(Based on Data Evaluated as of June 30, 2013)...Unpaid Loss & LAE as of June 30, 2013 (Based on Data...

State of Ohio Bureau of Workers’ Compensation

Unpaid Loss & LAE as of June 30, 2013 (Based on Data Evaluated as of June 30, 2013)

Volume II – Detailed Analysis Exhibits Private Employers

August 23, 2013

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 .......................................................................................................... 16

Executive Summary Exhibits ........................................................................................................ 30

Actuarial Analysis Overview ........................................................................................................ 56

Actuarial Procedures ......................................................................................................... 56 Actuarial Methodologies ................................................................................................... 66

Data ............................................................................................................................................... 70

Information and Data Provided ......................................................................................... 70 Adjustments to Data .......................................................................................................... 71

Loss Reserve Dislosures ............................................................................................................... 77

Detailed Analysis Exhibit Descriptions ........................................................................................ 78

Segment Summary Exhibits .......................................................................................................... 89

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, 2013

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 2014 and subsequent by accident year associated with claims occurring on June 30, 2013 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, 2013 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, 2013 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 2014 and subsequent by accident year associated with claims occurring on June 30, 2013 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, 2013 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, 2013 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 SIEGF unpaid DWRF estimates. Section 5, Exhibits 2 and 3, Sheet 1: Summary of Unpaid Loss This sheet displays the calculation of the undiscounted and discounted unpaid losses, respectively for SIS and SIEGF. Section 5, Exhibits 2 and 3, Sheet 2: Selection of Ultimate Loss This sheet displays Deloitte Consulting’s selected ultimate loss for each accident year based on projected ultimate losses, respectively for SIS and SIEGF. Section 5, Exhibits 2 and 3, Sheet 3: Paid Loss Development Method These sheets project ultimate losses using the Paid Loss Development Method, respectively for SIS and SIEGF. Section 5, Exhibits 2 and 3, Sheet 4: Paid Bornhuetter-Ferguson Method These sheets project ultimate losses using the Paid Bornhuetter-Ferguson Method, respectively for SIS and SIEGF. Section 5, Exhibits 2 and 3, Sheet 5: 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, respectively for SIS and SIEGF. Section 5, Exhibits 2 and 3, Sheet 6: Calculation of Initial Expected Loss Rates This sheet displays the selection of the initial expected loss rates used in the Bornhuetter Ferguson method, respectively for SIS and SIEGF. Section 5, Exhibit 4, Sheets 1 and 2: Estimate of Unpaid SIEGF DWRF These sheets display the determination of the SIEGF DWRF associated with known defaults. Section 5, Exhibit 5, Sheet 1: Discount Factors This sheet displays the calculation of the discount factor used to determine the discounted unpaid loss in Exhibits 2 and 3, Sheet 1. Section 5, Exhibit 5, Sheet 2: Interpolated Accident Year Development Factors The accident year development factors selected on Exhibit 6, Sheet 3 are interpolated to the current evaluation age on this sheet. Section 5, Exhibit 5, Sheet 3: Paid Loss Triangles This sheet displays the default year paid loss triangle for SIS and SIEGF combined.


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 2014 and subsequent by accident year associated with claims occurring on June 30, 2013 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, 2013 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, 2013 on a nominal and discounted basis. Section 8, Exhibit 1: Summary of Unpaid Loss This exhibit displays the estimated unpaid loss liability as of December 31, 2012 on a nominal and discounted basis. Section 8, Exhibit 2: Summary of claims currently receiving benefits This exhibit 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. Section 8, Exhibit 3, Sheet 1: Summary of Unpaid Losses for Pending & IBNR Claims, Claim Development Method using Department of Labor Data for Ohio This sheet displays the calculation of the unpaid losses for pending and IBNR claims for Living Miners and Living Widow claims. Projected pending and IBNR claims are based on the projected ultimate claims filings and the ultimate entitlement ratios from the U.S. DOL 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 in Exhibits 4 and 5. Section 8, Exhibit 3, Sheet 2: Ohio Data from U.S. Department of Labor Living Miner Filings, Insured Only This sheet displays the cumulative Living Miner filings by date of last exposure at annual evaluations and the associated development factors. Ultimate claim filings are projected using an assumed cumulative development pattern which is selected based on historical development. Section 8, Exhibit 3, Sheet 3: Ohio Data from U.S. Department of Labor Living Miner Entitlements, Insured Only This sheet displays the cumulative Living Miner entitled claims by date of last exposure at annual evaluations. Section 8, Exhibit 3, Sheet 4: Cumulative Living Miner Entitlement Ratios This sheet displays the cumulative Living Miner entitled ratios by date of last exposure and annual evaluations. These ratios are calculated as the cumulative Living Miner entitlements from Exhibit 3, Sheet 3 divided by the selected ultimate filings from Exhibit 3, Sheet 2 by date of last exposure. This sheet also shows the incremental, additive, Living Miner entitlement ratios. Ultimate entitlement ratios, the ultimate percentage of entitlements awarded based on the number of claims filed, are projected using the selected incremental entitlement ratios based on historical incremental ratios. Section 8, Exhibit 3, Sheets 5-7: Ohio Data from U.S. Department of Labor Living Widow Filings and Entitlements Only These sheets display the calculations described in sheets 2-4 for Living Widow filings and entitled claims. Section 8, Exhibit 4, Sheets 1A and 1B: Calculation of Liability for Terminated Miners, Method using Ohio Employee Survey Data These sheets use the Ohio Employee Survey Data to project pending and IBNR claims. Projected pending and IBNR claims are based on the historical employee terminations and assumptions around the percentage of terminated employees who will be entitled to FBL benefits, and a factor to reflect the estimated number of claims


filed by survivors. 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 in the exhibit. Section 8, Exhibit 4, Sheets 2A-2H: Calculation of Current Severity of Terminated Miner Claims These sheets display the nominal and discounted average medical and indemnity cost per entitled claim based on a benefits calculation using a specific entitlement age and current average age of a terminated miner. An indemnity survivor cost per entitled claim is also contemplated. The assumed entitlement ages are based on the entitled claim history from the U.S. DOL data for Ohio. Section 8, Exhibit 4, Sheets 3A-3H: Benefit Calculation Detail for Terminated Miner Claims at Specified Entitlement Ages This sheets display the actuarial present values of indemnity and medical benefits for a miner, a miner plus one dependent and a survivor. The actuarial present value of benefits is calculated for each assumed age of entitlement (i.e. the age benefits would start), and takes into account a benefit escalation factor, medical trend factor, and mortality. Section 8, Exhibit 4, Sheets 4-4A: Calculation of Weighted Nominal Benefits per Claim for Terminated Miners These sheets display the weighted, nominal and discounted, indemnity and medical benefits by age group for each targeted age of entitlement. The assumed entitlement ages are based on the entitled claim history from the U.S. DOL data for Ohio. The weights are the percentage of claims by miners that are entitled at the selected entitlement ages for a specific age group. The weights are presented on Exhibit 5, Sheet 5. Section 8, Exhibit 5, Sheets 1-4: Calculation of Liability for Active Miners, Method using Ohio Employee Survey Data Method These sheets are identical to Exhibit 4, Sheets 1-4, except they use the Ohio Employee Survey Data to project the active miner liability. Projected active miner claims are based on the current employee data and assumptions around the percentage of terminated employees who will be entitled to FBL benefits, and a factor to reflect the estimated number of claims filed by survivors. 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 5, Sheets 5: Weights for Deferred Annuity Values This sheet displays the conditional probability a certain age group receiving an entitlement by a specified entitlement age. The selected entitlement ages and probabilities were selected based on Deloitte Consulting’s review of the U.S. DOL data for Ohio. Section 8, Exhibit 6, Sheet 1: Table of Monthly Black Lung Benefit Rates This sheet displays 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 This sheet displays the historical medical costs per entitled claim. Section 8, Exhibit 7, Sheets 1-88: Benefit calculation detail for claims currently receiving benefits These sheets display the calculations of the nominal and discounted, medical and indemnity unpaid losses on a claim by claim basis based on the claimant’s age, estimated monthly benefit, and mortality assumptions. The discounted indemnity and medical unpaid losses are calculated by applying the discount factor using a 4.0% annual rate to the nominal unpaid losses.


Section 8, Exhibit 8: Mortality Tables This exhibit displays the mortality tables used in our review. The mortality rates are based on the Deloitte Consulting study titled “Ohio Bureau of Workers’ Compensation, Documentation of 2010 Mortality Study” dated September 10, 2010. Section 8A The exhibits for Section 8A are identical to the exhibits for Section 8 but pertain to the unpaid loss liability as of December 31, 2013.

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 6/30/2013 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 93,756 93,756 0 100.0% 0 0.170 1994 57,739,505 82,235 82,235 0 100.0% 0 0.142 1995 60,949,772 79,593 79,594 1 98.1% 1 0.131 1996 63,664,000 72,137 72,141 4 97.1% 4 0.113 1997 68,077,000 77,116 77,126 10 96.1% 10 0.113 1998 71,447,000 85,813 85,836 22 95.1% 21 0.120 1999 75,244,663 94,233 94,272 40 94.0% 37 0.125 2000 79,122,396 103,444 103,518 74 93.6% 70 0.131 2001 80,396,857 108,645 108,769 123 92.9% 115 0.135 2002 81,621,352 118,217 118,410 192 92.0% 177 0.145 2003 82,433,234 119,259 119,552 293 91.7% 268 0.145 2004 84,632,753 115,079 115,509 430 91.6% 394 0.136 2005 86,912,307 115,811 116,428 617 91.0% 562 0.134 2006 90,822,757 107,530 108,359 829 90.7% 752 0.119 2007 93,702,820 100,286 101,411 1,125 90.6% 1,019 0.108 2008 93,449,349 89,881 91,336 1,456 90.4% 1,317 0.098 2009 86,544,195 77,038 78,756 1,718 90.1% 1,548 0.091 2010 86,654,516 82,145 84,892 2,747 90.3% 2,482 0.098 2011 90,275,208 78,501 83,055 4,554 91.3% 4,156 0.092 2012 94,226,147 70,969 82,235 11,266 93.8% 10,572 0.087 2013 48,526,466 18,754 44,567 25,812 96.7% 24,963 0.092 2014 0 0

TOTAL 2,692,242 2,743,557 51,315 94.5% 48,467

EXLD PRIOR 2,692,241 2,743,556 51,315 94.5% 48,467

(1) PROVIDED BY THE BWC; 2013 ADJUSTED TO PARTIAL YEAR(2) SECTION 1, EXHIBIT 1, SHEET 3, COL. 2(3) SECTION 1, EXHIBIT 1, SHEET 3, COL. 12; 2013 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 @ 6/30/2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 > 2031(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 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01996 4 3 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01997 10 6 3 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01998 22 11 7 4 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01999 40 15 12 7 4 1 0 0 0 0 0 0 0 0 0 0 0 0 0 02000 74 31 17 13 8 4 1 0 0 0 0 0 0 0 0 0 0 0 0 02001 123 45 32 17 14 8 5 2 0 0 0 0 0 0 0 0 0 0 0 02002 192 58 49 35 19 15 9 5 2 0 0 0 0 0 0 0 0 0 0 02003 293 98 59 50 36 19 15 9 5 2 0 0 0 0 0 0 0 0 0 02004 430 148 95 57 48 34 18 15 9 5 2 0 0 0 0 0 0 0 0 02005 617 184 149 96 57 49 35 19 15 9 5 2 0 0 0 0 0 0 0 02006 829 254 171 138 89 53 45 32 17 14 8 5 2 0 0 0 0 0 0 02007 1,125 349 238 160 130 83 50 42 30 16 13 8 4 1 0 0 0 0 0 02008 1,456 442 314 214 144 117 75 45 38 27 15 12 7 4 1 0 0 0 0 02009 1,718 489 374 266 181 122 99 64 38 32 23 12 10 6 3 1 0 0 0 02010 2,747 885 530 405 288 196 132 107 69 41 35 25 13 11 6 4 1 0 0 02011 4,554 1,788 891 533 408 290 198 133 108 69 41 35 25 13 11 6 4 1 0 02012 11,266 6,656 1,810 902 540 413 293 200 134 109 70 42 36 25 14 11 7 4 1 02013 25,812 58,249 7,167 1,949 971 581 444 316 215 145 117 76 45 38 27 15 12 7 4 1

TOTAL 51,315 69,712 11,918 4,848 2,937 1,986 1,419 987 680 469 329 215 142 99 63 37 23 12 5 1

(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 @ 6/30/13 @ 6/30/13 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 93,756 93,756 93,756 93,756 93,756 93,756 93,756 93,756 93,756 93,756 93,756 0.170 1994 57,739,505 82,235 82,268 82,235 82,268 82,235 82,268 82,236 82,245 82,236 82,235 82,235 0.142 1995 60,949,772 79,593 79,656 79,594 79,657 79,594 79,657 79,598 79,627 79,600 79,598 79,594 0.131 1996 63,664,000 72,137 72,172 72,141 72,175 72,141 72,175 72,153 72,182 72,153 72,152 72,141 0.113 1997 68,077,000 77,116 77,139 77,126 77,147 77,126 77,147 77,149 77,169 77,144 77,149 77,126 0.113 1998 71,447,000 85,813 85,863 85,836 85,870 85,836 85,870 85,873 85,939 85,884 85,874 85,836 0.120 1999 75,244,663 94,233 94,300 94,272 94,310 94,272 94,310 94,329 94,303 94,285 94,323 94,272 0.125 2000 79,122,396 103,444 103,541 103,518 103,557 103,518 103,557 103,605 103,697 103,637 103,589 103,518 0.131 2001 80,396,857 108,645 108,732 108,769 108,800 108,769 108,800 108,878 108,878 108,826 108,829 108,769 0.135 2002 81,621,352 118,217 118,343 118,410 118,425 118,410 118,425 118,538 118,535 118,484 118,451 118,410 0.145 2003 82,433,234 119,259 119,420 119,552 119,532 119,552 119,532 119,671 119,495 119,488 119,556 119,552 0.145 2004 84,632,753 115,079 115,230 115,509 115,376 115,510 115,376 115,579 115,280 115,310 115,476 115,509 0.136 2005 86,912,307 115,811 115,922 116,428 116,113 116,429 116,114 116,443 115,985 116,043 116,345 116,428 0.134 2006 90,822,757 107,530 107,748 108,359 108,031 108,360 108,032 108,263 108,043 108,216 108,210 108,359 0.119 2007 93,702,820 100,286 100,459 101,411 100,890 101,446 100,906 101,234 100,793 100,999 101,246 101,411 0.108 2008 93,449,349 89,881 90,117 91,336 90,646 91,346 90,653 91,041 90,551 90,866 91,087 91,336 0.098 2009 86,544,195 77,038 77,404 78,792 78,008 78,719 77,989 78,376 77,732 78,075 78,369 78,756 0.091 2010 86,654,516 82,145 82,828 84,935 83,841 84,848 83,822 84,336 83,429 83,964 84,388 84,892 0.098 2011 90,275,208 78,501 79,719 82,991 81,501 83,119 81,586 82,263 81,481 82,327 82,700 83,055 0.092 2012 94,226,147 70,969 76,822 81,781 80,110 82,690 80,460 80,319 80,838 82,271 81,792 82,235 0.087 2013 97,052,931 18,754 41,545 80,503 82,314 89,134 86,990 78,676 79,679 83,503 87,390 89,134 0.092 2014 99,964,519 94,966 94,966 94,966 0.095

TOTAL 2,692,242 2,724,782 2,779,054 2,774,129 2,883,572 2,874,193 1,972,316 1,969,638 1,977,067 1,982,512 2,883,090

EXLD PRIOR 2,692,241 2,724,782 2,779,054 2,774,129 2,883,572 2,874,193 1,972,316 1,969,638 1,977,067 1,982,512 2,883,089

EXLD PRIOR & 2014 2,692,241 2,724,782 2,779,054 2,774,129 2,788,606 2,779,227 1,972,316 1,969,638 1,977,067 1,982,512 2,788,122

(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 @ 6/30/13 LOSS LDF @ 6/30/13 LOSS RATE ldf(1) (2) (3) (4) (5)

1977 438 19,673 1.000 19,673 0.082 1978 426 22,681 1.000 22,681 0.087 1979 414 25,123 1.000 25,123 0.090 1980 402 24,877 1.000 24,877 0.086 1981 390 27,103 1.000 27,103 0.090 1982 378 27,928 1.000 27,928 0.093 1983 366 30,456 1.000 30,456 0.100 1984 354 38,247 1.000 38,247 0.115 1985 342 42,813 1.000 42,813 0.120 1986 330 49,905 1.000 49,905 0.130 1987 318 59,583 1.000 59,583 0.145 1988 306 71,389 1.000 71,389 0.161 1989 294 82,740 1.000 82,740 0.176 1990 282 76,095 1.000 76,095 0.153 1991 270 98,230 1.000 98,230 0.193 1992 258 104,955 1.000 104,955 0.199 1993 246 93,756 1.000 93,756 0.170 1994 234 82,235 1.000 82,235 0.142 1995 222 79,593 1.000 79,594 0.131 1996 210 72,137 1.000 72,141 0.113 1997 198 77,116 1.000 77,126 0.113 1998 186 85,813 1.000 85,836 0.120 1999 174 94,233 1.000 94,272 0.125 2000 162 103,444 1.001 103,518 0.131 2001 150 108,645 1.001 108,769 0.135 2002 138 118,217 1.002 118,410 0.145 2003 126 119,259 1.002 119,552 0.145 2004 114 115,079 1.004 115,509 0.136 2005 102 115,811 1.005 116,428 0.134 2006 90 107,530 1.008 108,359 0.119 2007 78 100,286 1.011 101,411 0.108 2008 66 89,881 1.016 91,336 0.098 2009 54 77,038 1.023 78,792 0.091 2010 42 82,145 1.034 84,935 0.098 2011 30 78,501 1.057 82,991 0.092 2012 18 70,969 1.152 81,781 0.087 2013 6 18,754 4.292 80,503 0.083 2014 0

TOTAL 2,692,241 2,779,054

(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 @ 6/30/13 LOSS LDF @ 6/30/13 LOSS RATE(1) (2) (3) (4) (5)

1977 438 19,673 1.000 19,673 0.082 1978 426 22,681 1.000 22,681 0.087 1979 414 25,123 1.000 25,123 0.090 1980 402 24,877 1.000 24,877 0.086 1981 390 27,103 1.000 27,103 0.090 1982 378 27,928 1.000 27,928 0.093 1983 366 30,456 1.000 30,456 0.100 1984 354 38,247 1.000 38,247 0.115 1985 342 42,813 1.000 42,813 0.120 1986 330 49,905 1.000 49,905 0.130 1987 318 59,583 1.000 59,583 0.145 1988 306 71,389 1.000 71,389 0.161 1989 294 82,740 1.000 82,740 0.176 1990 282 76,095 1.000 76,095 0.153 1991 270 98,230 1.000 98,230 0.193 1992 258 104,955 1.000 104,955 0.199 1993 246 93,756 1.000 93,756 0.170 1994 234 82,268 1.000 82,268 0.142 1995 222 79,656 1.000 79,657 0.131 1996 210 72,172 1.000 72,175 0.113 1997 198 77,139 1.000 77,147 0.113 1998 186 85,863 1.000 85,870 0.120 1999 174 94,300 1.000 94,310 0.125 2000 162 103,541 1.000 103,557 0.131 2001 150 108,732 1.001 108,800 0.135 2002 138 118,343 1.001 118,425 0.145 2003 126 119,420 1.001 119,532 0.145 2004 114 115,230 1.001 115,376 0.136 2005 102 115,922 1.002 116,113 0.134 2006 90 107,748 1.003 108,031 0.119 2007 78 100,459 1.004 100,890 0.108 2008 66 90,117 1.006 90,646 0.097 2009 54 77,404 1.008 78,008 0.090 2010 42 82,828 1.012 83,841 0.097 2011 30 79,719 1.022 81,501 0.090 2012 18 76,822 1.043 80,110 0.085 2013 6 41,545 1.981 82,314 0.085 2014 0

TOTAL 2,724,782 2,774,129

(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 93,756 0 93,756 0.170 1994 57,739,505 0.142 82,233 100.0% 82,233 82,235 0 82,235 0.142 1995 60,949,772 0.131 79,588 100.0% 79,587 79,593 1 79,594 0.131 1996 63,664,000 0.113 72,136 100.0% 72,132 72,137 4 72,141 0.113 1997 68,077,000 0.113 77,125 100.0% 77,115 77,116 10 77,126 0.113 1998 71,447,000 0.120 85,832 100.0% 85,810 85,813 22 85,836 0.120 1999 75,244,663 0.125 94,274 100.0% 94,234 94,233 40 94,272 0.125 2000 79,122,396 0.131 103,521 99.9% 103,447 103,444 74 103,518 0.131 2001 80,396,857 0.135 108,764 99.9% 108,640 108,645 123 108,769 0.135 2002 81,621,352 0.145 118,411 99.8% 118,219 118,217 192 118,410 0.145 2003 82,433,234 0.145 119,569 99.8% 119,276 119,259 293 119,552 0.145 2004 84,632,753 0.137 115,536 99.6% 115,106 115,079 430 115,510 0.136 2005 86,912,307 0.134 116,482 99.5% 115,865 115,811 618 116,429 0.134 2006 90,822,757 0.119 108,409 99.2% 107,579 107,530 829 108,360 0.119 2007 93,702,820 0.112 104,583 98.9% 103,423 100,286 1,160 101,446 0.108 2008 93,449,349 0.098 91,916 98.4% 90,451 89,881 1,465 91,346 0.098 2009 86,544,195 0.087 75,500 97.8% 73,819 77,038 1,681 78,719 0.091 2010 86,654,516 0.095 82,282 96.7% 79,578 82,145 2,704 84,848 0.098 2011 90,275,208 0.095 85,362 94.6% 80,744 78,501 4,618 83,119 0.092 2012 94,226,147 0.094 88,652 86.8% 76,932 70,969 11,720 82,690 0.088 2013 97,052,931 0.095 91,755 23.3% 21,376 18,754 70,379 89,134 0.092 2014 99,964,519 0.095 94,966 0.0% 94,966 94,966 0.095

TOTAL 2,892,450 2,701,119 2,692,241 191,331 2,883,572

(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% 104,954 104,955 0 104,955 0.199 1993 55,132,894 0.170 93,755 100.0% 93,755 93,756 0 93,756 0.170 1994 57,739,505 0.142 82,233 100.0% 82,233 82,268 0 82,268 0.142 1995 60,949,772 0.131 79,588 100.0% 79,586 79,656 2 79,657 0.131 1996 63,664,000 0.113 72,136 100.0% 72,133 72,172 3 72,175 0.113 1997 68,077,000 0.113 77,125 100.0% 77,117 77,139 8 77,147 0.113 1998 71,447,000 0.120 85,832 100.0% 85,825 85,863 7 85,870 0.120 1999 75,244,663 0.125 94,274 100.0% 94,263 94,300 11 94,310 0.125 2000 79,122,396 0.131 103,521 100.0% 103,505 103,541 16 103,557 0.131 2001 80,396,857 0.135 108,764 99.9% 108,696 108,732 68 108,800 0.135 2002 81,621,352 0.145 118,411 99.9% 118,328 118,343 83 118,425 0.145 2003 82,433,234 0.145 119,569 99.9% 119,456 119,420 112 119,532 0.145 2004 84,632,753 0.137 115,536 99.9% 115,390 115,230 147 115,376 0.136 2005 86,912,307 0.134 116,482 99.8% 116,291 115,922 192 116,114 0.134 2006 90,822,757 0.119 108,409 99.7% 108,124 107,748 284 108,032 0.119 2007 93,702,820 0.112 104,583 99.6% 104,136 100,459 447 100,906 0.108 2008 93,449,349 0.098 91,916 99.4% 91,380 90,117 536 90,653 0.097 2009 86,544,195 0.087 75,500 99.2% 74,915 77,404 585 77,989 0.090 2010 86,654,516 0.095 82,282 98.8% 81,288 82,828 994 83,822 0.097 2011 90,275,208 0.095 85,362 97.8% 83,495 79,719 1,866 81,586 0.090 2012 94,226,147 0.094 88,652 95.9% 85,014 76,822 3,638 80,460 0.085 2013 97,052,931 0.095 91,755 50.5% 46,310 41,545 45,445 86,990 0.090 2014 99,964,519 0.095 94,966 0.0% 94,966 94,966 0.095

TOTAL 2,892,450 2,743,039 2,724,782 149,411 2,874,193

(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 93,756 0.170 1994 57,739,505 184,714 1.000 184,714 445 1.000 445 82,236 0.142 1995 60,949,772 181,605 1.000 181,605 438 1.000 438 79,598 0.131 1996 63,664,000 162,310 1.000 162,310 444 1.000 445 72,153 0.113 1997 68,077,000 170,987 1.000 170,987 451 1.000 451 77,149 0.113 1998 71,447,000 172,455 1.000 172,455 498 1.001 498 85,873 0.120 1999 75,244,663 167,055 1.000 167,056 564 1.001 565 94,329 0.125 2000 79,122,396 162,952 1.000 162,953 635 1.002 636 103,605 0.131 2001 80,396,857 140,212 1.000 140,213 775 1.002 777 108,878 0.135 2002 81,621,352 131,298 1.000 131,299 900 1.003 903 118,538 0.145 2003 82,433,234 119,157 1.000 119,159 1,001 1.003 1,004 119,671 0.145 2004 84,632,753 113,229 1.000 113,232 1,016 1.004 1,021 115,579 0.137 2005 86,912,307 108,140 1.000 108,144 1,071 1.005 1,077 116,443 0.134 2006 90,822,757 98,489 1.000 98,495 1,092 1.007 1,099 108,263 0.119 2007 93,702,820 90,443 1.000 90,464 1,109 1.009 1,119 101,234 0.108 2008 93,449,349 77,927 1.001 77,974 1,153 1.012 1,168 91,041 0.097 2009 86,544,195 60,751 1.001 60,805 1,268 1.016 1,289 78,376 0.091 2010 86,654,516 64,135 1.001 64,217 1,281 1.025 1,313 84,336 0.097 2011 90,275,208 65,357 1.003 65,538 1,201 1.045 1,255 82,263 0.091 2012 94,226,147 64,691 1.014 65,608 1,097 1.116 1,224 80,319 0.085 2013 97,052,931 22,665 2.804 63,557 827 1.496 1,238 78,676 0.081 2014

TOTAL 2,550,158 2,592,374 1,972,316

(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 4, COL. 2 / (2) x 1000



MEDICAL SHEET 9MEDICAL ONLY

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

YEAR 6 18 30 42 54 66 78 90 102 114 126 138 150 162 174 186 198 210 222 234 246 258 270 282 294 306 318 330 342 354 366 378 390 402 414 426 438 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 1 0 93,756 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 11 10 0 82,245 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 23 18 16 0 79,627 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 22 18 14 13 0 72,182 1997 5,872 50,032 13,133 2,981 1,758 1,178 842 504 349 146 90 53 48 54 36 20 21 17 14 11 10 0 77,169 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 35 36 29 24 19 17 0 85,939 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 25 15 15 13 11 8 7 0 94,303 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 76 67 41 41 33 28 22 20 0 103,697 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 57 54 48 29 29 24 20 15 14 0 108,878 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 92 62 59 52 32 32 26 22 17 15 0 118,535 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 80 53 36 34 30 18 18 15 13 10 9 0 119,495 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 74 51 34 23 22 19 12 12 10 8 6 6 0 115,280 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 80 47 32 21 14 14 12 7 7 6 5 4 4 0 115,985 2006 24,317 67,106 9,923 3,503 1,711 419 284 268 161 94 65 43 29 28 25 15 15 12 10 8 7 0 108,043 2007 23,085 65,334 8,376 2,270 635 316 271 174 104 61 42 28 19 18 16 10 10 8 7 5 5 0 100,793 2008 22,967 57,611 6,746 1,647 567 344 234 150 90 53 36 24 16 16 14 8 8 7 6 4 4 0 90,551 2009 19,408 50,776 5,304 1,096 454 235 160 103 62 36 25 16 11 11 9 6 6 5 4 3 3 0 77,732 2010 20,565 54,862 5,506 1,211 508 263 179 115 69 40 28 18 13 12 11 6 6 5 4 3 3 0 83,429 2011 19,622 53,348 5,531 1,446 606 315 214 137 82 48 33 22 15 14 13 8 8 6 5 4 4 0 81,481 2012 18,571 52,398 6,414 1,677 703 365 248 159 96 56 39 26 17 17 15 9 9 7 6 5 4 0 80,838 2013 18,754 51,269 6,275 1,640 688 357 243 156 93 55 38 25 17 16 14 9 9 7 6 5 4 0 79,679

TailFactors 2.734 0.122 0.261 0.419 0.519 0.680 0.642 0.601 0.586 0.689 0.663 0.678 0.953 0.882 0.604 1.007 0.815 0.843 0.768 0.910 1.000

Example: AY 2008 Age 78 of 234 = 344 x 0.680 and AY 2008 Age 90 of 150 = 234 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 1 - 93,756 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 11 - 82,235 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 23 5 - 79,598 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 22 10 5 - 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 21 17 12 5 - 77,149 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 35 24 18 12 6 - 85,874 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 25 28 25 19 13 6 - 94,323 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 76 51 29 26 20 13 6 - 103,589 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 57 51 46 27 23 18 12 6 - 108,829 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 92 51 51 46 27 23 18 12 6 - 118,451 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 80 70 49 49 45 26 23 17 12 5 - 119,556 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 74 97 71 50 50 45 26 23 17 12 5 - 115,476 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 80 130 98 72 50 51 46 27 23 18 12 6 - 116,345 2006 24,317 67,106 9,923 3,503 1,711 419 284 268 162 126 95 70 49 49 45 26 23 17 12 5 - 108,210 2007 23,085 65,334 8,376 2,270 635 316 271 295 158 124 93 69 48 48 44 25 22 17 12 5 - 101,246 2008 22,967 57,611 6,746 1,647 567 344 325 271 145 114 86 63 44 44 40 23 20 15 11 5 - 91,087 2009 19,408 50,776 5,304 1,096 454 329 270 225 121 94 71 52 36 37 33 19 17 13 9 4 - 78,369 2010 20,565 54,862 5,506 1,211 746 370 304 253 136 106 80 59 41 41 38 22 19 14 10 4 - 84,388 2011 19,622 53,348 5,531 1,760 811 402 330 275 148 115 87 64 45 45 41 24 21 16 11 5 - 82,700 2012 18,571 52,398 6,347 1,876 865 429 352 293 157 123 93 68 47 48 43 25 22 17 11 5 - 81,792 2013 18,754 57,253 6,675 1,973 910 451 370 309 166 129 98 72 50 50 46 27 23 18 12 5 - 87,390

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 13




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 1 0 93,756 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 11 1 0 82,236 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 23 6 0 0 79,600 1996 8,893 46,389 8,772 3,501 1,491 967 683 473 382 206 125 74 48 30 35 25 21 22 12 3 0 0 72,153 1997 5,872 50,032 13,133 2,981 1,758 1,178 842 504 349 146 90 53 48 54 36 20 21 17 9 3 0 0 77,144 1998 11,618 56,326 10,158 3,153 1,564 1,157 722 419 200 129 87 71 49 47 76 35 30 24 13 4 0 0 85,884 1999 15,114 58,576 11,521 3,704 2,035 1,203 775 475 356 147 133 65 56 46 25 17 15 12 6 2 0 0 94,285 2000 17,800 63,643 13,390 3,959 1,751 1,062 650 372 246 206 134 99 55 76 63 43 37 29 16 4 0 0 103,637 2001 19,009 70,455 11,992 3,491 1,524 921 473 282 208 118 62 55 57 51 42 29 25 19 11 3 0 0 108,826 2002 22,281 77,975 11,431 3,068 1,414 648 550 341 178 143 97 92 64 57 47 33 28 22 12 3 0 0 118,484 2003 26,799 75,924 11,075 2,653 951 569 619 321 155 114 80 59 41 37 30 21 18 14 8 2 0 0 119,488 2004 25,963 74,991 9,858 1,956 871 473 406 313 175 74 60 44 30 27 23 16 13 10 6 2 0 0 115,310 2005 26,726 74,773 8,732 2,725 1,320 833 350 272 80 56 45 33 23 21 17 12 10 8 4 1 0 0 116,043 2006 24,317 67,106 9,923 3,503 1,711 419 284 268 175 124 100 74 51 46 38 26 22 17 10 3 0 0 108,216 2007 23,085 65,334 8,376 2,270 635 316 271 201 131 92 75 55 38 34 28 19 16 13 7 2 0 0 100,999 2008 22,967 57,611 6,746 1,647 567 344 271 201 131 92 75 55 38 34 28 20 16 13 7 2 0 0 90,866 2009 19,408 50,776 5,304 1,096 454 268 212 157 102 72 58 43 30 27 22 15 13 10 6 2 0 0 78,075 2010 20,565 54,862 5,506 1,211 554 328 258 191 125 88 71 52 36 33 27 19 16 12 7 2 0 0 83,964 2011 19,622 53,348 5,531 1,529 699 414 326 241 158 111 90 66 46 41 34 23 20 16 9 2 0 0 82,327 2012 18,571 52,398 6,681 1,846 844 500 394 292 190 134 109 80 56 50 41 28 24 19 11 3 0 0 82,271 2013 18,754 53,261 6,791 1,877 858 508 400 296 194 136 110 81 56 51 42 29 24 19 11 3 0 0 83,503

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 + 35 XX + 366.0% 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% 0.0%

TailFactors 2.679 0.120 0.261 0.431 0.558 0.744 0.698 0.616 0.665 0.763 0.694 0.656 0.849 0.780 0.647 0.798 0.745 0.523 0.261 0.068 1.000

Example: AY 2008 Age 78 of 271 = 344 x 0.744 x (1.0 + 6.0%) and AY 2008 Age 90 of 201 = 271 x 0.698 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 3.830 91,342,094 1.000 0.344 1978 26,143,240 3.598 94,055,825 1.000 0.344 1979 28,061,666 3.336 93,613,387 1.000 0.344 1980 28,979,182 3.102 89,907,689 1.000 0.344 1981 30,141,508 2.858 86,152,091 1.000 0.344 1982 30,058,966 2.718 81,686,001 1.000 0.344 1983 30,607,324 2.602 79,648,938 1.000 0.344 1984 33,121,678 2.480 82,134,435 1.000 0.344 1985 35,713,654 2.396 85,578,631 1.000 0.344 1986 38,297,697 2.338 89,545,683 1.000 0.344 1987 41,065,403 2.262 92,902,249 1.000 0.344 1988 44,221,964 2.161 95,580,917 1.000 0.344 1989 47,110,000 2.114 99,591,072 1.000 0.344 1990 49,659,895 2.039 101,254,967 1.000 0.344 1991 50,856,501 1.979 100,654,884 1.000 0.344 1992 52,804,448 1.879 99,199,664 1.000 0.344 1993 55,132,894 1.846 101,763,581 191,586 1.000 191,586 34.750% 18.827% 0.344 6.482% 34.750% 191,586 191,586 34.750%1994 57,739,505 1.786 103,144,617 184,714 1.000 184,714 31.991% 17.908% 0.359 6.423% 31.991% 184,713 184,714 31.991%1995 60,949,772 1.737 105,860,639 181,605 1.000 181,605 29.796% 17.155% 0.374 6.409% 29.796% 181,604 181,605 29.796%1996 63,664,000 1.681 107,011,928 162,310 1.000 162,310 25.495% 15.167% 0.389 5.903% 25.495% 162,310 162,310 25.495%1997 68,077,000 1.609 109,565,780 170,987 1.000 170,987 25.117% 15.606% -5.3% 0.405 6.326% 25.117% 170,987 170,987 25.117%1998 71,447,000 1.535 109,703,410 172,455 1.000 172,455 24.138% 15.720% -3.5% 0.422 6.638% 24.138% 172,455 172,455 24.137%1999 75,244,663 1.486 111,784,761 167,055 1.000 167,056 22.202% 14.944% -2.4% 0.440 6.574% 22.202% 167,056 167,056 22.202%2000 79,122,396 1.436 113,612,761 162,952 1.000 162,953 20.595% 14.343% -1.5% 0.458 6.572% 20.595% 162,953 162,953 20.595%2001 80,396,857 1.404 112,872,903 140,212 1.000 140,213 17.440% 12.422% -5.3% 0.495 6.153% 17.440% 140,213 140,213 17.440%2002 81,621,352 1.369 111,762,597 131,298 1.000 131,299 16.086% 11.748% -7.4% 0.536 6.291% 16.086% 131,299 131,299 16.086%2003 82,433,234 1.332 109,823,635 119,157 1.000 119,159 14.455% 10.850% -8.1% 0.579 6.282% 14.455% 119,159 119,159 14.455%2004 84,632,753 1.284 108,674,619 113,229 1.000 113,232 13.379% 10.419% -7.5% 0.626 6.521% 13.379% 113,233 113,232 13.379%2005 86,912,307 1.253 108,922,029 108,140 1.000 108,144 12.443% 9.929% -5.5% 0.677 6.718% 12.443% 108,144 108,144 12.443%2006 90,822,757 1.210 109,940,677 98,489 1.000 98,495 10.845% 8.959% -6.1% 0.731 6.553% 10.845% 98,498 98,495 10.845%2007 93,702,820 1.171 109,685,990 90,443 1.000 90,464 9.654% 8.248% -6.8% 0.791 6.522% 9.655% 90,472 90,464 9.654%2008 93,449,349 1.148 107,266,594 77,927 1.001 77,974 8.344% 7.269% -8.7% 0.920 6.684% 8.344% 77,971 77,974 8.344%2009 86,544,195 1.149 99,469,136 60,751 1.001 60,805 7.026% 6.113% -11.1% 1.069 6.536% 7.026% 60,807 60,805 7.026%2010 86,654,516 1.125 97,450,013 64,135 1.001 64,217 7.411% 6.590% -8.7% 0.990 6.524% 7.410% 64,212 64,217 7.411%2011 90,275,208 1.093 98,646,157 65,357 1.003 65,538 7.260% 6.644% -5.2% 0.995 6.611% 7.260% 65,542 65,538 7.260%2012 94,226,147 1.061 99,964,519 64,691 1.014 65,608 6.963% 6.563% -1.2% 1.000 6.563% 6.949% 65,477 65,607 6.963%2013 97,052,931 1.030 99,964,519 22,665 2.804 63,557 6.549% 6.358% 0.7% 1.000 6.358% 6.747% 65,477 64,792 6.676%2014 99,964,519 1.000 99,964,519 0 1.000 6.550% 65,477 65,477 6.550%

TOTAL 2,550,158 2,592,374 2,659,643 2,659,082

7 Year Average excluding 2013 6.571%10 Year Average excluding 2013 6.551%

5 Year Average excluding 2011-2013 6.564%10 Year Average excluding 2011-2013 6.479%

2006-2011 Average excluding 2009 6.579%

(16) 2014 Selected Frequency 6.550%

(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% 93,756 489 0.170 1994 57,739,505 184,714 31.99% 82,235 445 0.142 1995 60,949,772 181,605 29.80% 79,594 438 0.131 1996 63,664,000 162,310 25.49% 72,141 444 0.113 1997 68,077,000 170,987 25.12% 77,126 451 0.113 1998 71,447,000 172,455 24.14% 85,836 498 0.120 1999 75,244,663 167,056 22.20% 94,272 564 0.125 2000 79,122,396 162,953 20.60% 103,518 635 0.131 2001 80,396,857 140,213 17.44% 108,769 776 0.135 2002 81,621,352 131,299 16.09% 118,410 902 0.145 2003 82,433,234 119,159 14.46% 119,552 1,003 0.145 2004 84,632,753 113,232 13.38% 115,509 1,020 0.136 2005 86,912,307 108,144 12.44% 116,428 1,077 0.134 2006 90,822,757 98,495 10.84% 108,359 1,100 0.119 2007 93,702,820 90,464 9.65% 101,411 1,121 0.108 2008 93,449,349 77,974 8.34% 91,336 1,171 0.098 2009 86,544,195 60,805 7.03% 78,756 1,295 0.091 2010 86,654,516 64,217 7.41% 84,892 1,322 0.098 2011 90,275,208 65,538 7.26% 83,055 1,267 0.092 2012 94,226,147 65,607 6.96% 82,235 1,253 0.087 2013 97,052,931 64,792 6.68% 89,134 1,376 0.092 2014 65,477 94,966 1,450

TOTAL 2,659,082 2,883,089

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

PRIOR 1 1 1 0 0 0 0 1 1 01977 19,673 19,673 19,673 0 438 426 1.000 1.000 100.0% 0 0 0 19,673 19,673 01978 22,681 22,681 22,681 0 426 414 1.000 1.000 100.0% 0 0 0 22,681 22,681 01979 25,123 25,123 25,123 0 414 402 1.000 1.000 100.0% 0 0 0 25,123 25,123 01980 24,877 24,877 24,877 0 402 390 1.000 1.000 100.0% 0 0 0 24,877 24,877 01981 27,103 27,103 27,103 0 390 378 1.000 1.000 100.0% 0 0 0 27,103 27,103 01982 27,928 27,928 27,928 0 378 366 1.000 1.000 100.0% 0 0 0 27,928 27,928 (0)1983 30,456 30,456 30,456 0 366 354 1.000 1.000 100.0% 0 0 0 30,456 30,456 01984 38,247 38,247 38,247 0 354 342 1.000 1.000 100.0% 0 0 0 38,247 38,247 01985 42,813 42,813 42,813 0 342 330 1.000 1.000 100.0% 0 0 0 42,813 42,813 01986 49,905 49,905 49,905 0 330 318 1.000 1.000 100.0% 0 0 0 49,905 49,905 01987 59,583 59,583 59,583 0 318 306 1.000 1.000 100.0% 0 0 0 59,583 59,583 01988 71,389 71,389 71,389 0 306 294 1.000 1.000 100.0% 0 0 0 71,389 71,389 01989 82,740 82,740 82,740 0 294 282 1.000 1.000 100.0% 0 0 0 82,740 82,740 01990 76,095 76,095 76,095 0 282 270 1.000 1.000 100.0% 0 0 0 76,095 76,095 01991 98,230 98,230 98,230 0 270 258 1.000 1.000 100.0% 0 0 0 98,230 98,230 01992 104,955 104,955 104,955 0 258 246 1.000 1.000 100.0% 0 0 0 104,955 104,955 01993 93,756 93,755 93,755 0 246 234 1.000 1.000 100.0% 0 1 1 93,756 93,755 11994 82,235 82,224 82,225 0 234 222 1.000 1.000 100.0% 0 11 11 82,235 82,225 111995 79,593 79,570 79,572 3 222 210 1.000 1.000 91.0% 2 23 21 79,594 79,572 211996 72,137 72,115 72,124 9 210 198 1.000 1.000 71.4% 6 22 16 72,141 72,124 171997 77,116 77,095 77,118 24 198 186 1.000 1.000 61.5% 15 21 6 77,126 77,118 71998 85,813 85,778 85,819 41 186 174 1.000 1.000 35.9% 15 35 21 85,836 85,819 161999 94,233 94,207 94,289 82 174 162 1.000 1.001 44.4% 36 25 (11) 94,272 94,289 (17)2000 103,444 103,367 103,509 142 162 150 1.001 1.001 36.6% 52 76 25 103,518 103,509 92001 108,645 108,588 108,803 215 150 138 1.001 1.002 30.7% 66 57 (9) 108,769 108,803 (35)2002 118,217 118,126 118,454 328 138 126 1.002 1.003 28.8% 94 92 (3) 118,410 118,454 (44)2003 119,259 119,180 119,645 466 126 114 1.003 1.004 28.8% 134 80 (55) 119,552 119,645 (93)2004 115,079 115,005 115,623 618 114 102 1.004 1.005 27.2% 168 74 (94) 115,509 115,623 (114)2005 115,811 115,731 116,600 869 102 90 1.005 1.008 28.3% 246 80 (166) 116,428 116,600 (172)2006 107,530 107,262 108,413 1,151 90 78 1.008 1.011 29.9% 344 268 (75) 108,359 108,413 (54)2007 100,286 100,015 101,594 1,579 78 66 1.011 1.016 31.7% 500 271 (229) 101,411 101,594 (183)2008 89,881 89,537 91,536 1,999 66 54 1.016 1.022 27.4% 548 344 (204) 91,336 91,536 (199)2009 77,038 76,584 79,182 2,598 54 42 1.022 1.034 35.1% 913 454 (459) 78,756 79,182 (426)2010 82,145 80,934 85,720 4,786 42 30 1.034 1.059 41.1% 1,965 1,211 (754) 84,892 85,720 (828)2011 78,501 72,970 84,584 11,614 30 18 1.059 1.155 58.2% 6,758 5,531 (1,227) 83,055 84,584 (1,529)2012 70,969 18,571 87,108 68,536 18 6 1.155 4.301 82.5% 56,574 52,398 (4,176) 82,235 87,108 (4,872)2013 18,754 91,976 91,976 6 4.301 23.2% 21,384 18,754 (2,630) 89,134 91,976 (2,843)2014 0.0% 0 0

TOTAL 2,692,242 2,612,414 2,799,449 187,036 89,820 79,828 (9,992) 2,788,123 2,799,449 (11,326)

EXLD PRIOR 2,692,241 2,612,413 2,799,449 187,036 89,820 79,828 (9,992) 2,788,122 2,799,449 (11,326)

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

PRIOR1977 19,673 19,673 19,673 0 438 426 1.000 1.000 100.0% 0 0 0 19,673 19,673 01978 22,681 22,681 22,681 0 426 414 1.000 1.000 100.0% 0 0 0 22,681 22,681 01979 25,123 25,123 25,123 0 414 402 1.000 1.000 100.0% 0 0 0 25,123 25,123 01980 24,877 24,877 24,877 0 402 390 1.000 1.000 100.0% 0 0 0 24,877 24,877 01981 27,103 27,103 27,103 0 390 378 1.000 1.000 100.0% 0 0 0 27,103 27,103 01982 27,928 27,928 27,928 0 378 366 1.000 1.000 100.0% 0 0 0 27,928 27,928 (0)1983 30,456 30,456 30,456 0 366 354 1.000 1.000 100.0% 0 0 0 30,456 30,456 01984 38,247 38,247 38,247 0 354 342 1.000 1.000 100.0% 0 0 0 38,247 38,247 01985 42,813 42,813 42,813 0 342 330 1.000 1.000 100.0% 0 0 0 42,813 42,813 01986 49,905 49,905 49,905 0 330 318 1.000 1.000 100.0% 0 0 0 49,905 49,905 01987 59,583 59,583 59,583 0 318 306 1.000 1.000 100.0% 0 0 0 59,583 59,583 01988 71,389 71,389 71,389 0 306 294 1.000 1.000 100.0% 0 0 0 71,389 71,389 01989 82,740 82,740 82,740 0 294 282 1.000 1.000 100.0% 0 0 0 82,740 82,740 01990 76,095 76,095 76,095 0 282 270 1.000 1.000 100.0% 0 0 0 76,095 76,095 01991 98,230 98,230 98,230 0 270 258 1.000 1.000 37.4% 0 0 0 98,230 98,230 01992 104,955 104,955 104,955 0 258 246 1.000 1.000 -24.3% 0 0 0 104,955 104,955 01993 93,756 93,755 93,755 (0) 246 234 1.000 1.000 -688.3% 3 1 (3) 93,756 93,755 11994 82,268 82,256 82,225 (32) 234 222 1.000 1.000 128.7% (41) 11 52 82,235 82,225 111995 79,656 79,637 79,572 (64) 222 210 1.000 1.000 85.1% (55) 19 74 79,594 79,572 211996 72,172 72,162 72,124 (38) 210 198 1.000 1.000 118.9% (46) 10 56 72,141 72,124 171997 77,139 77,134 77,118 (16) 198 186 1.000 1.000 516.5% (81) 5 86 77,126 77,118 71998 85,863 85,832 85,819 (13) 186 174 1.000 1.000 60.1% (8) 30 38 85,836 85,819 161999 94,300 94,294 94,289 (5) 174 162 1.000 1.000 217.4% (11) 5 17 94,272 94,289 (17)2000 103,541 103,458 103,509 51 162 150 1.000 1.000 95.2% 49 83 35 103,518 103,509 92001 108,732 108,705 108,803 98 150 138 1.000 1.000 6.0% 6 27 21 108,769 108,803 (35)2002 118,343 118,255 118,454 199 138 126 1.000 1.001 29.6% 59 88 29 118,410 118,454 (44)2003 119,420 119,387 119,645 258 126 114 1.001 1.001 43.5% 112 33 (80) 119,552 119,645 (93)2004 115,230 115,193 115,623 430 114 102 1.001 1.002 30.1% 129 36 (93) 115,509 115,623 (114)2005 115,922 115,890 116,600 710 102 90 1.002 1.003 37.8% 268 32 (236) 116,428 116,600 (172)2006 107,748 107,572 108,413 841 90 78 1.003 1.004 41.3% 347 176 (171) 108,359 108,413 (54)2007 100,459 100,290 101,594 1,304 78 66 1.004 1.006 30.6% 399 169 (230) 101,411 101,594 (183)2008 90,117 90,049 91,536 1,487 66 54 1.006 1.009 24.8% 369 68 (301) 91,336 91,536 (199)2009 77,404 77,170 79,182 2,011 54 42 1.009 1.014 38.6% 777 233 (544) 78,756 79,182 (426)2010 82,828 82,336 85,720 3,384 42 30 1.014 1.024 41.4% 1,401 492 (909) 84,892 85,720 (828)2011 79,

(Based on Data Evaluated as of June 30, 2013)...Unpaid Loss & LAE as of June 30, 2013 (Based on Data...

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