Federated Update

Chad OgrenSales Manager

Federated Rural Electric Insurance Exchange

Year End Through June 2009 2010

Total Assets $351.7 Million $379.1 Million

Surplus $109.9 Million $112.9 Million

Net Margins $ 12.5 Million $ 8.5 Million

Combined Loss & Expense Ratio 100.9% 98.4%

Overhead Expense Ratio 15.2% 14.9%

Finance Update

Claims Update

We received 6,171 new claims through June, 2010.

2010 claim counts are down 8% Included in the new claims reported

are 55 public contact claims with 15 fatalities.

We encourage you to take advantage of the materials that are available to members of the Safe Electricity program.

www.safeelectricity.org

The WC Group Retention Program is about keeping people on the job and keeping them safe. If successful, group members share in the rewards.

Since becoming a group retention member in 2004, ALEC members have earned dividends totaling $1.1 million.

WC Group Retention Program

We encourage everyone to share their “Never Again” incidents with their peers.

Federated Information Security Liability ProgramIs Your Data Safe?

Loss Control ContributionsEach year Federated sets aside a portion of our members’ premiums to be returned to statewide associations in support of the safety and training programs provided.

Countrywide $2.3 Million

ALEC $ 80,221

Thank You