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COMPANY/GROUP MARKET SHARE CUMULATIVE RATE CHANGE State Fund 51% -38.03%

California’s Workers’ Compensation-Completing the Reform DWC 13 th Annual Educational Conference: L.A. March 1 & 2, Oakland March 6 & 7, 2006. Aggregate Rate Change Data for the CA Workers’ Compensation Industry (Cumulative Post Reform Rate Changes as of 1/1/06).

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COMPANY/GROUP MARKET SHARE CUMULATIVE RATE CHANGE State Fund 51% -38.03%

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  1. California’s Workers’ Compensation-Completing the Reform DWC 13th Annual Educational Conference:L.A. March 1 & 2, Oakland March 6 & 7, 2006

  2. Aggregate Rate Change Data for the CA Workers’ Compensation Industry(Cumulative Post Reform Rate Changes as of 1/1/06) • CDI Commissioner Approved cumulative Pure Premium Rate Reductions -46.24% • State Compensation Insurance Fund cumulative Filed Rate Reductions -38.03% • CA Workers’ Comp. Industry cumulative Filed Rate Reductions -37.70% • CA Workers’ Comp. Industry Actual Net Rate Reductions reported by WCIRB as of 9/30/05 -31.57%

  3. Filed Rate Changes for Top 10 Groups for 1/1/06 Renewals(Cumulative Post Reform Rate Filings as of 1/1/06) COMPANY/GROUPMARKET SHARE CUMULATIVE RATE CHANGE • State Fund 51% -38.03% • AIG Group 6.8% -32.83% • Farmers/Zurich 5% -43.51% • Zenith 4.6% -32.32% • St.Paul/Travelers 3.7% -41.08% • Everest National 3% -36.36% • Grt.Am/Republic 2.1% -50.14% • Virginia Surety 2% -29.80% • Liberty Mutual 1.9% -43.17% • Clarendon 1.8% -36.46%

  4. Newly Authorized Workers’ Compensation Insurers since AB 227, SB 228, SB 899 Determined by initial Rate Filing or Certificate of Authority Applications, as of 2/27/06) COMPANY / GROUP NAME DATE OF ADMISSION • 1. Norguard Group 2/2/04 • 2. Employers Reinsurance Corp. 7/28/04 • 3. National Liability & Fire Insurance Co 9/24/04 • 4. Compwest Insurance Company 10/4/04 • 5. Farmers Reinsurance Company 11/16/04 • 6. California Insurance Company 12/23/04 • 7. Berkley Regional Insurance Company 1/13/05 • 8. TNUS Insurance Company 1/14/05 • 9. Partner Reinsurance Company 2/15/05 • 10. SUA Insurance Company 5/9/05 • 11. Western United Insurance Company 7/29/05 • 12. Insurance Corporation of Hannover 8/30/05 • 13. Midwest Employers Casualty Company 12/30/05 • 14. Endurance Reinsurance Corp. of America 1/6/06 • 15. Great Divide Insurance Company 2/16/06

  5. Pending Applications for New Workers’ Compensation Insurers since passage of AB 227, SB 228, SB 899 Determined by initial Rate Filing or Certificate of Authority Applications, as of 2/27/06) COMPANY NAME DATE OF APPLICATION • 1. Cornerstone Compensation Insurance Company 3/2/05 • 2. Advantage Workers’ Compensation Insurance Company 3/9/05 • 3. Lincoln General Insurance Company 6/13/05 • 4. Financial Pacific Insurance Company 10/20/05 • 5. Nova Casualty Company 2/24/06 • 6. Memic Indemnity Company 2/27/06

  6. Average Rate Per $100 of Payroll California Dept. of Insurance As of 1/1/06 Source: WCIRB & CDI Filings

  7. California Workers’ Comp. Direct Written Premium Calendar Year California Dept of Insurance As of 9/30/05 Source: WCIRB

  8. California Workers’ Comp. Estimated Ultimate Losses Accident Year Source: NAIC California Dept. of Insurance As of 12/31/03

  9. California Workers’ Compensation Loss Ratios California Dept. of Insurance As of 9/30/05 Source: WCIRB

  10. California Workers’ Comp. Average Loss Severity Estimated Ultimate Loss Per Claim Includes impact of AB 227, SB 228, SB 899. California Dept. of Insurance Source: WCIRB

  11. California Workers’ Compensation Claim Frequency California Dept. of Insurance Source: WCIRB

  12. California Seasonally Adjusted Civilian Employment California Department of Insurance As Of 1/24/06 Source: Employment Development Dept.

  13. California Workers’ Compensation Accident Year Combined Ratio underOpen-Rating 1995-2004 California Department of Insurance As of 12/31/03 Source: WCIRB

  14. Comparison Shop on the internet • Comparison Shop on the internet • www.insurance.ca.gov - Click on “Consumers”, “Compare Premiums”, “Information on the CA workers compensation rate comparison”, & click on the range of class codes that contains your governing class code. For example if your class code is 8810, click on codes 8001-9000, then click on the blue “Class Code Search” link. In the search PDF field, type in 8810 and click on the “search” button. Once the search is complete, click on the “Hide” button to enlarge the rate pages. Click on the Back button and go back to the Cal WC Rate Comparison main page, and click on “Check your insurance company’s profile” link to obtain the phone number of the company. Ask the company for a quote, or for an authorized broker that may provide a quote. If the quote is too high, select another company from the list. Check company licenses and broker licenses. Check financial stability ratings. • Many companies have their own websites and can provide on-line quotes.

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