(Based on Data Evaluated as of June 30, 2012) · 2019-08-09 · Unpaid Loss & LAE as of June 30,...

State of Ohio Bureau of Workers’ Compensation

Unpaid Loss & LAE as of June 30, 2012 (Based on Data Evaluated as of June 30, 2012)

Volume II – Detailed Analysis Exhibits Private Employers

August 24, 2012

Deloitte Consulting LLP

Table of Contents Volume I – Report and Summary Exhibits

Introduction ..................................................................................................................................... 1 Purpose and Scope .............................................................................................................. 1 BWC Background ............................................................................................................... 1 Limitations .......................................................................................................................... 7 Distribution and Use ........................................................................................................... 8

Executive Summary ...................................................................................................................... 10 Summary of Findings ........................................................................................................ 10 Relevant Comments .......................................................................................................... 14

Executive Summary Exhibits ........................................................................................................ 25

Actuarial Analysis Overview ........................................................................................................ 51 Actuarial Procedures ......................................................................................................... 51 Actuarial Methodologies ................................................................................................... 62

Data ............................................................................................................................................... 65 Information and Data Provided ......................................................................................... 65 Adjustments to Data .......................................................................................................... 66

Loss Reserve Dislosures ............................................................................................................... 72

Detailed Analysis Exhibit Descriptions ........................................................................................ 73

Segment Summary Exhibits .......................................................................................................... 82

Volume II - Detailed Analysis Exhibits Private Employers ("PA") .................................................................................................. Section 1

Volume III - Detailed Analysis Exhibits Public Employers - Taxing Districts ("PEC") ................................................................... Section 2

Volume IV - Detailed Analysis Exhibits Public Employers - State Agencies ("PES") ...................................................................... Section 3

Volume V - Detailed Analysis Exhibits Disabled Workers Relief Fund ("DWRF") ........................................................................ Section 4 Self-Insuring Employers Guaranty Fund ("SIEGF") ........................................................ Section 5 Public Work-Relief Employees' Compensation Fund ("PWRE") ..................................... Section 6 Marine Industry Fund ("MIF") .......................................................................................... Section 7

Volume VI - Detailed Analysis Exhibits Coal-Workers Pneumoconiosis Fund ("CWPF") ............................................................... Section 8

BWC-Actuarial Report June 30, 2012

Detailed Analysis Exhibit Descriptions The following documents the detailed exhibits that display Deloitte Consulting’s actuarial analysis of the SIF and other Funds of the BWC. The exhibits are segregated into the following Sections:

• Section 1 – Private Employers in the State Insurance Fund; • Section 2 – Public Employer Taxing Districts in the State Insurance Fund; • Section 3 – Public Employer State Agencies in the State Insurance Fund; • Section 4 – Disabled Workers’ Relief Fund; • Section 5 – Self-Insuring Employers Guaranty Fund; • Section 6 – Public Work-Relief Employees’ Compensation Fund; • Section 7 – Marine Industry Fund; and • Section 8 – Coal-Workers Pneumoconiosis Fund.

Please note that the Administrative Cost Fund and Health Partnership Program exhibits are included in the Summary Exhibits. Section 1-3 (PA, PEC, and PES) Exhibits Within each Section for PA, PEC, and PES there exists 9 Exhibits that display separate analyses for each type of loss. Each type of loss corresponds to the Exhibits as follows:

• Exhibit 1 – Medical Only • Exhibit 2 – Medical On Lost Time • Exhibit 3 – Compensation – Permanent Total Disability • Exhibit 4 – Compensation – Death • Exhibit 5 – Compensation – Temporary Total, Temporary Partial, Change of Occupation, Wage Loss,

Living Maintenance Wage Loss, Living Maintenance • Exhibit 6 – Compensation – % Permanent Partial & Permanent Partial • Exhibit 7 – Compensation – Lump Sum Settlements • Exhibit 8 – Compensation – Lump Sum Advancements • Exhibit 9 – Compensation – Additional Awards

Within each Exhibit exists multiple Sheets. These Sheets are described below.

Section, Exhibit, Sheet 1: Summary of Unpaid Loss This sheet displays the calculation of the undiscounted and discounted unpaid losses. Section, Exhibit, Sheet 2: Fiscal Year Payment Projections This sheet displays future annual loss payments for fiscal years ending 2013 and subsequent by accident year associated with claims occurring on June 30, 2012 and prior. The future annual payments are determined by applying an estimated payout pattern, based on Deloitte Consulting’s selected paid loss development factors, to the unpaid loss estimates as of June 30, 2012 for each accident year.


Section, Exhibit, Sheet 3: Selection of Ultimate Loss & ALAE This sheet displays Deloitte Consulting’s selected ultimate loss for each accident year based on projected ultimate losses from Sheets 4-12. Section, Exhibit, Sheets 4-12: Projected Ultimate Losses These sheets project limited ultimate losses using different actuarial methodologies by accident year:

• Sheet 4 – Paid Loss Development Method; • Sheet 5 – Incurred Loss Development Method; • Sheet 6 – Paid Bornhuetter-Ferguson Method; • Sheet 7 – Incurred Bornhuetter-Ferguson Method; • Sheet 8 – Cumulative Paid Frequency Severity Method; • Sheet 9 – Paid Incremental Frequency Severity Accident Year Development Method; • Sheet 10 – Paid Incremental Trended Frequency Severity Development Method; • Sheet 11 – Paid Incremental Frequency Severity Calendar Year Development Method; and • Sheet 12 – Incremental Index Payment Method (Compensation only).

A description of these methodologies can be found under “Actuarial Methodologies” under the “Overview of Actuarial Analysis” section in the Report. Section, Exhibit, Sheet 13: Selection of Ultimate Claim Counts This sheet projects ultimate claim counts by accident year. Section, Exhibit, Sheet 14: Diagnostic Exhibit This sheet displays ultimate claim counts, ultimate frequency, ultimate severity, and loss rate diagnostics by accident year. Section, Exhibit, Sheet 15: Actual Versus Expected Loss Payments This sheet compares actual paid loss with expected paid loss emergence since the prior fiscal year-end. Section, Exhibit, Sheet 16: Actual Versus Expected Reported Losses Similar to the previous exhibit, this sheet compares actual incurred loss with expected incurred loss emergence since the prior fiscal year-end. Section, Exhibit, Sheet 17: Actual Versus Expected Reported Claim Counts Similar to the previous exhibit, this sheet compares actual reported claim counts with expected claim count emergence since the prior fiscal year-end. Section, Exhibit, Sheet 18: Discount Factors This sheet displays the calculation of the discount factor used to determine the discounted unpaid loss in Sheet 1. Section, Exhibit, Sheet 19: Initial Expected Loss Rate Selection This sheet displays the selection of the initial expected loss rates used in the Bornhuetter Ferguson methods. Section, Exhibit, Sheet 20: Interpolated Accident Year Development Factors The accident year development factors selected on Sheets 23 – 38 are interpolated to the current evaluation age on this sheet.


Section, Exhibit, Sheet 21: Interpolated Accident Year Index Factors For compensation analyses, the accident year index factors selected on Sheet 38 are interpolated to the current evaluation age on this sheet. Section, Exhibit, Sheet 22: Estimated Payments This sheet displays the determination of estimated payments for the remaining portion of the current fiscal year by applying an estimated payout pattern to the unpaid loss estimate as of the evaluation date. Section, Exhibit, Sheets 23-38: Triangles and Various Diagnostics These sheets display various diagnostic exhibits and the loss and claim count triangles supporting the projected ultimate losses from the various methodologies. Section, Exhibit, Sheet 39: Unpaid Loss Estimate for Accident Years 1976 and Prior This sheet displays Deloitte Consulting’s selected unpaid loss estimate for accident years 1976 and prior based on projected unpaid losses using several methodologies determined on Sheets 40 and 41. Section, Exhibit, Sheet 40: Exponential Curve Fit of Unpaid Loss for Accident Years 1976 and Prior This sheet calculates estimates of unpaid loss for accident years 1976 and prior using exponential curve fits of calendar year paid losses for all accident years 1976 and prior combined. Section, Exhibit, Sheets 41 and 42: Incremental Development Method These sheets calculate an estimate of unpaid loss for accident years 1976 and prior using an incremental development method, which relies on historical incremental development factors selected in Sheet 46. Section, Exhibit, Sheet 43: Paid Tail Factor Selection This sheet supports the selected paid tail development factor used to determine ultimate loss estimates for accident years 1977 and subsequent based on various curve fits and BWC’s incremental data back to 1954. Section, Exhibit, Sheet 44: Fitted Paid Loss Development Factors This sheet fits age-to-age paid loss development factors to Weibull and inverse power curves to assist in the selection of the paid tail development factor found in Sheet 43. Section, Exhibit, Sheet 45: Incremental Decay Method This sheet determines paid tail development factors at various ages using incremental development factors selected based on historical development data from June 30, 2002 through June 30, 2012 for accident years back to 1954 found in Sheet 46. These tail factors are used to support the selected paid tail development factors found in Sheet 43. Section, Exhibit, Sheet 46: Incremental Paid Loss Triangle This sheet displays the historical incremental paid loss development for accident years 1954 and subsequent as well as the selected incremental development factors used in Sheets 42, 45, and 48. Section, Exhibit, Sheet 47: Fitted Incurred Loss Development Factors This sheet fits age-to-age incurred loss development factors to Weibull and inverse power curves to assist in the selection of the incurred tail development factor. Section, Exhibit, Sheet 48: Fitted Incremental Decay Loss Development Factors This sheet fits age-to-age incremental development factors to Weibull and inverse power curves to assist in the selection of the paid tail development factor found in Sheet 43.


Section 4 (DWRF) Exhibits Within the DWRF Section there exists three Exhibits that display separate analyses for each type of loss. Each type of loss corresponds to the Exhibits as follows:

• Exhibit 1 – Private Employers • Exhibit 2 – Public Employers – Taxing Districts • Exhibit 3 – Public Employers – State Agencies

Within each Exhibit exists multiple Sheets. These Sheets are described below.

Section 4, Exhibit, Sheet 1: Summary of Unpaid Loss This sheet displays the calculation of the undiscounted and discounted unpaid losses. Section 4, Exhibit, Sheet 2: Fiscal Year Payment Projections This sheet displays future annual loss payments for fiscal years ending 2013 and subsequent by accident year associated with claims occurring on June 30, 2012 and prior. The future annual payments are determined by applying an estimated payout pattern, based on Deloitte Consulting’s selected paid loss development factors, to the unpaid loss estimates as of June 30, 2012 for each accident year. Section 4, Exhibit, Sheet 3: Selection of Ultimate Loss & ALAE This sheet displays Deloitte Consulting’s selected ultimate loss for each accident year based on projected ultimate losses from Sheets 4-11. Section 4, Exhibit, Sheets 4-9: Projected Ultimate Losses These sheets project limited ultimate losses using different actuarial methodologies by accident year:

• Sheet 4 – Paid Loss Development Method; • Sheet 5 – Incurred Loss Development Method; • Sheet 6 – Paid Bornhuetter-Ferguson Method; • Sheet 7 – Incurred Bornhuetter-Ferguson Method; • Sheet 8 – Cumulative Paid Frequency Severity Method; • Sheet 9 – Paid Incremental Frequency Severity Accident Year Development Method;

A description of these methodologies can be found under “Actuarial Methodologies” under the “Overview of Actuarial Analysis” section in the Report. Section 4, Exhibit, Sheet 10: Selection of Ultimate Claim Counts This sheet projects ultimate claim counts by accident year. Section 4, Exhibit, Sheet 11: Diagnostic Exhibit This sheet displays ultimate claim counts, ultimate frequency, ultimate severity, and loss rate diagnostics by accident year. Section 4, Exhibit, Sheet 12: Actual Versus Expected Loss Payments This sheet compares actual paid loss with expected paid loss emergence since the prior fiscal year-end. Section 4, Exhibit, Sheet 13: Discount Factors This sheet displays the calculation of the discount factor used to determine the discounted unpaid loss in Sheet 1.


Section 4, Exhibit, Sheet 14: Initial Expected Loss Rate Selection This sheet displays the selection of the initial expected loss rates used in the Bornhuetter Ferguson methods. Section 4, Exhibit, Sheet 15: Interpolated Accident Year Development Factors The accident year development factors selected on Sheets 17 – 24 are interpolated to the current evaluation age on this sheet. Section 4, Exhibit, Sheet 16: Estimated Payments This sheet displays the determination of estimated payments for the remaining portion of the current fiscal year by applying an estimated payout pattern to the unpaid loss estimate as of the evaluation date. Section 4, Exhibit, Sheets 17-24: Triangles and Various Diagnostics These sheets display various diagnostic exhibits and the loss and claim count triangles supporting the projected ultimate losses from the various methodologies. Section 4, Exhibit, Sheet 25: Unpaid Loss Estimate for Accident Years 1976 and Prior This sheet displays Deloitte Consulting’s selected unpaid loss estimate for accident years 1976 and prior based on projected unpaid losses using several methodologies determined on Sheets 26 and 27. Section 4, Exhibit, Sheet 26: Exponential Curve Fit of Unpaid Loss for Accident Years 1976 and Prior This sheet calculates estimates of unpaid loss for accident years 1976 and prior using exponential curve fits of calendar year paid losses for all accident years 1976 and prior combined. Section 4, Exhibit, Sheets 27 and 28: Incremental Development Method These sheets calculate an estimate of unpaid loss for accident years 1976 and prior using an incremental development method, which relies on historical incremental development factors selected in Sheet 31. Section 4, Exhibit, Sheet 29: Paid Tail Factor Selection This sheet supports the selected paid tail development factor used to determine ultimate loss estimates for accident years 1977 and subsequent based on various curve fits and BWC’s incremental data back to 1954. Section 4, Exhibit, Sheet 30: Fitted Paid Loss Development Factors This sheet fits age-to-age paid loss development factors to Weibull and inverse power curves to assist in the selection of the paid tail development factor found in Sheet 29. Section 4, Exhibit, Sheet 31: Incremental Decay Method This sheet determines paid tail development factors at various ages using incremental development factors selected based on historical development data from June 30, 2002 through June 30, 2012 for accident years back to 1954 found in Sheet 32. These tail factors are used to support the selected paid tail development factors found in Sheet 29. Section 4, Exhibit, Sheet 32: Incremental Paid Loss Triangle This sheet displays the historical incremental paid loss development for accident years 1954 and subsequent as well as the selected incremental development factors used in Sheets 28 and 31. Section 4, Exhibit, Sheet 33: Fitted Incremental Decay Loss Development Factors This sheet fits age-to-age incremental development factors to Weibull and inverse power curves to assist in the selection of the paid tail development factor found in Sheet 29.


Section 5 (SIS and SIEGF) Exhibits The SIS and SIEGF unpaid loss estimates are determined together in Section 5. The following describes each Exhibit and Sheet within Section 5. Section 5, Exhibit 1, Sheet 1: Summary of Self-Insured Unpaid Loss This sheet displays a summary of the SIS and SIEGF unpaid loss estimates as well as the SIEGF DWRF.

Section 5, Exhibit 1, Sheet 2: Future Default Unpaid Loss by Fund This sheet separates the unpaid loss estimate associated with future defaults between the SIS and SIEGF.

Section 5, Exhibit 1, Sheet 3: Known Default Unpaid Loss by Fund This sheet separates the unpaid loss estimate associated with known defaults between the SIS and SIEGF.

Section 5, Exhibit 1, Sheet 4: Estimation of Bond Recovery Rate This sheet estimates the bond recovery rate associated with the SIS.

Section 5, Exhibit 2, Sheet 1: Discounted Unpaid Loss – Known Defaults This sheet displays the calculation of the undiscounted and discounted unpaid losses.

Section 5, Exhibit 2, Sheet 2: Selection of Ultimate Loss This sheet displays Deloitte Consulting’s selected ultimate loss for each accident year based on projected ultimate losses.

Section 5, Exhibit 2, Sheets 3: Paid Bornhuetter-Ferguson Method These sheets project ultimate losses using the Paid Bornhuetter-Ferguson Method.

Section 5, Exhibit 2, Sheet 4: Calculation of Initial Expected Loss Rates This sheet displays the selection of the initial expected loss rates used in the Bornhuetter Ferguson method.

Section 5, Exhibit 2, Sheets 5: Paid Loss Development Method These sheets project ultimate losses using the Paid Bornhuetter-Ferguson Method.

Section 5, Exhibit 2, Sheet 6: Paid Loss Triangles This sheet displays the default year paid loss triangle.

Section 5, Exhibit 2, Sheet 7: Interpolated Accident Year Development Factors The accident year development factors selected on Sheet 5 are interpolated to the current evaluation age on this sheet.

Section 5, Exhibit 2, Sheet 8: Estimated Payments This sheet displays the determination of estimated payments for the remaining portion of the current fiscal year by applying an estimated payout pattern to the unpaid loss estimate as of the evaluation date.

Section 5, Exhibit 2, Sheet 9: Discount Factors This sheet displays the calculation of the discount factor used to determine the discounted unpaid loss in Sheet 1.

Section 5, Exhibit 3, Sheet 1: Discounted Unpaid loss – Future Defaults This sheet displays the calculation of the unpaid loss estimate associated with future defaults.

Section 5, Exhibit 3, Sheet 2: Selection of Lag Pattern This sheet displays the determination of the default year by accident/injury year lag pattern.

Section 5, Exhibit 4, Sheets 1 and 2: Estimate of Unpaid SIEGF These sheets display the determination of the SIEGF DWRF associated with known defaults.


Section 6-7 (PWRE and MIF) Exhibits For both PWRE and MIF there exists 4 Exhibits that display separate analyses for each type of loss. Each type of loss corresponds to the Exhibits as follows:

• Exhibit 1 – Total • Exhibit 2 – Medical • Exhibit 3 – Compensation – Permanent Total Disability • Exhibit 4 – Compensation – Death • Exhibit 5 – Compensation – Other

Within each Exhibit exists multiple Sheets. These Sheets are described below. Section, Exhibit, Sheet 1: Summary of Unpaid Loss This sheet displays the calculation of the undiscounted and discounted unpaid losses. Section, Exhibit, Sheet 2: Fiscal Year Payment Projections This sheet displays future annual loss payments for fiscal years ending 2013 and subsequent by accident year associated with claims occurring on June 30, 2012 and prior. The future annual payments are determined by applying an estimated payout pattern, based on Deloitte Consulting’s selected paid loss development factors, to the unpaid loss estimates as of June 30, 2012 for each accident year. Section, Exhibit, Sheet 3: Selection of Ultimate Loss This sheet displays Deloitte Consulting’s selected ultimate loss for each accident year based on projected ultimate losses from Sheets 4-7. Section, Exhibit, Sheets 4-7: Projected Ultimate Losses These sheets project limited ultimate losses using different actuarial methodologies by accident year:

• Sheet 4 – Paid Loss Development Method; • Sheet 5 – Incurred Loss Development Method; • Sheet 6 – Paid Bornhuetter-Ferguson Method; • Sheet 7 – Incurred Bornhuetter-Ferguson Method;

A description of these methodologies can be found under “Actuarial Methodologies” under the “Overview of Actuarial Analysis” section in the Report. Section, Exhibit, Sheet 8: Actual Versus Expected Loss Payments This sheet compares actual paid loss with expected paid loss emergence since the prior fiscal year-end. Section, Exhibit, Sheet 9 : Actual Versus Expected Reported Losses Similar to the previous exhibit, this sheet compares actual incurred loss with expected incurred loss emergence since the prior fiscal year-end. Section, Exhibit, Sheet 10: Discount Factors This sheet displays the calculation of the discount factor used to determine the discounted unpaid loss in Sheet 1. Section, Exhibit, Sheet 11: Initial Expected Loss Rate Selection This sheet displays the selection of the initial expected loss rates used in the Bornhuetter Ferguson methods.


Section, Exhibit, Sheet 12: Interpolated Accident Year Development Factors The accident year development factors selected on Sheets 14 – 16 are interpolated to the current evaluation age on this sheet. Section, Exhibit, Sheet 13: Estimated Payments This sheet displays the determination of estimated payments for the remaining portion of the current fiscal year by applying an estimated payout pattern to the unpaid loss estimate as of the evaluation date. Section, Exhibit, Sheets 14-16: Triangles and Various Diagnostics These sheets display paid loss, incurred loss, and case reserve triangles supporting the projected ultimate losses from the various methodologies. Section, Exhibit, Sheet 17: Unpaid Loss Estimate for Accident Years 1976 and Prior This sheet displays Deloitte Consulting’s selected unpaid loss estimate for accident years 1976 and prior based on projected unpaid losses. Section, Exhibit, Sheet 18: Exponential Curve Fit of Unpaid Loss for Accident Years 1976 and Prior This sheet calculates estimates of unpaid loss for accident years 1976 and prior using exponential curve fits of calendar year paid losses for all accident years 1976 and prior combined. Section 8 (CWPF) Exhibits The following describes each of the Sheets found in Section 8 for CWPF: Section 8, Roll Forward: Projected Unpaid Loss The Roll Forward sheets show the projected CWPF unpaid loss liability as of June 30, 2012. Section 8, Exhibit 1: Summary of Unpaid Loss Displays the estimated unpaid loss liability as of December 31, 2011 Section 8, Exhibit 2: Summary of claims currently receiving benefits Exhibit 2 displays the calculation of the indemnity and medical unpaid losses for miner claimants and their dependents and survivors of coal miners that are currently receiving federal benefits. The nominal indemnity unpaid losses are calculated on a claim by claim basis based on the claimant’s age, estimated monthly benefit, and mortality assumptions. The discounted indemnity unpaid losses are calculated by applying the discount factor using a 4.0% annual rate to the nominal unpaid losses. The nominal and discounted medical unpaid losses are calculated for the miner claims by assuming that the current year medical costs will be $6,000 per claim and assuming these medical costs will increase by 6% per year. Section 8, Exhibit 3, Sheet 1: Summary of Unpaid Losses for Pending & IBNR Claims, Claim Development Method using Department of Labor Data for Ohio Exhibit 3 displays the calculation of the unpaid losses for pending and IBNR claims. Projected pending and IBNR claims are based on the Department of Labor claim data for Ohio. The average cost per entitled claim is based on the average cost per entitled claim as calculated in the method using Ohio Employee Survey data. Section 8, Exhibit 3, Sheets 2 through 7: Projected Pending & IBNR Future Claims, Claim Development Method using Department of Labor Data for Ohio These sheets show the detail in using the Department of Labor claim data for Ohio to estimate the projected pending and IBNR claims. Projected pending and IBNR claims are based on the projected claims filings and the ultimate entitlement ratios.


Section 8, Exhibit 4: Calculation of Liability for Terminated Miners, Method using Ohio Employee Survey Data This exhibit uses the Ohio Employee Survey Data to project pending and IBNR claims. Projected pending and IBNR claims are based off the historical employee terminations and assumptions around the percentage of terminated employees who will be entitled to FBL benefits, and a factor to reflect survivor claims. The average cost per entitled claim is based on a benefits calculation using specific entitlement ages and reflecting the percentage of miners who will live to each entitlement age from their current age. The benefit calculation details are provided. Section 8, Exhibit 5: Calculation of Liability for Active Miners, Method using Ohio Employee Survey Data Method This exhibit uses the Ohio Employee Survey Data to project the active miner liability. Projected active miner claims are based off the current employee data and assumptions around percentage of active employees who will be entitled to FBL benefits, and a factor to reflect survivor claims. The average cost per entitled claim is based on a benefits calculation using specific entitlement ages and reflecting the percentage of miners who will live to each entitlement age from their current average age. The benefit calculation details are provided. Section 8, Exhibit 6, Sheet 1: Table of Monthly Black Lung Benefit Rates Shows the historical FBL indemnity benefit rates from the U.S. Department of Labor Section 8, Exhibit 6, Sheet 2: Average Annual Medical Costs per Entitled Claim Shows the historical medical costs per entitled claim Section 8, Exhibit 7: Benefit calculation detail for claims currently receiving benefits Exhibit 7 display the details underlying Exhibit 2 Section 8, Exhibit 8: Mortality Tables Exhibit 8 displays the mortality tables used in our review Section 8A The exhibits for Section 8A are similar to the exhibits for Section 8 but pertain to the unpaid loss liability as of December 31, 2012

OHIO BUREAU OF WORKERS' COMPENSATION SECTION 1PRIVATE EMPLOYERS EXHIBIT 1

MEDICAL SHEET 1

MEDICAL ONLY(000's)

SUMMARY OF UNPAID LOSS

SELECTED SELECTEDACTUAL SELECTED NOMINAL DISCOUNT DISCOUNTED SELECTED

ACCIDENT PAID AT ULTIMATE UNPAID FACTOR AT UNPAID ULTIMATEYEAR PAYROLL 6/30/2012 LOSS LOSS 4.0% LOSS LOSS RATE

(1) (2) (3) (4) (5) (6) (7)

PRIOR 1 1 0 100.0% 01977 23,851,125 19,673 19,673 0 100.0% 0 0.082 1978 26,143,240 22,681 22,681 0 100.0% 0 0.087 1979 28,061,666 25,123 25,123 0 100.0% 0 0.090 1980 28,979,182 24,877 24,877 0 100.0% 0 0.086 1981 30,141,508 27,103 27,103 0 100.0% 0 0.090 1982 30,058,966 27,928 27,928 0 100.0% 0 0.093 1983 30,607,324 30,456 30,456 0 100.0% 0 0.100 1984 33,121,678 38,247 38,247 0 100.0% 0 0.115 1985 35,713,654 42,813 42,813 0 100.0% 0 0.120 1986 38,297,697 49,905 49,905 0 100.0% 0 0.130 1987 41,065,403 59,583 59,583 0 100.0% 0 0.145 1988 44,221,964 71,389 71,389 0 100.0% 0 0.161 1989 47,110,000 82,740 82,740 0 100.0% 0 0.176 1990 49,659,895 76,095 76,095 0 100.0% 0 0.153 1991 50,856,501 98,230 98,230 0 100.0% 0 0.193 1992 52,804,448 104,955 104,955 0 100.0% 0 0.199 1993 55,132,894 93,755 93,755 0 100.0% 0 0.170 1994 57,739,505 82,224 82,225 0 98.1% 0 0.142 1995 60,949,772 79,570 79,572 3 97.7% 3 0.131 1996 63,664,000 72,115 72,124 9 96.9% 8 0.113 1997 68,077,000 77,095 77,118 24 96.2% 23 0.113 1998 71,447,000 85,778 85,819 41 94.5% 39 0.120 1999 75,244,663 94,207 94,289 82 94.0% 77 0.125 2000 79,122,396 103,367 103,509 142 93.2% 132 0.131 2001 80,396,857 108,588 108,803 215 92.2% 198 0.135 2002 81,621,352 118,126 118,454 328 91.4% 300 0.145 2003 82,433,234 119,180 119,645 466 90.8% 423 0.145 2004 84,632,753 115,005 115,623 618 90.2% 557 0.137 2005 86,912,307 115,731 116,600 869 90.0% 781 0.134 2006 90,822,757 107,262 108,413 1,151 89.9% 1,036 0.119 2007 93,702,820 100,015 101,594 1,579 90.2% 1,424 0.108 2008 93,449,349 89,537 91,536 1,999 89.8% 1,795 0.098 2009 86,530,965 76,584 79,182 2,598 90.5% 2,350 0.092 2010 86,624,485 80,934 85,720 4,786 91.5% 4,381 0.099 2011 89,983,985 72,970 84,584 11,614 93.9% 10,901 0.094 2012 46,341,752 18,571 43,554 24,983 96.7% 24,157 0.094 2013 0 0

TOTAL 2,612,414 2,663,919 51,505 94.3% 48,584

EXLD PRIOR 2,612,413 2,663,918 51,505 94.3% 48,584

(1) PROVIDED BY THE BWC; 2012 ADJUSTED TO PARTIAL YEAR(2) SECTION 1, EXHIBIT 1, SHEET 3, COL. 2(3) SECTION 1, EXHIBIT 1, SHEET 3, COL. 12; 2012 ADJUSTED TO PARTIAL YEAR(4) = (3) - (2)(5) SECTION 1, EXHIBIT 1, SHEET 18, COL. 6(6) = (4) x (5)(7) = [(3) / (1)] x 100



MEDICAL SHEET 2A

MEDICAL ONLY(000's)

FISCAL YEAR PAYMENT PROJECTIONS

UNPAIDACCIDENT LOSS FISCAL YEAR ENDING

YEAR @ 6/30/2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 > 2030(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20)

PRIOR 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01977 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01978 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01979 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01980 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01981 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01982 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01983 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01984 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01985 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01986 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01987 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01988 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01989 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01990 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01991 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01992 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01993 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01994 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01995 3 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01996 9 6 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01997 24 15 7 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01998 41 15 16 7 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01999 82 36 16 18 8 3 0 0 0 0 0 0 0 0 0 0 0 0 0 02000 142 52 40 18 20 9 3 0 0 0 0 0 0 0 0 0 0 0 0 02001 215 66 55 42 19 21 9 3 0 0 0 0 0 0 0 0 0 0 0 02002 328 94 72 59 46 21 23 10 4 0 0 0 0 0 0 0 0 0 0 02003 466 134 95 73 60 46 21 23 10 4 0 0 0 0 0 0 0 0 0 02004 618 168 130 92 70 58 44 20 22 10 4 0 0 0 0 0 0 0 0 02005 869 246 169 131 93 71 58 45 20 22 10 4 0 0 0 0 0 0 0 02006 1,151 344 228 157 122 86 66 54 42 19 21 9 3 0 0 0 0 0 0 02007 1,579 500 322 214 148 114 81 62 51 39 18 19 9 3 0 0 0 0 0 02008 1,999 548 459 296 197 136 105 74 57 47 36 16 18 8 3 0 0 0 0 02009 2,598 913 462 387 250 166 114 88 63 48 39 30 14 15 7 2 0 0 0 02010 4,786 1,965 992 502 421 271 180 124 96 68 52 43 33 15 16 7 3 0 0 02011 11,614 6,758 1,994 1,006 509 427 275 183 126 97 69 53 43 33 15 16 7 3 0 02012 24,983 56,574 6,961 2,054 1,036 524 440 283 188 130 100 71 54 45 34 15 17 8 3 0

TOTAL 51,505 68,436 12,020 5,058 2,999 1,951 1,419 970 678 483 348 245 174 119 75 42 27 11 3 0

(1) SECTION 1, EXHIBIT 1, SHEET 1, COL. 4(2) - (20) BASED ON (1) AND SELECTED CUMULATIVE PAID DEVELOPMENT FACTORS FROM SECTION 1, EXHIBIT 1, SHEET 23



MEDICAL SHEET 3

MEDICAL ONLY(000's)

SELECTION OF ULTIMATE LOSS & ALAE

INDICATED ULTIMATE LOSSPAID INCURRED CUM. PAID PAID INCR. PAID INCR. PAID INCR. SELECTED SELECTED

ACCIDENT LOSS LOSS LOSS DEVELOPMENT BORNHUETTER-FERGUSON FREQ/SEV FREQ/SEV FREQ/SEV TRENDED ULTIMATE ULTIMATEYEAR PAYROLL @ 6/30/12 @ 6/30/12 PAID INCURRED PAID INCURRED AY DEV. AY DEV. CY DEV. FREQ/SEV LOSS LOSS RATE

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

PRIOR 1 1 1977 23,851,125 19,673 19,673 19,673 19,673 19,673 19,673 19,673 0.082 1978 26,143,240 22,681 22,681 22,681 22,681 22,681 22,681 22,681 0.087 1979 28,061,666 25,123 25,123 25,123 25,123 25,123 25,123 25,123 0.090 1980 28,979,182 24,877 24,877 24,877 24,877 24,877 24,877 24,877 0.086 1981 30,141,508 27,103 27,103 27,103 27,103 27,103 27,103 27,103 0.090 1982 30,058,966 27,928 27,928 27,928 27,928 27,928 27,928 27,928 0.093 1983 30,607,324 30,456 30,456 30,456 30,456 30,456 30,456 30,456 0.100 1984 33,121,678 38,247 38,247 38,247 38,247 38,247 38,247 38,247 0.115 1985 35,713,654 42,813 42,813 42,813 42,813 42,813 42,813 42,813 0.120 1986 38,297,697 49,905 49,905 49,905 49,905 49,905 49,905 49,905 0.130 1987 41,065,403 59,583 59,583 59,583 59,583 59,583 59,583 59,583 0.145 1988 44,221,964 71,389 71,389 71,389 71,389 71,389 71,389 71,389 0.161 1989 47,110,000 82,740 82,740 82,740 82,740 82,740 82,740 82,740 0.176 1990 49,659,895 76,095 76,095 76,095 76,095 76,095 76,095 76,095 0.153 1991 50,856,501 98,230 98,230 98,230 98,230 98,230 98,230 98,230 0.193 1992 52,804,448 104,955 104,955 104,955 104,955 104,955 104,955 104,955 0.199 1993 55,132,894 93,755 93,755 93,755 93,755 93,755 93,755 93,755 93,755 93,755 93,755 93,755 0.170 1994 57,739,505 82,224 82,256 82,225 82,256 82,225 82,256 82,225 82,230 82,226 82,225 82,225 0.142 1995 60,949,772 79,570 79,637 79,572 79,636 79,572 79,636 79,577 79,610 79,580 79,578 79,572 0.131 1996 63,664,000 72,115 72,162 72,124 72,165 72,124 72,165 72,135 72,152 72,135 72,138 72,124 0.113 1997 68,077,000 77,095 77,134 77,118 77,133 77,118 77,133 77,136 77,151 77,130 77,143 77,118 0.113 1998 71,447,000 85,778 85,832 85,819 85,830 85,819 85,830 85,846 85,969 85,889 85,854 85,819 0.120 1999 75,244,663 94,207 94,294 94,289 94,296 94,289 94,296 94,334 94,362 94,310 94,334 94,289 0.125 2000 79,122,396 103,367 103,458 103,509 103,502 103,509 103,502 103,565 103,590 103,519 103,551 103,509 0.131 2001 80,396,857 108,588 108,705 108,803 108,754 108,803 108,754 108,860 108,785 108,734 108,808 108,803 0.135 2002 81,621,352 118,126 118,255 118,454 118,331 118,454 118,331 118,507 118,429 118,372 118,410 118,454 0.145 2003 82,433,234 119,180 119,387 119,645 119,523 119,646 119,523 119,681 119,501 119,468 119,549 119,645 0.145 2004 84,632,753 115,005 115,193 115,623 115,380 115,623 115,381 115,639 115,438 115,435 115,515 115,623 0.137 2005 86,912,307 115,731 115,890 116,600 116,192 116,600 116,193 116,563 116,281 116,382 116,436 116,600 0.134 2006 90,822,757 107,262 107,572 108,413 108,050 108,421 108,055 108,318 107,813 107,944 108,239 108,413 0.119 2007 93,702,820 100,015 100,290 101,594 100,934 101,674 100,971 101,383 100,702 100,868 101,351 101,594 0.108 2008 93,449,349 89,537 90,049 91,496 90,819 91,575 90,856 91,181 90,376 90,768 91,180 91,536 0.098 2009 86,530,965 76,584 77,170 79,199 78,252 79,165 78,251 78,741 77,712 78,213 78,637 79,182 0.092 2010 86,624,485 80,934 82,336 85,736 84,326 85,704 84,345 85,106 84,053 84,805 85,010 85,720 0.099 2011 89,983,985 72,970 78,875 84,258 82,396 84,584 82,580 83,317 82,846 84,923 83,898 84,584 0.094 2012 92,683,504 18,571 41,705 79,879 81,689 87,108 85,413 78,493 77,188 82,648 86,765 87,108 0.094 2013 95,464,009 91,976 91,976 91,976 0.096

TOTAL 2,612,414 2,645,756 2,699,911 2,695,019 2,799,543 2,791,003 1,894,364 1,887,942 1,897,105 1,902,376 2,799,449

EXLD PRIOR 2,612,413 2,645,756 2,699,911 2,695,019 2,799,543 2,791,003 1,894,364 1,887,942 1,897,105 1,902,376 2,799,449

EXLD PRIOR & 2013 2,612,413 2,645,756 2,699,911 2,695,019 2,707,567 2,699,027 1,894,364 1,887,942 1,897,105 1,902,376 2,707,472

(1) PROVIDED BY THE BWC (7) SECTION 1, EXHIBIT 1, SHEET 7, COL. 8 (13) = [(12) / (1)] x 100(2) BASED ON DATA FROM THE BWC (8) SECTION 1, EXHIBIT 1, SHEET 8, COL. 8(3) BASED ON DATA FROM THE BWC (9) SECTION 1, EXHIBIT 1, SHEET 9(4) SECTION 1, EXHIBIT 1, SHEET 4, COL. 4 (10) SECTION 1, EXHIBIT 1, SHEET 11(5) SECTION 1, EXHIBIT 1, SHEET 5, COL. 4 (11) SECTION 1, EXHIBIT 1, SHEET 10(6) SECTION 1, EXHIBIT 1, SHEET 6, COL. 8 (12) SELECTED BY DELOITTE CONSULTING



MEDICAL SHEET 4

MEDICAL ONLY(000's)

PAID LOSS DEVELOPMENT METHOD

INDICATED INDICATEDACCIDENT AGE PAID PAID ULTIMATE ULTIMATE adj

YEAR @ 6/30/12 LOSS LDF @ 6/30/12 LOSS RATE ldf(1) (2) (3) (4) (5)

1977 426 19,673 1.000 19,673 0.082 1978 414 22,681 1.000 22,681 0.087 1979 402 25,123 1.000 25,123 0.090 1980 390 24,877 1.000 24,877 0.086 1981 378 27,103 1.000 27,103 0.090 1982 366 27,928 1.000 27,928 0.093 1983 354 30,456 1.000 30,456 0.100 1984 342 38,247 1.000 38,247 0.115 1985 330 42,813 1.000 42,813 0.120 1986 318 49,905 1.000 49,905 0.130 1987 306 59,583 1.000 59,583 0.145 1988 294 71,389 1.000 71,389 0.161 1989 282 82,740 1.000 82,740 0.176 1990 270 76,095 1.000 76,095 0.153 1991 258 98,230 1.000 98,230 0.193 1992 246 104,955 1.000 104,955 0.199 1993 234 93,755 1.000 93,755 0.170 1994 222 82,224 1.000 82,225 0.142 1995 210 79,570 1.000 79,572 0.131 1996 198 72,115 1.000 72,124 0.113 1997 186 77,095 1.000 77,118 0.113 1998 174 85,778 1.000 85,819 0.120 1999 162 94,207 1.001 94,289 0.125 2000 150 103,367 1.001 103,509 0.131 2001 138 108,588 1.002 108,803 0.135 2002 126 118,126 1.003 118,454 0.145 2003 114 119,180 1.004 119,645 0.145 2004 102 115,005 1.005 115,623 0.137 2005 90 115,731 1.008 116,600 0.134 2006 78 107,262 1.011 108,413 0.119 2007 66 100,015 1.016 101,594 0.108 2008 54 89,537 1.022 91,496 0.098 2009 42 76,584 1.034 79,199 0.092 2010 30 80,934 1.059 85,736 0.099 2011 18 72,970 1.155 84,258 0.094 2012 6 18,571 4.301 79,879 0.086 2013 0

TOTAL 2,612,413 2,699,911

(1) CURRENT AGE OF ACCIDENT YEAR IN MONTHS(2) BASED ON DATA FROM THE BWC(3) SECTION 1, EXHIBIT 1, SHEET 20, COL. 6(4) = (2) x (3)(5) = (4) / PAYROLL x 100



MEDICAL SHEET 5

MEDICAL ONLY(000's)

INCURRED LOSS DEVELOPMENT METHOD

INDICATED INDICATEDACCIDENT AGE INCURRED INCURRED ULTIMATE ULTIMATE

YEAR @ 6/30/12 LOSS LDF @ 6/30/12 LOSS RATE(1) (2) (3) (4) (5)

1977 426 19,673 1.000 19,673 0.082 1978 414 22,681 1.000 22,681 0.087 1979 402 25,123 1.000 25,123 0.090 1980 390 24,877 1.000 24,877 0.086 1981 378 27,103 1.000 27,103 0.090 1982 366 27,928 1.000 27,928 0.093 1983 354 30,456 1.000 30,456 0.100 1984 342 38,247 1.000 38,247 0.115 1985 330 42,813 1.000 42,813 0.120 1986 318 49,905 1.000 49,905 0.130 1987 306 59,583 1.000 59,583 0.145 1988 294 71,389 1.000 71,389 0.161 1989 282 82,740 1.000 82,740 0.176 1990 270 76,095 1.000 76,095 0.153 1991 258 98,230 1.000 98,230 0.193 1992 246 104,955 1.000 104,955 0.199 1993 234 93,755 1.000 93,755 0.170 1994 222 82,256 1.000 82,256 0.142 1995 210 79,637 1.000 79,636 0.131 1996 198 72,162 1.000 72,165 0.113 1997 186 77,134 1.000 77,133 0.113 1998 174 85,832 1.000 85,830 0.120 1999 162 94,294 1.000 94,296 0.125 2000 150 103,458 1.000 103,502 0.131 2001 138 108,705 1.000 108,754 0.135 2002 126 118,255 1.001 118,331 0.145 2003 114 119,387 1.001 119,523 0.145 2004 102 115,193 1.002 115,380 0.136 2005 90 115,890 1.003 116,192 0.134 2006 78 107,572 1.004 108,050 0.119 2007 66 100,290 1.006 100,934 0.108 2008 54 90,049 1.009 90,819 0.097 2009 42 77,170 1.014 78,252 0.090 2010 30 82,336 1.024 84,326 0.097 2011 18 78,875 1.045 82,396 0.092 2012 6 41,705 1.959 81,689 0.088 2013 0

TOTAL 2,645,756 2,695,019

(1) CURRENT AGE OF ACCIDENT YEAR IN MONTHS(2) BASED ON DATA FROM THE BWC(3) SECTION 1, EXHIBIT 1, SHEET 20, COL. 9(4) = (2) x (3)(5) = (4) / PAYROLL x 100



MEDICAL SHEET 6

MEDICAL ONLY(000's)

PAID BORNHUETTER-FERGUSON METHOD

EXPECTED % EXPECTED ACTUAL EXPECTED INDICATED INDICATEDACCIDENT INITIAL EXPECTED OF PAID PAID PAID UNPAID ULTIMATE ULTIMATE

YEAR PAYROLL LOSS RATE DOLLARS LOSS LOSS LOSS LOSS LOSS LOSS RATE(1) (2) (3) (4) (5) (6) (7) (8) (9)

1977 23,851,125 0.082 19,673 100.0% 19,673 19,673 0 19,673 0.082 1978 26,143,240 0.087 22,681 100.0% 22,681 22,681 0 22,681 0.087 1979 28,061,666 0.090 25,123 100.0% 25,123 25,123 0 25,123 0.090 1980 28,979,182 0.086 24,877 100.0% 24,877 24,877 0 24,877 0.086 1981 30,141,508 0.090 27,103 100.0% 27,103 27,103 0 27,103 0.090 1982 30,058,966 0.093 27,928 100.0% 27,928 27,928 0 27,928 0.093 1983 30,607,324 0.100 30,456 100.0% 30,456 30,456 0 30,456 0.100 1984 33,121,678 0.115 38,247 100.0% 38,247 38,247 0 38,247 0.115 1985 35,713,654 0.120 42,813 100.0% 42,813 42,813 0 42,813 0.120 1986 38,297,697 0.130 49,905 100.0% 49,905 49,905 0 49,905 0.130 1987 41,065,403 0.145 59,583 100.0% 59,583 59,583 0 59,583 0.145 1988 44,221,964 0.161 71,389 100.0% 71,389 71,389 0 71,389 0.161 1989 47,110,000 0.176 82,740 100.0% 82,740 82,740 0 82,740 0.176 1990 49,659,895 0.153 76,095 100.0% 76,095 76,095 0 76,095 0.153 1991 50,856,501 0.193 98,230 100.0% 98,230 98,230 0 98,230 0.193 1992 52,804,448 0.199 104,955 100.0% 104,955 104,955 0 104,955 0.199 1993 55,132,894 0.170 93,755 100.0% 93,755 93,755 0 93,755 0.170 1994 57,739,505 0.142 82,223 100.0% 82,223 82,224 0 82,225 0.142 1995 60,949,772 0.131 79,567 100.0% 79,564 79,570 3 79,572 0.131 1996 63,664,000 0.113 72,123 100.0% 72,114 72,115 9 72,124 0.113 1997 68,077,000 0.113 77,117 100.0% 77,094 77,095 24 77,118 0.113 1998 71,447,000 0.120 85,819 100.0% 85,778 85,778 41 85,819 0.120 1999 75,244,663 0.125 94,293 99.9% 94,211 94,207 82 94,289 0.125 2000 79,122,396 0.131 103,513 99.9% 103,372 103,367 142 103,509 0.131 2001 80,396,857 0.135 108,815 99.8% 108,600 108,588 215 108,803 0.135 2002 81,621,352 0.145 118,464 99.7% 118,136 118,126 328 118,454 0.145 2003 82,433,234 0.145 119,658 99.6% 119,193 119,180 466 119,646 0.145 2004 84,632,753 0.137 115,652 99.5% 115,034 115,005 618 115,623 0.137 2005 86,912,307 0.134 116,658 99.3% 115,789 115,731 869 116,600 0.134 2006 90,822,757 0.120 109,126 98.9% 107,967 107,262 1,159 108,421 0.119 2007 93,702,820 0.114 106,751 98.4% 105,091 100,015 1,659 101,674 0.109 2008 93,449,349 0.102 95,167 97.9% 93,129 89,537 2,038 91,575 0.098 2009 86,530,965 0.090 78,159 96.7% 75,579 76,584 2,581 79,165 0.091 2010 86,624,485 0.098 85,163 94.4% 80,393 80,934 4,770 85,704 0.099 2011 89,983,985 0.096 86,697 86.6% 75,082 72,970 11,614 84,584 0.094 2012 92,683,504 0.096 89,297 23.2% 20,761 18,571 68,536 87,108 0.094 2013 95,464,009 0.096 91,976 0.0% 91,976 91,976 0.096

TOTAL 2,811,792 2,624,662 2,612,413 187,130 2,799,543

(1) PROVIDED BY THE BWC (6) BASED ON DATA FROM THE BWC(2) SECTION 1, EXHIBIT 1, SHEET 19, COL. 14 (7) = (3) x [1 - (4)](3) = [(1) x (2)] / 100 (8) = (6) + (7)(4) = 1 / SECTION 1, EXHIBIT 1, SHEET 4, COL. 3 (9) = [(8) / (1)] x 100(5) = (3) x (4)



MEDICAL SHEET 7

MEDICAL ONLY(000's)

INCURRED BORNHUETTER-FERGUSON METHOD

EXPECTED % EXPECTED ACTUAL EXPECTED INDICATED INDICATEDACCIDENT INITIAL EXPECTED OF REPORTED REPORTED REPORTED UNREPORTED ULTIMATE ULTIMATE

YEAR PAYROLL LOSS RATE DOLLARS LOSS LOSS LOSS LOSS LOSS LOSS RATE(1) (2) (3) (4) (5) (6) (7) (8) (9)

1977 23,851,125 0.082 19,673 100.0% 19,673 19,673 0 19,673 0.082 1978 26,143,240 0.087 22,681 100.0% 22,681 22,681 0 22,681 0.087 1979 28,061,666 0.090 25,123 100.0% 25,123 25,123 0 25,123 0.090 1980 28,979,182 0.086 24,877 100.0% 24,877 24,877 0 24,877 0.086 1981 30,141,508 0.090 27,103 100.0% 27,103 27,103 0 27,103 0.090 1982 30,058,966 0.093 27,928 100.0% 27,928 27,928 0 27,928 0.093 1983 30,607,324 0.100 30,456 100.0% 30,456 30,456 0 30,456 0.100 1984 33,121,678 0.115 38,247 100.0% 38,247 38,247 0 38,247 0.115 1985 35,713,654 0.120 42,813 100.0% 42,813 42,813 0 42,813 0.120 1986 38,297,697 0.130 49,905 100.0% 49,905 49,905 0 49,905 0.130 1987 41,065,403 0.145 59,583 100.0% 59,583 59,583 0 59,583 0.145 1988 44,221,964 0.161 71,389 100.0% 71,389 71,389 0 71,389 0.161 1989 47,110,000 0.176 82,740 100.0% 82,740 82,740 0 82,740 0.176 1990 49,659,895 0.153 76,095 100.0% 76,094 76,095 0 76,095 0.153 1991 50,856,501 0.193 98,230 100.0% 98,229 98,230 0 98,230 0.193 1992 52,804,448 0.199 104,955 100.0% 104,955 104,955 0 104,955 0.199 1993 55,132,894 0.170 93,755 100.0% 93,755 93,755 0 93,755 0.170 1994 57,739,505 0.142 82,223 100.0% 82,223 82,256 (0) 82,256 0.142 1995 60,949,772 0.131 79,567 100.0% 79,567 79,637 (1) 79,636 0.131 1996 63,664,000 0.113 72,123 100.0% 72,120 72,162 3 72,165 0.113 1997 68,077,000 0.113 77,117 100.0% 77,118 77,134 (1) 77,133 0.113 1998 71,447,000 0.120 85,819 100.0% 85,822 85,832 (2) 85,830 0.120 1999 75,244,663 0.125 94,293 100.0% 94,291 94,294 2 94,296 0.125 2000 79,122,396 0.131 103,513 100.0% 103,470 103,458 44 103,502 0.131 2001 80,396,857 0.135 108,815 100.0% 108,766 108,705 49 108,754 0.135 2002 81,621,352 0.145 118,464 99.9% 118,388 118,255 76 118,331 0.145 2003 82,433,234 0.145 119,658 99.9% 119,523 119,387 135 119,523 0.145 2004 84,632,753 0.137 115,652 99.8% 115,465 115,193 187 115,381 0.136 2005 86,912,307 0.134 116,658 99.7% 116,355 115,890 303 116,193 0.134 2006 90,822,757 0.120 109,126 99.6% 108,643 107,572 483 108,055 0.119 2007 93,702,820 0.114 106,751 99.4% 106,070 100,290 681 100,971 0.108 2008 93,449,349 0.102 95,167 99.2% 94,360 90,049 807 90,856 0.097 2009 86,530,965 0.090 78,159 98.6% 77,079 77,170 1,081 78,251 0.090 2010 86,624,485 0.098 85,163 97.6% 83,154 82,336 2,009 84,345 0.097 2011 89,983,985 0.096 86,697 95.7% 82,991 78,875 3,705 82,580 0.092 2012 92,683,504 0.096 89,297 51.1% 45,590 41,705 43,707 85,413 0.092 2013 95,464,009 0.096 91,976 0.0% 91,976 91,976 0.096

TOTAL 2,811,792 2,666,545 2,645,756 145,247 2,791,003

(1) PROVIDED BY THE BWC (6) BASED ON DATA FROM THE BWC(2) SECTION 1, EXHIBIT 1, SHEET 19, COL. 14 (7) = (3) x [1 - (4)](3) = [(1) x (2)] / 100 (8) = (6) + (7)(4) = 1 / SECTION 1, EXHIBIT 1, SHEET 5, COL. 3 (9) = [(8) / (1)] x 100(5) = (3) x (4)



MEDICAL SHEET 8

MEDICAL ONLY(000's)

CUMULATIVE PAID FREQUENCY SEVERITY METHOD

IMPLIED $ WHOLE PAID $ WHOLE INDICATED INDICATEDACCIDENT REPORTED REPORTED ULTIMATE PAID SEVERITY ULTIMATE ULTIMATE ULTIMATE

YEAR PAYROLL CLAIMS LDF CLAIMS SEVERITY LDF SEVERITY LOSS LOSS RATE(1) (2) (3) (4) (5) (6) (7) (8) (9)

1977 23,851,125 1.000 1.000 1978 26,143,240 1.000 1.000 1979 28,061,666 1.000 1.000 1980 28,979,182 1.000 1.000 1981 30,141,508 1.000 1.000 1982 30,058,966 1.000 1.000 1983 30,607,324 1.000 1.000 1984 33,121,678 1.000 1.000 1985 35,713,654 1.000 1.000 1986 38,297,697 1.000 1.000 1987 41,065,403 1.000 1.000 1988 44,221,964 1.000 1.000 1989 47,110,000 1.000 1.000 1990 49,659,895 1.000 1.000 1991 50,856,501 1.000 1.000 1992 52,804,448 1.000 1.000 1993 55,132,894 191,586 1.000 191,586 489 1.000 489 93,755 0.170 1994 57,739,505 184,713 1.000 184,713 445 1.000 445 82,225 0.142 1995 60,949,772 181,604 1.000 181,604 438 1.000 438 79,577 0.131 1996 63,664,000 162,310 1.000 162,310 444 1.000 444 72,135 0.113 1997 68,077,000 170,986 1.000 170,986 451 1.001 451 77,136 0.113 1998 71,447,000 172,455 1.000 172,456 497 1.001 498 85,846 0.120 1999 75,244,663 167,055 1.000 167,056 564 1.001 565 94,334 0.125 2000 79,122,396 162,952 1.000 162,953 634 1.002 636 103,565 0.131 2001 80,396,857 140,212 1.000 140,213 774 1.002 776 108,860 0.135 2002 81,621,352 131,294 1.000 131,296 900 1.003 903 118,507 0.145 2003 82,433,234 119,154 1.000 119,157 1,000 1.004 1,004 119,681 0.145 2004 84,632,753 113,228 1.000 113,232 1,016 1.005 1,021 115,639 0.137 2005 86,912,307 108,138 1.000 108,144 1,070 1.007 1,078 116,563 0.134 2006 90,822,757 98,474 1.000 98,494 1,089 1.010 1,100 108,318 0.119 2007 93,702,820 90,393 1.001 90,440 1,106 1.013 1,121 101,383 0.108 2008 93,449,349 77,877 1.001 77,932 1,150 1.018 1,170 91,181 0.098 2009 86,530,965 60,723 1.001 60,787 1,261 1.027 1,295 78,741 0.091 2010 86,624,485 64,038 1.002 64,197 1,264 1.049 1,326 85,106 0.098 2011 89,983,985 64,596 1.013 65,464 1,130 1.127 1,273 83,317 0.093 2012 92,683,504 23,338 2.797 65,279 796 1.511 1,202 78,493 0.085 2013 95,464,009

Total 2,485,126 2,528,301 1,894,364

(1) PROVIDED BY THE BWC (6) SECTION 1, EXHIBIT 1, SHEET 20, COL. 15(2) BASED ON DATA FROM THE BWC (7) = (5) x (6)(3) SECTION 1, EXHIBIT 1, SHEET 20, COL. 12 (8) = [(4) x (7)] / 1000(4) = (2) x (3) (9) = [(8) / (1)] x 100(5) SECTION 1, EXHIBIT 1, SHEET 30



MEDICAL SHEET 9MEDICAL ONLY

PAID INCREMENTAL FREQUENCY SEVERITY ACCIDENT YEAR DEVELOPMENT METHOD (000's)ACCIDENT INDICATED

YEAR 6 18 30 42 54 66 78 90 102 114 126 138 150 162 174 186 198 210 222 234 246 258 270 282 294 306 318 330 342 354 366 378 390 402 414 426 TAIL ULTIMATE

1977 - - 1978 - - 1979 - - 1980 - - 1981 - - 1982 - - 1983 - - 1984 - - 1985 - - 1986 - - 1987 - - 1988 - - 1989 - - 1990 - - 1991 - - 1992 - - 1993 11,331 54,436 16,425 5,270 2,971 1,404 1,153 475 79 60 44 31 29 13 9 10 7 5 2 1 0 93,755 1994 7,507 50,834 13,605 4,753 1,757 1,291 784 506 359 278 224 147 56 48 25 18 12 11 13 5 0 82,230 1995 9,902 48,343 13,075 3,010 1,858 1,040 760 530 346 231 160 67 45 51 49 30 43 30 29 11 0 79,610 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 16 15 6 0 72,152 1997 5,872 50,032 13,133 2,981 1,758 1,178 842 504 349 146 90 53 48 54 36 20 20 15 15 6 0 77,151 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 51 51 38 37 14 0 85,969 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 44 30 30 22 21 8 0 94,362 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 51 49 33 33 24 24 9 0 103,590 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 39 36 34 23 23 17 17 6 0 108,785 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 66 47 43 42 28 28 21 20 8 0 118,429 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 78 53 38 35 33 22 22 17 16 6 0 119,501 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 113 77 53 37 35 33 22 22 16 16 6 0 115,438 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 158 102 70 48 34 31 30 20 20 15 14 6 0 116,281 2006 24,317 67,106 9,923 3,503 1,711 419 284 183 106 69 47 32 23 21 20 14 14 10 10 4 0 107,813 2007 23,085 65,334 8,376 2,270 635 316 233 150 87 56 39 26 19 17 17 11 11 8 8 3 0 100,702 2008 22,967 57,611 6,746 1,647 567 264 195 126 73 47 32 22 16 14 14 9 9 7 7 3 0 90,376 2009 19,408 50,776 5,304 1,096 455 212 157 101 59 38 26 18 13 12 11 7 7 6 5 2 0 77,712 2010 20,565 54,862 5,506 1,537 638 298 220 141 82 53 36 25 18 16 16 11 11 8 8 3 0 84,053 2011 19,622 53,348 6,304 1,760 730 341 252 162 94 61 42 28 20 19 18 12 12 9 9 3 0 82,846 2012 18,571 49,461 5,845 1,631 677 316 233 150 87 56 39 26 19 17 17 11 11 8 8 3 0 77,188

TailFactors 2.663 0.118 0.279 0.415 0.467 0.739 0.642 0.583 0.647 0.684 0.683 0.705 0.926 0.960 0.674 1.001 0.736 0.974 0.389 1.000

Example: AY 2007 Age 78 of 233 = 316 x 0.739 and AY 2007 Age 90 of 150 = 233 x 0.642 NOTE: FACTORS ARE FROM SECTION 1, EXHIBIT 1, SHEET 35




INCREMENTAL PAID LOSS (000's)ACCIDENT INDICATED


1977 - - 1978 - - 1979 - - 1980 - - 1981 - - 1982 - - 1983 - - 1984 - - 1985 - - 1986 - - 1987 - - 1988 - - 1989 - - 1990 - - 1991 - - 1992 - - 1993 11,331 54,436 16,425 5,270 2,971 1,404 1,153 475 79 60 44 31 29 13 9 10 7 5 2 1 - 93,755 1994 7,507 50,834 13,605 4,753 1,757 1,291 784 506 359 278 224 147 56 48 25 18 12 11 13 1 - 82,225 1995 9,902 48,343 13,075 3,010 1,858 1,040 760 530 346 231 160 67 45 51 49 30 43 30 8 1 - 79,578 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 15 8 1 - 72,138 1997 5,872 50,032 13,133 2,981 1,758 1,178 842 504 349 146 90 53 48 54 36 20 22 16 8 1 - 77,143 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 24 24 18 9 1 - 85,854 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 49 24 25 18 9 1 - 94,334 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 52 51 25 26 19 10 1 - 103,551 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 51 47 47 23 24 17 9 1 - 108,808 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 65 51 47 47 23 24 17 9 1 - 118,410 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 94 63 49 46 45 22 23 17 9 1 - 119,549 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 136 95 64 50 46 46 23 23 17 9 1 - 115,515 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 186 138 97 65 51 47 47 23 24 17 9 1 - 116,436 2006 24,317 67,106 9,923 3,503 1,711 419 284 294 181 134 94 63 49 46 45 22 23 17 9 1 - 108,239 2007 23,085 65,334 8,376 2,270 635 316 380 288 177 131 92 62 48 45 44 22 22 16 8 1 - 101,351 2008 22,967 57,611 6,746 1,647 567 417 349 264 162 121 84 57 44 41 40 20 21 15 8 1 - 91,180 2009 19,408 50,776 5,304 1,096 688 347 290 220 135 100 70 47 37 34 34 17 17 12 6 1 - 78,637 2010 20,565 54,862 5,506 1,767 774 390 326 247 151 113 79 53 41 38 38 19 19 14 7 1 - 85,010 2011 19,622 53,348 6,501 1,919 840 423 354 268 164 122 85 58 45 42 41 20 21 15 8 1 - 83,898 2012 18,571 56,575 6,912 2,041 893 450 377 285 175 130 91 61 48 44 44 22 22 16 8 1 - 86,765

NOTE: FUTURE CALENDAR YEAR PAYMENTS FOR EACH AY ARE DETERMINED BY MULTIPLYING AN ESTIMATED INCREMENTAL PAYMENT SEVERITY BY THE NUMBER OF ULTIMATE CLAIMS FROM SECTION 1, EXHIBIT 1, SHEET 36




PAID INCREMENTAL FREQUENCY SEVERITY CALENDAR YEAR DEVELOPMENT METHOD (000's)ACCIDENT INDICATED


1977 - - 1978 - - 1979 - - 1980 - - 1981 - - 1982 - - 1983 - - 1984 - - 1985 - - 1986 - - 1987 - - 1988 - - 1989 - - 1990 - - 1991 - - 1992 - - 1993 11,331 54,436 16,425 5,270 2,971 1,404 1,153 475 79 60 44 31 29 13 9 10 7 5 2 1 0 93,755 1994 7,507 50,834 13,605 4,753 1,757 1,291 784 506 359 278 224 147 56 48 25 18 12 11 13 1 0 82,226 1995 9,902 48,343 13,075 3,010 1,858 1,040 760 530 346 231 160 67 45 51 49 30 43 30 10 1 0 79,580 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 14 5 0 0 72,135 1997 5,872 50,032 13,133 2,981 1,758 1,178 842 504 349 146 90 53 48 54 36 20 18 12 4 0 0 77,130 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 41 37 24 8 1 0 85,889 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 42 22 20 13 4 0 0 94,310 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 47 42 23 20 14 5 0 0 103,519 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 39 33 30 16 14 10 3 0 0 108,734 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 68 48 41 37 20 18 12 4 0 0 118,372 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 82 57 40 34 31 17 15 10 3 0 0 119,468 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 122 87 60 43 36 33 18 16 11 4 0 0 115,435 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 188 131 94 65 46 39 36 19 17 11 4 0 0 116,382 2006 24,317 67,106 9,923 3,503 1,711 419 284 201 139 97 69 48 34 29 26 14 13 8 3 0 0 107,944 2007 23,085 65,334 8,376 2,270 635 316 251 177 123 85 61 42 30 26 23 12 11 7 2 0 0 100,868 2008 22,967 57,611 6,746 1,647 567 333 264 187 130 90 64 45 32 27 24 13 12 8 3 0 0 90,768 2009 19,408 50,776 5,304 1,096 513 302 239 169 117 82 58 41 29 24 22 12 11 7 2 0 0 78,213 2010 20,565 54,862 5,506 1,557 729 428 340 240 167 116 83 58 41 35 31 17 15 10 3 0 0 84,805 2011 19,622 53,348 7,018 1,985 930 546 434 306 213 148 106 73 52 44 40 22 19 13 4 0 0 84,923 2012 18,571 52,348 6,887 1,947 912 536 426 301 209 145 104 72 51 43 39 21 19 13 4 0 0 82,648

Projected Annual Inflation Rates

CY XX + 1 XX + 2 XX + 3 XX + 4 XX + 5 XX + 6 XX + 7 XX + 8 XX + 9 XX + 10 XX + 11 XX + 12 XX + 13 XX + 14 XX + 15 XX + 16 XX + 17 XX + 18 XX + 19 XX + 20 XX + 21 XX + 22 XX + 23 XX + 24 XX + 25 XX + 26 XX + 27 XX + 28 XX + 29 XX + 30 XX + 31 XX + 32 XX + 33 XX + 34 XX + 356.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

TailFactors 2.659 0.124 0.267 0.442 0.554 0.749 0.667 0.654 0.655 0.676 0.655 0.666 0.805 0.855 0.507 0.847 0.631 0.312 0.062 1.000

Example: AY 2007 Age 78 of 251 = 316 x 0.749 x (1.0 + 6.0%) and AY 2007 Age 90 of 177 = 251 x 0.667 x (1.0 + 6.0%) NOTE: FACTORS ARE FROM SECTION 1, EXHIBIT 1, SHEET 37



MEDICAL SHEET 13

MEDICAL ONLY(000's)

SELECTION OF ULTIMATE CLAIM COUNTS

IMPLIED 5 YR IMPLIED CUMULATIVE ON-LEVEL EXPECTED EXPECTED SELECTED SELECTEDACCIDENT EXPOSURE ON-LEVEL REPORTED REPORTED ULTIMATE IMPLIED ON-LEVEL FREQUENCY FREQUENCY TRENDED CLAIM ULTIMATE ULTIMATE CLAIM

YEAR PAYROLL TREND PAYROLL CLAIMS LDF CLAIMS FREQUENCY FREQUENCY TREND TREND FREQUENCY FREQUENCY CLAIMS CLAIMS FREQUENCY(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

1977 23,851,125 3.710 88,490,090 1.000 0.348 1978 26,143,240 3.485 91,119,089 1.000 0.348 1979 28,061,666 3.232 90,690,465 1.000 0.348 1980 28,979,182 3.006 87,100,472 1.000 0.348 1981 30,141,508 2.769 83,462,136 1.000 0.348 1982 30,058,966 2.633 79,135,492 1.000 0.348 1983 30,607,324 2.521 77,162,033 1.000 0.348 1984 33,121,678 2.402 79,569,925 1.000 0.348 1985 35,713,654 2.321 82,906,581 1.000 0.348 1986 38,297,697 2.265 86,749,768 1.000 0.348 1987 41,065,403 2.192 90,001,532 1.000 0.348 1988 44,221,964 2.094 92,596,563 1.000 0.348 1989 47,110,000 2.048 96,481,507 1.000 0.348 1990 49,659,895 1.972 97,911,638 1.000 0.348 1991 50,856,501 1.910 97,123,143 1.000 0.348 1992 52,804,448 1.816 95,902,063 1.000 0.348 1993 55,132,894 1.783 98,278,492 191,586 1.000 191,586 34.750% 19.494% 0.348 6.780% 34.750% 191,586 191,586 34.750%1994 57,739,505 1.742 100,579,286 184,713 1.000 184,713 31.991% 18.365% 0.362 6.653% 31.991% 184,713 184,713 31.991%1995 60,949,772 1.692 103,140,858 181,604 1.000 181,604 29.796% 17.607% 0.377 6.645% 29.796% 181,604 181,604 29.796%1996 63,664,000 1.635 104,088,085 162,310 1.000 162,310 25.495% 15.594% 0.393 6.130% 25.495% 162,310 162,310 25.495%1997 68,077,000 1.563 106,370,937 170,986 1.000 170,986 25.117% 16.075% -5.3% 0.409 6.582% 25.117% 170,986 170,986 25.117%1998 71,447,000 1.492 106,610,635 172,455 1.000 172,456 24.138% 16.176% -3.4% 0.427 6.900% 24.138% 172,456 172,456 24.138%1999 75,244,663 1.444 108,677,929 167,055 1.000 167,056 22.202% 15.372% -2.3% 0.444 6.830% 22.202% 167,056 167,056 22.202%2000 79,122,396 1.393 110,223,863 162,952 1.000 162,953 20.595% 14.784% -1.5% 0.463 6.842% 20.595% 162,953 162,953 20.595%2001 80,396,857 1.364 109,675,764 140,212 1.000 140,213 17.440% 12.784% -5.3% 0.500 6.397% 17.440% 140,213 140,213 17.440%2002 81,621,352 1.330 108,596,907 131,294 1.000 131,296 16.086% 12.090% -7.4% 0.541 6.540% 16.086% 131,296 131,296 16.086%2003 82,433,234 1.295 106,712,867 119,154 1.000 119,157 14.455% 11.166% -8.1% 0.585 6.530% 14.455% 119,157 119,157 14.455%2004 84,632,753 1.248 105,596,397 113,228 1.000 113,232 13.379% 10.723% -7.5% 0.632 6.779% 13.379% 113,232 113,232 13.379%2005 86,912,307 1.218 105,836,799 108,138 1.000 108,144 12.443% 10.218% -5.5% 0.683 6.983% 12.443% 108,144 108,144 12.443%2006 90,822,757 1.176 106,826,594 98,474 1.000 98,494 10.845% 9.220% -6.1% 0.739 6.812% 10.845% 98,494 98,494 10.845%2007 93,702,820 1.137 106,579,121 90,393 1.001 90,440 9.652% 8.486% -6.8% 0.799 6.778% 9.652% 90,440 90,440 9.652%2008 93,449,349 1.115 104,228,254 77,877 1.001 77,932 8.340% 7.477% -8.7% 0.929 6.945% 8.340% 77,932 77,932 8.339%2009 86,530,965 1.117 96,636,885 60,723 1.001 60,787 7.025% 6.290% -11.1% 1.080 6.793% 7.025% 60,787 60,787 7.025%2010 86,624,485 1.093 94,656,914 64,038 1.002 64,197 7.411% 6.782% -8.7% 1.000 6.782% 7.411% 64,197 64,197 7.411%2011 89,983,985 1.061 95,464,009 64,596 1.013 65,464 7.275% 6.857% -5.1% 1.000 6.857% 7.267% 65,393 65,463 7.275%2012 92,683,504 1.030 95,464,009 23,338 2.797 65,279 7.043% 6.838% -0.9% 1.000 6.838% 7.056% 65,393 65,352 7.051%2013 95,464,009 1.000 95,464,009 1.000 6.850% 65,393 65,393 6.850%

TOTAL 2,485,126 2,528,301 2,593,736 2,593,764

5 Year Average excluding 2012 6.831%10 Year Average excluding 2012 6.780%

5 Year Average excluding 2010-2012 6.862%10 Year Average excluding 2010-2012 6.740%

2006-2011 Average excluding 2009 6.835%

(16) 2013 Selected Frequency 6.850%

(1) PROVIDED BY THE BWC (6) = (4) x (5) (11) = (8) x (10)(2) BASED ON CHANGE IN SAWW (7) = (6) / (1) x 100 (12) SELECTED BASED ON (16) DETRENDED AND (7) (3) = (1) x (2) (8) = (6) / (3) x 100 (13) = [(12) x (1)] / 100(4) BASED ON DATA FROM THE BWC (9) 5 YEAR FITTED TREND OF (8) (14) = (4) + [1 - 1/(5)] x (13)(5) SECTION 1, EXHIBIT 1, SHEET 20, COL. 12 (10) SELECTED BY DELOITTE CONSULTING (15) = [(14) / (1)] x 100

(16) SELECTED BY DELOITTE CONSULTING BASED ON (11)



MEDICAL SHEET 14

MEDICAL ONLY(000's)

DIAGNOSTIC EXHIBIT

WHOLE $SELECTED SELECTED SELECTED

ACCIDENT ULTIMATE ULTIMATE ULTIMATE ULTIMATE ULTIMATEYEAR PAYROLL CLAIMS FREQUENCY LOSS SEVERITY LOSS RATE

(1) (2) (3) (4) (5) (6)

1977 23,851,125 19,673 0.082 1978 26,143,240 22,681 0.087 1979 28,061,666 25,123 0.090 1980 28,979,182 24,877 0.086 1981 30,141,508 27,103 0.090 1982 30,058,966 27,928 0.093 1983 30,607,324 30,456 0.100 1984 33,121,678 38,247 0.115 1985 35,713,654 42,813 0.120 1986 38,297,697 49,905 0.130 1987 41,065,403 59,583 0.145 1988 44,221,964 71,389 0.161 1989 47,110,000 82,740 0.176 1990 49,659,895 76,095 0.153 1991 50,856,501 98,230 0.193 1992 52,804,448 104,955 0.199 1993 55,132,894 191,586 34.75% 93,755 489 0.170 1994 57,739,505 184,713 31.99% 82,225 445 0.142 1995 60,949,772 181,604 29.80% 79,572 438 0.131 1996 63,664,000 162,310 25.49% 72,124 444 0.113 1997 68,077,000 170,986 25.12% 77,118 451 0.113 1998 71,447,000 172,456 24.14% 85,819 498 0.120 1999 75,244,663 167,056 22.20% 94,289 564 0.125 2000 79,122,396 162,953 20.60% 103,509 635 0.131 2001 80,396,857 140,213 17.44% 108,803 776 0.135 2002 81,621,352 131,296 16.09% 118,454 902 0.145 2003 82,433,234 119,157 14.45% 119,645 1,004 0.145 2004 84,632,753 113,232 13.38% 115,623 1,021 0.137 2005 86,912,307 108,144 12.44% 116,600 1,078 0.134 2006 90,822,757 98,494 10.84% 108,413 1,101 0.119 2007 93,702,820 90,440 9.65% 101,594 1,123 0.108 2008 93,449,349 77,932 8.34% 91,536 1,175 0.098 2009 86,530,965 60,787 7.02% 79,182 1,303 0.092 2010 86,624,485 64,197 7.41% 85,720 1,335 0.099 2011 89,983,985 65,463 7.27% 84,584 1,292 0.094 2012 92,683,504 65,352 7.05% 87,108 1,333 0.094 2013 95,464,009 65,393 6.85% 91,976 1,407 0.096

TOTAL 2,593,764 2,799,449

(1) PROVIDED BY THE BWC(2) SECTION 1, EXHIBIT 1, SHEET 13, COL. 14(3) = (2) / (1) x 100(4) SECTION 1, EXHIBIT 1, SHEET 3, COL. 12(5) = [(4) / (2)] x 1,000(6) = [(4) / (1)] x 100



MEDICAL SHEET 15A

MEDICAL ONLY(000's)

ACTUAL VERSUS EXPECTED LOSS PAYMENTS

PAID PAID ULTIMATE UNPAID LOSS & ALAE EMERGENCE ULTIMATE ULTIMATE CHANGEACCIDENT LOSS LOSS LOSS LOSS AGE AGE PRIOR LDF PRIOR LDF EXPECTED DOLLAR LOSS LOSS IN ULTIMATE

YEAR @ 6/30/12 @ 6/30/11 @ 6/30/11 @ 6/30/11 @ 6/30/12 @ 6/30/11 @ 6/30/12 @ 6/30/11 % PAID EXPECTED ACTUAL DIFFERENCE @ 6/30/12 @ 6/30/11 LOSS(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

PRIOR 1 0 0 0 01977 19,673 19,673 19,673 0 426 414 1.000 1.000 100.0% 0 0 0 19,673 19,673 01978 22,681 22,681 22,681 0 414 402 1.000 1.000 100.0% 0 0 0 22,681 22,681 01979 25,123 25,123 25,123 0 402 390 1.000 1.000 100.0% 0 0 0 25,123 25,123 01980 24,877 24,877 24,877 0 390 378 1.000 1.000 100.0% 0 0 0 24,877 24,877 01981 27,103 27,103 27,103 0 378 366 1.000 1.000 100.0% 0 0 0 27,103 27,103 01982 27,928 27,928 27,928 0 366 354 1.000 1.000 100.0% 0 0 0 27,928 27,928 (0)1983 30,456 30,456 30,456 0 354 342 1.000 1.000 100.0% 0 0 0 30,456 30,456 01984 38,247 38,247 38,247 0 342 330 1.000 1.000 100.0% 0 0 0 38,247 38,247 01985 42,813 42,813 42,813 0 330 318 1.000 1.000 100.0% 0 0 0 42,813 42,813 01986 49,905 49,905 49,905 0 318 306 1.000 1.000 100.0% 0 0 0 49,905 49,905 01987 59,583 59,583 59,583 0 306 294 1.000 1.000 100.0% 0 0 0 59,583 59,583 01988 71,389 71,389 71,389 0 294 282 1.000 1.000 100.0% 0 0 0 71,389 71,389 01989 82,740 82,740 82,740 0 282 270 1.000 1.000 100.0% 0 0 0 82,740 82,740 01990 76,095 76,095 76,095 0 270 258 1.000 1.000 100.0% 0 0 0 76,095 76,095 01991 98,230 98,230 98,230 0 258 246 1.000 1.000 100.0% 0 0 0 98,230 98,230 01992 104,955 104,955 104,955 0 246 234 1.000 1.000 100.0% 0 0 0 104,955 104,955 01993 93,755 93,754 93,754 0 234 222 1.000 1.000 100.0% 0 1 1 93,755 93,754 11994 82,224 82,211 82,212 1 222 210 1.000 1.000 65.5% 0 13 13 82,225 82,212 131995 79,570 79,540 79,542 2 210 198 1.000 1.000 71.3% 1 30 28 79,572 79,542 311996 72,115 72,094 72,110 16 198 186 1.000 1.000 89.6% 14 21 7 72,124 72,110 141997 77,095 77,074 77,114 40 186 174 1.000 1.001 57.3% 23 20 (3) 77,118 77,114 41998 85,778 85,702 85,781 79 174 162 1.001 1.001 43.3% 34 76 41 85,819 85,781 381999 94,207 94,161 94,295 134 162 150 1.001 1.001 35.1% 47 46 (1) 94,289 94,295 (7)2000 103,367 103,313 103,522 209 150 138 1.001 1.002 29.6% 62 55 (7) 103,509 103,522 (13)2001 108,588 108,533 108,840 307 138 126 1.002 1.003 28.3% 87 55 (32) 108,803 108,840 (37)2002 118,126 118,028 118,505 477 126 114 1.003 1.004 30.0% 143 97 (46) 118,454 118,505 (52)2003 119,180 119,066 119,769 703 114 102 1.004 1.006 31.4% 220 114 (107) 119,645 119,769 (123)2004 115,005 114,830 115,856 1,026 102 90 1.006 1.009 33.7% 346 175 (171) 115,623 115,856 (233)2005 115,731 115,460 116,991 1,531 90 78 1.009 1.013 32.4% 495 272 (224) 116,600 116,991 (391)2006 107,262 106,978 108,960 1,982 78 66 1.013 1.019 28.1% 556 284 (272) 108,413 108,960 (546)2007 100,015 99,699 102,219 2,520 66 54 1.019 1.025 25.9% 652 316 (336) 101,594 102,219 (625)2008 89,537 88,970 92,432 3,462 54 42 1.025 1.037 32.0% 1,109 567 (542) 91,536 92,432 (896)2009 76,584 75,488 80,557 5,069 42 30 1.037 1.063 39.1% 1,981 1,096 (885) 79,182 80,557 (1,375)2010 80,934 75,427 88,956 13,529 30 18 1.063 1.164 57.9% 7,837 5,506 (2,331) 85,720 88,956 (3,236)2011 72,970 19,622 101,092 81,470 18 6 1.164 4.336 81.7% 66,551 53,348 (13,203) 84,584 101,092 (16,507)2012 18,571 114,490 114,490 6 4.336 23.1% 26,406 18,571 (7,834) 87,108 114,490 (27,383)2013 0.0% 0 0

TOTAL 2,612,414 2,531,751 2,758,795 227,045 106,567 80,663 (25,904) 2,707,472 2,758,795 (51,323)

EXLD PRIOR 2,612,413 2,531,751 #VALUE! #VALUE! 106,567 80,662 (25,904) #VALUE! #VALUE! #VALUE!

(1) BASED ON DATA FROM THE BWC (7) PAID LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT CURRENT AGE (13) SECTION 1, EXHIBIT 1, SHEET 3, COL. 12(2) BASED ON DATA FROM THE BWC (8) PAID LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT PRIOR AGE (14) FROM 6/30/11 ANALYSIS(3) FROM 6/30/11 ANALYSIS (9) BASED ON (7) AND (8) (15) = (13) - (14)(4) = (3) - (2) (10) = (4) x (9); PRIOR FROM SECTION 1, EXHIBIT 1, SHEET 15B, COL. 9(5) CURRENT AGE OF ACCIDENT YEAR IN MONTHS (11) = (1) - (2)(6) PRIOR AGE OF ACCIDENT YEAR IN MONTHS (12) = (11) - (10)



MEDICAL SHEET 15B

MEDICAL ONLY(000's)

ACTUAL VERSUS EXPECTED LOSS PAYMENTS

PAID PAID UNPAID LOSS & ALAE EMERGENCEACCIDENT LOSS LOSS LOSS AGE AGE PRIOR LDF PRIOR LDF EXPECTED DOLLAR

YEAR @ 6/30/12 @ 6/30/11 @ 6/30/11 @ 6/30/12 @ 6/30/11 @ 6/30/12 @ 6/30/11 % PAID EXPECTED ACTUAL DIFFERENCE(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

PRIOR 0 714 702 0.0% 0 01954 0 702 690 0.0% 0 01955 0 690 678 0.0% 0 01956 0 678 666 0.0% 0 01957 0 666 654 0.0% 0 01958 0 654 642 0.0% 0 01959 0 642 630 0.0% 0 01960 0 630 618 0.0% 0 01961 1 618 606 0.0% 1 11962 0 606 594 0.0% 0 01963 0 594 582 0.0% 0 01964 0 582 570 0.0% 0 01965 0 570 558 0.0% 0 01966 0 558 546 0.0% 0 01967 0 546 534 0.0% 0 01968 0 534 522 0.0% 0 01969 0 522 510 0.0% 0 01970 0 510 498 0.0% 0 01971 0 498 486 0.0% 0 01972 0 486 474 0.0% 0 01973 0 474 462 0.0% 0 01974 0 462 450 0.0% 0 01975 0 450 438 0.0% 0 01976 0 438 426 0.0% 0 0

TOTAL 1 0 1 1

(1) PROVIDED BY THE BWC (6) PAID LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT CURRENT AGE(2) PROVIDED BY THE BWC (7) PAID LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT PRIOR AGE(3) FROM 6/30/11 ANALYSIS (8) BASED ON (6) AND (7)(4) CURRENT AGE OF ACCIDENT YEAR IN MONTHS (9) = (3) x (8)(5) PRIOR AGE OF ACCIDENT YEAR IN MONTHS (10) = (1) - (2)

(11) = (10) - (9)



MEDICAL SHEET 16

MEDICAL ONLY(000's)

ACTUAL VERSUS EXPECTED REPORTED LOSSES

INCURRED INCURRED ULTIMATE UNREPORTED LOSS & ALAE EMERGENCE ULTIMATE ULTIMATE CHANGEACCIDENT LOSS LOSS LOSS LOSS AGE AGE PRIOR LDF PRIOR LDF EXPECTED DOLLAR LOSS LOSS IN ULTIMATE

YEAR @ 6/30/12 @ 6/30/11 @ 6/30/11 @ 6/30/11 @ 6/30/12 @ 6/30/11 @ 6/30/12 @ 6/30/11 % REPORTED EXPECTED ACTUAL DIFFERENCE @ 6/30/12 @ 6/30/11 LOSS(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

PRIOR1977 19,673 19,673 19,673 0 426 414 1.000 1.000 100.0% 0 0 0 19,673 19,673 01978 22,681 22,681 22,681 0 414 402 1.000 1.000 100.0% 0 0 0 22,681 22,681 01979 25,123 25,123 25,123 0 402 390 1.000 1.000 100.0% 0 0 0 25,123 25,123 01980 24,877 24,877 24,877 0 390 378 1.000 1.000 100.0% 0 0 0 24,877 24,877 01981 27,103 27,103 27,103 0 378 366 1.000 1.000 100.0% 0 0 0 27,103 27,103 01982 27,928 27,928 27,928 0 366 354 1.000 1.000 100.0% 0 0 0 27,928 27,928 (0)1983 30,456 30,456 30,456 0 354 342 1.000 1.000 100.0% 0 0 0 30,456 30,456 01984 38,247 38,247 38,247 0 342 330 1.000 1.000 100.0% 0 0 0 38,247 38,247 01985 42,813 42,813 42,813 0 330 318 1.000 1.000 100.0% 0 0 0 42,813 42,813 01986 49,905 49,905 49,905 0 318 306 1.000 1.000 115.1% 0 0 0 49,905 49,905 01987 59,583 59,583 59,583 0 306 294 1.000 1.000 0.0% 0 0 0 59,583 59,583 01988 71,389 71,389 71,389 0 294 282 1.000 1.000 0.0% 0 0 0 71,389 71,389 01989 82,740 82,740 82,740 0 282 270 1.000 1.000 64.3% 0 0 0 82,740 82,740 01990 76,095 76,095 76,095 0 270 258 1.000 1.000 24.7% 0 0 0 76,095 76,095 01991 98,230 98,230 98,230 0 258 246 1.000 1.000 -8.2% 0 0 0 98,230 98,230 01992 104,955 104,955 104,955 0 246 234 1.000 1.000 -40.1% 0 0 0 104,955 104,955 01993 93,755 93,756 93,754 (2) 234 222 1.000 1.000 35.9% (1) (1) (0) 93,755 93,754 11994 82,256 82,258 82,212 (46) 222 210 1.000 1.000 -213.5% 98 (2) (100) 82,225 82,212 131995 79,637 79,620 79,542 (79) 210 198 1.000 1.000 -33.7% 26 16 (10) 79,572 79,542 311996 72,162 72,160 72,110 (50) 198 186 1.000 1.000 103.7% (52) 2 54 72,124 72,110 141997 77,134 77,144 77,114 (29) 186 174 1.000 1.000 5.7% (2) (10) (8) 77,118 77,114 41998 85,832 85,779 85,781 3 174 162 1.000 1.000 66.2% 2 54 52 85,819 85,781 381999 94,294 94,254 94,295 42 162 150 1.000 1.000 154.1% 64 40 (24) 94,289 94,295 (7)2000 103,458 103,443 103,522 79 150 138 1.000 1.000 3.4% 3 15 13 103,509 103,522 (13)2001 108,705 108,711 108,840 129 138 126 1.000 1.000 39.9% 52 (5) (57) 108,803 108,840 (37)2002 118,255 118,214 118,505 291 126 114 1.000 1.001 43.7% 127 41 (86) 118,454 118,505 (52)2003 119,387 119,325 119,769 444 114 102 1.001 1.001 31.2% 138 62 (76) 119,645 119,769 (123)2004 115,193 115,062 115,856 794 102 90 1.001 1.002 49.0% 389 131 (258) 115,623 115,856 (233)2005 115,890 115,762 116,991 1,229 90 78 1.002 1.004 49.7% 611 128 (483) 116,600 116,991 (391)2006 107,572 107,407 108,960 1,552 78 66 1.004 1.006 28.2% 438 165 (273) 108,413 108,960 (546)2007 100,290 100,134 102,219 2,085 66 54 1.006 1.009 32.9% 685 156 (529) 101,594 102,219 (625)2008 90,049 89,709 92,432 2,723 54 42 1.009 1.015 39.0% 1,063 340 (723) 91,536 92,432 (896)2009 77,170 76,813 80,557 3,744 42 30 1.015 1.026 40.2% 1,504 358 (1,146) 79,182 80,557 (1,375)2010 82,336 81,608 88,956 7,348 30 18 1.026 1.046 43.0% 3,162 728 (2,434) 85,720 88,956 (3,236)2011 78,875 40,800 101,092 60,292 18 6 1.046 1.962 90.9% 54,832 38,075 (16,757) 84,584 101,092 (16,507)2012 41,705 114,490 114,490 6 1.962 51.0% 58,350 41,705 (16,645) 87,108 114,490 (27,383)2013 0.0% 0 0

TOTAL 2,645,756 2,563,756 2,758,795 195,039 121,491 82,000 (39,491) 2,707,472 2,758,795 (51,323)

EXLD PRIOR 2,645,756 2,563,756 2,758,795 195,039 121,491 82,000 (39,491) 2,707,472 2,758,795 (51,323)

(1) BASED ON DATA FROM THE BWC (7) INCURRED LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT CURRENT AGE (13) SECTION 1, EXHIBIT 1, SHEET 3, COL. 12(2) BASED ON DATA FROM THE BWC (8) INCURRED LOSS DEVELOPMENT FACTOR FROM PRIOR ANALYSIS AT PRIOR AGE (14) FROM 6/30/11 ANALYSIS(3) FROM 6/30/11 ANALYSIS (9) BASED ON (7) AND (8) (15) = (13) - (14)(4) = (3) - (2) (10) = (4) x (9)(5) CURRENT AGE OF ACCIDENT YEAR IN MONTHS (11) = (1) - (2)(6) PRIOR AGE OF ACCIDENT YEAR IN MONTHS (12) = (11) - (10)



MEDICAL SHEET 17

MEDICAL ONLY(000's)

ACTUAL VERSUS EXPECTED REPORTED CLAIM COUNTS

REPORTED REPORTED ULTIMATE UNREPORTED REPORTED CLAIM EMERGENCE ULTIMATE ULTIMATE CHANGEACCIDENT COUNT COUNT COUNT COUNT AGE AGE PRIOR LDF PRIOR LDF EXPECTED COUNT COUNT IN ULTIMATE

YEAR @ 6/30/12 @ 6/30/11 @ 6/30/11 @ 6/30/11 @ 6/30/12 @ 6/30/11 @ 6/30/12 @ 6/30/11 % REPORTED EXPECTED ACTUAL DIFFERENCE @ 6/30/12 @ 6/30/11 COUNT(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

PRIOR1977 426 4141978 414 4021979 402 3901980 390 3781981 378 3661982 366 3541983 354 3421984 342 3301985 330 3181986 318 3061987 306 2941988 294 2821989 282 2701990 270 2581991 258 2461992 246 2341993 191,586 191,586 191,586 0 234 222 1.000 1.000 100.0% 0 0 0 191,586 191,586 01994 184,713 184,713 184,713 0 222 210 1.000 1.000 100.0% 0 0 0 184,713 184,713 01995 181,604 181,603 181,603 0 210 198 1.000 1.000 100.0% 0 1 1 181,604 181,603 11996 162,310 162,310 162,310 0 198 186 1.000 1.000 0.0% 0 0 0 162,310 162,310 01997 170,986 170,986 170,986 0 186 174 1.000 1.000 38.5% 0 0 0 170,986 170,986 01998 172,455 172,455 172,456 1 174 162 1.000 1.000 28.2% 0 0 0 172,456 172,456 01999 167,055 167,054 167,055 1 162 150 1.000 1.000 36.6% 0 1 1 167,056 167,055 12000 162,952 162,951 162,953 2 150 138 1.000 1.000 35.9% 1 1 0 162,953 162,953 02001 140,212 140,211 140,214 3 138 126 1.000 1.000 46.3% 1 1 0 140,213 140,214 (1)2002 131,294 131,290 131,293 3 126 114 1.000 1.000 29.4% 1 4 3 131,296 131,293 32003 119,154 119,151 119,155 4 114 102 1.000 1.000 24.0% 1 3 2 119,157 119,155 22004 113,228 113,220 113,226 6 102 90 1.000 1.000 37.7% 2 8 6 113,232 113,226 62005 108,138 108,108 108,130 22 90 78 1.000 1.000 73.2% 16 30 14 108,144 108,130 142006 98,474 98,449 98,501 52 78 66 1.000 1.001 60.3% 31 25 (6) 98,494 98,501 (7)2007 90,393 90,356 90,420 64 66 54 1.001 1.001 26.5% 17 37 20 90,440 90,420 202008 77,877 77,834 77,916 82 54 42 1.001 1.001 32.4% 27 43 16 77,932 77,916 162009 60,723 60,611 60,761 150 42 30 1.001 1.002 57.3% 86 112 26 60,787 60,761 262010 64,038 63,297 64,149 852 30 18 1.002 1.013 81.4% 693 741 48 64,197 64,149 482011 64,596 22,960 64,514 41,554 18 6 1.013 2.797 97.9% 40,696 41,636 940 65,463 64,514 9492012 23,33

(Based on Data Evaluated as of June 30, 2012) · 2019-08-09 · Unpaid Loss & LAE as of June 30,...

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Transcript of (Based on Data Evaluated as of June 30, 2012) · 2019-08-09 · Unpaid Loss & LAE as of June 30,...