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RELIANCE IN'SURANCE COMPANY PHILADELPHIA, PENNSYLVANIA FINANCIAL STATEMENT DECEMBER 31,1997 ASSETS Cash and Short Term Investments."".."."".".."..""""..""..."""...""....."""""."""".".",,,,,,,,,,,.$ 366,69B,335 Seourltles (Long Torm)....,,, "................................."...",.".............."."."..,,,,,.........,,.,,,,.,,......, ",.. 4,02B,534,730 Premium Balanoes .."......................"..".................."......""...,.."..".....,,, ......."....."",,,........,,,, "" 7B5,004,014 Aoorued Interest and Dividends ... ... ..".."........"............,,,,,......,.........,,,,,,,,..,........."."".".....""." 35.419,400 Federal Income Taxes........................."..........."........"...............,..,......"" ".........,,,..;,,,,,....,,.....,, 37,405,343 Othar Assets................."......."."......"........"....."......".,.."....."..""."......."".,...,..""."".".."..."... 373.6QQ&~Q Total Admitted Assets.............."......"..........".............,............"........"..................",..."..,.... $ 2,626.660.424 LIABILITIES Losses and Loss Adjustment Expense......""...."..."........"..........................".."...."......"........... $2.632,735.351 Unearned Premiums.....,...................................................,..........,................................................ 90B,438.552 Olher Taxes ........... ........................... .................... ................. ...."....... ......."....... ,...............,........ 12.4BB,219 Other Liabilities.....................................,.................................................,..................................... _..?71.5B5A_ZJ Total Liabilities...................................................................................................................... $ 4.325.24 7 .593 CAPITAL AND SURPLUS Capital Stock....................................... "................................................................................... .... $ 44,5B6,703 Surplus......................................................................................................................................... J .256.826.12!l Total Policyholders' Surplus .."......................................",,,........,,....,,.,,,,,,,,,,,,,,,,,,,......,,,,.... 1 .301.412.B3.1 Total Liabilities, Capital and Surplus .................""""........................"""...,...............,..".",,$5.62!l.660.424 State of Washington ) County of King ) SS. Larry C. Mitchell, being duly sworn, says; That he is Vice President of the RELIANCE INSURANCE COMPANY; that said company Is a corporation duly organized, existing, and engaged In business as a surety by virtue of tho laws of the Commonwealth of Pennsylvania, and has duly complied with all the requirements of the laws of said oommonwealth applioable to said company and Is duly qualified tp aot as surety under such laws; that said company has also complied with and is duly qualified to act as surety underlhe Act of Congress of September 13. 19B2. as amended (31 U.S.C. ~9301 et seq.); that the foregoing Is a full. true and correct statement of the financial condition of said cornpany on the 31 st day of December 1997. Sworn to me this 20th day of March. 199B. ~ g. &~/2 ))1(;. ~ Vir.e President Janis J, Crossland, Notary Public, Stale 01 Washington, Counly 01 King. My Commission ExplrO!:l February 5, 2000, BDR.1421 3/98 ~ ~ \0 G1 to ~ -0'"1 ~ ~ .;J fI'l' -u i;'!~~ 0- 1> k ,"~ r 1 :.:t,1 ~; i}: "' 8 (T' N :p. !)' ,j.- r,:~ e::' (' .0 G" " jJ( "R ;);;!} ;x .~ 00 U1 ~ ,) ~ol ..... , 9J :~ .. ~~ ~ 5 F i'-' ~ ~ .'" +- -F- ~ [: ~ -~ 3