

4.

1999................... ........XXX......... ........XXX......... .................810 .................417 .................348 .................187 .................129 ...................70 ...................36 ...................19

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................852 .................485 .................266 .................212 .................168 .................124 ...................34

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................810 .................400 .................284 .................227 .................102 ...................71

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................698 .................374 .................406 .................203 .................132

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................618 .................565 .................189 .................358

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................822 .................227 .................155

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................246 .................141

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................160

SECTION 3A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............7,532 ..............6,776 ..............7,167 ............11,158 ..............8,751 ............10,011 ............16,167 ............12,176 ..............6,916 ..............2,546

2.

1997................... ..............3,098 ..............3,863 ..............4,073 ..............4,325 ..............4,551 ..............4,757 ..............4,869 ..............4,902 ..............4,914 ..............5,108

3.

1998................... ........XXX......... ..............2,833 ..............3,456 ..............3,827 ..............4,160 ..............4,478 ..............4,699 ..............4,838 ..............4,874 ..............4,870

4.

1999................... ........XXX......... ........XXX......... ..............2,372 ..............3,090 ..............3,422 ..............3,568 ..............3,704 ..............3,775 ..............3,802 ..............3,806

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ..............2,362 ..............3,100 ..............3,243 ..............3,372 ..............3,449 ..............3,452 ..............3,441

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,356 ..............3,063 ..............3,259 ..............3,431 ..............3,392 ..............3,385

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,189 ..............2,886 ..............3,299 ..............3,223 ..............3,218

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............1,875 ..............2,913 ..............2,748 ..............3,465

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ..............2,063 ..............1,979 ..............1,991

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................799 .................857

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................560

90

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE SECTION 1B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... ...................41 ...................29 ...................15 .....................6 .....................4 .....................1 .....................1 .....................1 .....................0 .....................0

2.

1997................... ...................18 ...................48 ...................62 ...................73 ...................79 ...................80 ...................81 ...................81 ...................81 ...................81

3.

1998................... ........XXX......... ...................19 ...................42 ...................60 ...................68 ...................72 ...................75 ...................75 ...................75 ...................75

4.

1999................... ........XXX......... ........XXX......... ...................19 ...................45 ...................62 ...................72 ...................76 ...................78 ...................78 ...................78

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................18 ...................42 ...................60 ...................70 ...................74 ...................75 ...................76

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................20 ...................49 ...................70 ...................83 ...................89 ...................92

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................19 ...................55 ...................80 ...................91 ...................96

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................15 ...................51 ...................72 ...................80

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................13 ...................42 ...................55

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................10 ...................26

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................16

SECTION 2B

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .................157 ...................80 ...................63 ...................36 ...................49 ...................13 .....................6 .....................1 .....................0 .....................0

2.

1997................... .................134 ...................82 ...................59 ...................38 ...................37 ...................12 .....................5 .....................2 .....................1 .....................1

3.

1998................... ........XXX......... .................173 .................109 ...................68 ...................71 ...................19 ...................10 .....................5 .....................3 .....................1

4.

1999................... ........XXX......... ........XXX......... .................154 .................112 ...................98 ...................36 ...................20 ...................10 .....................6 .....................4

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................150 .................181 ...................66 ...................45 ...................24 ...................15 .....................8

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................300 .................154 ...................96 ...................52 ...................30 ...................15

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................250 .................185 ...................93 ...................52 ...................27

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................284 .................154 ...................81 ...................43

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................258 .................139 ...................63

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................207 .................102

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................165

SECTION 3B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ...................69 ....................(9) ...................19 ....................(6) ...................34 ..................(22) ....................(4) .....................1 .....................0 .....................0

2.

1997................... .................199 .................243 .................261 .................262 .................282 .................269 .................269 .................269 .................268 .................269

3.

1998................... ........XXX......... .................262 .................302 .................306 .................341 .................316 .................319 .................318 .................319 .................318

4.

1999................... ........XXX......... ........XXX......... .................233 .................292 .................337 .................314 .................318 .................320 .................321 .................321

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................211 .................353 .................313 .................328 .................334 .................334 .................335

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................380 .................380 .................410 .................424 .................429 .................431

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................342 .................462 .................493 .................497 .................496

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................402 .................513 .................530 .................525

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................406 .................486 .................464

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................318 .................273

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................214

91

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURRENCE SECTION 1A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... .................349 .................221 .................321 .................342 .................249 .................327 .................384 .................314 .................350 .................228

2.

1997................... .................118 .................179 .................202 .................226 .................242 .................253 .................263 .................268 .................275 .................278

3.

1998................... ........XXX......... ...................78 .................127 .................150 .................173 .................190 .................195 .................199 .................206 .................209

4.

1999................... ........XXX......... ........XXX......... ...................76 .................121 .................139 .................153 .................160 .................167 .................169 .................171

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................74 .................112 .................137 .................147 .................154 .................158 .................159

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................59 .................129 .................146 .................170 .................175 .................175

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................63 .................110 .................169 .................176 .................179

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................58 .................192 .................199 .................204

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................78 .................108 .................116

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................26 ...................32

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................9

SECTION 2A

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ............10,238 ............12,644 ............15,283 ............16,067 ............19,473 ............22,030 ............34,968 ............43,588 ............41,983 ............41,510

2.

1997................... .................131 .................117 .................107 .................534 .................529 .................118 .................670 ..............1,988 ..............2,570 ..............2,721

3.

1998................... ........XXX......... ...................82 ...................54 ...................48 ...................52 ...................40 ...................28 ...................31 ...................25 ...................11

4.

1999................... ........XXX......... ........XXX......... ...................77 ...................53 ...................43 ...................27 ...................64 ...................74 ...................16 ...................22

5.

2000................... ........XXX......... ........XXX......... ........XXX......... ...................76 ...................71 ...................36 ...................35 ...................31 ...................17 ...................13

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................84 ...................76 ...................53 ...................47 ...................74 ...................71

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................96 ...................65 ...................66 ...................41 ...................32

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................101 ...................49 ...................45 ...................34

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................66 ...................45 ...................44

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................34 ...................30

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................21

SECTION 3A Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ..............3,003 ..............3,485 ..............4,139 ..............2,639 ..............4,892 ..............4,828 ............14,892 ............11,603 ..............6,046 ..............2,734

2.

1997................... .................388 .................537 .................610 ..............1,161 ..............1,247 ..............1,365 ..............1,962 ..............3,391 ..............4,020 ..............4,741

3.

1998................... ........XXX......... .................274 .................389 .................437 .................483 .................507 .................520 .................532 .................585 .................580

4.

1999................... ........XXX......... ........XXX......... .................241 .................341 .................372 .................388 .................438 .................503 .................530 .................541

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .................247 .................350 .................370 .................390 .................405 .................403 .................401

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................233 .................386 .................436 .................477 .................568 .................570

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................264 .................361 .................483 .................480 .................477

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................261 .................603 .................623 .................622

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................379 .................454 .................469

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .................101 .................118

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................57

92

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS-MADE SECTION 1B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Number of Claims Closed with Loss Payment Direct and Assumed at Year End 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

1.

Prior..................... .....................2 .....................1 .....................1 .....................2 .....................0 .....................0 .....................0 .....................0 .....................0 .....................0

2.

1997................... .....................0 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1

3.

1998................... ........XXX......... .....................0 .....................0 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1 .....................1

4.

1999................... ........XXX......... ........XXX......... .....................0 .....................0 .....................0 .....................0 .....................0 .....................0 .....................0 .....................0

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0 .....................0 .....................0 .....................0 .....................0

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0 .....................0 .....................0 .....................0

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0 .....................0 .....................0

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0 .....................0

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0 .....................0

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................0

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 2B

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Number of Claims Outstanding Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... ...................24 ...................18 ...................14 ...................10 .....................8 .....................0 .....................0 .....................0 .....................0 .....................0

2.

1997................... .....................5 .....................2 .....................2 .....................1 .....................1 .....................1 .....................0 .....................0 .....................0 .....................0

3.

1998................... ........XXX......... .....................3 .....................3 .....................1 .....................1 .....................1 .....................0 .....................0 .....................0 .....................0

4.

1999................... ........XXX......... ........XXX......... .....................2 .....................2 .....................1 .....................1 .....................0 .....................0 .....................0 .....................0

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................1 .....................1 .....................1 .....................0 .....................0 .....................0

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................2 .....................3 .....................2 .....................0 .....................0 .....................0

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................2 .....................1 .....................1 .....................0 .....................0

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................2 .....................2 .....................1

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0 .....................1 .....................0

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................1

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

SECTION 3B Years in Which Premiums Were Earned and Losses Were Incurred

1

2

3

1997

1998

1999

Cumulative Number of Claims Reported Direct and Assumed at Year End 4 5 6 7 2000

2001

2002

2003

8

9

10

2004

2005

2006

1.

Prior..................... .....................2 ...................14 ....................(2) .....................0 ....................(2) ....................(3) .....................0 .....................0 .....................0 .....................0

2.

1997................... .....................7 .....................6 .....................6 .....................5 .....................5 .....................5 .....................4 .....................4 .....................4 .....................4

3.

1998................... ........XXX......... .....................3 .....................4 .....................4 .....................4 .....................4 .....................3 .....................3 .....................3 .....................3

4.

1999................... ........XXX......... ........XXX......... .....................2 .....................3 .....................2 .....................2 .....................1 .....................1 .....................1 .....................1

5.

2000................... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................1 .....................1 .....................1 .....................0 .....................0 .....................0

6.

2001................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................2 .....................3 .....................2 .....................0 .....................0 .....................0

7.

2002................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................2 .....................1 .....................2 .....................1 .....................1

8.

2003................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................4 .....................4 .....................3

9.

2004................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ...................80 .....................2 .....................1

10.

2005................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................1 .....................1

11.

2006................... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... ........XXX......... .....................0

93

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL SECTION 1

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

11 Current Year Premiums Earned

1. Prior............................ ............2,524 ................79 ..............211 ............2,180 .............(410) ..............351 .............(233) ............1,611 ..............441 ................72 ................72 2. 1997........................... ..........71,075 ..........74,065 ..........74,044 ..........74,039 ..........73,980 ..........73,972 ..........73,907 ..........73,954 ..........73,976 ..........73,878 ...............(98) 3. 1998........................... .........XXX..... ..........65,207 ..........66,546 ..........66,574 ..........66,691 ..........66,698 ..........66,528 ..........66,446 ..........66,488 ..........66,420 ...............(68) 4. 1999........................... .........XXX..... .........XXX..... ..........60,856 ..........63,664 ..........62,911 ..........63,071 ..........62,910 ..........62,896 ..........62,957 ..........62,862 ...............(95) 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ..........65,775 ..........65,886 ..........66,149 ..........66,122 ..........66,269 ..........66,264 ..........66,155 .............(109) 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........79,073 ..........80,665 ..........80,703 ..........80,837 ..........80,913 ..........80,799 .............(114) 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........87,141 ..........90,437 ..........90,626 ..........90,626 ..........90,392 .............(234) 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........94,037 ..........96,687 ..........96,943 ..........96,641 .............(302) 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........84,178 ..........86,397 ..........86,280 .............(117) 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........81,258 ..........79,212 ..........(2,046) 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........68,262 ..........68,262 12. Total............................ .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........65,151 13. Earned Prems.(P-Pt 1) ..........73,578 ..........68,276 ..........62,375 ..........70,786 ..........78,080 ..........89,490 ..........96,715 ..........88,858 ..........84,370 ..........65,151 ...........XXX...

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred 1. Prior............................ 2. 1997........................... 3. 1998........................... 4. 1999........................... 5. 2000........................... 6. 2001........................... 7. 2002........................... 8. 2003........................... 9. 2004........................... 10. 2005........................... 11. 2006........................... 12. Total............................ 13. Earned Prems.(P-Pt 1)

Cumulative Premiums Earned Ceded at Year End ($000 omitted) 4 5 6 7

1

2

3

1997 ..............936 ............7,635 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............8,571

1998 ...............(46) ............8,693 ............6,460 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............7,472

1999 ..................1 ............8,672 ............7,248 ............7,362 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............8,129

2000 ................19 ............8,695 ............7,300 ............9,650 ..........10,263 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........12,646

2001 ...............(36) ............8,710 ............7,374 ............9,943 ..........11,331 ..........15,529 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........16,942

2002 .............(150) ............8,712 ............7,394 ..........10,024 ..........11,305 ..........16,390 ..........17,901 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........18,690

2003 ..................3 ............8,691 ............7,394 ..........10,022 ..........11,303 ..........16,391 ..........18,117 ..........21,333 .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........21,527

8

9

10

2004 ................46 ............8,751 ............7,325 ............9,982 ..........11,313 ..........16,482 ..........18,207 ..........22,244 ..........20,471 .........XXX..... .........XXX..... .........XXX..... ..........21,571

2005 ..................5 ............8,751 ............7,324 ............9,982 ..........11,315 ..........16,484 ..........18,209 ..........22,256 ..........20,600 ..........14,815 .........XXX..... .........XXX..... ..........14,965

2006 ................55 ............8,739 ............7,317 ............9,942 ..........11,304 ..........16,484 ..........18,210 ..........22,259 ..........20,623 ..........10,448 ............7,854 .........XXX..... ............3,500

11 Current Year Premiums Earned ................55 ...............(12) .................(7) ...............(40) ...............(11) ..................0 ..................1 ..................3 ................24 ..........(4,368) ............7,854 ............3,500 ...........XXX...

SCHEDULE P - PART 6D - WORKERS' COMPENSATION SECTION 1

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

11 Current Year Premiums Earned

1. Prior............................ ...............(86) ..........(1,420) ..........(1,637) ..........(4,810) ..........(3,144) ..........(2,566) ..........(2,240) ..........(5,254) ..........(2,792) ..........(2,537) ..........(2,537) 2. 1997........................... ..........90,144 ..........95,837 ..........95,741 ..........95,055 ..........94,876 ..........94,928 ..........95,094 ..........95,088 ..........95,189 ..........95,124 ...............(65) 3. 1998........................... .........XXX..... ..........87,409 ..........96,229 ..........95,952 ..........95,961 ..........96,023 ..........96,078 ..........96,302 ..........96,258 ..........96,224 ...............(33) 4. 1999........................... .........XXX..... .........XXX..... ..........86,044 ..........92,626 ..........92,466 ..........92,538 ..........92,760 ..........92,730 ..........92,727 ..........92,767 ................40 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ..........94,264 ........101,402 ........101,876 ........102,395 ........102,790 ........103,091 ........103,041 ...............(50) 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........103,659 ........106,979 ........107,272 ........108,011 ........108,308 ........107,933 .............(374) 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........117,944 ........120,699 ........121,145 ........121,119 ........120,469 .............(650) 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........141,282 ........145,975 ........146,481 ........145,636 .............(845) 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........153,612 ........157,898 ........157,000 .............(898) 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........136,233 ........131,378 ..........(4,854) 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........136,823 ........136,823 12. Total............................ .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........126,557 13. Earned Prems.(P-Pt 1) ..........90,058 ..........91,681 ..........93,146 ..........95,072 ........107,324 ........119,357 ........143,053 ........154,819 ........138,857 ........126,557 ...........XXX...

SECTION 2

Cumulative Premiums Earned Ceded at Year End ($000 omitted) 4 5 6 7

Years in Which Premiums Were Earned and Losses Were Incurred 1. Prior............................ 2. 1997........................... 3. 1998........................... 4. 1999........................... 5. 2000........................... 6. 2001...........................

1

2

3

1997 ..............729 ..........16,603 .........XXX..... .........XXX..... .........XXX..... .........XXX.....

1998 ..............201 ..........17,818 ..........15,815 .........XXX..... .........XXX..... .........XXX.....

1999 .............(148) ..........17,619 ..........17,298 ..........18,394 .........XXX..... .........XXX.....

2000 .............(130) ..........17,592 ..........17,607 ..........21,062 ..........21,276 .........XXX.....

2001 .............(320) ..........17,592 ..........17,667 ..........20,977 ..........24,586 ..........24,643

2002 ...............(28) ..........17,664 ..........17,838 ..........21,143 ..........25,072 ..........25,772

7. 8. 9. 10. 11. 12. 13.

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........17,331

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........17,232

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........19,530

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........24,095

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........27,609

..........35,677 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........37,671

2002........................... 2003........................... 2004........................... 2005........................... 2006........................... Total............................ Earned Prems.(P-Pt 1)

94

8

9

10

2003 ..............437 ..........17,659 ..........17,850 ..........21,268 ..........25,318 ..........25,894

2004 ...............(22) ..........17,667 ..........17,827 ..........21,239 ..........25,327 ..........26,179

2005 ..............118 ..........17,666 ..........17,831 ..........21,235 ..........25,322 ..........26,151

2006 ...............(23) ..........17,666 ..........17,832 ..........21,234 ..........25,314 ..........26,142

11 Current Year Premiums Earned ...............(23) ..................0 ..................0 .................(1) .................(8) .................(9)

..........37,239 ..........42,212 .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........44,710

..........37,496 ..........45,222 ..........46,849 .........XXX..... .........XXX..... .........XXX..... ..........50,347

..........37,297 ..........45,865 ..........50,374 ..........35,121 .........XXX..... .........XXX..... ..........39,172

..........37,282 ..........45,779 ..........50,810 ..........32,165 ..........33,146 .........XXX..... ..........30,487

...............(15) ...............(86) ..............437 ..........(2,956) ..........33,146 ..........30,487 ...........XXX...

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL SECTION 1

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

11 Current Year Premiums Earned

1. Prior............................ ............2,631 ................52 ..................2 .................(7) ................28 ..................0 ..................4 .................(1) .................(1) ..................1 ..................1 2. 1997........................... ........100,487 ........104,099 ........104,098 ........104,132 ........104,144 ........104,146 ........104,146 ........104,146 ........104,147 ........104,146 .................(0) 3. 1998........................... .........XXX..... ........104,026 ........106,931 ........106,917 ........106,925 ........106,932 ........106,933 ........106,932 ........106,932 ........106,932 .................(0) 4. 1999........................... .........XXX..... .........XXX..... ........102,608 ........105,119 ........105,494 ........105,809 ........105,807 ........105,807 ........105,806 ........105,806 .................(0) 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ........103,151 ........104,393 ........104,689 ........104,720 ........104,719 ........104,717 ........104,714 .................(3) 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........112,424 ........114,390 ........114,345 ........114,446 ........114,444 ........114,445 ..................0 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........126,293 ........128,580 ........128,513 ........128,506 ........128,504 .................(2) 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........147,474 ........151,936 ........151,865 ........151,853 ...............(11) 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........153,564 ........155,802 ........155,785 ...............(17) 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........148,915 ........149,166 ..............250 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........158,593 ........158,593 12. Total............................ .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........158,810 13. Earned Prems.(P-Pt 1) ........103,118 ........107,689 ........105,505 ........105,676 ........114,089 ........128,881 ........149,750 ........158,057 ........151,069 ........158,810 ...........XXX...

SECTION 2

Years in Which Premiums Were Earned and Losses Were Incurred 1. Prior............................ 2. 1997........................... 3. 1998........................... 4. 1999........................... 5. 2000........................... 6. 2001........................... 7. 2002........................... 8. 2003........................... 9. 2004........................... 10. 2005........................... 11. 2006........................... 12. Total............................ 13. Earned Prems.(P-Pt 1)

Cumulative Premiums Earned Ceded at Year End ($000 omitted) 4 5 6 7

1

2

3

1997 ..............743 ............9,085 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............9,828

1998 ................57 ..........10,518 ............6,868 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............8,357

1999 ................26 ..........10,553 ............7,889 ............8,197 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............9,281

2000 ..................8 ..........10,571 ............8,033 ............9,330 ............6,984 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............8,286

2001 ..................0 ..........10,568 ............8,026 ............9,937 ............8,228 ............8,077 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............9,918

2002 ..............158 ..........10,574 ............7,999 ............9,403 ............7,339 ............9,107 ..........12,130 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........11,873

2003 ..................0 ..........10,573 ............8,000 ............9,399 ............7,340 ............9,149 ..........12,973 ..........14,121 .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........15,004

8

9

10

2004 ..................0 ..........10,573 ............8,000 ............9,399 ............7,340 ............9,149 ..........13,003 ..........15,037 ..........11,005 .........XXX..... .........XXX..... .........XXX..... ..........11,951

2005 ..................0 ..........10,573 ............8,000 ............9,399 ............7,340 ............9,099 ..........13,004 ..........15,032 ..........11,409 ..........10,727 .........XXX..... .........XXX..... ..........11,077

2006 .................(0) ..........10,573 ............8,000 ............9,399 ............7,340 ............9,102 ..........13,008 ..........15,029 ..........11,405 ..........10,505 ..........11,005 .........XXX..... ..........10,784

11 Current Year Premiums Earned .................(0) .................(0) ..................0 ..................0 ..................0 ..................3 ..................4 .................(3) .................(4) .............(222) ..........11,005 ..........10,784 ...........XXX...

SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE SECTION 1A

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

11 Current Year Premiums Earned

1. Prior............................ ..............973 ............2,992 .............(618) ..............300 ..............276 .............(849) .............(124) ............2,515 .............(211) ............3,125 ............3,125 2. 1997........................... ..........65,536 ..........71,431 ..........71,678 ..........71,959 ..........72,062 ..........72,080 ..........72,290 ..........72,309 ..........72,266 ..........72,240 ...............(27) 3. 1998........................... .........XXX..... ..........55,907 ..........61,823 ..........62,452 ..........62,753 ..........62,907 ..........62,884 ..........62,939 ..........62,940 ..........62,962 ................23 4. 1999........................... .........XXX..... .........XXX..... ..........48,881 ..........54,993 ..........55,669 ..........56,162 ..........55,943 ..........56,008 ..........56,021 ..........56,081 ................60 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ..........54,184 ..........60,518 ..........61,745 ..........61,887 ..........61,850 ..........61,886 ..........61,916 ................30 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........66,781 ..........73,129 ..........73,616 ..........73,740 ..........73,850 ..........74,049 ..............199 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........84,674 ..........87,870 ..........88,336 ..........88,676 ..........88,770 ................93 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........104,936 ........129,927 ........130,213 ........130,268 ................55 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........70,314 ..........79,471 ..........79,609 ..............138 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........90,956 ..........86,847 ..........(4,108) 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........101,834 ........101,834 12. Total............................ .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ........101,422 13. Earned Prems.(P-Pt 1) ..........66,509 ..........64,795 ..........54,419 ..........61,508 ..........74,469 ..........92,065 ........108,604 ..........98,512 ........100,646 ........101,422 ...........XXX...

SECTION 2A

Cumulative Premiums Earned Ceded at Year End ($000 omitted) 4 5 6 7

Years in Which Premiums Were Earned and Losses Were Incurred 1. Prior............................ 2. 1997........................... 3. 1998........................... 4. 1999........................... 5. 2000........................... 6. 2001...........................

1

2

3

1997 .............(589) ..........13,850 .........XXX..... .........XXX..... .........XXX..... .........XXX.....

1998 ............1,823 ..........17,343 ..........10,929 .........XXX..... .........XXX..... .........XXX.....

1999 .............(124) ..........17,614 ..........14,099 ..........12,114 .........XXX..... .........XXX.....

2000 .................(2) ..........17,712 ..........14,494 ..........15,576 ..........15,128 .........XXX.....

2001 ..............178 ..........17,746 ..........14,606 ..........15,862 ..........16,444 ..........14,611

2002 .............(158) ..........17,739 ..........14,617 ..........16,239 ..........16,752 ..........16,866

7. 8. 9. 10. 11. 12. 13.

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........13,261

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........16,245

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........15,432

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........19,079

.........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........16,539

..........19,113 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........21,897

2002........................... 2003........................... 2004........................... 2005........................... 2006........................... Total............................ Earned Prems.(P-Pt 1)

95

8

9

10

2003 .............(299) ..........17,753 ..........14,669 ..........16,284 ..........16,824 ..........16,972

2004 ..............284 ..........17,790 ..........14,663 ..........16,309 ..........16,759 ..........16,990

2005 .................(3) ..........17,785 ..........14,669 ..........16,316 ..........16,769 ..........17,099

2006 ..................4 ..........17,785 ..........14,669 ..........16,310 ..........16,772 ..........17,148

11 Current Year Premiums Earned ..................4 ..................0 ..................0 .................(7) ..................3 ................49

..........22,170 ..........23,549 .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........26,597

..........22,466 ..........37,523 ............3,339 .........XXX..... .........XXX..... .........XXX..... ..........17,903

..........22,560 ..........37,587 ............5,951 ..........14,822 .........XXX..... .........XXX..... ..........17,714

..........22,580 ..........37,604 ............5,970 ............8,490 ..........21,499 .........XXX..... ..........15,273

................20 ................17 ................19 ..........(6,331) ..........21,499 ..........15,273 ...........XXX...

Annual Statement for the year 2006 of

THE STANDARD FIRE INSURANCE COMPANY

SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE SECTION 1B

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

9

10

2005

2006

11 Current Year Premiums Earned

1. Prior............................ ............4,402 ..............551 ..............101 ..............106 ...............(20) .............(401) ...............(86) ...............(16) .................(3) ...............(25) ...............(25) 2. 1997........................... ..........18,138 ..........22,823 ..........23,634 ..........24,107 ..........24,102 ..........24,166 ..........24,175 ..........24,162 ..........24,163 ..........24,163 ..................0 3. 1998........................... .........XXX..... ..........14,281 ..........18,664 ..........19,910 ..........19,954 ..........20,125 ..........20,719 ..........20,685 ..........20,685 ..........20,685 .................(0) 4. 1999........................... .........XXX..... .........XXX..... ..........14,811 ..........19,532 ..........19,457 ..........19,542 ..........19,583 ..........19,582 ..........19,583 ..........19,583 ..................0 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ..........18,901 ..........20,039 ..........20,711 ..........21,668 ..........21,668 ..........21,670 ..........21,668 .................(1) 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........18,459 ..........25,634 ..........26,385 ..........26,388 ..........26,390 ..........26,389 .................(1) 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........31,195 ..........44,179 ..........44,186 ..........44,201 ..........44,439 ..............238 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........40,621 ..........54,745 ..........54,747 ..........54,790 ................43 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........42,595 ..........42,653 ..........42,649 .................(4) 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........45,413 ..........45,475 ................62 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........42,057 ..........42,057 12. Total............................ .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........42,370 13. Earned Prems.(P-Pt 1) ..........22,540 ..........19,517 ..........20,106 ..........25,448 ..........19,541 ..........38,962 ..........55,871 ..........56,666 ..........45,487 ..........42,370 ...........XXX...

SECTION 2B

Years in Which Premiums Were Earned and Losses Were Incurred 1. Prior............................ 2. 1997........................... 3. 1998........................... 4. 1999........................... 5. 2000........................... 6. 2001........................... 7. 2002........................... 8. 2003........................... 9. 2004........................... 10. 2005........................... 11. 2006........................... 12. Total............................ 13. Earned Prems.(P-Pt 1)

Cumulative Premiums Earned Ceded at Year End ($000 omitted) 4 5 6 7

1

2

3

1997 ............2,749 ............6,731 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............9,480

1998 ..............406 ............9,390 ............3,548 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............6,613

1999 ..............188 ............9,984 ............6,373 ............3,801 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............7,407

2000 ................70 ..........10,353 ............7,317 ............6,750 ............5,171 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............9,504

2001 ..................1 ..........10,354 ............7,317 ............6,740 ............5,177 ............2,163 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............2,161

2002 ..................9 ..........10,429 ............7,453 ............7,037 ............6,029 ............6,862 ..........10,257 .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........16,324

2003 ..................1 ..........10,441 ............7,966 ............7,059 ............6,762 ............7,361 ..........18,275 ..........13,915 .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........23,713

8

9

10

2004 ..................3 ..........10,440 ............7,961 ............7,059 ............6,762 ............7,361 ..........18,275 ..........23,562 ............9,854 .........XXX..... .........XXX..... .........XXX..... ..........19,499

2005 ..................1 ..........10,440 ............7,961 ............7,078 ............6,762 ............7,361 ..........18,275 ..........23,576 ............9,854 ............6,991 .........XXX..... .........XXX..... ............7,025

2006 ..................0 ..........10,440 ............7,961 ............7,078 ............6,761 ............7,437 ..........18,348 ..........23,569 ............9,854 ............7,638 ............5,318 .........XXX..... ............6,106

9

10

2005

2006

11 Current Year Premiums Earned ..................0 ..................0 ..................0 .................(0) .................(1) ................76 ................73 .................(7) ..................0 ..............647 ............5,318 ............6,106 ...........XXX...

SCHEDULE P - PART 6M - INTERNATIONAL SECTION 1

Years in Which Premiums Were Earned and Losses Were Incurred

1

2

1997

1998

Cumulative Premiums Earned Direct and Assumed at Year End ($000 omitted) 3 4 5 6 7 8 1999

2000

2001

2002

2003

2004

11 Current Year Premiums Earned

1. Prior............................ ............2,368 ..............205 ..................0 ..................0 ..................0 ..................0 ..................0 ..................0 ..................0 .................(8) .................(8) 2. 1997........................... ............3,371 ............4,753 ............4,753 ............4,753 ............4,753 ............4,753 ............4,753 ............4,753 ............4,753 ............4,753 ..................0 3. 1998........................... .........XXX..... ............2,446 ............2,459 ............2,459 ............2,459 ............2,459 ............2,459 ............2,459 ............2,459 ............2,459 ..................0 4. 1999........................... .........XXX..... .........XXX..... ..............784 ..............803 ..............804 ..............791 ..............791 ..............791 ..............791 ..............791 ..................0 5. 2000........................... .........XXX..... .........XXX..... .........XXX..... ..............564 ..............580 ..............580 ..............580 ..............580 ..............580 ..............580 ..................0 6. 2001........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..............766 ..............782 ..............782 ..............782 ..............782 ..............782 ..................0 7. 2002........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............1,154 ............1,168 ............1,168 ............1,168 ............1,168 ..................0 8. 2003........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........11,573 ..........11,573 ..........11,876 ..........11,876 ..................0 9. 2004........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ..........14,748 ..........14,748 ..........14,748 ..................0 10. 2005........................... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... .........XXX..... ............1,185 ............1,207 ................22 11. 2006........................... .........XXX..... .........XXX..... .........XXX..... .........X