Proprietary  2014 StoneRiver, Inc. Statutory Reporting Update Ohio Chapter IASA November 24, 2014 Connie Jasper Woodroof StoneRiver, NAIC Liaison Ohio Chapter IASA November 24, 2014 Connie Jasper Woodroof StoneRiver, NAIC Liaison

Proprietary  2014 StoneRiver, Inc. Agenda 2014 Annual Statement 2014 RBC

Proprietary  2014 StoneRiver, Inc Annual Statement

Proprietary  2014 StoneRiver, Inc. General Interrogatories FHLB Other Federal Home Loan Bank Changes Notes to Financials 5, 11 “Code” column in Investment Schedules Associated SSAP changes: Nos. 1, 15, 30, 52 RBC – All formulas

Proprietary  2014 StoneRiver, Inc. Note to Financials #5 Restricted Assets

Proprietary  2014 StoneRiver, Inc. Notes to Financials #11 - FHLB #11B(1) – General description; nature of agreement, type of borrowing and use of funding.

Proprietary  2014 StoneRiver, Inc. Notes to Financials #11 - FHLB #11B(2) – Aggregate information on capital stock in general and specific information on membership stock available for redemption Aggregate info for CY and PY

Proprietary  2014 StoneRiver, Inc. Notes to Financials #11 - FHLB #11B(3)a – Collateral pledged; CY general account, CY separate accounts, CY combined total, PY combined total #11B(3)b – Maximum amount pledge during reporting period; general account, total general and separate accounts

Proprietary  2014 StoneRiver, Inc. Investment Schedules – Code Column

Proprietary  2014 StoneRiver, Inc. Notes to Financials #5 Capital Finance Investments (5I) From adoption of SSAP No. 105

Proprietary  2014 StoneRiver, Inc. Notes to Financials #5 Offsetting and Netting of Assets and Liabilities (5J) Moved from Note 21 to Note 5

Proprietary  2014 StoneRiver, Inc. Note to Financials #5 Structured Notes (5K) Revisions to SSAP No. 26 and 43R Guidance posted on Blanks Working Group website CUSIP IdentificationActual CostFair Value Book/Adjusted Carrying Value Mortgage- Referenced Security(Y/N) TotalXXX Guidance posted on Blanks Working Group website

Proprietary  2014 StoneRiver, Inc. Notes to Financials Note #12 Multiemployer Plans Revisions to SSAP Nos. 92 and 102 Note #21 Move Joint and Several Liabilities disclosure from Note 21 to Note 14 Note 14 renamed to Liabilities, Contingencies and Assessments

Proprietary  2014 StoneRiver, Inc. Notes to Financials #22 Modification of PY Affordable Care Act (ACA) assessment information Now covered under new SSAP No. 106 (formerly under SSAP No. 35R)

Proprietary  2014 StoneRiver, Inc. Notes to Financials #24 Risk sharing provisions (3Rs) of the Affordable Care Act (ACA) (24E) Currently INT 13-04, SSAP No. 35R Review carefully; part treated as reinsurance, part treated as contracts subject to redetermination, part treated as licenses, taxes and fees Separate SSAP being developed Hope to have in place for year-end reporting ACA Risk Sharing Programs Disclosures Annual and Quarterly Separate disclosures for each of the 3Rs plus roll- forward of prior years

Proprietary  2014 StoneRiver, Inc. ID Columns Reinsurance Schedules Instructional clarification of NAIC Company Code, Alien Insurer Identification Number (AIIN), Pool/Association Number and Certified Reinsurer Number (CRIN) Which entities are assigned which numbers NAIC Contact information for obtaining numbers Schedule Y – Parts 1A and 2 Columnar heading change Federal ID Number now ID Number

Proprietary  2014 StoneRiver, Inc. Investment Schedules Schedules A, B, BA Add postal code electronic column Schedule A – location of real estate Schedule B – location of real estate securing mortgage loans Schedule BA – location of properties for investments having the underlying characteristics of real estate and/or mortgage loans If multiple properties, list all zips from highest to lowest in property value

Proprietary  2014 StoneRiver, Inc. Investment Schedules Schedules A, B, BA Property type electronic column Primary use of property OF – Office RT – Retail MU – Apartment/Multifamily IN – Industrial HC – Medical/Health Care MX – Mixed use LO – Lodging OT - Other If more than one property reported with more than one use, probably need to us OT – column limited to 2 digits; no specific instructions

Proprietary  2014 StoneRiver, Inc. Investment Schedules Schedule A, B, BA State column now accepts 3-character country code Schedules B, BA Maturity date electronic column Mortgage loans and those investments having the underlying characteristics of mortgage loans State date mortgage loan matures

Proprietary  2014 StoneRiver, Inc. Supplemental Compensation Exhibit New format for Part 2 – Officers and Employees Listing still for top 10 employees/officers, but now must include PEO, PFO; next 3 most highly compensated executive employees if >$100,000; next 5 most highly compensated employees if >$100,000.

Proprietary  2014 StoneRiver, Inc. Supplemental Compensation Exhibit New format for Part 3 – Directors Applies to all Directors

Proprietary  2014 StoneRiver, Inc. Supplemental Compensation Exhibit Provide a narrative description of any material factors necessary to gain an understanding of the information disclosed in the tables. New Part 4 – Narrative Description of Material Factors

Proprietary  2014 StoneRiver, Inc. LAH and Fraternal Actuarial Opinion Actuary must be appointed directly by, or by the authority of, Board of Directors; and report to Board or Audit Committee Actuary must meet certain qualifications Opinion must follow guidelines and standards Separate Actuarial Opinion for each company filing an annual statement Exhibit 5 Modified definition of contingent deferred annuities (CDA) in instructions

Proprietary  2014 StoneRiver, Inc. LAH and Fraternal Asset Valuation Reserve (AVR) New format for calculating mortgage loan and underlying characteristics of mortgage loan portion of AVR Utilized RBC mortgage loan division and treatment Supplemental Exhibits & Schedules Interrogatories Will Regulatory Asset Adequacy Issues Summary be filed with state by March 15? Will Actuarial Memorandum required by Actuarial Guidelines be filed with state by April 30?

Proprietary  2014 StoneRiver, Inc. LAH & Fraternal Statement New reinsurance supplement for XXX/AXXX products April 1 due date Part 1 – All XXX and AXXX cessions Policies valued under Section 6 of the NAIC Valuation of Life Insurance Policies Model Regulation (#830), commonly referred to as XXX Exempting Section 6E, 6F or 6G) Or, to ULSG policies required to be valued under Section 7 of Regulation XXX as clarified by the NAIC Actuarial Guideline XXXVII – The Application of the Valuation of Life Insurance Policies Model Regulation (A.G. 38), commonly referred to as AXXX

Proprietary  2014 StoneRiver, Inc. LAH & Fraternal Statement New reinsurance supplement for XXX/AXXX products Part 2 – Applies to all cessions listed in Part 1, not ceded to licensed, accredited or certified reinsurer; or not ceded to reinsurer domiciled in another jurisdiction; or not ceded to reinsurer maintaining a trust fund; or reinsurance not required by law

Proprietary  2014 StoneRiver, Inc. LAH & Fraternal Statement New reinsurance supplement for XXX/AXXX products Part 3 – Collateral for transactions listed in Part 2 Prepare one Part 3 for each Cession ID listed in Part 2 and grand total page If no collateral for a cession, still must prepare a Part 3 with cession ID, name of company, NAIC company code, ID number Part 4 – For all affiliated reinsurance listed in Part 2 Prepare one Part 4 for each Cession ID listed in Part 2 where the reinsurer is identified as an affiliate (Part 1, Column 10) Also prepare grand total page

Proprietary  2014 StoneRiver, Inc. LAH, Fraternal, Health General Interrogatories – Part 2 Question to capture direct written premium, incurred claims, and number of covered lives for CY ordinary life

Proprietary  2014 StoneRiver, Inc. LAH, Fraternal and Health General Interrogatories – Part 2 Captive affiliates in Schedule S 1234Assets Supporting Reserve Credit 567 Company Name NAIC Company Code Domiciliary JurisdictionReserve CreditLetters of CreditTrust AgreementsOther Are any of the captive affiliates reported on Schedule S, Part 3 as authorized reinsurers? Yes [ ] No [ ] If the answer to 28.1 is yes, please provide the following:

Proprietary  2014 StoneRiver, Inc. LAH, Fraternal and Health Schedule S – Part 3 – format changes 6 Type of Reinsurance Ceded 7 Type of Business Ceded Insert available code to indicate type of business Does NOT completely align With Analysis of Ops by Line Of Business For 2014, must provide for captive reinsurance, A&H products; may report “Other” for other non-captive reins

Proprietary  2014 StoneRiver, Inc. Health Formal adoption of Exhibit 3A instructions issued in 2013 as guidance

Proprietary  2014 StoneRiver, Inc. Property/Casualty Actuarial Opinion and Actuarial Opinion Summary Supplement (also Title companies) Includes revised reporting for pooled companies and other technical changes Add new line (2.4) to state page, IEE - Parts II and III for Private Crop Combined Statement Add statement contact person’s address Will be shown on printed copy Will be data captured

Proprietary  2014 StoneRiver, Inc. Risk-Based Capital

Proprietary  2014 StoneRiver, Inc. All RBC Formulas No RBC permitted practices allowed. No changing of formulas, factors, or adjusting of action levels.

Proprietary  2014 StoneRiver, Inc. Property RBC Checklist FHLB – Off-balance sheet section ACA Fees Sensitivity Test Operational Risk – FYI only Additional lines added to Asset Concentration Receivables for Securities factor reduction Format for attestation for catastrophe modeling now included

Proprietary  2014 StoneRiver, Inc. Property RBC Underwriting risk factors updated – done annually Adopted underwriting risk premium factors for Line 4 (ex-cat factors), PR018A (still FYI page) Instruction change for PR026 – Catastrophe Risk Charge – review carefully New FYI PR003A that uses RBC After Covariance including Catastrophic Risk to calculate affiliated risk Clarifying instructions Schedule P catastrophe information

Proprietary  2014 StoneRiver, Inc. Health RBC Checklist FHLB – Off-balance sheet section ACA Fees Sensitivity Test Operational Risk – FYI only New FYI XR012A – Experience Fluctuation Risk Credit Risk – ACA reinsurance info on separate lines ACA Risk Adjustment & Risk Corridor Sensitivity Test Additional lines added to Asset Concentration Receivables for Securities factor change

Proprietary  2014 StoneRiver, Inc. Life RBC Checklist FHLB – Off-balance sheet section ACA Fees Sensitivity Test Operational Risk – FYI only Interest Rate Risk and Market Risk FYI page for possible use of new generator AVR limited for inclusion in Total Adjusted Capital Only AVR not used in asset adequacy testing Not readily apparent reporting format; noted in instructions and as footnote at bottom of page

Proprietary  2014 StoneRiver, Inc. Questions? Connie Jasper Woodroof NAIC Liaison ext (good until January)