T HE ALPS D IFFERENCE : OUR I NSURANCE O PERATIONS David Bell, President & CEO

ALPS O RIGINS Insurance crisis in the late 1980s A solution inspired by state bar leaders – if the market will not serve lawyers, we will build the market ALPS: The nation’s first multi-state bar endorsed lawyers’ professional liability carrier, formed originally by the State Bars of Montana, West Virginia, South Dakota and Kansas Measured and steady growth over time: $7m after 5 years $13m after 10 years $27m after 15 years $37.5m after 20 years Forecasting $45m in 2015

ALPS T ODAY Product focus: lawyers’ professional liability insurance; Other products: employment practices and cyber liability coverage Licensed as an authorized insurer in 35 states, the District of Columbia and the U.S. Virgin Islands Insure approximately 15,000 attorneys More than $43,000,000 in gross written premium, with the largest concentration in 16 jurisdictions (VA, WV, SC, MT, AK, NV, ID, VT, WY, SD, KS, WA, ND, NM, USVI and ME) $36.1m in policyholder surplus at YE 2014 Rated A-(Excellent) with a “Stable Outlook” by A.M. Best Endorsed by more state bar associations (16) than any other LPL carrier, regardless of size; most recent State Bar endorsements: Nevada (2014), Washington (early 2015) and Colorado (summer 2015)

2014 S TATISTICS AT A G LANCE Top line growth of 2.4% Wrote $4.2m in new business Retained 91% of policies and 94% of lawyers (even with non-renewals, retirements, law firm splits, etc.) Improved structural composition of portfolio Low frequency at just 3.57%, compared to 3.72% in 2013 with consistent high closure rates (36% of all reported claims in 2014 closed) Provided ALPS Class A Shareholders/policyholders with a share purchase/redemption opportunity, a first in company history Negotiated lower reinsurance rates, even stronger counterparty mix and a more diverse reinsurance panel Launched “First Flight” program

K EY ALPS D EMOGRAPHICS In 2014; issued over 6,000 policies Average number of attorneys per policy: 2.4 More than 50% = Solo practitioners; 90% of policies issued = firms with 4 or fewer attorneys Average premium per attorney: $3,047 Average of 3.5 claims per every 100 attorneys 531 claims reported in 2014 $350,000 retention point; high quality reinsurance backing with strong and highly-capitalized reinsurers

K EY TO ALPS S UCCESS – B AR R ELATIONSHIPS Endorsed or affiliated with more state bar associations than any other national LPL carrier

K EYS TO S UCCESS – D IRECT D ISTRIBUTION M ODEL Clear trend within the insurance industry of a preference for the direct-to-consumer sales model ALPS has always been a direct carrier, providing ALPS firms with long-term, company relationships they can depend on No Claims “Adjusters”, just Claims “Attorney’s” = knowledge and empathy From marketing to customer support, underwriting to claims, ALPS insureds have direct access to company personnel

K EYS TO S UCCESS – O THER IMPORTANT ATTRIBUTES Stability to Market, Stability in Price Commitment to Doing What is Right for the Customer Unique, Proven Underwriting Model Expectation that at a lawyers greatest time of need, ALPS claims handling will be exceptional, led by a claims attorney Industry-leading, lawyer-friendly policy features: Defense Costs Outside of Limits, First Dollar Defense, No Hammer Clause We know who we are, and will stay consistent to that risk appetite

K EYS TO S UCCESS – O THER IMPORTANT ATTRIBUTES Beyond an insurance company, a demonstrated commitment to improving law practice management, preventing claims and risk management education Giving back is a core value – through bar leader development to support of bar programs, and through our employees A Best Place to Work in Insurance (Business Insurance magazine); Employer of Choice in Western Montana (Job Service Employers Council) Accessibility matters – from a live voice at the front desk to a direct line to all levels of management Team introductions – AIA, Underwriting, Claims & Risk Management

What Lies Ahead Relinquishment of Risk Retention Group (RRG) status Continue geographic expansion Additional products and services of value to law firms (we value your input in those decisions) Continued risk management commitment – technology emphasis, virtual law firm risk assessments, law practice checklists