Common use of REPORTS AND REMITTANCES Clause in Contracts

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 remitted in semi-annual installments of $5,250,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 6,500,000 remitted in semi-annual installments of $5,250,000 3,250,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 4,250,000 remitted in semi-annual installments of $5,250,000 2,125,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 3,750,000 remitted in semi-annual installments of $5,250,000 1,875,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 5,000,000 remitted in semi-annual installments of $5,250,000 2,500,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Commercial Multiple Peril (Property) 100 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 5,000,000 remitted in semi-annual installments of $5,250,000 2,500,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 8,750,000 remitted in semi-annual installments of $5,250,000 4,375,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 6,250,000 remitted in semi-annual installments of $5,250,000 3,125,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Homeowners 60 % Farmowners 60 % Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 5,500,000 remitted in semi-annual installments of $5,250,000 2,750,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200

REPORTS AND REMITTANCES. The Company shall pay to the Subscribing Reinsurer a minimum and deposit premium of $10,500,000 8,250,000 remitted in semi-annual installments of $5,250,000 4,125,000 on January 1 and July 1, 2008. In the event this Contract is terminated prior to January 1, 2009, the minimum premium shall be prorated and no deposit premium installments shall be due after the effective date of termination. The Company shall submit finalized accounts to the Subscribing Reinsurer on February 15, 2009 summarizing the actual subject earned premium for the January 1, 2008 through December 31, 2008 coverage period. If such developed premium is greater than the minimum and deposit premium stipulated herein the additional premium shall be paid to/from the Subscribing Reinsurer within 15 days of February 15, 2009. The term Subject Earned premium shall mean the premiums earned by the Company or the Legal Entities, on classes of business covered under this Contract, times the rates below. No deduction shall be made for dividends declared, paid or credited to policyholders of the Company or the Legal Entities. ASLOB Percentage Fire 100 % Allied Lines 100 % Homeowners 60 % Farmowners 60 % Effective: January 1, 2008 2008 Property Catastrophe Excess of Loss Contract — $800m x $50m ASLOB Percentage Commercial Multiple Peril (Property) 100 % Inland Marine 100 % *Auto Physical Damage (Private Passenger and Commercial) 0 % Burglary & Theft 100 % * Auto Physical Damage is not included in the premium base, however coverage is provided within the terms and conditions of the Contract. Estimated Subject Earned Premium: $1,450,854,200