ANNUAL STATEMENT2014

Committed to Mutual Success

HARFORD MUTUAL 2014 1

AT-A-GLANCEAT-A-GLANCE

F

15 685 2

R

Over 450 independent agents representing Harford Mutual across seven states and the District of Columbia.

Over 30,000 policies in effect in 2014.

173 years of providing financialstrength, confidence, and superior service to our agents and policyholders.

Professional. Educated. Loyal.Our 140 employees are dedicated to ensuring your needs are met.

$155 million in direct written premium, representing 10.8% growth in 2014.

280 years of service represented by 19 employees who received anniversary awards this year.

$25.4 million in NEW business written in 2014.

Achieved a 93.6% premiumretention rate.

Exceeded plan ending the year with $194.6 million in surplus.

The Harford Mutual buildingand its iconicweather vane and clock towerhave graced theBel Air landscapesince 1952.

Harford Mutual

2 HARFORD MUTUAL 2014

Since 1842, Harford Mutual Insurance Company has been committed to the

mutual success of our policyholders, agency partners, and local community. In turn,

this commitment to mutuality affords that same success to our company and our

employees. I’m pleased to report to you, our valued policyholders and owners,

that our performance and strength has never been greater.

Steven D. LinkousPresident and Chief Executive Officer

PRESIDENT’SPRESIDENT’S MESSAGEMESSAGE

1 15 685 2

R

It took a lot of moving parts to maintain profitablegrowth in the most recent economic downturnrivaling the Great Depression, but with carefulplanning and fortitude, we made a great companyeven better. We established near- and long-termgoals to review and improve all aspects of theorganization and its operations. Many companiesproclaim “Our employees are our greatest asset,”but Harford Mutual doesn’t believe that employeesare financial objects to be enumerated on a balancesheet. Employees ARE the company. Our goal wasto assemble the best team of board directors,officers, and employees we could find—and we did.Recent promotions in management and steadyadditions in claims, underwriting, and informationtechnology throughout the year ready us to providethe superior personal service you expect as wecontinue to add policies and expand our reach and our book of business. We depend on ouremployees to build, foster, and maintain strong anddeep relationships with our independent agents;

and, we rely on that partnership to provide quality,stable, and appropriately-priced products andservices to our ultimate customer, the policyholder,in addressing their risk management needs.

Enduring insurance companies like Harford Mutualare often labeled “sleepy mutuals” because of theirlong tenure and decision to move more cautiouslythrough financial trends, fluctuating markets, andeconomic variances. But times have changed, andwhile we continue to operate with the conservativeprinciples meant to protect the policyholders’surplus—the financial strength of the company—thedemands for access to information, services, anddelivery are now measured in seconds instead ofdays or weeks. Data has become information, andinformation has raced to the forefront of businessdecisions and planning based on analysis. With thesound experience we’ve amassed for 173 years, we will guide the company to take on thechallenges of today and advances of tomorrow.

In 2012, we initiated a major, five-year investment in replacing our core information system to improveinternal efficiencies, bring new products andservices to market more quickly, enhance the easeof doing business, and populate our data andanalysis engines to drive better decision-making.Thanks to the efforts of our project team,employees, and implementation partners, we remain on track and within budget towardsdelivering a system that will fuel our operations now and into the future. While this endeavor places a huge burden on our team and availableresources, we are seeing the fruits of our labor andinvestment, and look forward to releasing the firstmajor phase early next year.

During these past several years, we also remainedtrue to our fiscal responsibilities through good,old-fashioned underwriting discipline. Despite arecession, multiple severe and catastrophicweather-related events, and an unpredictableinvestment market, Harford Mutual has experiencedsuperior performance. Most importantly, werecorded meaningful profitability from insuranceunderwriting operations in eight out of the past 10years. With an engaged workforce aligned with asolid financial foundation, the company capitalizedon market opportunities with our agency partners in realizing direct written premium growth of $47.4 million, 43.7% over the past five years. And while significant revenue gains can strain acompany, thanks to our underwriting and

investment performance, Harford Mutual’s leveragehas improved by 55% over the past 10 years, 15%just in the last five. The financial strength of thecompany as measured in our policyholders’ surplusof $194.6 million, a 10-year increase of 169%,soundly addresses the current and future exposuresand risks of our insureds.

Harford Mutual has changed as much as it hasstayed the same. We remain a stable and financiallyresolute provider of commercial property andcasualty insurance, capable of meeting theescalating needs of our agency partners andpolicyholders, now and into the future. And thisgrowing and thriving mutual is just getting started.While our financial strength lays the foundation forthe opportunities that await, it is our incredible,dedicated, and talented employees who continueto guide the company toward our ambitious goalsand protect our assets and your surplus from thechallenges ahead, just as they have for the past 173 years.

Thank you for trusting us with your mutual success.

HARFORD MUTUAL 2014 3

President and Chief Executive Officer

2014 Annual Employee Photo

4 HARFORD MUTUAL 2014

Corporate Social Responsibility

American Cancer Society

The ARC NorthernChesapeake

Bel Air Independence Day Committee

Boys & Girls Clubs ofHarford County

Habitat for HumanitySusquehanna

HCC Alumni & FriendsAssociation

Harford Family House

Maryland Race for a Cure

National KidneyFoundation—MD

Ripken Foundation

SARC—MD

United Way

Upper Chesapeake Health Foundation

15 685 2

GIVINGGIVING BACK BACK

R

Harford Mutual has a long history of supporting the communities we serve. Frommulti-year commitments to capital campaigns to one-off donations to support anemployee charitable 5k run, we look at the impact of the group’s efforts and theimpact our support can provide. In 2014, we continued to sponsor events fororganizations that provide human services to our neighbors: SARC-Harford County,Habitat for Humanity Susquehanna, Greater Excellence in Education Foundation, andHarford Family House are just a few of the 100 different organizations that wepartnered with to ensure that the homeless, the less fortunate, and the victimizedcontinue to receive the resources they need and deserve.

More than18events

held throughout the

year by employees to

support designated

charities and community

organizations.

Six hundred eighty-fivedollars was donated to theKomen Race for a Cure byemployees through bakesales, Ravens ticket raffle,and Jeans on Fridays sales.

22 At the AnnualEmployeeBlood Drive,the collected 22 pints ofblood to helpsave lives.

One hundred different

charitable organizations

received a donation or

sponsorship during the

year. 100

Employees raised$2,015 from hot dogsales on openingday, cookie swaps,and parking spaceauctions to supportthe Relay forLife team.

The March ofDimes received$1,500 raised by employeesthrough 50/50 raffles,Pampered Chefparties, andJeans on Fridayssales.

250685

Employees pledged $27,000to United Waythrough payrolldeduction.

UnitedWay27

2015 15

00Harford Mutual donated

more than $250,000 to

local charities

and com-

munity groups.

HARFORD MUTUAL 2014 5

”Over 70% of Harford Mutualemployees have been with usfor 5 years or more.“

Developing a competent and professional staff isalways the highest priority at Harford Mutual.From hosting interns to cultivate our future talentpool to sponsoring current employees as theycontinue their insurance education and training,we are fully committed to being a world classservice organization.

Our Underwriting and Accounting Departmentspartner with Temple University’s Fox School ofBusiness and the Academy of Finance atEdgewood High School in Harford County tohost employee interns throughout the year.Marangley Quinones was our summer internfrom the Academy of Finance, spending sevenweeks in the Underwriting, Claims, and TreasuryDepartments learning skills she hopes to applyearning her bachelor’s degree in Accounting incollege. Kelly Dougherty and Alex Troutman,both enrolled in the Risk Management andInsurance curriculum of Temple Universitylocated in Philadelphia, Pennsylvania, worked forus over the summer as Underwriting internswhere they were able to see real-worldapplication of the concepts they’ve learned inthe classroom.

At the annual Education Luncheon held inNovember, 32 employees were honored forcompleting continuing education courses andobtaining insurance designations that ensurethat Harford Mutual has the best possible staff toserve our agents and policyholders.

In addition to formal training, many of ouremployees are involved in presenting as subjectmatter experts to industry organizations. SeniorClaims Examiner Caty Hartley, CPCU, was askedto speak on behalf of the Maryland Chapter ofCPCU to the Morgan State University chapter of

Gamma Iota Sigma, the International RiskManagement, Insurance and Actuarial ScienceCollegiate Fraternity. Director of Technology,Gail Bianco, was an invited panel member at theannual Guidewire Connections in San Franciscowhere Planning Your Policy AdministrationTransformation for Success and Extending theGuidewire Suite into Your Mature Enterprise werepanel topics.

While the only constant in business may bechange, Harford Mutual is proud of ourdedicated and tenured staff that brings loyalty,consistency, and experience to work every dayfor our agents and policyholders. It is this provenwell of knowledge that steadily navigates usduring challenging times and permits us to digdeep to create innovative solutions for ourcustomers. We’d like to congratulate ouremployees who celebrated milestone serviceanniversaries with us in 2014.

Committed to Excellence

5 YEARS OF SERVICE:Karen DavisDebra FooseJohn GoodinVaughn KiddTeri MairoseGail Mandell Jeff Rink

10 YEARS OF SERVICE: Jan OrrKen Thompson

15 YEARS OF SERVICE: Cindy PresnellDoug RhodeyJudy Scott Ellen Waudby

20 YEARS OF SERVICE: Sarita Echols Brian Holloway

30 YEARS OF SERVICE: Ellen Truant

35 YEARS OF SERVICE:Nancy SpencerDeborah Strawbridge

Casualty Claims Examiner, Alison Barry, AIC

Underwriter, Mike Borzatti, AINS

Senior Claims Examiner, Vickie Frederick, CPCU

Underwriter, Jack Griffin, AU & AINS

Claims Supervisor, Regina Jenkins, AINS

Claims Assistant, Karen Kinney, AIC

Commercial Underwriter, Nicole Lembach, AU & AINS

Claims Examiner, Rebecca Thacker AIC

EMPLOYEESEMPLOYEESEEDUCATION

A

15 685 2

R

DESIGNATIONS AWARDED IN 2014

Associate in Claims (AIC), Associate in Commercial Underwriting (AU), Associatein General Insurance (AINS), Chartered Property Casualty Underwriter (CPCU)

Temple University interns Kelly and Alex

To help usher the growth of ourRestaurant and Hotel Programs,Harford Mutual is networking withthe members of associations thatsupport the hospitality industry.

Restaurant Association of Maryland

North Carolina Restaurant &Lodging Association

Pennsylvania Restaurant &Lodging

The insurance industry, while mature, ischallenged to adapt to an ever changingregulatory, legal, and overall businessenvironment. We must stay current ontechnological advancements that support our business and recognize theimportance of integrating social mediainto the marketing mix. Playing ameaningful part in trade associationshelps us stay current with thesedevelopments.

Insurance Marketing CommunicationsAssociation (IMCA)

National Association of MutualInsurance Companies (NAMIC)

Pennsylvania Association of MutualInsurance Companies (PAMIC)

A.M. Best Company

Chartered Property & CasualtyUnderwriters Society (CPCU)

Independent Insurance Agents of North Carolina

Independent Insurance Agents of Virginia

Insurors of Tennessee

6 HARFORD MUTUAL 2014

Making It Easier to Write with Us

15 685 2

R

CORPORATECORPORATEPOSITIONINGPOSITIONING

Establishing a brand, building a reputation, and raisingawareness in today’s crowded marketplace requires acommitment to consistent and quality communications andmarketing. Our independent agents and policyholders mustknow us to make doing business with us easier.

Our simple yet effective “Partners”campaign communicates our desirefor mutual success using imagery ofitems that “just go together.” Milk andcookies. Peanut butter and jelly. Saltand pepper. In addition to utilizingthe campaign in local sponsorships,we advertise in the followingpublications:

To Businesses: I95 Business MagazineDelaware Business Magazine

To Trades: NJ Contractors MagazinePA Contractors MagazineAt Your Service (NC)Restaurant & Lodging Matters (PA)

To Agents:Insurance Agents & BrokersPrimary Agents (MD-DE-DC)Carolina Agents JournalBig I VirginiaInsurors of Tennessee

As a regional P&C carrier, we look for opportunities to speak directly to customers in the industries we write as well as the business community at large. From our newly branded website and social mediasites, to state-level trade groups and national magazines, we are laying the groundwork to make Harford Mutual a recognizable name.

HARFORD MUTUAL 2014 7

“The Loss Control Services Team at Harford Mutual provides Mealey’s with services I feel are outstanding! Our Loss Control Consultant attends and advises us at all our Safety Committee monthly meetings as well as providing training classes to our employees. When required, the HarfordClaim Representatives are professional and attentive to all our needs regardless of how minor they may appear. I hope this partnership between Mealey’s and Harford Mutual will continue for years to come.”

— Joel Saftlas, Director HR/Safety Committee Chairman

Mealey’s Furniture is a family-ownedfurniture business with eight locations—seven in Pennsylvania and one in NewJersey. The 45-year-old company hasnearly 300 employees in positions rangingfrom sales to warehouse to deliverypersonnel. It has been insured by Harford Mutual for two years through agent Steve Wisocky of Home FurnishingInsurance Group.

“Harford Mutual’s Loss Control and RiskManagement Services have developed intoa valued asset in maintaining and retainingMealey’s Furniture, a national Top 100retailer and a major corporate client,” saysWisocky. “The knowledge, empathy,professional, yet personable, hands-onapproach demonstrated by our LossControl Specialist, Jeff Okeson, is a keyfactor to Mealey’s successful safety record.”

Monthly meetings are rotated between thedifferent Mealey’s locations providing aperfect opportunity for ongoing safetyinspections from Harford Mutualpersonnel. Our Loss Control Consultantsexamine the properties and providerecommendations to prevent employeeand customer injuries. Some examples ofpotential hazards that were raised include

extension cord usage, furniture placement,and emergency exits. When a suggestionwas made to have employees wearPersonal Protective Equipment, in this caseear plugs, to mitigate a noise exposure riskin the warehouse, Mealey’s embraced therecommendation with immediateimplementation. Additional trainingprovided included lift training via videoand slide presentations, forklift safety andcertification, and back safety.

With instruction from Harford MutualCasualty Specialist, Dave Elliott, Mealey’squalified for the Pennsylvania SafetyCommittee maximum discount on theirpremium. Mealey’s also works closely withour Claims Department to secure light dutyand return-to-work authorization of injuredemployees to keep employees workingand their business at optimum capacity.

Mealey’s Furniture Stores Loss control servicesare provided at no cost.Benefits include on-sitetraining and frequentvisits by our own safetyprofessionals, in-depthclaim and incidentanalysis to monitor fortrends, and regulardeliveries of safetymaterials.

We will meet with theinsured to determinethe safety areas thatrequire attention. We’ll provide subjectmatter posters andmaterials and allowaccess to a library ofinteractive and printed resources.

Jeff has over 35 years in the insurance industry. He holds a Bachelor of Science and Safety Educationdegree from Millersville University and is a NationalSafety Council Defensive Driving Instructor.

JEFF OKESONLoss Control Consultant

15 685 2

R

LOSS CONTROLLOSS CONTROL

P

To support the continued growth of the company, we’ve made significant investment to develop ourinfrastructure to better service our agents and insureds.Our multi-year, multi-million dollar commitment andupgrade to our legacy technology system will supportour company expansion plans by making our billing,policy, and claims handling more efficient.

We also look for opportunities to expand our productofferings. In recent years, we’ve added EmploymentPractices Liability coverage, extended Liquor Liability toPennsylvania and New Jersey, and we’ll introduce aCyber Liability Coverage offering in 2016.

While our small business portfolio continues torepresent a considerable portion of our overall book,our success in writing larger accounts has contributedsignificantly to the growth of the company over the lastseveral years. In support of this growth initiative, wehave developed a Large Account Unit responsible forboth new and renewal accounts with annual directwritten premiums in excess of $200,000. This team isequipped with the knowledge and expertise required tounderwrite this business, provide the appropriatecoverage, and deliver the level of service expected. The Field Underwriting Specialist assigned to this unitworks closely with Loss Control, Auditing, and Claims to ensure we are delivering on our commitment tothese customers.

A recent example of a large account success is NKSDistributors, Inc., a large beverage distributor in NewCastle, Delaware. A client through Bramhall + HitchenInsurance, NKS distributes brands you’ll recognize,including the Anheuser-Busch family of products(Budweiser, Rolling Rock, Stella Artois, etc.), CrownProducts (Corona, Modelo, Victoria, etc.), and NorthAmerican Breweries (Genesee Beer, Seagram’s Escapes,Seagram’s Frozen Pouches, etc.) across the state ofDelaware. The News Journal has recognized NKS as one of 2014’s top workplaces based solely on surveys about the workplace completed by their own employees. This is the type of customer we areproud to insure.

By expanding our product and service offerings andadjusting our delivery of these services, we maintainprofitability and our momentum for long termsustainable success.

15 685 2

R

PRODUCT & SERVICEPRODUCT & SERVICEDEVELOPMENTDEVELOPMENT

8 HARFORD MUTUAL 2014

Large Account Unit

"I trust Harford Mutual to providethe insurance protection andservice level my most importantcustomers require."

— John Boykin, CIC, PWCA, Vice President,Bramhall + Hitchen Insurance.

JOHN BOYKIN

John Boykin of Bramhall + Hitchen Insurance (center)with President/Owner Robert Tigani, Sr. (left) and Executive Vice President/General Manager, Paul Ruggiero (right) of NKS Distributors, Inc.

Added LiquorLiability coverageto PA and NJ

Raised onlinepayment limitationto $15,000 from$8,000

Launched new,easier to navigatewebsite

New Jersey

DelawareMaryland

Districtof Columbia

Pennsylvania

Virginia

North CarolinaTennessee

Our 4th largest state with 2014 Direct WrittenPremium (DWP) of$13,532,979 concentratedin New Castle County. We are represented by 14 agents with five earning the covetedFlagship Award.

Our home state and our number one state inDWP ending 2014 at$54,276,744, representing34.9% of our totalpremium. With 94 activeagents and 10 writingmore than $1,000,000, twoproduction underwritersmanage the state foroptimum service levels.

Our fastest growing state,NJ surpassed the $10million mark in less thanfive years. The IroquoisGroup is a major partner

in NJ with 14 of our 17appointed agents underthe Iroquois umbrella.

NC is our 6th largest statewith nearly 80 appointedagents responsible for $12million in written premium.Continued growth isexpected, particularly inthe Triangle, Charlotte, andCentral Piedmont regions.

Two productionunderwriters manage our largest agency plant in PA with over 130appointed independentagents, representing morethan $30 million in writtenpremium. We continue toexperience growth in thestate, but our ultimateobjective is to realizeconsistent profit year over year.

Our smallest premiumstate, TN still ended theyear with our best directcase loss ratio at 22.81%.We are confident in thestate’s growth potential aswe look to expand ourwritings in the stateemphasizing our desire forcontinued diversification ofour book of business.

VA ranked as our thirdlargest state and grew to over $14 million by year end.

With a new productionunderwriter and plans to

appoint 10 new agenciesin 2015, we're looking forsteady growth in the state.

DC remains one of ourmost profitable regionsand DWP of nearly $13 million helped it rankas our 5th largest territory.We currently have twoappointed agentsdomiciled in DC with most of the writtenpremium in the districtbeing produced by ourMD beltway agents.

HARFORD MUTUAL 2014 9

Harford Mutual’s goal is to always be the carrier of choice for our independent agents. Throughthoughtful and deliberate management of our agency appointments to focusing our appetite relativeto state specific conditions, we strive to present a prudent approach to growth and reach.

15 685 2

REGIONALREGIONALCARRIERCARRIER

7th largest state for Harford Mutual in DWP

1 Flagship agency—Brown & Brown Metro

Burlington, Camden, Cumberland, Gloucester, Mercer and Salem Counties are our targeted counties

45% of our current book in contractors

State indicates 147,568 businesses with 1-99 employees and $753,757,700 in potential premium

2014 STATE HIGHLIGHT—NEW JERSEY

State Specific Strategies

NJ

2010 2011 2012 2013 2014

200

150

100

50

02010 2011 2012 2013 2014

20

15

10

5

0

-5

10 HARFORD MUTUAL 2014

With our underwriting profitability,operating income, and a healthyequity market, policyholders’surplus reached a new high at$194.6 million, a 3.8% increase forthe year, and $3.3 million over plan.The 10-year surplus increase nowstands at $122 million, 169%.Despite our significant growth in the past four years, our leverageremains ultraconservative at 0.7 to 1 (net premium to surplus).

Driven by strong new business sales and excellent premiumretention results, written premiumgrew by 10.8% in 2014, reaching an all-time high for the company of $155.6 million. Since 2010 ourwritten premium has grown by $50 million, 47%.

Net Income after Federal Income Tax ended 2014 at $10.8 million, against a plan of $7.4 million. Represented in thisnumber is a Net Underwriting Gain of $2 million, OrdinaryInvestment Income of $5.6 million, and Realized Capital Gains of $4 million. The company’s past three yearperformance is a strong offset to 2010 and 2011 which bothexperienced above-average severe weather activity in theMid-Atlantic region.

Condensed Consolidated Statutory Financial Report

Policyholders’ Surplus (in millions)

147.3

145.8 162.6 187.4

194.6

2010 2011 2012 2013 2014

Direct Written Premiums (in millions)

105.6

112.9

123.7 140.4

155.6

Net Income (in millions)

1.1

-1.9

15.1

14.6

10.8

FINANCIALFINANCIAL HIGHLIGHTSHIGHLIGHTS

15 685 2

R

200

150

100

50

0

HARFORD MUTUAL 2014 11

”Since 2010 our written premium has grown by $50 million, 47%. “

While we continue to develop our small account portfoliowhere agents generally access Harford Mutual through ouronline rating system, RapidWrite, much of the growth this yearwas driven by success in the Middle Market and Large Accountspace. We wrote 191 new accounts with written premiums inexcess of $25,000 for a total of $12.6 million, 52% of the $24.2 million in new business premium written for the year.

as of

Bonds

Common Stocks

Real Estate

Cash and Short-Term Investments

Premiums and Agents’ Balances

Other Assets

Total Admitted Assets

Unpaid Losses and Loss Adjustment Expenses

Unearned Premiums

Other Liabilities

Total Liabilities

Total Policyholders’ Surplus

Total Liabilities and Surplus

for the years ended

Net Premiums Earned

Losses and Loss Adjustment Expenses

Other Underwriting Expenses

Net Underwriting Gain

Investment Income

Other Income (Expenses)

Income Tax (Expense)

Net Income

$ 198,564

121,430

3,992

31,227

40,085

2,965

$ 398,263

$ 102,138

72,471

29,085

203,694

194,569

$ 398,263

$ 129,981

80,980

46,961

2,040

9,592

49

(912)

$ 10,769

$ 190,020

112,669

2,855

34,006

35,714

4,150

$ 379,414

$ 98,918

65,928

27,087

191,933

187,481

$ 379,414

$ 117,329

65,198

45,778

6,353

13,828

(153)

(5,404)

$ 14,624

Condensed Consolidated Statutory Financial Report (in thousands)

FFLLAGSHIPAGSHIP

15 685 2

R

The Flagship Program at Harford Mutualdesignates the premier agencies in the territories we serve that exhibit strong partnership attributes through their continuedperformance and commitment to growth with us. Their results meet or exceed the eligibilityrequirements that indicate they have madeHarford Mutual a carrier of choice. Flagshipagents are eligible for increased profit sharing,co-op marketing dollars, prioritized servicing, and senior management access.

IN 2014, WE ADDED SIX AGENCIES BRINGING THE PROGRAM TOTAL TO FOURTEEN.

Associated Insurance Management

Bramhall + Hitchen

Brown & Brown Metro

Clark, Baffone & Matthews

CNC Insurance

HMS Insurance

Howard Insurance

Insurance Management Group

L & W Insurance

Patuxent Insurance Group

Santucci Insurance

The Insurance Market

Yates Insurance

York Insurance

”Strong partnership through excellent performance and commitment growthwith Harford Mutual.“

2014 FLAGSHIP AGENCIES

12 HARFORD MUTUAL 2014

HARFORD MUTUAL 2014 13

Back row left to right:ROBERT D. MCDORMAN, JR.Retired Principal, Investment Counselors of Maryland

ATWOOD COLLINS, IIIExecutive Vice President, M&T Bank Corporation,Wilmington Trust N.A.

DONALD C. FRYPresident and CEOGreater Baltimore Committee

ALBERT J. MEZZANOTTE, JR.Partner, Whiteford, Taylor, and Preston

CLARENCE C. BOYLE, JR.President, Boyle Buick GMC Truck

Front row left to right:ABIGAIL E. SMITHOwner, Abigail E. Smith, Assoc., P.A.

STEPHEN T. SCOTTChairmanRetired Principal, InvestmentCounselors of Maryland

STEVEN D. LINKOUSPresident and CEO, The Harford Mutual Insurance Companies

JAMES D. HARDESTYVice ChairmanPresident, Hardesty CapitalManagement Corporation

SPENCER M. ROMANRetired President and COO, AAA Mid-AtlanticInsurance Group

Back row left to right:JOHN D. GOODINVice President, Underwriting

JEFFREY S. RINKVice President, Marketing andBusiness Development

KENNETH G. THOMPSONAssistant Vice President andController

JUNE A. POOLEVice President and Treasurer

Front row left to right:ELLEN S. TRUANTVice President, HumanResources

Not pictured:KAREN L. MASHINSKIVice President and Chief Financial Officer

ROBERT F. OHLERExecutive Vice President,Commercial Business Services

STEVEN D. LINKOUSPresident and Chief Executive Officer

STEPHEN M. FABIANVice President and ChiefInformation Officer

FRANK P. KELLNER, IIIVice President, Claims andCorporate Secretary

Board ofDirectors

Officers

15 685 2

R

The Harford Mutual Insurance Companies

200 North Main Street

Bel Air, Maryland 21014-3544

800-638-3669

HarfordMutual.com

The Harford Mutual Insurance Company, Founded 1842

Firstline National Insurance Company, Founded 1988