Ten Year Summary -- Financial Highlights | Ten Year Summary -- GAAP Consolidated Operating Results

Ten Year Summary -- GAAP Consolidated Operating Results

(unaudited -- not covered by report of independent accountants)

All share and per share amounts were adjusted for the April 22, 2002, 3-for-1 stock split.

1) Amount represents change in unearned premiums reserve less change in prepaid reinsurance premiums.

2) In 1994, the "supplemental reserve" was eliminated, resulting in a one-time decrease to losses and loss adjustment expenses of $71.0 million, or $.21 per share.

3) 2000 reflects a foreign currency translation loss; 1993 reflects a charge on debt extinguishments.

4) 1999 reflects a gain on the sale of the corporate aircraft.

5) Reflects investment expenses after taxes and other tax adjustments.

6) Defined as net income excluding net realized gains/losses on securities and nonrecurring items. This is a non-GAAP disclosure.

7) Presented on a diluted basis. In 1997, the Company adopted SFAS 128, "Earnings Per Share," and, as a result, restated prior periods per share amounts, if applicable.

8) Other nonrecurring items consist of the following pretax items:
2001: $2.1 million of severance and other costs related to the Company's reduction in force in New York.
2000: $20.0 million accrual related to the estimated cost of terminating a strategic alliance relationship; $3.2 million additional expense associated with the termination of the Company's defined benefit pension plan; and $1.7 million of severance costs associated with the Company's reorganization at the general manager level.
1999: $7.5 million additional expenses associated with previous advertising commitments that will no longer be realized due to changes in marketing strategy; and $1.2 million reserve for the wind-down of the Company's Canadian operations.
1993: $.9 million charge from the early adoption of SFAS 112, "Employer's Accounting for Postemployment Benefits;" a $1.5 million benefit from the curtailment of the defined benefit pension plan; and $2.1 million benefit from the retroactive tax impact of the Omnibus Budget Reconciliation Act of 1993.

9) Excludes $.01 per share associated with the excess preferred stock liquidation price over the carrying value at the date of redemption.

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