Assigned Risk Plans/State Funds A National Perspective Senate Bill 304 Study Committee Bruce R. Hockman Towers Perrin Philadelphia, Pennsylvania 215-963-7744

Assigned Risk Plans/State FundsA National Perspective

Senate Bill 304 Study Committee

Bruce R. HockmanTowers PerrinPhiladelphia, [email protected]

Bruce R. HockmanTowers PerrinPhiladelphia, [email protected]

- 2 -- 2 -

The evolution of “residual” or guaranteed markets

The impact of market movement

Where we have been, Where we are now, and Where we may be going

A few case histories

Discussion Points

S e n a t e B i l l 3 0 4 S t u d y C o m m i t t e e

- 3 -- 3 -

In the beginning of the last century, workers compensation laws were passed that for the most part made coverage under the law mandatory

One by one states needed to address the issue of how to “guarantee” insurance protection for all employers

Several basic solutions evolved

– Monopolistic state run “funds”

– Private carriers with “assigned risk” plans

– Private carriers with a state created “fund”

– Private carriers with a state created “fund” and assigned risk plans

– Self insurance - individual and group

Evolution


- 4 -- 4 -

Where We Are Today

Monopolistic State Funds: Ohio, North Dakota, Washington, West Virginia, WyomingState Funds: Arizona*, California, Colorado, Hawaii(1), Idaho*,

Kentucky(1), Louisiana(1), Maine(1), Maryland, Minnesota*, Missouri*, Montana, New

Mexico*, New York, Oklahoma, Oregon *, Pennsylvania,Rhode Island(1), South Carolina*, Texas(1), UtahAssigned Risk Plans: Alabama, Alaska, Arkansas, Connecticut, Delaware, (JUA) Washington D.C., Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Massachusetts, Michigan, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, South Dakota, Tennessee, Vermont,

Virginia, WisconsinPrivate Carriers: Everywhere except in Monopolistic State Funds

* Also have assigned risk plans operating in the state(1) Successor to assigned risk plans


- 5 -- 5 -

123 122

109

101

97100 101

108

115118

122

110

80

85

90

95

100

105

110

115

120

125

130

91 92 93 94 95 96 97 98 99 00 01 02

Source: AM Best Aggregates and Averages

Perc

enta

ge

Ratio of Loss, Loss Expense, General Expense, and Dividends to Premium

Calendar Year Combined Ratios


- 6 -- 6 -

The impact of market cycles is significant

– As financial returns from doing the business deteriorate insurers can respond in several ways

• increase pricing

• reduce writings (nationally or specific jurisdictions)

• leave the market (voluntarily or involuntarily)

– The result of the later trend often leads to an increase in business moving to the Guaranteed Market or Assigned Risk Plan

Impact of Market Movement


- 7 -- 7 -

2.80

3.50

4.00

4.40

4.80

4.10

3.10

2.00

1.00

0.600.30 0.27 0.35

0.61

1.20

0

1

2

3

4

5

6

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

$ B

illio

ns

Residual Market Premiums

Policy Year

NCCI Assigned Risk Plans

Source: NCCI


- 8 -- 8 -

9

16

1817 17

2122

24

26

23

16

11

7

43

4

6

8

0

5

10

15

20

25

3019

85

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

p

Workers Compensation Residual Market Shares Also on the Rise


NCCI Workers Compensation Insurance Plan (WCIP)Premium as a Percentage of Direct Written Premium

Source: NCCI

Perc

ent

Calendar YearP Preliminary

- 9 -- 9 -

Market Comparisons

The impact on premium shifts through cycles is quite consistent with some notable demographic implications

The direct impact of such market shifts on employers and state economies cannot be overstated

U.S. Total $34.9B $28.8B $37.5B $43.1B

Texas Total $1.9B $1.8B $2.4B $2.6B

Texas W.C.I.F. $540M $223M $422M $609M

Pennsylvania Total $2.5B $1.4B $1.8B $2.0B

Pennsylvania S.W.I.F. $456M $72M $114M $212M

Montana Total $273M $153M $152M $182M

Montana State Fund $181M $77M $81M $95.8M

Market 1994 1998 2001 2002


- 10 -- 10 -

Market Dislocation -- A Ten Year Perspective

Aetna Life & Casualty Travelers

Continental CNA

Reliance Group Liquidation

Home Ins. Group Liquidation

USF&G St. Paul

Orion Capital Royal

Royal Travelers

General Accident CGU

CGU One Beacon

Fremont Conservation

California Comp Superior National

Superior National Liquidation

Golden Eagle Liberty Mutual

Legion Liquidation

Kemper Selling Off

Employers Wausau Liberty Mutual

CIGNA ACE

Mission Liquidation

- 11 -- 11 -

Business Make-Up

Who are the employer policyholders found in state funds and assigned risk plans?

Over the last 10 years nearly 85% of the policyholders pay annual premium of less than $5,000 per year

Less than 2% of the policyholders pay more than $50,000 per year Based on the number of policies in A.R. plans, the top business classifications

covered are:– Carpentry - Detached Dwellings– Clerical Office– Trucking - Local– Salespersons– Painting– Domestic Workers– Buildings - Operations by Owner– Carpentry - Interior– Physicians

The common denominator is that these accounts are small employers


- 12 -- 12 -

177

164169

166

159

142

126

111

10296

9398

102

112117 118 116 115

80

100

120

140

160

180

20019

85

1986

1987

1988

*

1989

*

1990

*

1991

*

1992

*

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

**

Workers Compensation Residual Market Combined Ratios are Holding Steady


NCCI Managed Workers Compensation Residual Market Poolsas of December 31, 2002

Source: NCCI

Perc

ent

Policy Year

* Excludes Maine Residual Market Pool** Incomplete PY Projected to Ultimate

- 13 -- 13 -

500

Workers Compensation Residual Market Underwriting Results Remain Negative


NCCI Managed Workers Compensation Residual Market Poolsas of December 31, 2002

Source: NCCI

Policy Year* Excludes Marine Residual Market Pool** Incomplete PY Projected to Ultimate

-932

-1,350

-1,797-1,878

-2,072

-1,663

-1,144

-512

-94

109 12925

-13 -39 -45 -63 -104-176

-2,500

-2,000

-1,500

-1,000

-500

0

$ M

illio

ns

1985

1986

1987

1988

*

1989

*

1990

*

1991

*

1992

*

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

**

- 14 -- 14 -

Where are we Going?

Can the results of the early nineties be seen again in the future?

Yes, but not to the same degree.


Q Rate suppression as a result of regulatory intervention No incentives or disincentives within plan structure to control

claims costs, premium collections, fraud

Assigned Risk Rates were often lower than private market rates Several “troubled” states dominated the disastrous financial results

“De-population” plans in place with rate levels set for pools to be “self-supporting”

Improved levels of servicing carrier responsibility Several “troubled” states abandoned assigned risk approach in

favor of “Employer Mutual Model”

AThen

Now

- 15 -- 15 -

Employer Mutuals


1991

1991

1991

1992

1992

1993

1993

1995

1996

Louisiana

Texas

New Mexico

Maine

Rhode Island

Missouri

Minnesota

Kentucky

Hawaii

Louisiana Workers Compensation Corp.

Texas Mutual Insurance Company

New Mexico Mutual Casualty

Maine Employers Mutual Insurance

Beacon Mutual Insurance Co.

Missouri Employers Mutual Insurance

Minnesota State Fund Market

Kentucky Employers Mutual Insurance

Hawaii Employers Mutual Insurance

Guaranteed MarketLeading Writer 33%


Assigned Risk PlanLeading Writer 32%



Assigned Risk PlanLeading Writer 25%

Assigned Risk PlanLeading Writer 10.5%



Year State Entity Status

- 16 -- 16 -

Customer Expectations

What are employers looking for? Stability, Consistency

Price - Unexpected increases in premium cannot be effectively passed on in the cost of goods and services

- The unexpected move from a private carrier to an assigned risk plan could have an immediate and devastating impact on a buyer, often with no notice to the buyer

Service - Employers expect and deserve more than just a policy- Changes in carriers results in disruption in service delivery and

quality- Frustrated workers, frustrated providers frustrated employers

Financial - The cost of insolvencies is a heavy one, passed on to all employersStrength

A strong balance sheet is fundamental for an insurer to meet employer/policyholder

expectations - whether private or public


- 17 -- 17 -

Case Study #1

Louisiana Workers Compensation Corporation - 1991 Status: Private non-profit mutual: Rated A (A.M. Best) Total Louisiana Market 1991: $413M Total Assigned Risk Market 1991: $300M (72.6%) LWCC Writings: 1994 $246,941

1998 $166,0482002 $210,214

Current Marketshare: 33% Rate Review: Exempt from state approval, rates reviewed by

Department for Actuarial Soundness Rate Change History

1990 - +13.5% (includes 25% surcharge)1991 - +20.0%1992 - +25.0%

Since 1993, NCCI has secured cumulative loss cost changes of -7.8% During that same period LWCC has filed cumulative rate changes of -

32.3%


- 18 -- 18 -

Case Study #2

Kentucky Employers Mutual Insurance Company - 1994 Status: Non-profit, independent DeJure Municipal Corporation and

political subdivision of Commonwealth of Kentucky: Rated A- (A.M. Best)

Total Kentucky Market 1994: $278M Total Assigned Risk Market 1994: $84M (30%) KEMI Writings: 1996 $72.9M

1998 $41.6M2002 $108M

Current Marketshare: 26% Rate Review: KEMI Board approves rates, subject to approval by

insurance department Rate Change History

1991 - +26.2% 1991 - +27.4%1992 - +5.2%


- 19 -- 19 -

Case Study #3

Employers Insurance Company of Nevada - 1999 Private domestic insurance company: Rated A- (A.M. Best)

Successor company of Nevada Workers Compensation Fund and State Industrial Insurance System, operating in a competitive environment after monopolistic plan ended.

Total Nevada Market 2000: $444M Total Assigned Risk Market 2000: $6M Total Assigned Risk Market 2002: $19M Current Marketshare: 30.8% Rate Review: Subscribe to NCCI, licensed rating authority Rate Change History


* Includes 25% assigned risk differential

AR Y EIGN Writings 1999 -8.0%* -8.0% $3032000 +4.5% +4.5% $1932001 +1.1% -6.0% $1122002 -9.8% +1.5% $114

- 20 -- 20 -


Direct Written Premium ($000’s) Market ShareGROUP NAME . US 1994 US (% of US) US Total 1994

TOP TWENTY by DWP

Liberty Mut Ins Cos Travelers PC Group CNA Ins Companies

Amer Intern Group State Comp Fund Cal Hartford Ins Group Kemper Ins Cos Fremont General Grp

CIGNA Group Allianz of America St Paul Companies Zurich US Group

Amer Financial Group Superior Nat Ins Grp Reliance Ins Group State Worker Fd (PA)

CGU Group Home Ins Companies Golden Eagle Ins Co Old Republic Gen Grp

Subtotal Industry Total

3,805,161 2,211,457 2,087,227 1,855,581 1,449,033 1,366,032 1,342,898 1,217,503

836,875 766,503 679,914 636,018 623,741 602,132 546,266 474,480 472,076 450,883 430,107 387,850

22,241,738 34,889,072

100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%

100.00%100.00%

3,805,161 2,211,457 2,087,227 1,855,581 1,449,033 1,366,032 1,342,898 1,217,503

836,875 766,503 679,914 636,018 623,741 602,132 546,266 474,480 472,076 450,883 430,107 387,850

22,241,738 34,889,072

10.91%6.34%5.98%5.32%4.15%3.92%3.85%3.49%2.40%2.20%1.95%1.82%1.79%1.73%1.57%1.36%1.35%1.29%1.23%1.11%

63.75%34,889,072

Source: © A.M. Best Company - Used by Permission.

Exhibit 1Exhibit 1

Line: Workers Compensation United States

- 21 -- 21 -


Direct Written Premium ($000’s)GROUP NAME . US 1998 US (% of US) US Total

TOP TWENTY by DWP

Liberty Mut Ins CosCNA Ins Companies

Amer Intern GroupTravelers PC GroupKemper Ins CosState Comp Fund CalHartford Ins GroupFremont General GrpReliance Ins GroupAllianz of AmericaSuperior Nat Ins GrpZurich US GroupCIGNA Group

Orion Capital CosCGU Group

St Paul CompaniesAmer Financial GroupChubb Grp of Ins CosLegion Ins GroupSAFECO Ins Cos

SubtotalIndustry Total

2,866,858 1,774,676 1,407,530 1,342,583 1,294,125 1,215,753 1,093,212

822,979 765,745 763,531 712,958 660,899 525,868 501,730 462,097 430,983 427,406 378,277 350,719 319,441

18,117,371 28,872,889

100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%

100.00%100.00%

2,866,858 1,774,676 1,407,530 1,342,583 1,294,125 1,215,753 1,093,212

822,979 765,745 763,531 712,958 660,899 525,868 501,730 462,097 430,983 427,406 378,277 350,719 319,441

18,117,371 28,872,889

Market Share1998 1997 1996 1995

9.93%6.15%4.87%4.65%4.48%4.21%3.79%2.85%2.65%2.64%2.47%2.29%1.82%1.74%1.60%1.49%1.48%1.31%1.21%1.11%

62.75%28,872,889

9.36%5.68%5.88%4.93%4.36%3.65%3.92%3.18%2.16%2.32%2.84%2.48%1.43%1.38%1.86%1.63%1.53%1.21%1.06%1.12%

61.99%28,407,039

9.32%5.12%6.04%5.03%4.05%3.29%3.95%2.92%1.73%2.37%2.70%2.95%1.50%1.29%1.82%1.91%1.37%1.12%0.69%1.09%

60.27%29,717,688

10.37%5.58%5.76%5.76%3.68%3.35%4.02%3.07%1.46%2.29%1.82%3.02%1.98%1.14%1.58%2.10%1.46%1.05%0.54%1.09%

61.10%31,352,471

Annualized1994 DWP Growth

10.91%5.98%5.32%6.34%3.85%4.15%3.92%3.49%1.57%2.20%1.73%1.82%2.40%0.87%1.35%1.95%1.79%0.84%0.56%0.99%

62.01%34,889,072

-6.83%-3.97%-6.68%

-11.73%-0.92%-4.29%-5.42%-9.33%8.81%

-0.10%4.31%0.96%

-10.97%13.31%-0.53%

-10.77%-9.02%6.62%

16.00%-1.85%

-4.34%-4.62%



Exhibit 2Exhibit 2

- 22 -- 22 -



TOP TWENTY by DWP

State Comp Fund CalLiberty Mut Ins CosAmer Intern Grp IncZurich/Farmers GroupCNA Ins CompaniesRoyal & SunAllianceTravelers/CitigroupKemper Ins CosHartford Ins GroupSt Paul CompaniesLegion Ins GroupFairfax Fin (US) GrACE INA Group

Allianz of AmericaHDI U S Group

Chubb Grp of Ins CosZenith Nat Ins GroupTexas Mut Ins CoPinnacol Assur CoFCCI Ins Group


3,638,077 2,985,751 1,921,250 1,851,730 1,679,884 1,330,850 1,328,591 1,319,218 1,188,714

841,364 754,131 599,317 567,544 490,156 459,180 442,274 434,851 421,675 408,585 388,047

23,051,190 37,514,851

3,638,0772,985,7511,921,2501,851,7301,679,8841,330,8501,328,5911,319,2181,188,714

841,364 754,131 599,317 567,544 490,156 459,180 442,274 434,851 421,675 408,585 388,047

23,051,19037,514,851

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%

100.00% 100.00%

Market Share2001 2000 1999 1998

9.70%7.96%5.12%4.94%4.48%3.55%3.54%3.52%3.17%2.24%2.01%1.60%1.51%1.31%1.22%1.18%1.16%1.12%

1.09%1.03%

61.45%37,514,851

5.42%8.97%4.91%4.31%4.74%3.27%3.87%4.02%3.18%1.92%2.19%1.82%0.91%1.84%0.95%1.21%0.97%0.92%0.96%1.06%

57.43%33,161,657

4.12%10.12%4.77%3.03%6.01%2.69%4.55%4.38%3.70%1.45%1.19%1.57%1.78%2.59%0.88%1.28%0.92%0.77%0.83%0.99%

57.62%29,522,445

4.09%9.42%3.75%3.44%5.69%3.17%4.19%3.60%3.52%1.40%1.76%1.74%1.23%2.50%1.06%1.17%0.93%0.77%0.89%0.89%

55.21%30,394,442


3.54%9.51%5.72%3.10%5.52%2.15%4.79%4.24%3.81%1.56%1.03%1.23%1.39%2.25%0.88%1.18%0.81%0.80%0.81%1.06%

55.39%29,229,292

36.90%1.80%3.55%

19.53%1.00%

20.64%-1.29%1.57%1.64%

16.50%25.78%13.68%8.80%

-7.11%15.70%6.51%

16.29%15.91%14.52%5.73%

9.24%6.44%



Exhibit 3Exhibit 3

- 23 -- 23 -



Exhibit 4Exhibit 4



Market Share2002 2001 2000 1999


100.00% 100.00% 100.00% 100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

100.00%

TOP TWENTY by DWP

State Comp Fund CalLiberty Mut Ins CosAmer Intern Grp IncZurich/Farmers Group

Travelers P C GroupHartford Ins GroupCNA Ins CompaniesKemper Ins CosRoyal & SunAllianceSt Paul Companies

ACE INA GroupEverest Re US GroupTexas Mut Ins CoZenith Nat Ins Group

Chubb Grp of Ins CosHDI U S Group

W R Berkley GroupPinnacol Assur CoAon Corp GroupFairfax Fin (US) Gr


5,492,547 3,807,507 3,135,134 2,107,534

1,533,078 1,495,662 1,438,229 1,350,448 1,179,654

956,767 723,660 634,949 609,064 581,653

578,267 521,154 508,514 475,328 396,575 393,767

27,919,493 43,124,735 n/a

5,492,5473,807,5073,135,1342,107,534

1,533,0781,495,6621,438,2291,350,4481,179,654

956,767 723,660 634,949 609,064 581,653

578,267 521,154 508,514 475,328 396,575 393,767

27,919,493-

12.74%8.83%7.27%4.89%

3.55%3.47%3.34%3.13%2.74%2.22%1.68%1.47%1.41%1.35%

1.34%1.21%1.18%1.10%0.92%0.91%

64.74%43,124,735

9.64%7.91%5.09%4.91%

3.14%3.15%4.45%3.49%3.53%2.23%1.50%0.90%1.12%1.15%

1.17%1.22%0.83%1.08%0.77%1.59%

58.85%37,749,065

5.39%8.91%4.87%4.28%

3.25%3.16%4.71%4.00%3.25%1.90%0.91%0.42%0.91%0.96%

1.20%0.94%0.65%0.95%0.73%1.81%

53.19%33,392,097

4.06%9.97%4.70%2.99%

3.67%3.65%5.93%4.32%2.66%1.43%1.76%0.20%0.76%0.91%

1.26%0.87%0.68%0.81%0.39%1.55%

52.55%29,955,982

4.05%9.31%3.71%3.41%

3.47%3.48%5.63%3.56%3.13%1.38%1.22%0.16%0.76%0.91%

1.16%1.05%0.66%0.88%0.46%1.72%

50.12%30,735,028

45.79%6.26%

22.17%23.87%

8.66%8.15%

-5.12%1.07%

10.35%22.21%8.31%

80.12%27.82%20.93%

11.19%19.00%25.67%18.15%35.98%-3.97%

15.40%9.54%

- 24 -- 24 -


Direct Written Premium ($000’s)GROUP NAME . MT 1994 MT (% of US) US Total

TOP TWENTY by DWP

Liberty Mut Ins CosKemper Ins CosAmer Intern Group

CIGNA GroupTravelers PC GroupReliance Ins GroupFremont General GrpCNA Ins CompaniesSAFECO Ins Cos

Argonaut GroupMontana Loggers ExchAllianz of AmericaOld Republic Gen GrpLegion Ins GroupHome Ins CompaniesDHC GroupZurich US GroupHartford Ins GroupSt Paul CompaniesJohn Deere Ins Group


17,078 15,327 10,134 5,347 4,172 4,083 3,738 3,615 3,566 3,395 3,294 2,594 2,403 1,895 1,580 1,506 1,265 1,136 1,103

897

88,128 91,787

0.45%1.14%0.55%0.64%0.19%0.75%0.31%0.17%1.04%1.63%

100.00%0.34%0.62%0.98%0.35%1.84%0.20%0.08%0.16%2.70%

0.46%0.26%

3,805,161 1,342,898 1,855,581

836,875 2,211,457

546,266 1,217,503 2,087,227

344,260 207,664

3,294 766,503 387,850 193,702 450,883 81,912

636,018 1,366,032

679,914 33,195

19,054,197 34,889,072

Market Share1994

18.61%16.70%11.04%5.83%4.55%4.45%4.07%3.94%3.88%3.70%3.59%2.83%2.62%2.06%1.72%1.64%1.38%1.24%1.20%0.98%

96.01%91,787

Montana State Fund 181,626

*Total 273,413

Line: Workers Compensation Montana


Exhibit 5Exhibit 5

- 25 -- 25 -


Direct Written Premium ($000’s)GROUP NAME . MT 1998 MT (% of US) US Total

TOP TWENTY by DWP

Liberty Mut Ins CosCIGNA Group

Hartford Ins GroupCNA Ins CompaniesFremont General GrpSAFECO Ins CosDHC Group

Highlands Ins Gr IncAmer Intern GroupKemper Ins CosTravelers PC GroupLegion Ins GroupSuperior Nat Ins Grp

Amerisafe Ins GroupReliance Ins GroupMunich Reins GroupFarmers Ins GroupAllianz of AmericaTIG Holdings Group

Everest Reins GroupSubtotalIndustry Total

24,4274,529 4,485 4,138 3,916 3,792 3,735 2,832 2,753 2,335 2,324 1,990 1,873 1,803 1,631 1,554 1,355 1,105

709 499

71,787 75,657

2,866,858525,868

1,093,2121,774,676

822,979 319,441 17,971 63,553

1,407,5301,294,1251,342,583

350,719 712,958 150,011 765,745 57,992

234,020 763,531 304,071 60,329

14,928,17328,872,889

0.85% 0.86%0.41% 0.23% 0.48%1.19%

20.78%4.46%0.20% 0.18% 0.17% 0.57%0.26%1.20%0.21%2.68%0.58%0.14%0.23%0.83%0.48% 0.26%

Market Share1998 1997 1996 1995

32.29%5.99%5.93%5.47%5.18%5.01%4.94%3.74%3.64%3.09%3.07%2.63%2.48%2.38%2.16%2.05%1.79%1.46%

0.94%0.66%

94.89%75,657

28.25%6.05%3.36%5.58%8.14%

10.77%5.04%5.71%9.59%

-11.66%2.24%3.81%1.74%0.00% 1.17%1.80%2.11%

-1.06%-0.26%

82.38%70,038

23.09%4.63%2.48%4.47%5.51%9.79%3.92%

-0.08%11.90%5.90%4.97%2.59%0.01%

1.92%0.12%0.08%4.28%0.45%

86.00%103,715

21.89%4.62%3.51%4.15%5.10%

12.70%3.89%2.31%

11.43%4.64%3.88%3.15%0.16%

1.14%1.35%0.76%

-1.30%0.57%

83.96%80,442


18.61%5.83%1.24%3.94%4.07%3.88%1.64%0.00%

11.04%16.70%4.55%2.06%

4.45%

0.04%2.83%0.51%

81.37%91,787

9.36%-4.07%40.97%3.43%1.17%1.55%

25.50%N/A

-27.80%-37.52%-13.60%

1.24%459.51%

N/A-20.49%135.10%147.23%-19.21%11.08%

N/A-0.99%-4.72%

Montana State Fund 77,426

*Total 153,083



Exhibit 6Exhibit 6

- 26 -- 26 -


Direct Written Premium ($000’s)GROUP NAME . MT 2001 MT (% of US)US Total

TOP TWENTY by DWP

Montana State FundLiberty Mut Ins Cos

DHC GroupAmer Intern Grp IncAmTrust GroupCNA Ins CompaniesZurich/Farmers GroupAmerisafe Ins Group

ICW GroupRoyal & SunAllianceSAFECO Ins Cos

Everest Re US GroupChubb Grp of Ins CosHartford Ins GroupSt Paul CompaniesLegion Ins GroupHDI U S Group

Argonaut Ins GroupSentry Ins GroupTravelers/Citigroup


81,320 29,041 11,896 3,303 2,960 2,605 2,380 1,932 1,769 1,602 1,558 1,438 1,261 1,233

963 900 862 673 569 477

148,744 151,999

81,320 2,985,751

23,381 1,921,250

5,182 1,679,884 1,851,730

197,543 91,650

1,330,850 273,293 338,698 442,274

1,188,714 841,364 754,131 459,180 188,518 342,335

1,328,591

16,325,63837,514,851

100.00%0.97%

50.88%0.17%

57.12%0.16%0.13%0.98%1.93%0.12%0.57%0.42%0.29%0.10%0.11%0.12%0.19%0.36%0.17%0.04%

0.91% 0.41%

Market Share2001 2000 1999 1998

53.50%19.11%7.83%2.17%1.95% 1.71%1.57%1.27%1.16%1.05%1.02%0.95%0.83%0.81%0.63%0.59%0.57%0.44%

0.37%0.31%

97.86%151,999

51.87% 16.19%4.11%0.85%

2.19%0.56%2.03%0.36%0.43%2.29%0.40%0.85%2.46%0.55%0.61%

-0.32%0.16%0.37%1.67%

87.63%135,767

47.43%14.42%6.37%1.67%

1.34%1.93%3.28%0.99%0.95%1.85%1.08%0.60%1.37%0.63%1.38%0.16%0.53%0.27%0.58%

86.83%150,671

32.20%4.92%3.63%

5.45%1.67%2.38%0.33%0.44%5.00%0.66%0.57%5.91%0.54%2.62%0.60%0.03%0.46%3.06%

70.48%75,866


28.06%5.00%9.52%

5.54%8.51%

0.06%10.70%

0.56%3.34%2.06%3.78%0.34%2.43%0.51%2.22%

82.64%70,521

7.46%10.06%35.50%

-16.25%N/A

-9.65%-20.63%

2.35%91.86%

151.54%-32.59%42.27%33.66%

-14.91%-9.82%

-23.77%37.69%

-20.81%12.10%

-25.71%

26.40%21.17%



Exhibit 7Exhibit 7

- 27 -- 27 -



Exhibit 8Exhibit 8


Direct Written Premium ($000’s)GROUP NAME . MT 2002 MT (% of US)US Total

Market Share2002 2001 2000 1999


TOP TWENTY by DWP

Montana State FundLiberty Mut Ins Cos

DHC GroupZurich/Farmers GroupAmer Intern Grp IncCNA Ins Companies

Amerisafe Ins GroupRoyal & SunAllianceACE INA Group

AmTrust GroupTravelers P C GroupChubb Grp of Ins CosWorkers Comp Fd GrpSAFECO Ins CosHartford Ins GroupKemper Ins Cos

Argonaut Ins GroupAllianz of AmericaHDI U S Group

St Paul Companies


95,854 39,316 7,064 5,886 3,616 3,254 2,567 2,526 2,279 2,107 1,740 1,587 1,529 1,325 1,259 1,041

909 851 762 720

176,192 182,461

95,854 3,807,507

8,136 2,107,5343,135,1341,438,229

178,893 1,179,654

723,660 21,110

1,533,078578,267 195,075 168,821

1,495,6621,350,448

226,838 194,888 521,154 956,767

19,916,71043,124,735

100.00%1.03%

86.82%0.28% 0.12% 0.23% 1.44%0.21% 0.31%9.98%0.11% 0.27%0.78%0.78%0.08% 0.08% 0.40%0.44%0.15%0.08%

0.88% 0.42%

52.53%21.55%3.87%3.23%1.98%1.78%1.41%1.38%1.25%1.15%0.95%0.87%0.84%0.73%0.69%0.57%0.50%0.47%

0.42%0.39%

96.56%182,461

53.50%19.11%7.83%1.57%2.17%1.71%1.27%1.05%0.23%1.95% 0.29%0.83%0.21% 1.02%0.81%

-0.08%0.44%

-0.04%0.57%0.63%

95.07%151,999

47.43%14.42%6.37%1.93%1.67%1.34%3.28%0.95%1.73%

0.54%0.60%

1.85%1.37%3.38%0.53%0.69%0.16%0.63%

88.86%150,671

32.20%4.92%1.67%3.63%5.45%2.38%0.44%5.97%

2.92%0.57%

5.00%5.91%3.08%0.03%1.46%0.60%0.54%

76.77%75,866

51.87% 16.19%4.11%0.56%0.85%2.19%2.03%0.43%2.82%

1.55%0.85%

2.29%2.46%1.01%0.16%0.57%

-0.32%0.55%

90.15%135,767

10.82%12.63%17.27%46.75%7.06%

-5.83%9.24%

65.91%-15.78%-28.82%-5.86%38.61%

383.67%-23.12%-27.21%-18.29%143.51%

-6.31%13.90%14.99%

31.88%24.53%

Documents

Assigned Risk Plans/State Funds A National Perspective Senate Bill 304 Study Committee Bruce R. Hockman Towers Perrin Philadelphia, Pennsylvania 215-963-7744