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Fundamentals

Key Ratios

  Quarter Ended March 31,
GAAP Ratios (unaudited) 2017 2016
Standard Commercial Lines    
Loss and Loss Expense Ratio 55.1% 55.4%
Underwriting Expense Ratio 35.2% 36.5%
Dividends to Policyholders Ratio 0.0%

0.4%

Combined Ratio 90.3% 92.3%
Standard Personal Lines    
Loss and Loss Expense Ratio 62.2% 56.5%
Underwriting Expense Ratio 30.6% 31.2%
Dividends to Policyholders Ratio 0.0% 0.0%
Combined Ratio 92.8% 87.7%
Excess & Surplus Lines    
Loss and Loss Expense Ratio 61.7% 69.1%
Underwriting Expense Ratio 35.2% 28.0%
Dividends to Policyholders Ratio 0.0% 0.0%
Combined Ratio 96.9% 97.1%
Total Insurance Operations    
Loss and Loss Expense Ratio 56.6% 56.9%
Underwriting Expense Ratio 34.6% 35.0%
Dividends to Policyholders Ratio 0.0% 0.3%
Combined Ratio 91.2% 92.2%
Investment Portfolio    
Invested Assets per $ of Stockholders' Equity $3.43 $3.50
A/T Yield on Investments

2.0%

1.8%
A/T New Money Rate 2.1% 1.9%
Other Metrics    
Annualized Return on Average Equity ("ROE") 12.9% 10.3%
Exclude: Net realized losses 0.3%

0.8%

Exclude: Tax on net realized losses -0.1% -0.3%
Annualized Operating ROE* 13.1% 10.8%
Book Value Per Share $27.34 $25.61
Price to Book 1.7x 1.4x
Dividend Yield 1.4% 1.6%
Net Premiums Written to Surplus 1.4x 1.4x

*Operating income and operating return on equity differ from net income and return on equity, respectively, by the exclusion of after-tax net realized gains and losses on investments and the results of discontinued operations, if any. They are used as important financial measures by management, analysts, and investors, because the realization of net investment gains and losses in any given period is largely discretionary as to timing. In addition, these net realized investment gains and losses, as well as other-than-temporary investment impairments that are charged to earnings and the results of discontinued operations, could distort the analysis of trends. These operating measurements are not intended as a substitute for net income or return on equity prepared in accordance with U.S. generally accepted accounting principles (GAAP). A supplemental investor package, which includes a reconciliation of net income to operating income, is available on the Investors page of our website.