J. Douglas Robinson, CPCU* ** ͽ◊

Chairman of the Board

Richard P. Creedon, Esq.* �

President and Chief Executive Officer of the Company

Russell A. Acevedo, M.D., FACP, FCCM, FCCP� ͽ

Medical Director of Intensive CareCrouse HospitalSyracuse, New York

C. William Bachman** *‡◊ͽ†

Retired, Cohber PressRochester, New York

Paul A. Hagstrom, Ph.D.** †

Professor of EconomicsDirector of the Arthur Levitt Public Affairs CenterHamilton CollegeClinton, New York

Gregory M. Harden‡*†◊ ** ͽ

President and Chief Executive OfficerHarden Furniture CompanyMcConnellsville, New York

Zelda J. Holcomb, Ph.D.*†◊ � ͽ

Retired, Holcomb Associates, LLCEducational Consulting GroupColumbia, Maryland

Nicholas O. Matt‡�◊*ͽ

Chairman and Chief Executive OfficerMatt Brewing CompanyUtica, New York

Peter J. O’Neill**‡

Retired, Agway, Inc.Dewitt, New York

Alan J. Pope, CIC� ͽ

ConsultantAj Pope & Company InsuranceCumming, Georgia

ADVISORY BOARDW. Craig HestonChairman EmeritusUtica National CEO, 1987-2000Chairman of the Board, 1988-2006

Alfred E. Calligaris, CPARoy A. CardiaJerry J. HartmanJohn R. Zapisek

Utica Mutual Insurance Company BOARD OF DIRECTORS — AS OF MARCH 1, 2018

Timothy R. Reed ‡†*◊� ͽ

ConsultantUtica, New York

Linda E. Romano, Esq.� †

Attorney at Law Bond, Schoeneck & KingUtica, New York

Eric K. Scholl** ͽ

Private Investor/Consultant Anna Maria, Florida

* Executive Committee Member** Finance Committee Member† Personnel, Compensation and Benefits Committee Member‡ Audit Committee Member◊ Nominating and Corporate Governance Committee Member� Enterprise Risk Oversight Committeeͽ Strategic Planning Oversight Committee

J. Douglas Robinson, CPCUChairman of the Board

Richard P. Creedon, Esq.*◊

President and Chief Executive Officer of the Company

Kristen H. Martin*◊

Executive Vice President and Chief Operating Officer

John M. Anderson, CPCU◊

President and Chief Operating Officer Founders Insurance Company

EXECUTIVE VICE PRESIDENTSteven P. Guzski, CEBS*◊

SENIOR VICE PRESIDENTSJolene M. Casatelli, Esq.*◊

William K. King, MBA, AU*◊

Ralph J. LaSpina, AAI◊

Christopher J. Piela, CPA◊

Bernard J. Turi, Esq.*◊

RESIDENT SENIOR VICE PRESIDENTSMark R. Angelucci, CPCU, ARM◊

Brion Burris◊

David B. Gilmet, CPCU, CIC◊

Michael S. Hughes, CPCU, MBA◊

Brian K. McCulloch, CPCU◊

Brian D. Saville◊

Thomas A. Weigand◊

Michael S. Wolfe, CPCU, CIC,CRM, AU◊

Franklin E. Zurschmit◊

VICE PRESIDENTSSteven D. Alcott, CPCU, ARPSteven E. Barry, CPCU◊

Paul L. Cohen, FCAS*◊

Cheryl A. DeAngelo, CPCU, AU,ARM, AMIM, AIM, AINS

Michael S. Evolo, CPCU, ARe Adam M. Kelly, Esq.Joseph J. Meyer◊

Brian W. Miller*◊

Shannon C. Peck, AU, AIS*◊

Sriram Seshadri*◊

William M. Skorzyk*◊

OFFICERSJohn M. Anderson, CPCU Edward Lowery Armando Martinez Cindy M. Mathes

Utica Mutual Insurance Company OFFICERS — AS OF MARCH 1, 2018

CORPORATE SECRETARYLouisa S. Ruffine, Esq.

ASSISTANT VICE PRESIDENTSMason J. Bradley, CPCUDavid T. Brown, CPCU, AUValerie T. Brown, AU, AINSMichael J. Buttimer, AICGenevieve R. Cahill, CPCU,

AIC-M, SCLATimothy W. Carlson, MBARoger A. CoyleRichard S. Crandall, ACASDan A. D’Angelo, CPCU, AICJohn H. Eckmair, MBA, CPCU,

AU, ARM, ARe, AIC, AINS, AISMatthew W. FowlerSandra J. Giehl, AIAF, IASSamuel J. Gourley Kevin N. Grenier, CPCUPatricia S. Healey, AU, CICJamal KaderDevakumaran Kanthinathan Karen A. LaPlante, CEBS,

SPHR, SHRM-SCPRobert F. Manfredo, CPCU Christy L. McFadden, CISA Stephen J. Mraz Joanne L. Rankins Louisa S. Ruffine, Esq.Tracy S. Thompson, INS, AUDonna M. TocciNancy C. von Glahn

ASSISTANT SECRETARYElizabeth A. Morrissette

* Management Committee Member◊ Operating Committee Member

Graphic Arts Mutual Insurance Company BOARD OF DIRECTORS

J. Douglas Robinson, CPCUChairman of the Board

Richard P. Creedon, Esq.President and Chief Executive Officer of the Company

Russell A. Acevedo, M.D.C. William BachmanGregory M. HardenZelda J. Holcomb, Ph.D.Nicholas O. MattAlan J. Pope, CICTimothy R. Reed

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Other Member Companies and SubsidiariesFounders Insurance Company of MichiganPillar Premium Finance CompanyUNI-Service Life Agency, Inc.UNI-Service Operations Corp.Utica National Assurance CompanyUtica National Insurance Company of OhioUtica National Insurance Company of TexasUtica Lloyd’s, Inc.Utica Lloyd’s of TexasUtica Specialty Risk Insurance Company

Republic-Franklin Insurance CompanyBOARD OF DIRECTORSC. William Bachman Richard P. Creedon, Esq.Paul A. Hagstrom, Ph.D.Gregory M. HardenAlan J. Pope, CICJ. Douglas Robinson, CPCULinda E. Romano, Esq.Eric K. Scholl

2017 ANNUAL REPORT

Founders InsuranceCompanyBOARD OF DIRECTORSJohn M. Anderson, CPCUPaul L. CohenRichard P. Creedon, Esq.Stephen P. GuzskiKristen H. MartinArmando Martinez

I t ’ s b e e n a s t e l l a r y e a r .

Utica National Insurance Group’s purpose is to make you feel secure, appreciated and respected. Whenwe accomplish that, and execute on our strategies every day, we see milestone events like those we sawthis past year.

In 2017, we became a billion-dollar organization. In addition, our net sales growth was 9.5%, and our Combined Ratio was 98.3, which resulted in the Group having back-to-back years with more than 5% sales growth anda Combined Ratio under 100 for the first time in nearly 40 years.

We are proud of our team for delivering this milestone performance. Throughout the year, they provided products and services that both exceeded customer expectations and delivered strong financial results. We’ve come a long way since our first financial year ending in 1915 when we posted $133,359 in net written premium.

› Our Direct Written Premiums in 2017 grew by $83.8 million (9.1%) to $1 billion.

› Our Combined Ratio in 2017 was 98.3, which was better than our plan of 99.0.

› The Policyholders’ Security Fund grew last year to $990 million, for a growth of 7.1% over the previous year.

This past year, we continued to build on our strong product and service portfolio. We introduced our Millennium Auto product in Virginia. Eligibility for our Businessowners Policy was expanded, providing more product choices for independent agents and consumers. We continued to enhance our school program with technology and risk management consulting to address contemporary issues such as bullying, mental illness and threats to the safety of the school environment. Additionally, we enhanced our manufacturing target market with options to add new errors and omissions coverage (E&O) and we improved multi-coverage endorsements.

It was a great year, but our legacy is not in what we have created, but in what we have yet to achieve. Weare committed to evolving to meet your needs and we are working hard to reach our true potential in theyears ahead.

Richard P. Creedon, Esq.President and Chief Executive Officer

Utica Mutual, the principal company of UticaNational Insurance Group (“Utica National”),was founded in 1914 as a workers compensation carrier. The billion-dollar organization consistsof 14 companies, 10 insurance companies and4 non-insurance companies.

Utica National is among the top 100 property/casualty insurance organizations in the country. The Group first began selling its insurance policies through independent agents in 1928 and now has a distribution network of over 2,600 agents and brokers.

The Group’s products include a wide range of commercial and personal coverages and it isa recognized insurer for various specializedmarkets including for the automobile serviceindustry, educational institutions, religious institutions,non-standard auto, volunteer fire departments and agents’ errors and omissions.

Utica National is headquartered in New Hartford, New York, and has approximately 1,200 employees nationwide. The Group is rated A- (“Excellent”) witha stable outlook by A.M. Best Company.

Home Office180 Genesee StreetNew Hartford, New York 13413

Agents’ Errors & Omissions Insurance 180 Genesee Street New Hartford, New York 13413

Eastern Regional Office201 Lafayette StreetUtica, New York 13502

Founders Insurance Company1350 East Touhy Ave., Suite 200WDes Plaines, Illinois 60018

Founders Insurance Company8777 Purdue Road, Suite 107Indianapolis, Indiana 46268

Middle Atlantic Regional Office1100 Boulders Parkway, Suite 300Richmond, Virginia 23225

New England Regional Office201 Edgewater Drive, Suite 295Wakefield, Massachusetts 01880

New York Metropolitan Regional Office1000 Woodbury Rd., Suite 400Woodbury, New York 11797

Republic-Franklin Regional Office2 Easton Oval, Suite 225Columbus, Ohio 43219

Southeastern Regional Office3237 Satellite Boulevard, Building 300, Suite 450 Duluth, Georgia 30096

Southwestern Regional Office2435 N. Central Expressway, Suite 400Richardson, Texas 75080

District Claims Office130 John Muir Drive Amherst, New York 14228

About Utica National Utica National’s Year

All figures in this report relating to Utica National’s property/casualty insurance operations refer to the combined results of the follow-ing companies: Utica Mutual Insurance Company, Graphic Arts Mutual Insurance Company, Republic-Franklin Insurance Company, Utica National Insurance Company of Texas, Utica Lloyd’s of Texas, Utica National Assurance Company, Utica Specialty Risk Insurance Company, Utica National Insurance Company of Ohio, Founders Insurance Company, and Founders Insurance Company of Michigan.

Richard P. Creedon, Esq.President and Chief Executive Officer

2017 2016

Admitted Assets $2,884,699,227 $2,725,669,678 Policyholders’ Security Fund 990,266,744 924,101,416

Net Premiums Written 971,284,000 887,038,071

Net Premiums Earned 931,085,606 858,081,857 Ratio of Losses Incurred to Premiums Earned 52.2% 53.8%

Ratio of Loss Adjustment Expenses Incurred to Premiums Earned 12.3% 11.7%

Ratio of Underwriting Expenses Incurred to Premiums Written 32.9% 33.0%

Ratio of Dividends Incurred to Premiums Earned 0.9% 1.0%

Combined Underwriting Ratio 98.3% 99.5%

Underwriting Income $10,915,096 $3,764,442

Net Investment Income (Including Realized Capital Gains or Losses) 80,673,454 73,183,777 Dividends to Policyholders 8,212,071 8,877,750 Net Income Before Federal Income Taxes 83,475,711 70,726,994 Federal Income Taxes 21,139,140 14,848,701 NET INCOME FROM OPERATIONS 62,336,571 55,878,293 Gain to Policyholders’ Security Fund $66,165,328 $57,011,031

Policyholders’ Security Fund

2017 Financial Highlights

• Assets — $2.9 billion• Direct Written Premium — $1.0 billion• Policyholders’ Security Fund — $990 million• Dividends to Policyholders — $8 million• Liabilities — $1.9 billion• Ratio of Premium to Surplus — .98 to 1

Quality of Invested Assets

Kristen H. MartinExecutive Vice President and Chief Operating Officer

Kristen H. MartinExecutive Vice President and Chief Operating Officer

0100200300400500600700800900

20172009 2010 2011 2012 2013 2014 2015 2016

1000

MessageTO POLICYHOLDERS, AGENT/CUSTOMERS AND CO-WORKERS:

Dollars in Millions

Utica National Insurance Group’s purpose is to make you feel secure, appreciated and respected. Whenwe accomplish that, and execute on our strategies every day, we see milestone events like those we sawthis past year.

In 2017, we became a billion-dollar organization. In addition, our net sales growth was 9.5%, and our Combined Ratio was 98.3, which resulted in the Group having back-to-back years with more than 5% sales growth anda Combined Ratio under 100 for the first time in nearly 40 years.

We are proud of our team for delivering this milestone performance. Throughout the year, they provided products and services that both exceeded customer expectations and delivered strong financial results. We’ve come a long way since our first financial year ending in 1915 when we posted $133,359 in net written premium.

› Our Direct Written Premiums in 2017 grew by $83.8 million (9.1%) to $1 billion.

› Our Combined Ratio in 2017 was 98.3, which was better than our plan of 99.0.

› The Policyholders’ Security Fund grew last year to $990 million, for a growth of 7.1% over the previous year.

This past year, we continued to build on our strong product and service portfolio. We introduced our Millennium Auto product in Virginia. Eligibility for our Businessowners Policy was expanded, providing more product choices for independent agents and consumers. We continued to enhance our school program with technology and risk management consulting to address contemporary issues such as bullying, mental illness and threats to the safety of the school environment. Additionally, we enhanced our manufacturing target market with options to add new errors and omissions coverage (E&O) and we improved multi-coverage endorsements.

It was a great year, but our legacy is not in what we have created, but in what we have yet to achieve. Weare committed to evolving to meet your needs and we are working hard to reach our true potential in theyears ahead.

Richard P. Creedon, Esq.President and Chief Executive Officer

Utica Mutual, the principal company of UticaNational Insurance Group (“Utica National”),was founded in 1914 as a workers compensation carrier. The billion-dollar organization consistsof 14 companies, 10 insurance companies and4 non-insurance companies.

Utica National is among the top 100 property/casualty insurance organizations in the country. The Group first began selling its insurance policies through independent agents in 1928 and now has a distribution network of over 2,600 agents and brokers.

The Group’s products include a wide range of commercial and personal coverages and it isa recognized insurer for various specializedmarkets including for the automobile serviceindustry, educational institutions, religious institutions,non-standard auto, volunteer fire departments and agents’ errors and omissions.

Utica National is headquartered in New Hartford, New York, and has approximately 1,200 employees nationwide. The Group is rated A- (“Excellent”) witha stable outlook by A.M. Best Company.

Home Office180 Genesee StreetNew Hartford, New York 13413

Agents’ Errors & Omissions Insurance 180 Genesee Street New Hartford, New York 13413

Eastern Regional Office201 Lafayette StreetUtica, New York 13502

Founders Insurance Company1350 East Touhy Ave., Suite 200WDes Plaines, Illinois 60018

Founders Insurance Company8777 Purdue Road, Suite 107Indianapolis, Indiana 46268

Middle Atlantic Regional Office1100 Boulders Parkway, Suite 300Richmond, Virginia 23225

New England Regional Office201 Edgewater Drive, Suite 295Wakefield, Massachusetts 01880

New York Metropolitan Regional Office1000 Woodbury Rd., Suite 400Woodbury, New York 11797

Republic-Franklin Regional Office2 Easton Oval, Suite 225Columbus, Ohio 43219

Southeastern Regional Office3237 Satellite Boulevard, Building 300, Suite 450 Duluth, Georgia 30096

Southwestern Regional Office2435 N. Central Expressway, Suite 400Richardson, Texas 75080

District Claims Office130 John Muir Drive Amherst, New York 14228

About Utica National Utica National’s Year

All figures in this report relating to Utica National’s property/casualty insurance operations refer to the combined results of the follow-ing companies: Utica Mutual Insurance Company, Graphic Arts Mutual Insurance Company, Republic-Franklin Insurance Company, Utica National Insurance Company of Texas, Utica Lloyd’s of Texas, Utica National Assurance Company, Utica Specialty Risk Insurance Company, Utica National Insurance Company of Ohio, Founders Insurance Company, and Founders Insurance Company of Michigan.

Richard P. Creedon, Esq.President and Chief Executive Officer

2017 2016

Admitted Assets $2,884,699,227 $2,725,669,678 Policyholders’ Security Fund 990,266,744 924,101,416

Net Premiums Written 971,284,000 887,038,071

Net Premiums Earned 931,085,606 858,081,857 Ratio of Losses Incurred to Premiums Earned 52.2% 53.8%

Ratio of Loss Adjustment Expenses Incurred to Premiums Earned 12.3% 11.7%

Ratio of Underwriting Expenses Incurred to Premiums Written 32.9% 33.0%

Ratio of Dividends Incurred to Premiums Earned 0.9% 1.0%

Combined Underwriting Ratio 98.3% 99.5%

Underwriting Income $10,915,096 $3,764,442

Net Investment Income (Including Realized Capital Gains or Losses) 80,673,454 73,183,777 Dividends to Policyholders 8,212,071 8,877,750 Net Income Before Federal Income Taxes 83,475,711 70,726,994 Federal Income Taxes 21,139,140 14,848,701 NET INCOME FROM OPERATIONS 62,336,571 55,878,293 Gain to Policyholders’ Security Fund $66,165,328 $57,011,031

Policyholders’ Security Fund

2017 Financial Highlights

• Assets — $2.9 billion• Direct Written Premium — $1.0 billion• Policyholders’ Security Fund — $990 million• Dividends to Policyholders — $8 million• Liabilities — $1.9 billion• Ratio of Premium to Surplus — .98 to 1

Quality of Invested Assets

Kristen H. MartinExecutive Vice President and Chief Operating Officer

Kristen H. MartinExecutive Vice President and Chief Operating Officer

0100200300400500600700800900

20172009 2010 2011 2012 2013 2014 2015 2016

1000

MessageTO POLICYHOLDERS, AGENT/CUSTOMERS AND CO-WORKERS:

Dollars in Millions

J. Douglas Robinson, CPCU* ** ͽ◊

Chairman of the Board

Richard P. Creedon, Esq.* �

President and Chief Executive Officer of the Company

Russell A. Acevedo, M.D., FACP, FCCM, FCCP� ͽ

Medical Director of Intensive CareCrouse HospitalSyracuse, New York

C. William Bachman** *‡◊ͽ†

Retired, Cohber PressRochester, New York

Paul A. Hagstrom, Ph.D.** †

Professor of EconomicsDirector of the Arthur Levitt Public Affairs CenterHamilton CollegeClinton, New York

Gregory M. Harden‡*†◊ ** ͽ

President and Chief Executive OfficerHarden Furniture CompanyMcConnellsville, New York

Zelda J. Holcomb, Ph.D.*†◊ � ͽ

Retired, Holcomb Associates, LLCEducational Consulting GroupColumbia, Maryland

Nicholas O. Matt‡�◊*ͽ

Chairman and Chief Executive OfficerMatt Brewing CompanyUtica, New York Peter J. O’Neill**‡

Retired, Agway, Inc. Dewitt, New York

Alan J. Pope, CIC� ͽ

ConsultantAj Pope & Company InsuranceCumming, Georgia

ADVISORY BOARDW. Craig HestonChairman EmeritusUtica National CEO, 1987-2000Chairman of the Board, 1988-2006

Alfred E. Calligaris, CPARoy A. CardiaJerry J. HartmanJohn R. Zapisek

Utica Mutual Insurance Company BOARD OF DIRECTORS — AS OF MARCH 1, 2018

Timothy R. Reed ‡†*◊� ͽ

ConsultantUtica, New York

Linda E. Romano, Esq.� †

Attorney at Law Bond, Schoeneck & KingUtica, New York

Eric K. Scholl** ͽ

Private Investor/Consultant Anna Maria, Florida

* Executive Committee Member** Finance Committee Member† Personnel, Compensation and Benefits Committee Member‡ Audit Committee Member◊ Nominating and Corporate Governance Committee Member� Enterprise Risk Oversight Committeeͽ Strategic Planning Oversight Committee

J. Douglas Robinson, CPCUChairman of the Board

Richard P. Creedon, Esq.*◊

President and Chief Executive Officer of the Company

Kristen H. Martin*◊

Executive Vice President and Chief Operating Officer

John M. Anderson, CPCU◊

President and Chief Operating Officer Founders Insurance Company

EXECUTIVE VICE PRESIDENTSteven P. Guzski, CEBS*◊

SENIOR VICE PRESIDENTSJolene M. Casatelli, Esq.*◊ William K. King, MBA, AU*◊

Ralph J. LaSpina, AAI◊

Christopher J. Piela, CPA◊ Bernard J. Turi, Esq.*◊

RESIDENT SENIOR VICE PRESIDENTSMark R. Angelucci, CPCU, ARM◊

Brion Burris◊

David B. Gilmet, CPCU, CIC◊ Michael S. Hughes, CPCU, MBA◊

Brian K. McCulloch, CPCU◊

Brian D. Saville◊

Thomas A. Weigand◊

Michael S. Wolfe, CPCU, CIC, CRM, AU◊

Franklin E. Zurschmit◊

VICE PRESIDENTSSteven D. Alcott, CPCU, ARPSteven E. Barry, CPCU◊

Paul L. Cohen, FCAS*◊

Cheryl A. DeAngelo, CPCU, AU, ARM, AMIM, AIM, AINSMichael S. Evolo, CPCU, ARe Adam M. Kelly, Esq.Joseph J. Meyer◊

Brian W. Miller*◊

Shannon C. Peck, AU, AIS*◊

Sriram Seshadri*◊ William M. Skorzyk*◊

OFFICERSJohn M. Anderson, CPCU Edward Lowery Armando Martinez Cindy M. Mathes

Utica Mutual Insurance Company OFFICERS — AS OF MARCH 1, 2018

CORPORATE SECRETARY Louisa S. Ruffine, Esq.

ASSISTANT VICE PRESIDENTS Mason J. Bradley, CPCUDavid T. Brown, CPCU, AUValerie T. Brown, AU, AINSMichael J. Buttimer, AICGenevieve R. Cahill, CPCU, AIC-M, SCLATimothy W. Carlson, MBA Roger A. CoyleRichard S. Crandall, ACASDan A. D’Angelo, CPCU, AICJohn H. Eckmair, MBA, CPCU, AU, ARM, ARe, AIC, AINS, AISMatthew W. FowlerSandra J. Giehl, AIAF, IASSamuel J. Gourley Kevin N. Grenier, CPCUPatricia S. Healey, AU, CIC Jamal KaderDevakumaran Kanthinathan Karen A. LaPlante, CEBS, SPHR, SHRM-SCPRobert F. Manfredo, CPCU Christy L. McFadden, CISA Stephen J. Mraz Joanne L. Rankins Louisa S. Ruffine, Esq.Tracy S. Thompson, INS, AUDonna M. TocciNancy C. von Glahn

ASSISTANT SECRETARYElizabeth A. Morrissette

* Management Committee Member◊ Operating Committee Member

Graphic Arts Mutual Insurance Company BOARD OF DIRECTORS

J. Douglas Robinson, CPCUChairman of the Board

Richard P. Creedon, Esq.President and Chief Executive Officer of the Company

Russell A. Acevedo, M.D.C. William BachmanGregory M. HardenZelda J. Holcomb, Ph.D.Nicholas O. MattAlan J. Pope, CICTimothy R. Reed

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Other Member Companies and SubsidiariesFounders Insurance Company of MichiganPillar Premium Finance CompanyUNI-Service Life Agency, Inc.UNI-Service Operations Corp.Utica National Assurance CompanyUtica National Insurance Company of OhioUtica National Insurance Company of TexasUtica Lloyd’s, Inc. Utica Lloyd’s of TexasUtica Specialty Risk Insurance Company

Republic-Franklin Insurance CompanyBOARD OF DIRECTORSC. William Bachman Richard P. Creedon, Esq.Paul A. Hagstrom, Ph.D.Gregory M. HardenAlan J. Pope, CICJ. Douglas Robinson, CPCULinda E. Romano, Esq.Eric K. Scholl

2017 ANNUAL REPORT

Founders InsuranceCompanyBOARD OF DIRECTORS John M. Anderson, CPCUPaul L. CohenRichard P. Creedon, Esq.Stephen P. GuzskiKristen H. MartinArmando Martinez

I t ’ s b e e n a s t e l l a r y e a r .