<PAGE>
 
                                                                    Exhibit 28.1

Form 2
  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - ANALYSIS OF LOSSES AND LOSS EXPENSES
                              Notes to Schedule P

<TABLE>
<S>                                                                <C>
(1) The Parts of Schedule P:                                       (3) Reinsurance A, B, C, and D (lines N to Q) are:
   Part 1 - detailed information on losses and loss expenses.       Reinsurance A = nonproportional property (1988 and subsequent)
   Part 2 - history of incurred losses and allocated expenses.      Reinsurance B = nonproportional liability (1988 and subsequent)
   Part 3 - history of loss and allocated expense payments.         Reinsurance C = financial lines (1988 and subsequent)
   Part 4 - history of bulk and incurred-but-not reported          
            reserves.                                               Reinsurance D = old Schedule O line 30 (1987 and prior)
   Part 5 - history of claims.
   Part 6 - history of premiums earned.
   Part 7 - history of loss sensitive contracts.
   Schedule P Interrogatories

(2) Lines of business A through M, R, and S are groupings of the lines of business used on the state page.
</TABLE> 


                         SCHEDULE P - PART 1 - SUMMARY
                                ($000 omitted)

<TABLE>
<CAPTION>
  --------------------------------------------------------------------------------------------------------------------
                             Premiums Earned                                          Loss and Loss Expense Payments
        1       ------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss
     in Which                                                                                   Expense Payments
  Premiums Were                                           ------------------------------------------------------------
    Earned and     Direct                        Net            5              6              7              8
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded
  --------------------------------------------------------------------------------------------------------------------
<S>               <C>        <C>           <C>           <C>            <C>            <C>            <C> 
   1. Prior...... ..X X X... .....X X X... .....X X X... ............61 .............. ............49 ..............
   2. 1986....... ...240,107 ........4,306 ......235,801 .......160,408 .........7,476 ........11,951 ............46
   3. 1987....... ...339,461 ........3,035 ......336,426 .......218,463 ...........658 ........17,376 ...........234
   4. 1988....... ...417,990 ........5,867 ......412,123 .......267,715 .........1,948 ........21,842 ...........297
   5. 1989....... ...477,732 ........5,300 ......472,432 .......283,691 ...........669 ........22,399 ............59
   6. 1990....... ...482,940 ........5,623 ......477,317 .......284,441 ...........285 ........22,547 ...........193
   7. 1991....... ...477,041 ........3,509 ......473,532 .......255,178 ...........289 ........23,523 ...........371
   8. 1992....... ...424,116 ........2,595 ......421,521 .......242,005 ...........761 ........23,732 ............23
   9. 1993....... ...478,323 ........4,227 ......474,096 .......249,345 ...........768 ........21,801 ............65
  10. 1994....... ...530,709 ........1,318 ......529,391 .......267,482 .........8,084 ........11,400 ............23
  11. 1995....... ...619,770 ........3,444 ......616,326 .......211,586 .........3,371 .........2,968 ............86
  --------------------------------------------------------------------------------------------------------------------
  12. Totals..... ..X X X... .....X X X... .....X X X... .....2,440,376 ........24,309 .......179,588 .........1,397
  --------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -------------------------------------------------------------------------

        1       --------------------------------------------       12
      Years           9              10             11
     in Which                                                  Number of
  Premiums Were    Salvage      Unallocated       Total          Claims
    Earned and       and            Loss         Net Paid      Reported -
   Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and
     Incurred      Received       Payments      - 8 + 10)       Assumed
  -------------------------------------------------------------------------
<S>             <C>            <C>            <C>            <C> 
   1. Prior.... ...........15 ............(9)...........101 .....X X X.....
   2. 1986..... .......13,763 ........11,817 .......176,654 .....X X X.....
   3. 1987..... .......20,166 ........19,479 .......254,426 .....X X X.....
   4. 1988..... .......25,714 ........26,684 .......313,996 .....X X X.....
   5. 1989..... .......27,091 ........31,652 .......337,014 .....X X X.....
   6. 1990..... .......28,084 ........35,981 .......342,491 .....X X X.....
   7. 1991..... .......27,148 ........27,824 .......305,865 .....X X X.....
   8. 1992..... .......28,000 ........32,196 .......297,149 .....X X X.....
   9. 1993..... .......29,984 ........34,905 .......305,218 .....X X X.....
  10. 1994..... .......33,999 ........40,806 .......311,581 .....X X X.....
  11. 1995..... .......22,242 ........33,698 .......244,795 .....X X X.....
  -------------------------------------------------------------------------
  12. Totals... ......256,206 .......295,033 .....2,889,291 .....X X X.....
  -------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid
                ------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR
                ------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20
                   Direct                      Direct                        Direct                        Direct
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded
----------------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C> 
   1. Prior.... ...........10 ............. ............. .............. .............. .............. .............. .............
   2. 1986..... ............6 ............. ............. .............. .............. .............. .............. .............
   3. 1987..... ...........40 ............. ............7 .............. ............22 .............. .............. .............
   4. 1988..... ...........53 ............. ............4 .............. ............34 .............. .............. .............
   5. 1989..... ..........303 ............. ...........12 .............. ...........105 .............. .............. .............
   6. 1990..... ..........372 ...........91 ...........15 .............. ...........180 .............. .............. .............
   7. 1991..... ........1,285 ...........25 ...........77 .............. ...........508 .............. ............10 .............
   8. 1992..... ........1,769 ..........142 ..........111 .............. .........1,086 .............. ............41 .............
   9. 1993..... ........8,007 ...........45 ..........188 .............. .........4,536 .............. ............59 .............
  10. 1994..... .......34,479 ........1,474 ..........987 .............. ........14,969 .............. ...........131 .............
  11. 1995..... ......111,015 ..........778 .......32,527 .............. ........19,331 .............. .........4,634 .............
----------------------------------------------------------------------------------------------------------------------------------
  12. Totals... ......157,339 ........2,555 .......33,928 .............. ........40,771 .............. .........4,875 .............
----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -------------------------------------------------------------------------
                
                       21             22             23            24
                                                                Number of
                    Salvage      Unallocated       Total         Claims
                      and            Loss        Net Losses   Outstanding -
                  Subrogation      Expenses     and Expenses     Direct
                  Anticipated       Unpaid         Unpaid      and Assumed
  -------------------------------------------------------------------------
<S>             <C>             <C>            <C>            <C>       
   1. Prior.... ............... .............1 ............11 ....X X X....
   2. 1986..... ............... .............. ............ 6 ....X X X....
   3. 1987..... ............... .............2 ............71 ....X X X....
   4. 1988..... ............... .............4 ............95 ....X X X....
   5. 1989..... ............... ............18 ...........438 ....X X X....
   6. 1990..... ............... ............19 ...........495 ....X X X....
   7. 1991..... ............... ............80 .........1,935 ....X X X....
   8. 1992..... ............643 ...........165 .........3,030 ....X X X....
   9. 1993..... ..........1,291 ...........622 ........13,367 ....X X X....
  10. 1994..... ..........3,409 .........2,480 ........51,572 ....X X X....
  11. 1995..... .........23,384 ........13,237 .......179,966 ....X X X....
  -------------------------------------------------------------------------
  12. Totals... .........28,727 ........16,628 .......250,986 ....X X X....
  -------------------------------------------------------------------------
</TABLE> 
  
<TABLE>
<CAPTION> 
  ---------------------------------------------------------------------------------------------------------------------------------
                            Total Losses and                    Loss and Loss Expense Percentage             Discount for Time
                         Loss Expenses Incurred                    (Incurred/Premiums Earned)                 Value of Money
                -------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32
                   Direct                                     Direct                                                       Loss
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense
  ---------------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>       
   1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
   2. 1986..... ......184,182 ........7,522 ......176,660 ..........76.7 .........174.7 ..........74.9 .............. .............
   3. 1987..... ......255,389 ..........892 ......254,497 ..........75.2 ..........29.4 ..........75.6 .............. .............
   4. 1988..... ......316,336 ........2,245 ......314,091 ..........75.7 ..........38.3 ..........76.2 .............. .............
   5. 1989..... ......338,180 ..........728 ......337,452 ..........70.8 ..........13.7 ..........71.4 .............. .............
   6. 1990..... ......343,555 ..........569 ......342,986 ..........71.1 ..........10.1 ..........71.9 .............. .............
   7. 1991..... ......308,485 ..........685 ......307,800 ..........64.7 ..........19.5 ..........65.0 .............. .............
   8. 1992..... ......301,105 ..........926 ......300,179 ..........71.0 ..........35.7 ..........71.2 .............. .............
   9. 1993..... ......319,463 ..........878 ......318,585 ..........66.8 ..........20.8 ..........67.2 .............. .............
  10. 1994..... ......372,734 ........9,581 ......363,153 ..........70.2 .........726.8 ..........68.6 .............. .............
  11. 1995..... ......428,996 ........4,235 ......424,761 ..........69.2 .........123.0 ..........68.9 .............. ............. 

  ---------------------------------------------------------------------------------------------------------------------------------
  12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. ............. 

  ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -----------------------------------------------------------
                                  Net Balance Sheet Reserves
                       33               After Discount
                 Inter-Company  -----------------------------
                    Pooling           34             35
                 Participation      Losses     Loss Expenses
                   Percentage       Unpaid         Unpaid
  -----------------------------------------------------------
<S>             <C>             <C>            <C>            
   1. Prior.... ......X X X.... ............10 .............1
   2. 1986..... ............... .............6 ..............
   3. 1987..... ............... ............47 ............24
   4. 1988..... ............... ............57 ............38
   5. 1989..... ............... ...........315 ...........123
   6. 1990..... ............... ...........296 ...........199
   7. 1991..... ............... .........1,337 ...........598
   8. 1992..... ............... .........1,738 ........ 1,292
   9. 1993..... ............... .........8,150 ........ 5,217
  10. 1994..... ............... ........33,992 ........17,580
  11. 1995..... ............... .......142,764 ........37,202
  -----------------------------------------------------------
  12. Totals... .....X X X..... .......188,712 ........62,274
  -----------------------------------------------------------
</TABLE> 

                                      74
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
                             AFFILIATED COMPANIES



                         SCHEDULE P - PART 2 - SUMMARY

<TABLE> 
<CAPTION> 
--------------------------------------------------------------------------------------------------------------------------------
        1                                       Incurred Losses and Allocated Expenses Reported At Year End ($000 omitted) 
  Years in Which  --------------------------------------------------------------------------------------------------------------
   Losses Were        2             3             4             5             6             7             8             9      
    Incurred        1986          1987          1988          1989          1990          1991          1992          1993     
--------------------------------------------------------------------------------------------------------------------------------
<S>              <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>     
 1.  Prior ...   .....26,451   .....30,841   .....31,800   .....32,890   .....32,373   .....31,760   .....31,010   ..... 31,021 
 2.  1986 ....   ....166,524   ....167,942   ....166,459   ....166,514   ....165,173   ....165,175   ....164,598   ....164,466 
 3.  1987 ....   ...X X X...   ....249,267   ....234,490   ....234,213   ....236,678   ....236,909   ....234,832   ....234,724 
 4.  1988 ....   ...X X X...   ...X X X...   ....316,583   ....293,200   ....290,989   ....291,523   ....286,996   ....286,686 
 5.  1989 ....   ...X X X...   ...X X X...   ...X X X...   ....349,929   ....313,602   ....311,801   ....306,010   ....303,732 
 6.  1990 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....346,720   ....320,972   ....308,956   ....306,110 
 7.  1991 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....328,070   ....287,398   ....281,475 
 8.  1992 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....291,957   ....270,877 
 9.  1993 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....288,766 
10.  1994 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...    
11.  1995 ....   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...    
--------------------------------------------------------------------------------------------------------------------------------
12.  Totals ...................................................................................................................     
--------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
----------------------------------------------------------------------
        1                                         Development         
  Years in Which  ---------------------------------------------------- 
   Losses Were           10            11           12           13      
    Incurred            1994          1995       One Year     Two Year   
---------------------------------------------------------------------- 
<S>               <C>           <C>           <C>           <C>        
 1.  Prior ...    .....31,282   .....31,358   .........76   ........337 
 2.  1986 ....    ....164,868   ....164,843   ........(25)  ........377 
 3.  1987 ....    ....235,115   ....235,016   ........(99)  ........292 
 4.  1988 ....    ....287,441   ....287,403   ........(38)  ........717 
 5.  1989 ....    ....305,644   ....305,782   ........138   ......2,050 
 6.  1990 ....    ....307,134   ....306,986   .......(148)  ........876 
 7.  1991 ....    ....279,221   ....279,896   ........675   .....(1,579)
 8.  1992 ....    ....269,732   ....267,818   .....(1,913)  .....(3,059)
 9.  1993 ....    ....278,565   ....283,058   ......4,493   .....(5,708)
10.  1994 ....    ....327,465   ....319,867   .....(7,597)  ...X X X...     
11.  1995 ....    ...X X X...   ....377,825   ...X X X...   ...X X X...     
------------------------------------------------------------------------
12.  Totals .......................................(4,438)       (5,696)
------------------------------------------------------------------------
</TABLE> 

                         SCHEDULE P - PART 3 - SUMMARY
<TABLE> 
<CAPTION>                         
   -------------------------------------------------------------------------------------------------------------------------
                                                                                                                            
          1                                         Cumulative Paid Losses and Allocated Expenses At Year End ($000 omitted)
    Years in Which    ------------------------------------------------------------------------------------------------------
     Losses Were           2            3             4             5             6             7             8             9      
      Incurred           1986         1987          1988          1989          1990          1991          1992          1993     
                                                                                                                             
   ---------------------------------------------------------------------------------------------------------------------------------
  <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C> 
   1.  Prior ...     ....000....   .....16,413   .....25,137   .....29,024   .....31,064   .....31,163   .....31,216   .....31,237 
   2.  1986 ....     .....75,554   ....133,737   ....152,045   ....158,747   ....162,375   ....164,101   ....164,590   ....164,670 
   3.  1987 ....     ...X X X...   ....110,820   ....190,234   ....214,262   ....226,587   ....233,005   ....234,431   ....234,929 
   4.  1988 ....     ...X X X...   ...X X X...   ....132,377   ....230,702   ....265,865   ....279,240   ....284,859   ....286,959 
   5.  1989 ....     ...X X X...   ...X X X...   ...X X X...   ....145,298   ....250,389   ....284,974   ....298,622   ....302,988 
   6.  1990 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....146,974   ....259,117   ....292,452   ....301,682 
   7.  1991 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....148,021   ....238,353   ....266,220 
   8.  1992 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....141,704   ....225,014 
   9.  1993 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ....153,951 
  10.  1994 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X... 
  11.  1995 ....     ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X... 
 -----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
   ------------------------------------------------------------------------
                                                     12            13      
          1                                       Number of     Number of   
    Years in Which  ---------------------------    Claims        Claims    
     Losses Were        10             11        Closed With      Closed    
      Incurred         1994           1995           Loss      Without Loss 
                                                   Payment       Payment    
   ------------------------------------------------------------------------
  <S>               <C>            <C>           <C>           <C>  
   1.  Prior ...    .....31,238    .....31,348   ...X X X...   ...X X X...     
   2.  1986 ....    ....164,859    ....164,837   ...X X X...   ...X X X...     
   3.  1987 ....    ....234,989    ....234,947   ...X X X...   ...X X X...     
   4.  1988 ....    ....287,306    ....287,312   ...X X X...   ...X X X...     
   5.  1989 ....    ....304,797    ....305,362   ...X X X...   ...X X X...     
   6.  1990 ....    ....305,240    ....306,510   ...X X X...   ...X X X...     
   7.  1991 ....    ....275,823    ....278,041   ...X X X...   ...X X X...     
   8.  1992 ....    ....256,290    ....264,953   ...X X X...   ...X X X...     
   9.  1993 ....    ....240,495    ....270,313   ...X X X...   ...X X X...     
  10.  1994 ....    ....177,134    ....270,775   ...X X X...   ...X X X...     
  11.  1995 ....    ...X X X...    ....211,097   ...X X X...   ...X X X...     
 -------------------------------------------------------------------------- 
</TABLE> 

                        SCHEDULE P - PART 4 - SUMMARY

<TABLE> 
<CAPTION> 
   --------------------------------------------------------------------------------------------------------------------------------
          1                 Bulk and Incurred But Not Reported Reserves on Losses and Allocated Expenses at Year End ($000 omitted)
    Years in Which  ---------------------------------------------------------------------------------------------------------------
       Losses          2           3           4          5           6         7           8          9         10         11      
    Were Incurred    1986        1987        1988       1989         1990      1991        1992       1993      1994       1995    
   --------------------------------------------------------------------------------------------------------------------------------
  <S>             <C>         <C>         <C>         <C>         <C>         <C>        <C>        <C>        <C>        <C> 
   1.   Prior ..  ....4,393   ....3,260   ....1,410   ......956   ........2   .......1   .......1   ........   ........   .......
   2.   1986 ...  ...36,485   ....9,881   ....3,394   ....2,384   .......77   .......3   .......2   ........   ........   .......
   3.   1987 ...  ..X X X..   ...55,237   ...10,006   ....3,907   ....2,463   ...1,186   .......9   .......4   ......11   ......7 
   4.   1988 ...  ..X X X..   ..X X X..   ...74,966   ...14,710   ....6,752   ...3,414   ......23   ......18   .......2   ......4 
   5.   1989 ...  ..X X X..   ..X X X..   ..X X X..   ...79,435   ...15,048   ...4,908   .....457   ......32   ......17   .....12 
   6.   1990 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ...63,399   ..11,203   ...2,240   .....276   .....116   .....15 
   7.   1991 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..54,608   ...7,903   .....681   .....207   .....87 
   8.   1992 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X.   ..38,545   ...4,004   .....415   ....152 
   9.   1993 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X.   ..X X X.   ..26,419   ...1,193   ....247 
  10.   1994 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X.   ..X X X.   ..X X X.   ..31,953   ..1,118 
  11.   1995 ...  ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X..   ..X X X.   ..X X X.   ..X X X.   ..X X X.   .37,161 
  ---------------------------------------------------------------------------------------------------------------------------------
</TABLE> 

                                      75
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES


                 SCHEDULE P - PART 1A - HOMEOWNERS/FARMOWNERS

<TABLE> 
<CAPTION> 
                                                     ($000 omitted)
----------------------------------------------------------------------------------------------------------------------
       1                    Premiums Earned                                             Loss and Loss Expense Payments   
               -------------------------------------------------------------------------------------------------------
     Years           2             3             4              Loss Payments                   Allocated Loss        
    in Which                                                                                   Expense Payments       
 Premiums Were                                           -----------------------------------------------------------  
   Earned and     Direct                        Net            5              6             7              8         
  Losses Were       and          Ceded        (2 - 3)        Direct                       Direct                     
    Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded       
 ---------------------------------------------------------------------------------------------------------------------
 <S>              <C>            <C>           <C>        <C>               <C>          <C>              <C>  
  1. Prior         X X X         X X X         X X X                30                             4                  
  2. 1986             1,769           192         1,577          1,538            331            206                  
  3. 1987             1,828           180         1,648          1,050             93            102                  
  4. 1988             1,552           144         1,408          1,219            237            140                  
  5. 1989             1,228           107         1,121            380             35             49                  
  6. 1990               970           120           850            354              2             35                  
  7. 1991               889           107           782            388              8             95                  
  8. 1992               761           171           590            344             20             39                  
  9. 1993             2,256           605         1,651          1,280             86            126              1   
 10. 1994             5,434         1,136         4,298          1,796             29            135              1   
 11. 1995             5,135           686         4,449          1,576            217            217             45   
 ---------------------------------------------------------------------------------------------------------------------
 12. Totals        X X X         X X X         X X X             9,955          1,058          1,148             47   
 ---------------------------------------------------------------------------------------------------------------------

<CAPTION> 
--------------------------------------------------------------------------
       1       
               --------------------------------------------                
     Years           9              10             11             12       
    in Which                                                  Number of    
 Premiums Were    Salvage      Unallocated       Total          Claims     
   Earned and       and            Loss         Net Paid      Reported -   
  Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and   
    Incurred      Received       Payments      - 8 + 10)       Assumed     
  -------------------------------------------------------------------------  
 <S>            <C>            <C>             <C>            <C>          
  1. Prior                                2             36      X X X      
  2. 1986                 25             34          1,447            523  
  3. 1987                 48            107          1,166            479  
  4. 1988                 15            103          1,225            450  
  5. 1989                                87            481            181  
  6. 1990                                85            472            163  
  7. 1991                  2             40            515            200  
  8. 1992                                93            456            161  
  9. 1993                 16            267          1,586            468  
 10. 1994                 23            337          2,238            986  
 11. 1995                 11            216          1,747          1,351  
 -------------------------------------------------------------------------  
 12. Totals              140          1,371         11,369      X X X      
 -------------------------------------------------------------------------                
</TABLE> 
      
<TABLE> 
<CAPTION>                
 ---------------------------------------------------------------------------------------------------------------------------------
                                     Losses Unpaid                                     Allocated Loss Expenses Unpaid             
               -------------------------------------------------------------------------------------------------------------------
                         Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
               -------------------------------------------------------------------------------------------------------------------
                    13            14            15             16             17             18             19             20       

                  Direct                      Direct                        Direct                        Direct 
                and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
 ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>              <C>        <C>              <C>         <C>               <C>         <C>               <C>      
  1. Prior                                                                                                                        
  2. 1986                                                                                                                         
  3. 1987                                                                                                                         
  4. 1988                (3)                                                                                                      
  5. 1989                                                                                                                         
  6. 1990                                                                                                                         
  7. 1991               100            25            48                             1                             5               
  8. 1992                                                                                                                         
  9. 1993                (1)           26                                           2                                             
 10. 1994               149                         115                            16                             9               
 11. 1995               677             3           333                            58                            33               
 ---------------------------------------------------------------------------------------------------------------------------------
 12. Totals             922            54           496                            77                            47               
 ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
 --------------------------------------------------------------------------
                                                                           
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
 --------------------------------------------------------------------------
  <S>            <C>            <C>            <C>           <C> 
  1. Prior                                                                 
  2. 1986                                                                  
  3. 1987                                                                  
  4. 1988                                                (3)            1  
  5. 1989                                                                  
  6. 1990                                                                  
  7. 1991                                               129             1  
  8. 1992                                                               1  
  9. 1993                                               (25)            1  
 10. 1994                                               289            18  
 11. 1995                                             1,098           272  
 ------------------------------------------------------------------------- 
 12. Totals                                           1,488           294  
 -------------------------------------------------------------------------                
</TABLE> 
      
<TABLE> 
<CAPTION> 
 ----------------------------------------------------------------------------------------------------------------------------------
                            Total Losses and                    Loss and Loss Expense Percentage            Discount for Time      
                          Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money        
               --------------------------------------------------------------------------------------------------------------------
                    25            26            27             28             29             30             31             32      
                                                                                                                                   
                  Direct                                     Direct                                                       Loss     
                and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense    
 ----------------------------------------------------------------------------------------------------------------------------------
 <S>            <C>              <C>           <C>        <C>               <C>            <C>             <C>          <C>        
  1. Prior         X X X         X X X         X X X         X X X          X X X          X X X                                   
  2. 1986             1,778           331         1,447          100.5          172.4           91.8                               
  3. 1987             1,259            93         1,166           68.9           51.7           70.8                               
  4. 1988             1,459           237         1,222           94.0          164.6           86.8                               
  5. 1989               516            35           481           42.0           32.7           42.9                               
  6. 1990               474             2           472           48.9            1.7           55.5                               
  7. 1991               677            33           644           76.2           30.8           82.4                               
  8. 1992               476            20           456           62.5           11.7           77.3                               
  9. 1993             1,674           113         1,561           74.2           18.7           94.5                               
 10. 1994             2,557            30         2,527           47.1            2.6           58.8                               
 11. 1995             3,110           265         2,845           60.6           38.6           63.9                               
 ----------------------------------------------------------------------------------------------------------------------------------
 12. Totals        X X X         X X X         X X X         X X X          X X X          X X X                                   
 ----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
 ----------------------------------------------------------- 
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ----------------------------- 
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
 ----------------------------------------------------------- 
 <S>            <C>                <C>           <C>         
  1. Prior          X X X                                    
  2. 1986                                                    
  3. 1987                                                    
  4. 1988                                 (3)                
  5. 1989                                                    
  6. 1990                                                    
  7. 1991                                123              6  
  8. 1992                                                    
  9. 1993                                (27)             2  
 10. 1994                                264             25  
 11. 1995                              1,007             91  
 ----------------------------------------------------------- 
 12. Totals         X X X              1,364            124  
 ----------------------------------------------------------- 
</TABLE> 

                                       76
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 1B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL

<TABLE> 
<CAPTION> 
                                                                      ($000 omitted)
-----------------------------------------------------------------------------------------------------------------------------------
      1                    Premiums Earned                                        Loss and Loss Expense Payments         
              ---------------------------------------------------------------------------------------------------------------------
    Years           2            3            4             Loss Payments           Allocated Loss            9            10      
   in Which                                                                        Expense Payments                                
Premiums Were                                        ---------------------------------------------------   Salvage    Unallocated  
  Earned and     Direct                      Net          5             6           7             8          and          Loss     
 Losses Were       and         Ceded       (2 - 3)      Direct                    Direct                 Subrogation    Expense    
   Incurred      Assumed                             and Assumed      Ceded    and Assumed      Ceded      Received     Payments   
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X...  ...X X X...  ...X X X...   .......(11) ...........  .........31  ............  ........15  ........(12)
 2. 1986 .... .....131,964  ......2,713  ....129,251   ....99,891  ......4,781  ......9,434  ..........46  .....2,455  ......7,114
 3. 1987 .... .....192,629  ......1,561  ....191,068   ..137,4161  ........151  .....13,523  .........158  .....3,840  .....11,329
 4. 1988 .... .....256,356  ......4,210  ....252,146   ...171,788  .........60  .....18,087  ..........67  .....4,961  .....16,932
 5. 1989 .... .....306,827  ......3,878  ....302,949  ....185.772  .........51  .....18,791  ..........26  .....4,617  .....19,880
 6. 1990 .... .....315,974  ......4,098  ....311,876  ....193,732  ........190  .....20,404  .........150  .....4,887  .....24,955
 7. 1991 .... .....323,054  ......1,821  ....321,233  ....168,655  ........214  .....21,271  .........358  .....4,294  .....17,935
 8. 1992 .... .....295,654  ......1,116  ....294,538  ....154,641  ........163  .....21,420  ...........9  .....4,096  .....17,325
 9. 1993 .... .....327,184  ......1,281  ....325,903  ....149,664  ........210  .....18,636  ..........33  .....3,913  .....20,061
10. 1994 .... .....353,422  .....(2.852) ....356,274  ....143,187  ........528  ......9,599  ...........1  .....3,262  .....22,295
11. 1995 .... .....402,702  ........308  ....402,394  .....73,681  .........24  ......1,713  ...........1  .......981  .....15,679
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X...  ...X X X...  ...X X X... ...1,478,461  ......6,372  ....152,909  .........849  ....37,321  ....173,493
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------------------
      1                                
              -------------------------
    Years           11           12    
   in Which                  Number of 
Premiums Were     Total       Claims   
  Earned and    Net Paid    Reported - 
 Losses Were   (5 - 6 + 7   Direct and 
   Incurred     - 8 + 10)    Assumed   
-----------------------------------------
<S>            <C>          <C> 
 1. Prior .... ...........8  .....X X X..
 2. 1986 ..... .....111,612  ......28,387
 3. 1987 ..... .....162,004  ......39,854
 4. 1988 ..... .....206,680  ......44,888
 5. 1989 ..... .....224,366  ......47,096
 6. 1990 ..... .....238,751  ......46,596
 7. 1991 ..... .....207,289  ......41,036
 8. 1992 ..... .....193,214  ......40,168 
 9. 1993 ..... .....188,118  ......42,803
10. 1994 ..... .....174,552  ......49,454
11. 1995 ..... ......91,048  ......53,724             
-----------------------------------------
12. Totals ... ...1,797,642  ....X X X...   
-----------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                                 Losses Unpaid                              Allocated Loss Expenses Unpaid
              -------------------------------------------------------------------------------------------------------
                                                                                                                           21      
                     Case Basis                Bulk + IBNR               Case Basis               Bulk + IBNR
              -------------------------------------------------------------------------------------------------------    Salvage
                   13           14           15           16           17           18           19           20           and     
                 Direct                    Direct                    Direct                    Direct                  Subrogation  
              and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded     Anticipated  

-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ..........10  ............  ...........  ...........  ...........  ...........  ............  ...........  ..........
 2. 1986 .... ...........5  ............  ...........  ...........  ...........  ...........  ............  ...........  ..........
 3. 1987 .... ..........34  ............  ...........  ...........  .........22  ...........  ............  ...........  ..........
 4. 1988 .... ..........49  ............  ...........  ...........  .........34  ...........  ............  ...........  ..........
 5. 1989 .... .........280  ............  ...........  ...........  ........105  ...........  ............  ...........  ..........
 6. 1990 .... .........290  ..........81  ...........  ...........  ........153  ...........  ............  ...........  ..........
 7. 1991 .... .......1,116  ............  .........12  ...........  ........491  ...........  ...........5  ...........  ..........
 8. 1992 .... .......1,670  ..........65  .........85  ...........  ......1,017  ...........  ..........40  ...........  .......412
 9. 1993 .... .......7,574  ...........1  ........110  ...........  ......4,180  ...........  ..........54  ...........  .......681
10. 1994 .... ......32,103  ..........84  ........198  ...........  .....14,227  ...........  ..........(5) ...........  .....1,811
11. 1995 .... .....104,113  .........353  .....25,456  ...........  .....18,350  ...........  .......4,118  ...........  .....4,856
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. .....147,244  .........584  .....25,861  ...........  .....38,579  ...........  .......4,212  ........... ......7,760
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
                    22          23           24
                                          Number of
              Unallocated     Total        Claims
                  Loss      Net Losses  Outstanding -  
                Expenses   and Expenses   Direct and 
                 Unpaid       Unpaid       Assumed   
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior ....  ........1   .........11   ..........3
 2. 1986 .....  .........   ..........5   ..........2
 3. 1987 .....  ........2   .........58   ..........3
 4. 1988 .....  ........4   .........87   ..........6
 5. 1989 .....  .......18   ........403   .........10
 6. 1990 .....  .......15   ........377   .........25
 7. 1991 .....  .......77   ......1,701   .........75
 8. 1992 .....  ......155   ......2,902   ........167
 9. 1993 .....  ......572   .....12,489   ........640
10. 1994 .....  ....2,297   .....48,736   ......3,279
11. 1995 .....  ...10,784   ....162,468   .....19,060
------------------------------------------------------
12. Totals ...  ....13,925  ....229,237   .....23,270 
------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                         Total Losses and              Loss and Loss Expense Percentage         Discount for Time
                      Loss Expenses Incurred              (Incurred/Premiums Earned)              Value of Money            33
              -------------------------------------------------------------------------------------------------------   
                   25           26           27           28           29           30           31           32       Inter-Company
                                                                                                                          Pooling
                 Direct                                 Direct                                              Loss       Participation
              and Assumed      Ceded         Net     and Assumed      Ceded         Net         Loss       Expense       Percentage
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>              <C>           <C>     <C>              <C>           <C>         <C>        <C>          <C> 
 1. Prior ...  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...........  ...........  ...X X X...
 2. 1986 ....  ....116,444  ......4,827  ....111,617  .......88.2  ......177.9  .......86.4  ...........  ...........  ...........
 3. 1987 ....  ....162,371  ........309  ....162,062  .......84.3  .......19.8  .......84.8  ...........  ...........  ...........
 4. 1988 ....  ....206,894  ........127  ....206,767  .......80.7  ........3.0  .......82.0  ...........  ...........  ...........
 5. 1989 ....  ....224,846  .........77  ....224,769  .......73.3  ........2.0  .......74.2  ...........  ...........  ...........
 6. 1990 ....  ....239,549  ........421  ....239,128  .......75.8  .......10.3  .......76.7  ...........  ...........  ...........
 7. 1991 ....  ....209,562  ........572  ....208,990  .......64.9  .......31.4  .......65.1  ...........  ...........  ...........
 8. 1992 ....  ....196,353  ........237  ....196,116  .......66.4  .......21.2  .......66.6  ...........  ...........  ...........
 9. 1993 ....  ....200,851  ........244  ....200,607  .......61.4  .......19.0  .......61.6  ...........  ...........  ...........
10. 1994 ....  ....223,901  ........613  ....223,288  .......63.4  ......(21.5) .......62.7  ...........  ...........  ...........
11. 1995 ....  ....253,894  ........378  ....253,516  .......63.0  ......122.7  .......63.0  ...........  ...........  ...........
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals ..  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...X X X...  ...........  ...........  ...X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
-----------------------------------------
              Net Balance Sheet Reserves
                    After Discount
              ---------------------------
                   34           35     
                               Loss    
                 Losses      Expenses  
                 Unpaid       Unpaid   
-----------------------------------------
<S>           <C>          <C>         
 1. Prior ....  .........10  ..........1  
 2. 1986 .....  ..........5  ...........
 3. 1987 .....  .........34  .........24
 4. 1988 .....  .........49  .........38
 5. 1989 .....  ........280  ........123
 6. 1990 .....  ........209  ........168
 7. 1991 .....  ......1,128  ........573
 8. 1992 .....  ......1,690  ......1,212
 9. 1993 .....  ......7,683  ......4,806
10. 1994 .....  .....32,217  .....16,519
11. 1995 .....  ....129,216  .....33,252
-----------------------------------------
12. Totals ...  ....172,521  .....56,716     
-----------------------------------------
</TABLE> 

                                       77
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 1C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

<TABLE>
<CAPTION>
                                                      ($000 omitted)
  -------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                           Loss and Loss Expense Payments
                -----------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss
     in Which                                                                                   Expense Payments
  Premiums Were                                           -----------------------------------------------------------
    Earned and     Direct                        Net            5              6              7               8
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed        Ceded
  -------------------------------------------------------------------------------------------------------------------
  <S>            <C>           <C>           <C>           <C>            <C>            <C>             <C>
   1. Prior....  ...X X X...   ...X X X...   ...X X X...   ............   ............   ............    ...........
   2. 1986.....  .....14,312   ........262   .....14,050   ......10,164   .......1,575   .......1,030    ...........
   3. 1987.....  .....21,100   ........205   .....20,895   ......14,116   .........176   .......2,168    .........56
   4. 1988.....  .....23,777   ........354   .....23,423   ......18,062   .......1,360   .......2,573    ........225
   5. 1989.....  .....24,569   .........96   .....24,473   ......15,475   .........320   .......2,602    .........28
   6. 1990.....  .....21,747   ........102   .....21,645   ......11,094   ............   .......1,503    .........28
   7. 1991.....  .....20,339   .........91   .....20,248   .......9,318   ............   .......1,567    .........10
   8. 1992.....  .....16,507   .........40   .....16,467   .......8,124   ............   .......1,441    ..........3
   9. 1993.....  .....18,237   .........40   .....18,197   .......8,463   ............   .......1,491    ..........3
  10. 1994.....  .....20,437   ..........1   .....20,436   .......6,385   ............   .........571    ...........
  11. 1995.....  .....22,120   ...........   .....22,120   .......2,488   ............   ..........82    ...........
  -------------------------------------------------------------------------------------------------------------------
  12. Totals     ...X X X...   ...X X X...   ...X X X...   .....103,689   .......3,431   ......15,028    ........353
  -------------------------------------------------------------------------------------------------------------------

<CAPTION>
  --------------------------------------------------------------------------
        1
                --------------------------------------------
      Years           9              10             11             12
     in Which                                                  Number of
  Premiums Were    Salvage      Unallocated       Total          Claims
    Earned and       and            Loss         Net Paid      Reported -
   Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and
     Incurred      Received       Payments      - 8 + 10)       Assumed
  -------------------------------------------------------------------------
  <S>            <C>            <C>            <C>            <C>
   1. Prior.....  ...........   ...........1   ...........1   ...X X X....
   2. 1986......  ........198   .........555   ......10,174   .......2,127
   3. 1987......  ........156   .........772   ......16,824   .......2,946
   4. 1988......  ........214   .......1,024   ......20,074   .......3,165
   5. 1989......  ........156   .........810   ......18,539   .......2,838
   6. 1990......  ........133   .......1,135   ......13,704   .......2,404
   7. 1991......  ........120   .........667   ......11,542   .......1,903
   8. 1992......  ........155   .........703   ......10,265   .......1,797
   9. 1993......  ........164   .......1,109   ......11,060   .......1,761
  10. 1994......  ........118   .......1,181   .......8,137   .......2,010
  11. 1995......  .........30   .........806   .......3,376   .......1,934
  -------------------------------------------------------------------------
  12. Totals....  ......1,444   .......8,763   .....123,696   ...X X X....
  -------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
  ---------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid
                -------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR
                -------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20
                   Direct                      Direct                        Direct                        Direct
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>            <C>           <C>           <C>           <C>           <C>              <C>           <C>            <C>
   1. Prior....  ...........   ...........   ...........   ...........   .............    ...........   ...........    ...........
   2. 1986.....  ...........   ...........   ...........   ...........   .............    ...........   ...........    ...........
   3. 1987.....  ..........6   ...........   ..........7   ...........   .............    ...........   ...........    ...........
   4. 1988.....  ..........7   ...........   ..........4   ...........   .............    ...........   ...........    ...........
   5. 1989.....  .........21   ...........   .........12   ...........   .............    ...........   ...........    ...........
   6. 1990.....  .........82   .........10   .........15   ...........   ...........27    ...........   ...........    ...........
   7. 1991.....  .........69   ...........   .........17   ...........   ...........16    ...........   ...........    ...........
   8. 1992.....  ........184   ...........   .........26   ...........   ...........64    ...........   ..........1    ...........
   9. 1993.....  ........825   ...........   .........16   ...........   ..........335    ...........   ...........    ...........
  10. 1994.....  ......1,963   ...........   ........250   ...........   ..........680    ...........   .........71    ...........
  11. 1995.....  ......4,800   ...........   ......3,147   ...........   ..........654    ...........   ........406    ...........
  ---------------------------------------------------------------------------------------------------------------------------------
  12. Totals...  ......7,957   .........10   ......3,494   ...........   ........1,776    ...........   ........478    ...........
  ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
  ---------------------------------------------------------------------------

                        21             22            23             24
                                                                 Number of
                     Salvage       Unallocated      Total         Claims
                       and            Loss        Net Losses    Outstanding -
                    Subrogation     Expenses     and Expenses    Direct and
                    Anticipated      Unpaid         Unpaid        Assumed
  ---------------------------------------------------------------------------
  <S>              <C>             <C>           <C>            <C>
   1. Prior.....   ............    ...........   ............   ...........
   2. 1986......   ............    ...........   ............   ...........
   3. 1987......   ............    ...........   ..........13   ...........
   4. 1988......   ............    ...........   ..........11   ..........1
   5. 1989......   ............    ...........   ..........33   ...........
   6. 1990......   ............    ..........4   .........118   ..........2
   7. 1991......   ............    ..........3   .........105   ..........3
   8. 1992......   ............    .........10   .........285   .........21
   9. 1993......   ............    .........50   .......1,226   .........42
  10. 1994......   ..........16    ........157   .......3,121   ........182
  11. 1995......   .........100    ........744   .......9,751   ........745
  ---------------------------------------------------------------------------
  12. Totals....   .........116    ........968   ......14,663   ........996
  ---------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
  ---------------------------------------------------------------------------------------------------------------------------------

                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money
                -------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32

                   Direct                                     Direct                                                       Loss
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>            <C>           <C>           <C>           <C>            <C>            <C>            <C>          <C>
   1. Prior       ..X X X...   ...X X X...   ...X X X...   ...X X X....   ...X X X....   ...X X X....   ...........   ...........
   2. 1986......  ....11,749   ......1,575   .....10,174   ........82.1   .......601.1   ........72.4   ...........   ...........
   3. 1987......  ....17,069   ........232   .....16,837   ........80.9   .......113.2   ........80.6   ...........   ...........
   4. 1988......  ....21,670   ......1,585   .....20,085   ........91.1   .......447.7   ........85.7   ...........   ...........
   5. 1989......  ....18,920   ........348   .....18,572   ........77.0   .......362.5   ........75.9   ...........   ...........
   6. 1990......  ....13,860   .........38   .....13,822   ........63.7   ....... 37.3   ........63.9   ...........   ...........
   7. 1991......  ....11,657   .........10   .....11,647   ........57.3   ....... 11.0   ........57.5   ...........   ...........
   8. 1992......  ....10,553   ..........3   .....10,550   ........63.9   .........7.5   ........64.1   ...........   ...........
   9. 1993......  ....12,289   ..........3   .....12,286   ........67.4   .........7.5   ........67.5   ...........   ...........
  10. 1994......  ....11,258   ...........   .....11,258   ........55.1   ............   ........55.1   ...........   ...........
  11. 1995......  ....13,127   ...........   .....13,127   ........59.3   ............   ........59.3   ...........   ...........
  ---------------------------------------------------------------------------------------------------------------------------------
  12. Totals        X X X         X X X         X X X         X X X          X X X          X X X
  ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
  ------------------------------------------------------------
                                   Net Balance Sheet Reserves
                        33               After Discount
                                 -----------------------------
                  Inter-Company        34            35
                     Pooling                        Loss
                  Participation      Losses       Expenses
                   Percentage        Unpaid        Unpaid
  ------------------------------------------------------------
  <S>             <C>            <C>            <C>
   1. Prior....    ...X X X...   ............   ...........
   2. 1986.....    ...........   ............   ...........
   3. 1987.....    ...........   ..........13   ...........
   4. 1988.....    ...........   ..........11   ...........
   5. 1989.....    ...........   ..........33   ...........
   6. 1990.....    ...........   ..........87   .........31
   7. 1991.....    ...........   ..........86   .........19
   8. 1992.....    ...........   .........210   .........75
   9. 1993.....    ...........   .........841   ........385
  10. 1994.....    ...........   .......2,213   ........908
  11. 1995.....    ...........   .......7,947   ......1,804
  ------------------------------------------------------------
  12. Totals...    ...X X X...   ......11,441   ......3,222
  ------------------------------------------------------------
</TABLE>

                                       78
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                 SCHEDULE P - PART 1D - WORKERS' COMPENSATION

<TABLE> 
<CAPTION>                                                     
                                                          ($000 omitted)
  ---------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                           Loss and Loss Expense Payments      
                -------------------------------------------------------------------------------------------------------            
      Years           2             3             4                Loss Payments                 Allocated Loss                    
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -------------------------------------------------------------
    Earned and     Direct                        Net            5              6              7              8  
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct              
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded
  ---------------------------------------------------------------------------------------------------------------------             

  <S>           <C>           <C>           <C>           <C>              <C>          <C>            <C> 
   1. Prior.... ....X X X ... ....X X X.... ....X X X.... ................ ............ .............. ...............
   2. 1986..... ............. ............. ............. ................ ............ .............. ...............
   3. 1987..... ............. ............. ............. ................ ............ .............. ...............
   4. 1988..... ............. ............  ............. ................ ............ .............. ...............
   5. 1989..... ............. ............. ............. ................ ............ .............. ...............
   6. 1990..... ............. ............  ............. ................ ............ .............. ...............
   7. 1991..... ............. ............. ............. ................ N         O    N         E  ...............
   8. 1992..... ............. ............. ............. ................ ............ .............. ...............
   9. 1993..... ............. ............. ............. ................ ............ .............. ...............
  10. 1994..... ............. ............. ............. ................ ............ .............. ...............
  11. 1995..... ............. ............. ............. ................ ............ .............. ...............
  ---------------------------------------------------------------------------------------------------------------------
  12. Totals... ....X X X.... ....X X X.... ....X X X.... ................ ............ .............. ...............
  ---------------------------------------------------------------------------------------------------------------------
<CAPTION>                    
  ---------------------------------------------------------------------------
        1       
                 --------------------------------------------                
      Years            9              10             11             12       
     in Which                                                   Number of    
  Premiums Were     Salvage      Unallocated       Total          Claims     
    Earned and        and            Loss         Net Paid      Reported -   
   Losses Were    Subrogation      Expense       (5 - 6 + 7     Direct and   
     Incurred       Received       Payments      - 8 + 10)       Assumed     
  -------------------------------------------------------------------------- 
  <S>           <C>           <C>            <C>             <C>      
   1. Prior.... ............. .............. ............... ....X X X.....      
   2. 1986..... ............. .............. ............... .............. 
   3. 1987..... ............. .............. ............... ..............  
   4. 1988..... ............. .............. ............... ..............  
   5. 1989..... ............. .............. ............... ..............  
   6. 1990..... ............. .............. ............... ..............  
   7. 1991..... ............. .............. ............... ..............  
   8. 1992..... ............. .............. ............... ..............  
   9. 1993..... ............. .............. ............... ..............  
  10. 1994..... ............. .............. ............... ..............  
  11. 1995..... ............. .............. ............... ..............  
  -------------------------------------------------------------------------- 
  12. Totals... ............. .............. ............... ....X X X.....  
  -------------------------------------------------------------------------- 
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------

                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                --------------------------------------------------------------------------------------------------------------------

                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                --------------------------------------------------------------------------------------------------------------------

                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>          <C>          <C>            <C>           <C>             <C>             <C>             <C> 
   1. Prior.... ............ ............ .............. ............. ............... ............... ............... .............
   2. 1986..... ............ ............ .............. ............. ............... ............... ............... .............
   3. 1987..... ............ ............ .............. ............. ............... ............... ............... .............
   4. 1988..... ............ ............ .............. ............. ............... ............... ............... .............
   5. 1989..... ............ ............ .............. ............. ............... ............... ............... .............
   6. 1990..... ............ ............ .............. .............    N      O      N       E      ............... .............
   7. 1991..... ............ ............ .............. ............. ............... ............... ............... .............
   8. 1992..... ............ ............ .............. ............. ............... ............... ............... .............
   9. 1993..... ............ ............ .............. ............. ............... ............... ............... .............
  10. 1994..... ............ ............ .............. ............. ............... ............... ............... .............
  11. 1995..... ............ ............ .............. ............. ............... ............... ............... .............
  ----------------------------------------------------------------------------------------------------------------------------------
  12. Totals... ............ ............ .............. .............. .............. ............... ............... .............
  ----------------------------------------------------------------------------------------------------------------------------------


<CAPTION> 
  --------------------------------------------------------------------------- 
                                                                             
                        21             22             23            24       
                                                                 Number of   
                     Salvage      Unallocated       Total         Claims     
                       and            Loss        Net Losses   Outstanding - 
                   Subrogation      Expenses     and Expenses   Direct and   
                   Anticipated       Unpaid         Unpaid        Assumed    
  --------------------------------------------------------------------------- 
  <S>           <C>           <C>             <C>            <C>           
   1. Prior.... ............. ............... .............. .............. 
   2. 1986..... ............. ............... .............. ..............  
   3. 1987..... ............. ............... .............. ..............  
   4. 1988..... ............. ............... .............. ..............  
   5. 1989..... ............. ............... .............. ..............  
   6. 1990..... ............. ............... .............. ..............                                 
   7. 1991..... ............. ............... .............. ..............  
   8. 1992..... ............. ............... .............. ..............  
   9. 1993..... ............. ............... .............. ..............  
  10. 1994..... ............. ............... .............. ..............  
  11. 1995..... ............. ............... .............. ..............  
  --------------------------------------------------------------------------- 
  12. Totals... ............. ............... .............. ..............   
  --------------------------------------------------------------------------- 
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------

                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time     
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------

                     25            26            27             28             29             30             31             32     
                                                                                                                                   
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>           <C>             <C>             <C>           <C>       
   1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .....X X X..... ....X X X...... ............. ..............
   2. 1986..... ............. ............. ............. ............. ............... ............... ............. ..............
   3. 1987..... ............. ............. ............. ............. ............... ............... ............. ..............
   4. 1988..... ............. ............. ............. ............. ............... ............... ............. ..............
 .  5. 1989..... ............. ............. ............. ............. ............... ............... ............. ..............
   6. 1990..... ............. ............. .............   N      O     N       E      ............... ............. ..............
   7. 1991..... ............. ............. ............. ............. ............... ............... ............. ..............
   8. 1992..... ............. ............. ............. ............. ............... ............... ............. ..............
   9. 1993..... ............. ............. ............. ............. ............... ............... ............. ..............
  10. 1994..... ............. ............. ............. ............. ............... ............... ............. ..............
  11. 1995..... ............. ............. ............. ............. ............... ............... ............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
  12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .....X X X..... ....X X X...... ............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  ------------------------------------------------------------
                                   Net Balance Sheet Reserves  
                      33               After Discount        
                                 ----------------------------- 
                  Inter-Company        34             35       
                     Pooling                         Loss      
                  Participation      Losses        Expenses    
                    Percentage       Unpaid         Unpaid     
  ------------------------------------------------------------ 
  <S>           <C>             <C>            <C>         
   1. Prior.... ......X X X.... .............. ..............   
   2. 1986..... ............... .............. ..............   
   3. 1987..... ............... .............. ..............   
   4. 1988..... ............... .............. ..............   
   5. 1989..... ............... .............. ..............   
   6. 1990..... ............... .............. ..............      
   7. 1991..... ............... .............. ..............   
   8. 1992..... ............... .............. ..............   
   9. 1993..... ............... .............. ..............   
  10. 1994..... ............... .............. ..............   
  11. 1995..... ............... .............. ..............   
  ------------------------------------------------------------
  12. Totals... ......X X X.... .............. ..............   
  ------------------------------------------------------------
</TABLE> 

                                       79
<PAGE>
 
 Form 2

    ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES


               SCHEDULE P - PART 1E - COMMERCIAL MULTIPLE PERIL

<TABLE> 
<CAPTION> 
                                                                                 ($000 omitted)
  --------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments
                ------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             
     in Which                                                                                   Expense Payments            
  Premiums Were                                           -----------------------------------------------------------       
    Earned and     Direct                        Net            5              6              7              8              
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                          
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded            
  -------------------------------------------------------------------------------------------------------------------       
  <S>              <C>            <C>           <C>        <C>               <C>         <C>               <C>              
   1. Prior.....  ..X X X...    ..X X X...    ..X X X...     ..........      .........      ........1     ..........
   2. 1986......  .....2,285    .......747    .....1,538     .....1,330      ......771      ......183     ..........
   3. 1987......  .....2,547    .......703    .....1,844     .......716      ......229      ......185     .........1
   4. 1988......  .....2,774    .......732    .....2,042     .......562      ......201      ......126     .........9
   5. 1989......  .....2,919    .......791    .....2,128     .......701      ......168      .......99     .........4
   6. 1990......  .....2,984    .......883    .....2,101     .......417      .......93      .......89     ........15
   7. 1991......  .....3,353    .....1,056    .....2,297     .......284      .......36      ......143     .........2
   8. 1992......  .....3,443    .......849    .....2,594     .......859      ......263      ......143     ........10
   9. 1993......  .....5,427    .....1,813    .....3,614     .....1,042      ......448      ......206     ........24
  10. 1994......  .....6,976    .....2,253    .....4,723     .....1,495      ......643      ......131     ........19
  11. 1995......  .....8,169    .....1,679    .....6,490     .....1,762      ......898      .......79     ........41
  ------------------------------------------------------------------------------------------------------------------
  12. Totals....  ..X X X...    ..X X X...    ..X X X...     .....9,168      ....3,750      ....1,385     .......125
  -------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  ------------------------------------------------------------------------
        1
               --------------------------------------------
      Years          9              10             11             12
     in Which                                                 Number of
  Premiums Were   Salvage      Unallocated       Total          Claims
    Earned and      and            Loss         Net Paid      Reported -
   Losses Were  Subrogation      Expense       (5 - 6 + 7     Direct and
     Incurred     Received       Payments      - 8 + 10)       Assumed
  ------------------------------------------------------------------------
   <S>            <C>          <C>            <C>            <C>
   1. Prior.....  ..........   ...........1   ...........2    ..X X X....
   2. 1986......  ..........   ..........99   .........841    ........158
   3. 1987......  .........5   .........312   .........983    ........107
   4. 1988......  .........3   .........207   .........685    ........ 89
   5. 1989......  ........12   .........220   .........848    ........ 95
   6. 1990......  .........3   .........232   .........630    ........100
   7. 1991......  .........6   .........352   .........741    ........101
   8. 1992......  ..........   .........624   .......1,353    ........146
   9. 1993......  ........89   .........814   .......1,590    ........200
  10. 1994......  ........10   .........732   .......1,696    ........227
  11. 1995......  .........4   .........807   .......1,709    ........253
  ------------------------------------------------------------------------
  12. Totals....  .......132   .......4,400   ......11,078    ..X X X....
  ------------------------------------------------------------------------
</TABLE>

<TABLE> 
<CAPTION> 
  ---------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid           
                -------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                -------------------------------------------------------------------------------------------------------------------
                     13            14            15           16              17             18           19             20     
                   Direct                      Direct                       Direct                       Direct                  
                 and Assumed      Ceded      and Assumed     Ceded        and Assumed       Ceded      and Assumed      Ceded    
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>            <C>           <C>           <C>           <C>            <C>             <C>          <C>            <C> 
   1. Prior.....  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........
   2. 1986......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........
   3. 1987......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........
   4. 1988......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........
   5. 1989......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........
   6. 1990......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ........... 
   7. 1991......  ..........   ...........    ..........   ...........    ...........     ..........   ...........    ...........  
   8. 1992......  .......125   .........75    ..........   ...........    ..........5     ..........   ...........    ...........
   9. 1993......  .......208   .........25    ........55   ...........    .........18     ..........   ..........5    ...........
  10. 1994......  .......170   .........45    .......109   ...........    .........15     ..........   ..........9    ...........
  11. 1995......  .......781   ........416    .......383   ...........    .........37     ..........   .........38    ........... 
  ---------------------------------------------------------------------------------------------------------------------------------
  12. Totals....  .....1,286   ........561    .......547   ...........    ..........75    ..........   .........52    ...........
  ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
--------------------------------------------------------------------------

                      21            22             23              24
                                                                Number of
                    Salvage     Unallocated       Total          Claims
                      and          Loss        Net Losses     Outstanding -
                  Subrogation    Expenses     and Expenses     Direct and
                  Anticipated     Unpaid         Unpaid          Assumed
  -------------------------------------------------------------------------
   <S>            <C>           <C>            <C>             <C>
   1. Prior.....  ..........    ...........    ...........     ..........
   2. 1986......  ..........    ...........    ...........     ..........
   3. 1987......  ..........    ...........    ...........     ..........
   4. 1988......  ..........    ...........    ...........     .......... 
   5. 1989......  ..........    ...........    ...........     .........1
   6. 1990......  ..........    ...........    ...........     ..........
   7. 1991......  ..........    ...........    ...........     ..........
   8. 1992......  ..........    ...........    .........55     .........6
   9. 1993......  ..........    ...........    ........261     .........9
  10. 1994......  ..........    ...........    ........258     ........14
  11. 1995......  ..........    ...........    ........823     ........69
  -------------------------------------------------------------------------
  12. Totals....  ..........    ...........    ........1,399   ........99
  -------------------------------------------------------------------------
</TABLE>

<TABLE> 
<CAPTION> 
  --------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money
                ------------------------------------------------------------------------------------------------------------------

                     25            26            27             28             29             30             31             32

                   Direct                                     Direct                                                       Loss
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense
  --------------------------------------------------------------------------------------------------------------------------------
  <S>            <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>
   1. Prior..... ..X X X...    ...X X X...   ...X X X...   ...X X X....   ...X X X....   ...X X X....   ...........    ........... 
   2. 1986...... .....1,612    ........771   ........841   ........70.5   .......103.2   ........54.7   ...........    ........... 
   3. 1987...... .....1,213    ........230   ........983   ........47.6   ........32.7   ........53.3   ...........    ........... 
   4. 1988...... .......895    ........210   ........685   ........32.3   ........28.7   ........33.5   ...........    ........... 
   5. 1989...... .....1,022    ........172   ........850   ........35.0   ........21.7   ........39.9   ...........    ........... 
   6. 1990...... .......738    ........108   ........630   ........24.7   ........12.2   ........30.0   ...........    ........... 
   7. 1991...... .......779    .........38   ........741   ........23.2   .........3.6   ........32.3   ...........    ...........  
   8. 1992...... .....1,756    ........348   ......1,408   ........51.0   ........41.0   ........54.3   ...........    ........... 
   9. 1993...... .....2,348    ........497   ......1,851   ........43.3   ........27.4   ........51.2   ...........    ........... 
  10. 1994...... .....2,661    ........707   ......1,954   ........38.1   ........31.4   ........41.4   ...........    ........... 
  11. 1995...... .....3,887    ......1,355   ......2,532   ........47.6   ........80.7   ........39.0   ...........    ...........  
  --------------------------------------------------------------------------------------------------------------------------------
  12. Totals.... ..X X X...    ...X X X...   ...X X X...   ...X X X....   ...X X X...    ...X X X....   ...........    ...........
  --------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
  -------------------------------------------------------------
                                   Net Balance Sheet Reserves
                        33               After Discount
                                  -----------------------------
                  Inter-Company        34             35
                     Pooling                         Loss
                  Participation      Losses        Expenses
                    Percentage       Unpaid         Unpaid
  -------------------------------------------------------------
  <S>              <C>             <C>            <C>
   1. Prior.....   ..X X X....     ...........    ...........
   2. 1986......   ...........     ...........    ...........
   3. 1987......   ...........     ...........    ...........
   4. 1988......   ...........     ...........    ...........
   5. 1989......   ...........     ...........    ...........
   6. 1990......   ...........     ...........    ...........
   7. 1991......   ...........     ...........    ...........
   8. 1992......   ...........     .........50    ..........5
   9. 1993......   ...........     ........238    .........23
  10. 1994......   ...........     ........234    .........24
  11. 1995......   ...........     ........748    .........75
  -------------------------------------------------------------
  12. Totals....   ..X X X....      .....1,272    ........127
  -------------------------------------------------------------
</TABLE>

                                       80
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



     SCHEDULE P - PART 1F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE


<TABLE> 
<CAPTION> 
                                                                                 ($000 omitted)
--------------------------------------------------------------------------------------------------------------------------
      1                   Premiums Earned                                                 Loss and Loss Expense Payments     
             -------------------------------------------------------------------------------------------------------------
    Years          2            3            4               Loss Payments                Allocated Loss          9       
   in Which                                                                              Expense Payments                 
Premiums Were                                       --------------------------------------------------------   Salvage    
  Earned and    Direct                      Net           5             6             7             8            and      
 Losses Were      and         Ceded       (2 - 3)       Direct                      Direct                   Subrogation  
   Incurred     Assumed                              and Assumed      Ceded      and Assumed      Ceded        Received   
--------------------------------------------------------------------------------------------------------------------------
<S>              <C>          <C>          <C>        <C>            <C>          <C>             <C>          <C> 
 1. Prior..    ..X X X..    ..X X X..    ..X X X..    .........      .........    .........       .........    .........  
 2. 1986 ..    .........    .........    .........    .........      .........    .........       .........    .........   
 3. 1987 ..    .........    .........    .........    .........                                   .........    .........   
 4. 1988 ..    .........    .........    .........    .........                                   .........    .........  
 5. 1989 ..    .........    .........    .........    .........      N       O       N     E      .........    .........
 6. 1990 ..    .........    .........    .........    .........                                   .........    .........  
 7. 1991 ..    .........    .........    .........    .........                                   .........    .........  
 8. 1992 ..    .........    .........    .........    .........                                   .........    .........  
 9. 1993 ..    .........    .........    .........    .........      .........    .........       .........    .........  
10. 1994 ..    .........    .........    .........    .........      .........    .........       .........    .........  
11. 1995 ..    .........    .........    .........    .........      .........    .........       .........    .........  
--------------------------------------------------------------------------------------------------------------------------
12. Totals..   ..X X X..    ..X X X..    ..X X X..    .........      .........    .........       .........    .........  
--------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
--------------------------------------------------------   
      1                                                    
             ----------------------------                 
    Years           10            11            12        
   in Which                                 Number of     
Premiums Were  Unallocated      Total         Claims      
  Earned and       Loss        Net Paid     Reported -    
 Losses Were     Expense      (5 - 6 + 7    Direct and    
   Incurred      Payments     - 8 + 10)      Assumed      
--------------------------------------------------------  
<S>            <C>             <C>            <C> 
 1. Prior..    .........       .........    ..X X X..     
 2. 1986 ..    .........       .........    .........     
 3. 1987 ..    .........       .........    .........     
 4. 1988 ..    .........       .........    .........     
 5. 1989 ..    .........       .........    .........     
 6. 1990 ..    .........       .........    .........     
 7. 1991 ..    .........       .........    .........     
 8. 1992 ..    .........       .........    .........     
 9. 1993 ..    .........       .........    .........     
10. 1994 ..    .........       .........    .........     
11. 1995 ..    .........       .........    .........     
--------------------------------------------------------  
12. Totals..   .........       .........    ..X X X..     
--------------------------------------------------------  
</TABLE> 

<TABLE> 
<CAPTION> 
  --------------------------------------------------------------------------------------------------------------------------
                                     Losses Unpaid                                    Allocated Loss Expenses Unpaid        
               -------------------------------------------------------------------------------------------------------------
                         Case Basis                 Bulk + IBNR                 Case Basis                   Bulk + IBNR    
               -------------------------------------------------------------------------------------------------------------
                    13           14           15            16            17            18            19            20      
                  Direct                    Direct                      Direct                      Direct                  
                and Assumed     Ceded     and Assumed     Ceded      and Assumed      Ceded      and Assumed      Ceded     
  --------------------------------------------------------------------------------------------------------------------------
<S>              <C>           <C>          <C>           <C>         <C>            <C>          <C>             <C>           
   1. Prior..    .........     .........   .........      .........   .........      .........    .........       ......... 
   2. 1986 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
   3. 1987 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
   4. 1988 ..    .........     .........   .........      .........   .........      .........    .........       .........
   5. 1989 ..    .........     .........   .........      .........   .........      .........    .........       .........
   6. 1990 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
   7. 1991 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
   8. 1992 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
   9. 1993 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
  10. 1994 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
  11. 1995 ..    .........     .........   .........      .........   .........      .........    .........       ......... 
  --------------------------------------------------------------------------------------------------------------------------
  12. Totals..   .........     .........   .........      .........   .........      .........    .........       ......... 
  --------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  --------------------------------------------------------------------------
                                                                            
                    21            22            23           24      
                                                           Number of  
                  Salvage     Unallocated      Total        Claims     
                    and           Loss       Net Losses  Outstanding - 
                Subrogation     Expenses    and Expenses  Direct and   
                Anticipated      Unpaid        Unpaid       Assumed    
  -------------------------------------------------------------------- 
<S>              <C>           <C>           <C>           <C>             
   1. Prior..    .........     .........     .........     .........    
   2. 1986 ..    .........     .........     .........     .........    
   3. 1987 ..    .........     .........     .........     .........    
   4. 1988 ..    .........     .........     .........     .........    
   5. 1989 ..    .........     .........     .........     .........    
   6. 1990 ..    .........     .........     .........     .........    
   7. 1991 ..    .........     .........     .........     .........    
   8. 1992 ..    .........     .........     .........     .........    
   9. 1993 ..    .........     .........     .........     .........    
  10. 1994 ..    .........     .........     .........     .........    
  11. 1995 ..    .........     .........     .........     .........    
  -------------------------------------------------------------------- 
  12. Totals..   .........     .........     .........     .........    
  -------------------------------------------------------------------- 
</TABLE> 

<TABLE> 
<CAPTION> 
 --------------------------------------------------------------------------------------------------------------------------
                           Total Losses and                   Loss and Loss Expense Percentage           Discount for Time 
                         Loss Expenses Incurred                  (Incurred/Premiums Earned)               Value of Money   
              -------------------------------------------------------------------------------------------------------------
                   25           26           27            28            29            30            31            32      
                                                                                                                           
                 Direct                                  Direct                                                   Loss     
               and Assumed     Ceded         Net      and Assumed      Ceded          Net           Loss        Expense    
 --------------------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>          <C>           <C>           <C>           <C>           <C> 
  1. Prior..    ..X X X..    ..X X X..    ..X X X..    ..X X X..     ..X X X..     ..X X X..       .........     ......... 
  2. 1986 ..    .........    .........    .........    .........     .........     .........       .........     ......... 
  3. 1987 ..    .........    .........    .........                                .........       .........     ......... 
  4. 1988 ..    .........    .........    .........                                .........       .........     ......... 
  5. 1989 ..    .........    .........    .........    N      O       N      E     .........       .........     ......... 
  6. 1990 ..    .........    .........    .........                                .........       .........     .........
  7. 1991 ..    .........    .........    .........                                .........       .........     ......... 
  8. 1992 ..    .........    .........    .........                                .........       .........     ......... 
  9. 1993 ..    .........    .........    .........    .........     .........     .........       .........     ......... 
 10. 1994 ..    .........    .........    .........    .........     .........     .........       .........     ......... 
 11. 1995 ..    .........    .........    .........    .........     .........     .........       .........     ......... 
 --------------------------------------------------------------------------------------------------------------------------
 12. Totals..   ..X X X..    ..X X X..    ..X X X..    ..X X X..     ..X X X..     ..X X X..                               
 --------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
 ------------------------------------------------------------ 
                              Net Balance Sheet Reserves 
                    33             After Discount       
                            ---------------------------------
              Inter-Company       34            35      
                 Pooling                       Loss     
              Participation     Losses       Expenses   
                Percentage      Unpaid        Unpaid    
 ------------------------------------------------------------
<S>               <C>          <C>           <C> 
  1. Prior..    ..X X X..      .........     .........
  2. 1986 ..    .........      .........     .........
  3. 1987 ..    .........      .........     .........
  4. 1988 ..    .........      .........     .........
  5. 1989 ..    .........      .........     .........
  6. 1990 ..    .........      .........     .........
  7. 1991 ..    .........      .........     .........
  8. 1992 ..    .........      .........     .........
  9. 1993 ..    .........      .........     .........
 10. 1994 ..    .........      .........     .........
 11. 1995 ..    .........      .........     .........
 ------------------------------------------------------------
 12. Totals..   ..X X X..      .........     .........
 ------------------------------------------------------------
</TABLE> 

                                       81
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



     SCHEDULE P - PART 1F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE

<TABLE> 
<CAPTION>
                                                                          ($000 omitted)
  -------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                          Loss and Loss Expense Payments
                -----------------------------------------------------------------------------------------------------     
      Years           2             3             4                Loss Payments             Allocated Loss           
     in Which                                                                               Expense Payments          
  Premiums Were                                           -----------------------------------------------------------     
    Earned and     Direct                       Net            5              6              7              8            
   Losses Were       and         Ceded        (2 - 3)        Direct                        Direct                        
     Incurred      Assumed                                and Assumed      Ceded       and Assumed        Ceded          
  -------------------------------------------------------------------------------------------------------------------     
  <S>            <C>            <C>          <C>          <C>           <C>          <C>              <C>            
   1. Prior ...  ...X X X...  ...X X X...   ...X X X...   ...........   ............   ............   ............
   2. 1986 ....  ...........  ...........   ...........   ...........   ............   ............   ............
   3. 1987 ....  ...........  ...........   ...........   ...........   ............   ............   ............
   4. 1988 ....  ...........  ...........   ...........   ...........                                 ............ 
   5. 1989 ....  ...........  ...........   ...........   ...........                                 ............
   6. 1990 ....  ...........  ...........   ...........   ...........       N     O     N     E       ............
   7. 1991 ....  ...........  ...........   ...........   ...........                                 ............   
   8. 1992 ....  ...........  ...........   ...........   ...........   ............   ............   ............    
   9. 1993 ....  ...........  ...........   ...........   ...........   ............   ............   ............                  
  10. 1994 ....  ...........  ...........   ...........   ...........   ............   ............   ............ 
  11. 1995 ....  ...........  ...........   ...........   ...........   ............   ............   ............
  -------------------------------------------------------------------------------------------------------------------     
  12. Totals ..     X X X        X X X         X X X      ...........   ............   ............   ............
  -------------------------------------------------------------------------------------------------------------------     

<CAPTION> 
  --------------------------------------------------------------------------
        1       
                --------------------------------------------                
      Years           9              10             11             12       
     in Which                                                  Number of    
  Premiums Were    Salvage      Unallocated       Total          Claims     
    Earned and       and            Loss         Net Paid      Reported -   
   Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and   
     Incurred      Received       Payments      - 8 + 10)       Assumed     
  ------------------------------------------------------------------------- 
  <S>            <C>            <C>             <C>            <C>      
   1. Prior ...  .........      .........       .........      ..X X X..      
   2. 1986 ....  .........      .........       .........      .........                                       
   3. 1987 ....  .........      .........       .........      .........                                        
   4. 1988 ....  .........      .........       .........      .........                                        
   5. 1989 ....  .........      .........       .........      .........                                            
   6. 1990 ....  .........      .........       .........      .........           
   7. 1991 ....  .........      .........       .........      .........                                                            
   8. 1992 ....  .........      .........       .........      .........
   9. 1993 ....  .........      .........       .........      .........                                            
  10. 1994 ....  .........      .........       .........      .........
  11. 1995 ....  .........      .........       .........      .........
  ------------------------------------------------------------------------- 
  12. Totals ..  .........      .........       .........        X X X      
  ------------------------------------------------------------------------- 
</TABLE> 

<TABLE> 
<CAPTION> 
  --------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid            
                ------------------------------------------------------------------------------------------------------------------
                        Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR      
                ------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20    
                   Direct                      Direct                        Direct                        Direct                 
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded   
  --------------------------------------------------------------------------------------------------------------------------------
  <S>              <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>     
   1. Prior ...    .........     .........     .........     .........      .........      .........      .........     .........
   2. 1986 ....    .........     .........     .........     .........      .........      .........      .........     .........
   3. 1987 ....    .........     .........     .........     .........      .........      .........      .........     ......... 
   4. 1988 ....    .........     .........     .........     .........      .........      .........      .........     .........
   5. 1989 ....    .........     .........     .........                                   .........      .........     .........
   6. 1990 ....    .........     .........     .........        N     O     N     E        .........      .........     .........
   7. 1991 ....    .........     .........     .........                                   .........      .........     .........
   8. 1992 ....    .........     .........     .........     .........       .........     .........      .........     .........
   9. 1993 ....    .........     .........     .........     .........       .........     .........      .........     .........
  10. 1994 ....    .........     .........     .........     .........       .........     .........      .........     .........
  11. 1995 ....    .........     .........     .........     .........       .........     .........      .........     ......... 
  --------------------------------------------------------------------------------------------------------------------------------  
  12. Totals ..    .........     .........     .........     .........       .........     .........      .........     .........
  --------------------------------------------------------------------------------------------------------------------------------  


<CAPTION> 
  -------------------------------------------------------------------------  
                                                                            
                     21             22             23           24       
                                                              Number of   
                  Salvage      Unallocated       Total        Claims     
                    and           Loss        Net Losses    Outstanding - 
                Subrogation     Expenses     and Expenses    Direct and   
                Anticipated      Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------  
  <S>            <C>           <C>            <C>            <C>       
   1. Prior ...  ...........   ...........    ...........    ...........                                                     
   2. 1986 ....  ...........   ...........    ...........    ...........                                                    
   3. 1996 ....  ...........   ...........    ...........    ...........
   4. 1988 ....  ...........   ...........    ...........    ...........
   5. 1989 ....  ...........   ...........    ...........    ...........
   6. 1990 ....  ...........   ...........    ...........    ...........  
   7. 1991 ....  ...........   ...........    ...........    ...........                                                   
   8. 1992 ....  ...........   ...........    ...........    ...........                                                   
   9. 1993 ....  ...........   ...........    ...........    ...........                                                   
  10. 1994 ....  ...........   ...........    ...........    ...........                                                   
  11. 1995 ....  ...........   ...........    ...........    ...........                                                   
  -------------------------------------------------------------------------  
  12. Totals ..  ...........   ...........    ...........    ...........
  -------------------------------------------------------------------------  
</TABLE> 

<TABLE> 
<CAPTION> 
  ---------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time    
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money      
                -------------------------------------------------------------------------------------------------------------------
                     25           26            27            28           29           30              31             32    
                                                                                                                                  
                   Direct                                   Direct                                                    Loss   
                and Assumed     Ceded          Net       and Assumed      Ceded         Net            Loss         Expense  
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>          <C>           <C>           <C>            <C>           <C>               <C>           <C>      
   1. Prior ... ...X X X...  ...X X X...   ...X X X...   ...X X X...   ...X X X...   ...X X X....   ............   ............     
   2. 1986 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............
   3. 1987 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............
   4. 1988 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............
   5. 1989 .... ...........  ...........   ...........   ...........                                ............   ............    
   6. 1990 .... ...........  ...........   ...........   ...........            N O N E             ............   ............     
   7. 1991 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............ 
   8. 1992 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............    
   9. 1993 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............    
  10. 1994 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............    
  11. 1995 .... ...........  ...........   ...........   ...........   ...........   ............   ............   ............    
  --------------------------------------------------------------------------------------------------------------------------------
  12. Totals ..    X X X        X X X         X X X      ...........   ...........   ............   ............   ............
  --------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  ----------------------------------------------------------- 
                                  Net Balance Sheet Reserves  
                     33                 After Discount        
                                ----------------------------- 
               Inter-Company        34              35       
                  Pooling                          Loss      
               Participation      Losses         Expenses    
                 Percentage       Unpaid          Unpaid     
  -----------------------------------------------------------  
  <S>            <C>           <C>              <C>         
   1. Prior ...  ..X X X..     ............     ...........                                
   2. 1986 ....  ..........    ............     ...........
   3. 1987 ....  ..........    ............     ...........                                          
   4. 1988 ....  ..........    ............     ...........                                          
   5. 1989 ....  ..........    ............     ...........                                           
   6. 1990 ....  ..........    ............     ...........
   7. 1991 ....  ..........    ............     ...........                                          
   8. 1992 ....  ..........    ............     ...........                                          
   9. 1993 ....  ..........    ............     ...........                                          
  10. 1994 ....  ..........    ............     ...........                                          
  11. 1995 ....  ..........    ............     ...........                                          
  -----------------------------------------------------------  
  12. Totals ..    X X X       ............     ...........                            
  -----------------------------------------------------------  
</TABLE> 

                                       82
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



            SCHEDULE P - PART 1G - SPECIAL LIABILITY (OCEAN MARINE,

                 AIRCRAFT (ALL PERILS), BOILER AND MACHINERY)
                                ($000 omitted)

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                    Premiums Earned                                        Loss and Loss Expense Payments         
              ---------------------------------------------------------------------------------------------------------------------
    Years           2            3            4             Loss Payments           Allocated Loss            9            10      
   in Which                                                                        Expense Payments                                
Premiums Were                                        ---------------------------------------------------   Salvage    Unallocated  
  Earned and     Direct                      Net          5             6           7             8          and          Loss     
 Losses Were       and         Ceded       (2 - 3)      Direct                    Direct                 Subrogation    Expense    
   Incurred      Assumed                             and Assumed      Ceded    and Assumed      Ceded      Received     Payments   
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 6. 1990 .... ............ ............ ............ ............ N       O       N      E  ............ ............ ............
 7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------------------
      1                                
               -----------
    Years           11           12    
   in Which                  Number of 
Premiums Were     Total       Claims   
  Earned and    Net Paid    Reported - 
 Losses Were   (5 - 6 + 7   Direct and 
   Incurred     - 8 + 10)    Assumed   
-----------------------------------------
<S>            <C>          <C> 
 1. Prior .... ............ ....X X X...  
 2. 1986 ..... ............ ....X X X...
 3. 1987 ..... ............ ....X X X...
 4. 1988 ..... ............ ....X X X...
 5. 1989 ..... ............ ....X X X...
 6. 1990 ..... ............ ....X X X...
 7. 1991 ..... ............ ....X X X...
 8. 1992 ..... ............ ....X X X...
 9. 1993 ..... ............ ....X X X...
10. 1994 ..... ............ ....X X X...
11. 1995 ..... ............ ....X X X...
-----------------------------------------
12. Totals ... ............ ....X X X...   
-----------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                                 Losses Unpaid                              Allocated Loss Expenses Unpaid
              ------------------------------------------------------------------------------------------------------
                                                                                                                           21      
                     Case Basis                Bulk + IBNR               Case Basis               Bulk + IBNR
              ------------------------------------------------------------------------------------------------------     Salvage
                   13           14           15           16           17           18           19           20           and     
                 Direct                    Direct                    Direct                    Direct                  Subrogation  
              and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded     Anticipated  

-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 6. 1990 .... ............ ............ ............ ............ N      O       N       E  ............ ............ ............
 7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ............ ............ ............ ............ ............ ............ ............ ............ ............  
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
                    22          23           24
                                          Number of
              Unallocated     Total        Claims
                  Loss      Net Losses  Outstanding -  
                Expenses   and Expenses   Direct and 
                 Unpaid       Unpaid       Assumed   
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ 
 2. 1986 ..... ............ ............ ............ 
 3. 1987 ..... ............ ............ ............ 
 4. 1988 ..... ............ ............ ............ 
 5. 1989 ..... ............ ............ ............ 
 6. 1990 ..... ............ ............ ............ 
 7. 1991 ..... ............ ............ ............ 
 8. 1992 ..... ............ ............ ............ 
 9. 1993 ..... ............ ............ ............ 
10. 1994 ..... ............ ............ ............ 
11. 1995 ..... ............ ............ ............ 
------------------------------------------------------
12. Totals ... ............ ............ ............ 
------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                         Total Losses and              Loss and Loss Expense Percentage         Discount for Time
                      Loss Expenses Incurred              (Incurred/Premiums Earned)              Value of Money            33
              -------------------------------------------------------------------------------------------------------   
                   25           26           27           28           29           30           31           32       Inter-Company
                                                                                                                          Pooling
                 Direct                                 Direct                                              Loss       Participation
              and Assumed      Ceded         Net     and Assumed      Ceded         Net         Loss       Expense       Percentage
------------------------------------------------------------------------------------------------------------------------------------

<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
 2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 6. 1990 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
 7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
11. 1995 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
-----------------------------------------
              Net Balance Sheet Reserves
                    After Discount
              ---------------------------
                   34           35     
                               Loss    
                 Losses      Expenses  
                 Unpaid       Unpaid   
-----------------------------------------
<S>           <C>          <C>         
 1. Prior .... ............ ............  
 2. 1986 ..... ............ ............
 3. 1987 ..... ............ ............
 4. 1988 ..... ............ ............
 5. 1989 ..... ............ ............
 6. 1990 ..... ............ ............
 7. 1991 ..... ............ ............
 8. 1992 ..... ............ ............
 9. 1993 ..... ............ ............
10. 1994 ..... ............ ............
11. 1995 ..... ............ ............
-----------------------------------------
12. Totals ... ............ ............   
-----------------------------------------
</TABLE> 

                                       83
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 1H - SECTION 1 - OTHER LIABILITY - OCCURRENCE

                                ($000 omitted)

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                    Premiums Earned                                        Loss and Loss Expense Payments         
              ---------------------------------------------------------------------------------------------------------------------
    Years           2            3            4             Loss Payments           Allocated Loss            9            10      
   in Which                                                                        Expense Payments                                
Premiums Were                                        ---------------------------------------------------   Salvage    Unallocated  
  Earned and     Direct                      Net          5             6           7             8          and          Loss     
 Losses Were       and         Ceded       (2 - 3)      Direct                    Direct                 Subrogation    Expense    
   Incurred      Assumed                             and Assumed      Ceded    and Assumed      Ceded      Received     Payments   
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ........50.. ............ ........12.. ............ ............ ............
 2. 1986 .... .......403.. .......116.. .......287.. ........67.. ............ ........67.. ............ ............ ........21..
 3. 1987 .... .......301.. ........44.. .......257.. ........76.. ............ ........64.. ........20.. ............ ........43..
 4. 1988 .... .......102.. ........36.. ........66.. ............ ............ ........49.. ........(4). ............ .........8..
 5. 1989 .... ........77.. ........25.. ........52.. ............ ............ ........14.. .........1.. ............ ........10..
 6. 1990 .... ........82.. ........34.. ........48.. ............ ............ .........9.. ............ ............ .........6..
 7. 1991 .... .......153.. ........96.. ........57.. ........15.. ............ ............ ............ ............ ........33..
 8. 1992 .... .......220.. .......152.. ........68.. ........20.. ............ .........2.. ............ ............ .........8..
 9. 1993 .... .......293.. .......184.. .......109.. .........1.. ............ .........1.. ............ ............ .........1..
10. 1994 .... .......287.. ........14.. .......273.. ............ ............ ............ ............ ............ ............
11. 1995 .... .......109.. ............ .......109.. ............ ............ .........1.. ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... .......229.. ............ .......219.. ........17.. ............ .......130..  

-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------------------
      1                                
              -------------------------
    Years           11           12    
   in Which                  Number of 
Premiums Were     Total       Claims   
  Earned and    Net Paid    Reported - 
 Losses Were   (5 - 6 + 7   Direct and 
   Incurred     - 8 + 10)    Assumed   
-----------------------------------------
<S>            <C>          <C> 
 1. Prior .... ........62.. ....X X X...  
 2. 1986 ..... .......155.. ........33..
 3. 1987 ..... .......163.. ........23..
 4. 1988 ..... ........61.. .........1..
 5. 1989 ..... ........23.. .........1..
 6. 1990 ..... ........15.. .........1..
 7. 1991 ..... ........48.. .........2..
 8. 1992 ..... ........30.. .........9..
 9. 1993 ..... .........3.. .........2..
10. 1994 ..... ............ .........1..
11. 1995 ..... .........1.. .........1..
-----------------------------------------
12. Totals ... .......561.. ....X X X...   
-----------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                                 Losses Unpaid                              Allocated Loss Expenses Unpaid
              -------------------------------------------------------------------------------------------------------
                                                                                                                           21      
                     Case Basis                Bulk + IBNR               Case Basis               Bulk + IBNR
              -------------------------------------------------------------------------------------------------------    Salvage
                   13           14           15           16           17           18           19           20           and     
                 Direct                    Direct                    Direct                    Direct                  Subrogation  
              and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded     Anticipated  
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 5. 1989 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 6. 1990 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 7. 1991 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 8. 1992 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 9. 1993 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
10. 1994 .... ............ ............ ........10.. ............ ............ ............ ........32.. ............ ............
11. 1995 .... ............ ............ .........1.. ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ............ ............ ........11.. ............ ............ ............ ........32.. ............ ............  

-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
                    22          23           24
                                          Number of
              Unallocated     Total        Claims
                  Loss      Net Losses  Outstanding -  
                Expenses   and Expenses   Direct and 
                 Unpaid       Unpaid       Assumed   
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ 
 2. 1986 ..... ............ ............ ............ 
 3. 1987 ..... ............ ............ ............ 
 4. 1988 ..... ............ ............ ............ 
 5. 1989 ..... ............ ............ ............ 
 6. 1990 ..... ............ ............ ............ 
 7. 1991 ..... ............ ............ ............ 
 8. 1992 ..... ............ ............ ............ 
 9. 1993 ..... ............ ............ ............ 
10. 1994 ..... ............ ........42.. ............ 
11. 1995 ..... ............ .........1.. ............ 
------------------------------------------------------
12. Totals ... ............ ........43.. ............ 
------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                         Total Losses and              Loss and Loss Expense Percentage         Discount for Time
                      Loss Expenses Incurred              (Incurred/Premiums Earned)              Value of Money            33
              -------------------------------------------------------------------------------------------------------   
                   25           26           27           28           29           30           31           32       Inter-Company
                                                                                                                          Pooling
                 Direct                                 Direct                                              Loss       Participation
              and Assumed      Ceded         Net     and Assumed      Ceded         Net         Loss       Expense       Percentage
------------------------------------------------------------------------------------------------------------------------------------

<S>           <C>              <C>           <C>     <C>              <C>           <C>         <C>        <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
 2. 1986 .... .......155.. ............ .......155.. ......38.5.. ............ ......54.0.. ............ ............ ............
 3. 1987 .... .......183.. ........20.. .......163.. ......60.8.. ......45.5.. ......63.4.. ............ ............ ............
 4. 1988 .... ........57.. ........(4). ........61.. ......55.9.. .....(11.1). ......92.4.. ............ ............ ............
 5. 1989 .... ........24.. .........1.. ........23.. ......31.2.. .......4.0.. ......44.2.. ............ ............ ............
 6. 1990 .... ........15.. ............ ........15.. ......18.3.. ............ ......31.3.. ............ ............ ............
 7. 1991 .... ........48.. ............ ........48.. ......31.4.. ............ ......84.2.. ............ ............ ............
 8. 1992 .... ........30.. ............ ........30.. ......13.6.. ............ ......44.1.. ............ ............ ............
 9. 1993 .... .........3.. ............ .........3.. .......1.0.. ............ .......2.8.. ............ ............ ............
10. 1994 .... ........42.. ............ ........42.. ......14.6.. ............ ......15.4.. ............ ............ ............
11. 1995 .... .........2.. ............ .........2.. .......1.8.. ............ .......1.8.. ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
12. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
-----------------------------------------
              Net Balance Sheet Reserves
                    After Discount
              ---------------------------
                   34           35     
                               Loss    
                 Losses      Expenses  
                 Unpaid       Unpaid   
-----------------------------------------
<S>            <C>          <C>         
 1. Prior .... ............ ............  
 2. 1986 ..... ............ ............
 3. 1987 ..... ............ ............
 4. 1988 ..... ............ ............
 5. 1989 ..... ............ ............
 6. 1990 ..... ............ ............
 7. 1991 ..... ............ ............
 8. 1992 ..... ............ ............
 9. 1993 ..... ............ ............
10. 1994 ..... ........10.. ........32..
11. 1995 ..... .........1.. ............
-----------------------------------------
12. Totals ... ........11.. ........32..   
-----------------------------------------
</TABLE> 

                                       84
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



       SCHEDULE P - PART 1H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE

<TABLE> 
<CAPTION> 
                                                          ($000 omitted)
------------------------------------------------------------------------------------------------------------
      1                   Premiums Earned                                 Loss and Loss Expense Payments 
             -----------------------------------------------------------------------------------------------
    Years          2            3            4               Loss Payments                Allocated Loss      
   in Which                                                                              Expense Payments     
Premiums Were                                       --------------------------------------------------------
  Earned and    Direct                      Net           5             6             7             8       
 Losses Were      and         Ceded       (2 - 3)       Direct                      Direct                  
   Incurred     Assumed                              and Assumed      Ceded      and Assumed      Ceded     
------------------------------------------------------------------------------------------------------------
<S>             <C>          <C>          <C>         <C>            <C>           <C>           <C>                      
 1. Prior...   ..X X X..    ..X X X..    ..X X X..    .........      .........     .........     .........   
 2. 1986 ...   .........    .........    .........    .........      .........     .........     .........   
 3. 1987 ...   .........    .........    .........    .........                                  .........   
 4. 1988 ...   .........    .........    .........    .........                                  .........   
 5. 1989 ...   .........    .........    .........    .........      N       O       N     E     .........   
 6. 1990 ...   .........    .........    .........    .........                                  .........   
 7. 1991 ...   .........    .........    .........    .........                                  .........   
 8. 1992 ...   .........    .........    .........    .........                                  .........   
 9. 1993 ...   .........    .........    .........    .........      .........     .........     .........   
10. 1994 ...   .........    .........    .........    .........      .........     .........     .........   
11. 1995 ...   .........    .........    .........    .........      .........     .........     .........   
------------------------------------------------------------------------------------------------------------
12. Totals..   ..X X X..    ..X X X..    ..X X X..    .........      .........     .........     .........   
------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------------------------- 
      1                                                                   
              --------------------------------------------                
    Years           9              10             11             12       
   in Which                                                  Number of    
Premiums Were    Salvage      Unallocated       Total          Claims     
  Earned and       and            Loss         Net Paid      Reported -   
 Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and   
   Incurred      Received       Payments      - 8 + 10)       Assumed     
------------------------------------------------------------------------- 
<S>            <C>              <C>           <C>            <C>                
 1. Prior..    .........        .........     .........      ..X X X..    
 2. 1986 ..    .........        .........     .........      .........    
 3. 1987 ..    .........        .........     .........      .........    
 4. 1988 ..    .........        .........     .........      .........    
 5. 1989 ..    .........        .........     .........      .........    
 6. 1990 ..    .........        .........     .........      .........    
 7. 1991 ..    .........        .........     .........      .........    
 8. 1992 ..    .........        .........     .........      .........    
 9. 1993 ..    .........        .........     .........      .........    
10. 1994 ..    .........        .........     .........      .........    
11. 1995 ..    .........        .........     .........      .........    
------------------------------------------------------------------------- 
12. Totals..   .........        .........     .........      ..X X X..    
-------------------------------------------------------------------------  
</TABLE> 

<TABLE> 
<CAPTION> 
 -------------------------------------------------------------------------------------------------------------------------------
                                    Losses Unpaid                                     Allocated Loss Expenses Unpaid            
              -----------------------------------------------------------------------------------------------------------------
                     Case Basis                 Bulk + IBNR                 Case Basis                  Bulk + IBNR      
              ------------------------------------------------------------------------------------------------------------
                   13           14           15            16            17            18            19            20    
                 Direct                    Direct                      Direct                      Direct                
               and Assumed     Ceded     and Assumed     Ceded      and Assumed      Ceded      and Assumed      Ceded   
 -------------------------------------------------------------------------------------------------------------------------
  <S>          <C>            <C>        <C>             <C>        <C>              <C>        <C>               <C>         
  1. Prior..   ........       ........   ........        ........   ........         ........   ........          ........
  2. 1986 ..   ........       ........   ........        ........   ........         ........   ........          ........
  3. 1987 ..   ........       ........   ........        ........                               ........          ........
  4. 1988 ..   ........       ........   ........        ........                               ........          ........
  5. 1989 ..   ........       ........   ........        ........    N       O       N     E    ........          ........
  6. 1990 ..   ........       ........   ........        ........                               ........          ........
  7. 1991 ..   ........       ........   ........        ........                               ........          ........
  8. 1992 ..   ........       ........   ........        ........                               ........          ........ 
  9. 1993 ..   ........       ........   ........        ........   ........         ........   ........          ........
 10. 1994 ..   ........       ........   ........        ........   ........         ........   ........          ........
 11. 1995 ..   ........       ........   ........        ........   ........         ........   ........          ........
 -------------------------------------------------------------------------------------------------------------------------
 12. Totals..  ........       ........   ........        ........   ........         ........   ........          ........
 -------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
 ------------------------------------------------------------------------
                                                                          
                     21             22             23            24       
                                                              Number of   
                  Salvage      Unallocated       Total         Claims     
                    and            Loss        Net Losses   Outstanding - 
                Subrogation      Expenses     and Expenses   Direct and   
                Anticipated       Unpaid         Unpaid        Assumed    
 ------------------------------------------------------------------------ 
<S>             <C>             <C>           <C>            <C>                                             
  1. Prior..    .........      .........      .........      .........    
  2. 1986 ..    .........      .........      .........      .........    
  3. 1987 ..    .........      .........      .........      .........    
  4. 1988 ..    .........      .........      .........      .........    
  5. 1989 ..    .........      .........      .........      .........    
  6. 1990 ..    .........      .........      .........      .........    
  7. 1991 ..    .........      .........      .........      .........    
  8. 1992 ..    .........      .........      .........      .........    
  9. 1993 ..    .........      .........      .........      .........    
 10. 1994 ..    .........      .........      .........      .........    
 11. 1995 ..    .........      .........      .........      .........    
 ------------------------------------------------------------------------ 
 12. Totals..   .........      .........      .........      .........     
 ------------------------------------------------------------------------ 
</TABLE> 

<TABLE> 
<CAPTION> 
 --------------------------------------------------------------------------------------------------------------------------------
                            Total Losses and                    Loss and Loss Expense Percentage           Discount for Time     
                          Loss Expenses Incurred                   (Incurred/Premiums Earned)               Value of Money       
               ---------------------------------------------------------------------------------------------------------------
                    25            26            27             28            29            30            31            32     
                                                                                                                              
                  Direct                                     Direct                                                   Loss    
                and Assumed      Ceded          Net       and Assumed      Ceded          Net           Loss        Expense   
 -----------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>           <C>           <C>           <C>           <C>               <C>          <C>        
 1. Prior..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..         .........    .........
 2. 1986 ..     .........     .........     .........     .........     .........     .........         .........    .........
 3. 1987 ..     .........     .........     .........     .........                                     .........    .........
 4. 1988 ..     .........     .........     .........     .........                                     .........    .........
 5. 1989 ..     .........     .........     .........     .........     N    0       N     E            .........    .........
 6. 1990 ..     .........     .........     .........     .........                                     .........    .........
 7. 1991 ..     .........     .........     .........     .........                                     .........    .........
 8. 1992 ..     .........     .........     .........     .........                                     .........    .........
 9. 1993 ..     .........     .........     .........     .........     .........     .........         .........    .........
10. 1994 ..     .........     .........     .........     .........     .........     .........         .........    .........
11. 1995 ..     .........     .........     .........     .........     .........     .........         .........    .........
------------------------------------------------------------------------------------------------------------------------------
12. Totals..    ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..         .........    .........
 -----------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
                ---------------------------------------------- 
                                   Net Balance Sheet Reserves  
                        33               After Discount        
                                 -----------------------------    
                 Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
               ----------------------------------------------  
<S>             <C>               <C>            <C>        
 1. Prior..     ..X X X..         .........     .........    
 2. 1986 ..     .........         .........     .........
 3. 1987 ..     .........         .........     .........
 4. 1988 ..     .........         .........     .........
 5. 1989 ..     .........         .........     .........
 6. 1990 ..     .........         .........     .........
 7. 1991 ..     .........         .........     .........
 8. 1992 ..     .........         .........     .........
 9. 1993 ..     .........         .........     .........
10. 1994 ..     .........         .........     .........
11. 1995 ..     .........         .........     .........
-----------------------------------------------------------
12. Totals..    ..X X X..         .........     .........  
-----------------------------------------------------------
</TABLE> 

                                       85
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



  SCHEDULE P - PART 1I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,

                    EARTHQUAKE, GLASS, BURGLARY AND THEFT)
                                ($000 omitted)

<TABLE> 
<CAPTION> 
  ------------------------------------------------------------------------------------------------------------              
        1                   Premiums Earned                                   Loss and Loss Expense Payments                 
               -----------------------------------------------------------------------------------------------              
      Years          2            3            4               Loss Payments                Allocated Loss                    
     in Which                                                                              Expense Payments                   
  Premiums Were                                       --------------------------------------------------------              
    Earned and    Direct                      Net           5             6             7             8                     
   Losses Were      and         Ceded       (2 - 3)       Direct                      Direct                                
     Incurred     Assumed                              and Assumed      Ceded      and Assumed      Ceded                   
  ------------------------------------------------------------------------------------------------------------              
<S>            <C>          <C>          <C>           <C>          <C>            <C>           <C>          
 1. Prior..    ..X X X....  ..X X X....  ..X X X....  .........34   .........10    .........2    .........3               
 2. 1994 ..    .....1,451.  .......437.  .....1,014.  ......5,509   ......4,639    .......182    .........2               
 3. 1995 ..    .....1,584.  .......354.  .....1,230.  ........109   .........49    ........21    .........0               
 ------------------------------------------------------------------------------------------------------------              
 4. Totals.    ..X X X....  ..X X X....  ..X X X....  ......5,652   ......4,698    .......205    .........5               
  ------------------------------------------------------------------------------------------------------------              
<CAPTION>                
  ----------------------------------------------------------------------- 
        1                            
                     -------------------------------------------                
      Years                 9              10             11             12       
     in Which                                         Number of                   
  Premiums Were          Salvage      Unallocated       Total          Claims     
    Earned and             and            Loss         Net Paid      Reported -   
   Losses Were         Subrogation      Expense       (5 - 6 + 7     Direct and   
     Incurred            Received       Payments      - 8 + 10)       Assumed     
  ------------------------------------------------------------------------------- 
<S>                    <C>            <C>             <C>            <C>                            
   1. Prior..          ...........    ..........4    .........27    ..X X X....  
   2. 1994 ..          ..........4    ........106    ......1,156    ..X X X....  
   3. 1995 ..          ...........    .........19    ........100    ..X X X....  
  -------------------------------------------------------------------------------
   4. Totals.          ..........4    ........129    ......1,283    ..X X X....   
  ------------------------------------------------------------------------------- 
</TABLE> 


<TABLE> 
<CAPTION> 
-------------------------------------------------------------------------------------------------------------------------
                                    Losses Unpaid                                    Allocated Loss Expenses Unpaid            
              -----------------------------------------------------------------------------------------------------------
                     Case Basis                Bulk + IBNR                  Case Basis                  Bulk + IBNR      
              -----------------------------------------------------------------------------------------------------------
                   13           14           15            16            17            18            19            20    
                 Direct                    Direct                      Direct                      Direct                
               and Assumed     Ceded     and Assumed     Ceded      and Assumed      Ceded      and Assumed      Ceded   
-------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>           <C>           <C>          <C>             <C>          <C>          <C>           
1. Prior..    ........19   ..........   .........7     .........    .........1      .........    .........    .........
2. 1994 ..    .....1,596   .....1,338   .......135     .........    ........25      .........    ........1    .........
3. 1995 ..    ........83   .........5   ........31     .........    .........9      .........    ........2    .........
-----------------------------------------------------------------------------------------------------------------------
4. Totals.    .....1,698   .....1,343   .......173     .........    ........35      .........    ........3    .........
-----------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------------------------------------------------
                   21            22            23           24      
                                                         Number of  
                Salvage     Unallocated      Total        Claims    
                  and           Loss       Net Losses  Outstanding -
              Subrogation     Expenses    and Expenses  Direct and  
              Anticipated      Unpaid        Unpaid       Assumed   
---------------------------------------------------------------------
<S>           <C>             <C>           <C>          <C>         
1. Prior..    ...........     ...........   ........27   ..........
2. 1994 ..    ...........     ...........   .......419   ........39 
3. 1995 ..    ...........     ...........   .......120   .........9 
----------------------------------------------------------------------
4. Totals.    ...........     ...........   .......566   ........48 
 ---------------------------------------------------------------------
</TABLE> 


<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------
                           Total Losses and                   Loss and Loss Expense Percentage           Discount for Time    
                         Loss Expenses Incurred                  (Incurred/Premiums Earned)               Value of Money      
              ------------------------------------------------------------------------------------------------------------
                   25           26           27            28            29            30            31            32    
                                                                                                                         
                 Direct                                  Direct                                                   Loss   
               and Assumed     Ceded         Net      and Assumed      Ceded          Net           Loss        Expense  
--------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>           <C>           <C>            <C>            <C>     
1. Prior..    ..X X X....  ..X X X....  ..X X X....  ..X X X.....  ..X X X.....  ..X X X.....   ..........     ..........
2. 1994 ..    .....7,554.  .....5,979.  .....1,575.  ......520.6.  ....1,368.2.  ......155.3.   ..........     ..........
3. 1995 ..    .......274.  ........54.  .......220.  .......17.3.  .......15.3.  .......17.9.   ..........     ..........
--------------------------------------------------------------------------------------------------------------------------
4. Totals.    ..X X X....  ..X X X....  ..X X X....  ..X X X.....  ..X X X.....  ..X X X.....   ..........     ..........
--------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
--------------------------------------------------------
                             Net Balance Sheet Reserves 
                   33              After Discount       
                           ----------------------------
             Inter-Company       34            35      
                Pooling                       Loss     
             Participation     Losses       Expenses   
               Percentage      Unpaid        Unpaid    
-------------------------------------------------------
<S>          <C>             <C>           <C>                              
1. Prior..    ..X X X....    ....... 26    .........1 
2. 1994 ..    ...........    ...... 393    ........26 
3. 1995 ..    ...........    .......109    ........11 
-------------------------------------------------------
4. Totals.    ..X X X....    .......528    ........38 
-------------------------------------------------------
</TABLE> 

                                       86
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                  SCHEDULE P - PART 1J - AUTO PHYSICAL DAMAGE

                                ($000 omitted)

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------
       1                   Premiums Earned                                        Loss and Loss Expense Payments  
              -------------------------------------------------------------------------------------------------
     Years          2            3            4               Loss Payments                Allocated Loss      
    in Which                                                                              Expense Payments     
 Premiums Were                                       --------------------------------------------------------
   Earned and    Direct                      Net           5             6             7             8       
  Losses Were      and         Ceded       (2 - 3)       Direct                      Direct                  
    Incurred     Assumed                              and Assumed      Ceded      and Assumed      Ceded     
------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>           <C>           <C>          <C>            <C>               
1. Prior..    ..X X X....  ..X X X....  ..X X X....   ....(1,470)   ..........   ........18     .........1 
2. 1994 ..    ...142,700.  .......329.  ...142,371.   ...109,110.   .....2,245   ........782    .......... 
3. 1995 ..    ...179,952.  .......415.  ...179,537.   ...131,970.   .....2,183   ........856    ..........
-----------------------------------------------------------------------------------------------------------
4. Totals.    ..X X X....  ..X X X....  ..X X X....   ...239,610.   .....4,428   ......1,656    .........1 
------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------------------------
       1                                        
                 -------------------------------------------              
     Years             9               10            11            12      
    in Which                                                   Number of   
 Premiums Were       Salvage      Unallocated      Total         Claims    
   Earned and          and            Loss        Net Paid     Reported -  
  Losses Were      Subrogation      Expense      (5 - 6 + 7    Direct and  
    Incurred         Received       Payments     - 8 + 10)      Assumed    
---------------------------------------------------------------------------
<S>              <C>               <C>            <C>          <C>                                     
1. Prior..       .......1,668      .......(177)   ....(1,630)  ..X X X.....
2. 1994 ..       ......30,582      .....16,155    ...123,802   .....73,750.
3. 1995 ..       ......21,216      .....16,171    ...146,814   .....85,440.
---------------------------------------------------------------------------
4. Totals.       ......53,466      .....32,149    ...268,986   ..X X X.....
---------------------------------------------------------------------------
</TABLE> 


<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------------------------
                                     Losses Unpaid                                    Allocated Loss Expenses Unpaid            
               ---------------------------------------------------------------------------------------------------------------
                         Case Basis                  Bulk + IBNR                 Case Basis                   Bulk + IBNR      
               ---------------------------------------------------------------------------------------------------------------
                    13            14            15             16            17            18            19            20    
                  Direct                      Direct                       Direct                      Direct                
                and Assumed      Ceded      and Assumed      Ceded      and Assumed      Ceded      and Assumed      Ceded   
-------------------------------------------------------------------------------------------------------------------------------
<S>            <C>           <C>           <C>            <C>           <C>            <C>           <C>           <C>      
1. Prior..     ......(822)   ...........   ...........    ...........   ...........    ...........   ...........   ...........
2. 1994 ..     ....(1,506)   .........3.   .......170.    ...........   .........6.    ...........   ........14.   ...........
3. 1995 ..     .......560    ...........   .....3,176.    ...........   .......223.    ...........   ........37.   ...........
------------------------------------------------------------------------------------------------------------------------------
4. Totals.     ....(1,768)   .........3.   .....3,346.    ...........   .......229.    ...........   ........51.   ...........
------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------------------------------------------------
                                                                     
                    21            22            23           24      
                                                          Number of  
                 Salvage     Unallocated      Total        Claims    
                   and           Loss       Net Losses  Outstanding -
               Subrogation     Expenses    and Expenses  Direct and  
               Anticipated      Unpaid        Unpaid       Assumed   
---------------------------------------------------------------------
<S>            <C>           <C>            <C>           <C>         
1. Prior..     ........840   ............   ......(822)   .......32.
2. 1994 ..     ......1,582   .........26.   ....(1,293)   ......109.
3. 1995 ..     .....18,428   ......1,709.   .... 5,705.   ...10,694.
---------------------------------------------------------------------
4. Totals.     .....20,850   ......1,735.   .....3,590.   ...10,835.
---------------------------------------------------------------------
</TABLE> 


<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------
                           Total Losses and                   Loss and Loss Expense Percentage           Discount for Time    
                         Loss Expenses Incurred                  (Incurred/Premiums Earned)               Value of Money      
              ----------------------------------------------------------------------------------------------------------------
                   25           26           27            28            29            30            31            32    
                                                                                                                         
                 Direct                                  Direct                                                   Loss   
               and Assumed     Ceded         Net      and Assumed      Ceded          Net           Loss        Expense  
 -----------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>           <C>           <C>              <C>            <C>   
1. Prior..    ..X X X....  ..X X X....  ..X X X....  ..X X X.....  ..X X X.....  ..X X X.....     ............   ............
2. 1994 ..    ...124,757.  .....2,248.  ...122,509.  .......87.4.  ......683.3.  .......86.0.     ............   ............
3. 1995 ..    ...154,702.  .....2,183.  ...152,519.  .......86.0.  ......526.0.  .......85.0.     ............   ............
------------------------------------------------------------------------------------------------------------------------------
4. Totals.    ..X X X....  ..X X X....  ..X X X....  ..X X X.....  ..X X X.....  ..X X X.....     ............   ............
 -----------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
 -----------------------------------------------------------
                                Net Balance Sheet Reserves 
                      33              After Discount       
                              ------------------------------
                Inter-Company       34            35      
                   Pooling                       Loss     
                Participation     Losses       Expenses   
                  Percentage      Unpaid        Unpaid    
 -----------------------------------------------------------
<S>               <C>           <C>            <C>        
  1. Prior..      ..X X X.....  .......(822)   ...........
  2. 1994 ..      ............  .....(1,339)   ....... 46.
  3. 1995 ..      ............  ......3,736.   .....1,969.
 -----------------------------------------------------------
  4. Totals.      ..X X X.....  ......1,575.   .....2,015.
 -----------------------------------------------------------
</TABLE> 

                                       87
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                    SCHEDULE P - PART 1K - FIDELITY/SURETY


                                ($000 omitted)
<TABLE> 
<CAPTION> 
 ----------------------------------------------------------------------------------------------------------------
       1                   Premiums Earned                                      Loss and Loss Expense Payments   
              ---------------------------------------------------------------------------------------------------
     Years          2             3            4               Loss Payments                Allocated Loss     
    in Which                                                                               Expense Payments    
 Premiums Were                                        -----------------------------------------------------------
   Earned and    Direct                       Net           5             6             7             8      
  Losses Were      and          Ceded       (2 - 3)       Direct                      Direct                 
    Incurred     Assumed                               and Assumed      Ceded      and Assumed      Ceded    
 ----------------------------------------------------------------------------------------------------------------
<S>           <C>           <C>          <C>            <C>            <C>          <C>           <C>      
1. Prior..    ...X X X....  ...X X X.... ...X X X....   ............  ............  ............  ..............
2. 1994 ..    ............  ............ ............   ............  ............  ............  ..............
3. 1995 ..    ............  ............ ............   ............  N       O      N        E   .............. 
-----------------------------------------------------------------------------------------------------------------
4. Totals..   ...X X X....  ...X X X.... ...X X X....   ............  ............  ............  ..............
 ----------------------------------------------------------------------------------------------------------------
<CAPTION> 
 ----------------------------------------------------------------------
       1                                                     
              ------------------------------------------              
     Years          9             10            11            12      
    in Which                                              Number of   
 Premiums Were   Salvage     Unallocated      Total         Claims    
   Earned and      and           Loss        Net Paid     Reported -  
  Losses Were  Subrogation     Expense      (5 - 6 + 7    Direct and  
    Incurred     Received      Payments     - 8 + 10)      Assumed    
 ----------------------------------------------------------------------
<S>           <C>             <C>            <C>          <C>                             
1. Prior..    ............    ............  ............  ...X X X.... 
2. 1994 ..    ............    ............  ............  ...X X X...
3. 1995 ..    ............    ............  ............  ...X X X...
-----------------------------------------------------------------------
4. Totals..   ............    ............  ............  ...X X X....
 ----------------------------------------------------------------------
</TABLE> 


<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------------

                                    Losses Unpaid                                    Allocated Loss Expenses Unpaid            
              ----------------------------------------------------------------------------------------------------------------------

                        Case Basis                 Bulk + IBNR                 Case Basis                   Bulk + IBNR      
              ----------------------------------------------------------------------------------------------------------------------

                   13           14           15            16                 17            18            19            20    
                 Direct                    Direct                           Direct                      Direct                
               and Assumed     Ceded     and Assumed     Ceded           and Assumed      Ceded      and Assumed      Ceded    
 -----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>           <C>           <C>             <C>            <C>           <C>           <C>             <C>
1. Prior..    ............  ............  ............    ............   ............  ............  ............    ............ 
2. 1994 ..    ............  ............  ............    ............   ............  ............  ............    ............ 
3. 1995 ..    ............  ............  ............    ............   N      O       N       E    ............    ............  
------------------------------------------------------------------------------------------------------------------------------------
4. Totals..   ............  ............  ............    ............   ............  ............  ............    ............ 
 -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
 -----------------------------------------------------------------------
                                                                    
                   21            22            23           24      
                                                         Number of  
                Salvage     Unallocated      Total        Claims    
                  and           Loss       Net Losses  Outstanding -
              Subrogation     Expenses    and Expenses  Direct and  
              Anticipated      Unpaid        Unpaid       Assumed   
 -----------------------------------------------------------------------
<S>          <C>           <C>           <C>             <C> 
1. Prior..   ............  ............  ............    ............          
2. 1994 ..   ............  ............  ............    ............          
3. 1995 ..   ............  ............  ............    ............          
------------------------------------------------------------------------
4. Totals..  ............  ............  ............    ............
 -----------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------
                           Total Losses and                   Loss and Loss Expense Percentage           Discount for Time    
                         Loss Expenses Incurred                  (Incurred/Premiums Earned)               Value of Money      
              ----------------------------------------------------------------------------------------------------------------
                   25           26           27            28           29            30             31            32    
                                                                                                                         
                 Direct                                  Direct                                                   Loss   
               and Assumed     Ceded         Net      and Assumed      Ceded          Net           Loss        Expense  
 -----------------------------------------------------------------------------------------------------------------------------
<S>          <C>          <C>          <C>          <C>           <C>           <C>             <C>           <C>         
1. Prior..   ...X X X.... ...X X X.... ...X X X...  ...X X X....  ...X X X....  ...X X X....    ............  ............
2. 1994 ..   ............ ............ ............ ............  ............  ............    ............  ............
3. 1995 ..   ............ ............ ............ ............  N     O       N       E       ............  ............
------------------------------------------------------------------------------------------------------------------------------
4. Totals..  ...X X X.... ...X X X.... ...X X X.... ...X X X....  ............  ............    ............  ............
 -----------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
-----------------------------------------------------------
                             Net Balance Sheet Reserves 
                   33              After Discount       
                           --------------------------------
             Inter-Company       34            35      
                Pooling                       Loss     
             Participation     Losses       Expenses   
               Percentage      Unpaid        Unpaid    
-----------------------------------------------------------
<S>          <C>              <C>            <C>       
1. Prior..   ...X X X....     ............   ............
2. 1994 ..   ............     ............   ............
3. 1995 ..   ............     ............   ............
-----------------------------------------------------------
4. Totals..  ...X X X....     ............   ............
-----------------------------------------------------------
</TABLE> 

                                       88
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



     SCHEDULE P - PART 1L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)


                                ($000 omitted)

<TABLE> 
<CAPTION> 
 ----------------------------------------------------------------------------------------------------------------
       1                   Premiums Earned                                      Loss and Loss Expense Payments   
              ---------------------------------------------------------------------------------------------------
     Years          2             3            4               Loss Payments                Allocated Loss     
    in Which                                                                               Expense Payments    
 Premiums Were                                        -----------------------------------------------------------
   Earned and    Direct                       Net           5             6             7             8      
  Losses Were      and          Ceded       (2 - 3)       Direct                      Direct                 
    Incurred     Assumed                               and Assumed      Ceded      and Assumed      Ceded    
 ----------------------------------------------------------------------------------------------------------------
<S>           <C>           <C>          <C>            <C>            <C>          <C>             <C>      
1. Prior..    ...X X X....  ...X X X.... ...X X X....   ............  ............  ............    ............
2. 1994 ..    ............  ............ ............   ............                                ............
3. 1995 ..    ............  ............ ............   ............  N       O      N        E     ............ 
----------------------------------------------------------------------                          -----------------
4. Totals..   ...X X X....  ...X X X.... ...X X X....   ............                                ............
 ----------------------------------------------------------------------------------------------------------------

<CAPTION> 
 ----------------------------------------------------------------------
       1                                                     
              ------------------------------------------              
     Years          9             10            11            12      
    in Which                                              Number of   
 Premiums Were   Salvage     Unallocated      Total         Claims    
   Earned and      and           Loss        Net Paid     Reported -  
  Losses Were  Subrogation     Expense      (5 - 6 + 7    Direct and  
    Incurred     Received      Payments     - 8 + 10)      Assumed    
 ----------------------------------------------------------------------
<S>           <C>             <C>           <C>                                                             
1. Prior..    ............    ............  ............  ...X X X.... 
2. 1994 ..    ............    ............  ............  ...X X X....
3. 1995 ..    ............    ............  ............  ...X X X....
-----------------------------------------------------------------------
4. Totals..   ............    ............  ............  ...X X X....
 ----------------------------------------------------------------------
</TABLE> 


<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------------

                                    Losses Unpaid                                    Allocated Loss Expenses Unpaid            
              ----------------------------------------------------------------------------------------------------------------------

                        Case Basis                 Bulk + IBNR                 Case Basis                   Bulk + IBNR      
              ----------------------------------------------------------------------------------------------------------------------

                   13           14           15            16                 17            18            19            20    
                 Direct                    Direct                           Direct                      Direct                
               and Assumed     Ceded     and Assumed     Ceded           and Assumed      Ceded      and Assumed      Ceded    
 -----------------------------------------------------------------------------------------------------------------------------------

<S>            <C>          <C>           <C>             <C>           <C>             <C>          <C>             <C>
1. Prior..    ............  ............  ............    ............   ............  ............  ............    ............ 
2. 1994 ..    ............  ............  ............    ............                               ............    ............ 
3. 1995 ..    ............  ............  ............    ............   N      O       N       E    ............    ............  
-------------------------------------------------------------------------                          ---------------------------------

4. Totals..   ............  ............  ............    ............                               ............    ............ 
 -----------------------------------------------------------------------------------------------------------------------------------


<CAPTION> 
 -----------------------------------------------------------------------
                                                                    
                   21            22            23           24      
                                                         Number of  
                Salvage     Unallocated      Total        Claims    
                  and           Loss       Net Losses  Outstanding -
              Subrogation     Expenses    and Expenses  Direct and  
              Anticipated      Unpaid        Unpaid       Assumed   
 -----------------------------------------------------------------------
<S>          <C>           <C>            <C>             <C> 
1. Prior..   ............  ............  ............    ............          
2. 1994 ..   ............  ............  ............    ............          
3. 1995 ..   ............  ............  ............    ............          
------------------------------------------------------------------------
4. Totals..  ............  ............  ............    ............
 -----------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------
                           Total Losses and                   Loss and Loss Expense Percentage           Discount for Time    
                         Loss Expenses Incurred                  (Incurred/Premiums Earned)               Value of Money      
              --------------------------------------------------------------------------------------------------------------
                   25           26           27            28            29            30            31            32    
                                                                                                                         
                 Direct                                  Direct                                                   Loss   
               and Assumed     Ceded         Net      and Assumed      Ceded          Net           Loss        Expense  
 ---------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                                      
1. Prior..   ...X X X.... ...X X X.... ...X X X...  ...X X X....  ...X X X....  ...X X X....    ............  ............
2. 1994 ..   ............ ............ ............ ............                                ............  ............
3. 1995 ..   ............ ............ ............ ............  N     O       N       E       ............  ............
------------------------------------------------------------------                          --------------------------------
4. Totals..  ...X X X.... ...X X X.... ...X X X.... ...X X X....                                ............  ............
 ---------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
-----------------------------------------------------------
                             Net Balance Sheet Reserves 
                   33              After Discount       
                           --------------------------------
             Inter-Company       34            35      
                Pooling                       Loss     
             Participation     Losses       Expenses   
               Percentage      Unpaid        Unpaid    
-----------------------------------------------------------
<S>          <C>              <C>            <C>       
1. Prior..   ...X X X....     ............   ............
2. 1994 ..   ............     ............   ............
3. 1995 ..   ............     ............   ............
-----------------------------------------------------------
4. Totals..  ...X X X....     ............   ............
-----------------------------------------------------------
</TABLE> 

                                       89
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 1M - INTERNATIONAL

<TABLE> 
<CAPTION> 
                                                              ($000 omitted)
  ----------------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments       
                --------------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             9      
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -----------------------------------------------------------    Salvage   
    Earned and     Direct                        Net            5              6              7              8             and     
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                     Subrogation 
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded         Received  
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>         
   1. Prior ... ....X X X.... ....X X X.... ....X X X.... .............. ............. .............. ............... ..............
   2. 1986 .... ............. ............. ............. .............. ............. .............. ............... ..............
   3. 1987 .... ............. ............. ............. .............. ............. .............. ............... ..............
   4. 1988 .... ............. ............. ............. .............. ............. .............. ............... ..............
   5. 1989 .... ............. ............. ............. .............. ............. .............. ............... ..............
   6. 1990 .... ............. ............. ............. ...N     O     N     E...... .............. ............... ..............
   7. 1991 .... ............. ............. ............. .............. ............. .............. ............... ..............
   8. 1992 .... ............. ............. ............. .............. ............. .............. ............... ..............
   9. 1993 .... ............. ............. ............. .............. ............. .............. ............... ..............
  10. 1994 .... ............. ............. ............. .............. ............. .............. ............... ..............
  11. 1995 .... ............. ............. ............. .............. ............. .............. ............... ..............
  ----------------------------------------------------------------------------------------------------------------------------------
  12. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. ............. .............. ............... ..............
  ----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -----------------------------------------------------------
        1                                                    
                -----------------------------                
      Years           10             11             12       
     in Which                                   Number of    
  Premiums Were  Unallocated       Total          Claims     
    Earned and       Loss         Net Paid      Reported -   
   Losses Were     Expense       (5 - 6 + 7     Direct and   
     Incurred      Payments      - 8 + 10)       Assumed     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. Prior ... .............. .............. ....X X X..... 
   2. 1986 .... .............. .............. ....X X X..... 
   3. 1987 .... .............. .............. ....X X X..... 
   4. 1988 .... .............. .............. ....X X X..... 
   5. 1989 .... .............. .............. ....X X X..... 
   6. 1990 .... .............. .............. ....X X X..... 
   7. 1991 .... .............. .............. ....X X X..... 
   8. 1992 .... .............. .............. ....X X X..... 
   9. 1993 .... .............. .............. ....X X X..... 
  10. 1994 .... .............. .............. ....X X X..... 
  11. 1995 .... .............. .............. ....X X X..... 
  -----------------------------------------------------------
  12. Totals .. .............. .............. ....X X X..... 
  -----------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                --------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                --------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. Prior ... ............. ............. ............. .............. .............. .............. .............. ..............
   2. 1986 .... ............. ............. ............. .............. .............. .............. .............. ..............
   3. 1987 .... ............. ............. ............. .............. .............. .............. .............. ..............
   4. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
   5. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
   6. 1990 .... ............. ............. ............. ...N     O     N     E....... .............. .............. ..............
   7. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
   8. 1992 .... ............. ............. ............. .............. .............. .............. .............. ..............
   9. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
  10. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
  11. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
  12. Totals .. ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -------------------------------------------------------------------------
                                                                           
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------
  <S>           <C>            <C>            <C>            <C>  
   1. Prior ... .............. .............. .............. ............. 
   2. 1986 .... .............. .............. .............. ............. 
   3. 1987 .... .............. .............. .............. ............. 
   4. 1988 .... .............. .............. .............. ............. 
   5. 1989 .... .............. .............. .............. ............. 
   6. 1990 .... .............. .............. .............. ............. 
   7. 1991 .... .............. .............. .............. ............. 
   8. 1992 .... .............. .............. .............. ............. 
   9. 1993 .... .............. .............. .............. ............. 
  10. 1994 .... .............. .............. .............. ............. 
  11. 1995 .... .............. .............. .............. ............. 
  -------------------------------------------------------------------------
  12. Totals .. .............. .............. .............. ............. 
  -------------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time     
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32     
                                                                                                                                   
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. Prior ... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. ..............
   2. 1986 .... ............. ............. ............. .............. .............. .............. .............. ..............
   3. 1987 .... ............. ............. ............. .............. .............. .............. .............. ..............
   4. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
   5. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
   6. 1990 .... ............. ............. ............. ...N     O     N     E....... .............. .............. ..............
   7. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
   8. 1992 .... ............. ............. ............. .............. .............. .............. .............. ..............
   9. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
  10. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
  11. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
  12. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -----------------------------------------------------------
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ------------------------------
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>                   
   1. Prior ... ....X X X..... .............. ..............
   2. 1986 .... .............. .............. .............. 
   3. 1987 .... .............. .............. .............. 
   4. 1988 .... .............. .............. .............. 
   5. 1989 .... .............. .............. .............. 
   6. 1990 .... .............. .............. .............. 
   7. 1991 .... .............. .............. .............. 
   8. 1992 .... .............. .............. .............. 
   9. 1993 .... .............. .............. .............. 
  10. 1994 .... .............. .............. .............. 
  11. 1995 .... .............. .............. .............. 
  ------------- -------------- -------------- -------------- 
  12. Totals .. ....X X X..... .............. .............. 
  ------------- -------------- -------------- -------------- 
</TABLE> 

                                       90
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 1N - REINSURANCE A

<TABLE> 
<CAPTION> 
                                                            ($000 omitted)
  ---------------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments       
                -------------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             9      
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -----------------------------------------------------------    Salvage   
    Earned and     Direct                        Net            5              6              7              8             and     
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                     Subrogation 
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded         Received  
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
   5. 1992 .... ............. ............. ............. .............. N        O        N         E .............. ..............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
  ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -----------------------------------------------------------
        1                                                    
                ------------------------------               
      Years           10             11             12       
     in Which                                   Number of    
  Premiums Were  Unallocated       Total          Claims     
    Earned and       Loss         Net Paid      Reported -   
   Losses Were     Expense       (5 - 6 + 7     Direct and   
     Incurred      Payments      - 8 + 10)       Assumed     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. ....X X X..... 
   2. 1989 .... .............. .............. ....X X X..... 
   3. 1990 .... .............. .............. ....X X X..... 
   4. 1991 .... .............. .............. ....X X X..... 
   5. 1992 .... .............. .............. ....X X X..... 
   6. 1993 .... .............. .............. ....X X X..... 
   7. 1994 .... .............. .............. ....X X X..... 
   8. 1995 .... .............. .............. ....X X X..... 
  -----------------------------------------------------------
   9. Totals .. .............. .............. ....X X X..... 
  -----------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                --------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                --------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. .............. N        O        N         E .............. .............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -------------------------------------------------------------------------
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------
  <S>           <C>            <C>            <C>            <C>           
   1. 1988 .... .............. .............. .............. ....X X X.... 
   2. 1989 .... .............. .............. .............. ....X X X.... 
   3. 1990 .... .............. .............. .............. ....X X X.... 
   4. 1991 .... .............. .............. .............. ....X X X.... 
   5. 1992 .... .............. .............. .............. ....X X X.... 
   6. 1993 .... .............. .............. .............. ....X X X.... 
   7. 1994 .... .............. .............. .............. ....X X X.... 
   8. 1995 .... .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
   9. Totals .. .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time     
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32     
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. .............. N        O        N        E  .............. .............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -----------------------------------------------------------
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ------------------------------
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. .............. 
   2. 1989 .... .............. .............. .............. 
   3. 1990 .... .............. .............. .............. 
   4. 1991 .... .............. .............. .............. 
   5. 1992 .... .............. .............. ..............
   6. 1993 .... .............. .............. .............. 
   7. 1994 .... .............. .............. .............. 
   8. 1995 .... .............. .............. .............. 
  -----------------------------------------------------------
   9. Totals .. ....X X X..... .............. .............. 
  -----------------------------------------------------------
</TABLE> 

                                       91
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 1O - REINSURANCE B

<TABLE> 
<CAPTION> 
                                                            ($000 omitted)
  ---------------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments       
                -------------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             9      
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -----------------------------------------------------------    Salvage   
    Earned and     Direct                        Net            5              6              7              8             and     
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                     Subrogation 
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded         Received  
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
   5. 1992 .... ............. ............. ............. N        O        N         E .............. .............. ..............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
  ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -----------------------------------------------------------
        1                                                    
               -------------------------------               
      Years           10             11             12       
     in Which                                   Number of    
  Premiums Were  Unallocated       Total          Claims     
    Earned and       Loss         Net Paid      Reported -   
   Losses Were     Expense       (5 - 6 + 7     Direct and   
     Incurred      Payments      - 8 + 10)       Assumed     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. ....X X X..... 
   2. 1989 .... .............. .............. ....X X X..... 
   3. 1990 .... .............. .............. ....X X X..... 
   4. 1991 .... .............. .............. ....X X X..... 
   5. 1992 .... .............  .............. ....X X X..... 
   6. 1993 .... .............. .............. ....X X X..... 
   7. 1994 .... .............. .............. ....X X X..... 
   8. 1995 .... .............. .............. ....X X X..... 
  -----------------------------------------------------------
   9. Totals .. .............. .............. ....X X X..... 
  -----------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                --------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                --------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. N        O        N         E .............. .............. .............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -------------------------------------------------------------------------
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------
  <S>           <C>            <C>            <C>            <C>           
   1. 1988 .... .............. .............. .............. ....X X X.... 
   2. 1989 .... .............. .............. .............. ....X X X.... 
   3. 1990 .... .............. .............. .............. ....X X X.... 
   4. 1991 .... .............. .............. .............. ....X X X.... 
   5. 1992 .... .............. .............. .............. ....X X X.... 
   6. 1993 .... .............. .............. .............. ....X X X.... 
   7. 1994 .... .............. .............. .............. ....X X X.... 
   8. 1995 .... .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
   9. Totals .. .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time     
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32     
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. .............. N        O        N        E  .............. .............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  -----------------------------------------------------------
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ------------------------------
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. .............. 
   2. 1989 .... .............. .............. .............. 
   3. 1990 .... .............. .............. .............. 
   4. 1991 .... .............. .............. .............. 
   5. 1992 .... .............. .............. ..............
   6. 1993 .... .............. .............. .............. 
   7. 1994 .... .............. .............. .............. 
   8. 1995 .... .............. .............. .............. 
  -----------------------------------------------------------
   9. Totals .. ....X X X..... .............. .............. 
  -----------------------------------------------------------
</TABLE> 

                                       92
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 1P - REINSURANCE A

<TABLE> 
<CAPTION> 
                                                            ($000 omitted)
  ---------------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments       
                -------------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             9      
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -----------------------------------------------------------    Salvage   
    Earned and     Direct                        Net            5              6              7              8             and     
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                     Subrogation 
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded         Received  
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. ..............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. ..............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. ..............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. ..............
   5. 1992 .... ............. ............. ............. .............. N        O        N        E  .............. ..............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. ..............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. ..............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. ..............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. ..............
  ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -----------------------------------------------------------
        1                                                    
               -------------------------------               
      Years           10             11             12       
     in Which                                   Number of    
  Premiums Were  Unallocated       Total          Claims     
    Earned and       Loss         Net Paid      Reported -   
   Losses Were     Expense       (5 - 6 + 7     Direct and   
     Incurred      Payments      - 8 + 10)       Assumed     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. ....X X X..... 
   2. 1989 .... .............. .............. ....X X X..... 
   3. 1990 .... .............. .............. ....X X X..... 
   4. 1991 .... .............. .............. ....X X X..... 
   5. 1992 .... .............. .............. ....X X X..... 
   6. 1993 .... .............. .............. ....X X X..... 
   7. 1994 .... .............. .............. ....X X X..... 
   8. 1995 .... .............. .............. ....X X X..... 
  -----------------------------------------------------------
   9. Totals .. .............. .............. ....X X X..... 
  -----------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                --------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                --------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. .............. N        O        N        E ............... .............
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               
<CAPTION> 
  -------------------------------------------------------------------------
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------
  <S>           <C>            <C>            <C>            <C>           
   1. 1988 .... .............. .............. .............. ....X X X.... 
   2. 1989 .... .............. .............. .............. ....X X X.... 
   3. 1990 .... .............. .............. .............. ....X X X.... 
   4. 1991 .... .............. .............. .............. ....X X X.... 
   5. 1992 .... .............. .............. .............. ....X X X.... 
   6. 1993 .... .............. .............. .............. ....X X X.... 
   7. 1994 .... .............. .............. .............. ....X X X.... 
   8. 1995 .... .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
   9. Totals .. .............. .............. .............. ....X X X.... 
  -------------------------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time     
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31             32     
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. 1988 .... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1989 .... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1990 .... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1991 .... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1992 .... ............. ............. ............. .............. N        O        N        E  .............. ............. 
   6. 1993 .... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1994 .... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1995 .... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------
   9. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -----------------------------------------------------------
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ------------------------------
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. 1988 .... .............. .............. .............. 
   2. 1989 .... .............. .............. .............. 
   3. 1990 .... .............. .............. .............. 
   4. 1991 .... .............. .............. .............. 
   5. 1992 .... .............. .............. ..............
   6. 1993 .... .............. .............. .............. 
   7. 1994 .... .............. .............. .............. 
   8. 1995 .... .............. .............. .............. 
  -----------------------------------------------------------
   9. Totals .. ....X X X..... .............. .............. 
  -----------------------------------------------------------
</TABLE> 

                                       93
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 1Q - REINSURANCE D

<TABLE> 
<CAPTION> 
                                                     ($000 omitted)
  -------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                           Loss and Loss Expense Payments  
                -----------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss      
     in Which                                                                                   Expense Payments     
  Premiums Were                                           -----------------------------------------------------------
    Earned and     Direct                        Net            5              6              7              8       
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                   
     Incurred      Assumed                                 and Assumed       Ceded       and Assumed       Ceded     
  -------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C> 
   1. Prior ... ....X X X.... ....X X X.... ....X X X.... .............  .............  .............  .............
   2. 1986 .... ............. ............. ............. .............  .............  .............  .............
   3. 1987 .... ............. ............. ............. .............  .............  .............  .............
  -------------------------------------------------------------------------------------------------------------------
   4. Totals .. ....X X X.... ....X X X.... ....X X X.... .............      N     O     N      E      .............      
  -------------------------------------------------------------------------------------------------------------------          
  <CAPTION> 
  ---------------------------------------------------------------------- 
        1                                                                  
               --------------------------------------------                
      Years          9              10             11             12       
     in Which                                                 Number of    
  Premiums Were   Salvage      Unallocated       Total          Claims     
    Earned and      and            Loss         Net Paid      Reported -   
   Losses Were  Subrogation      Expense       (5 - 6 + 7     Direct and   
     Incurred     Received       Payments      - 8 + 10)       Assumed     
-------------------------------------------------------------------------- 
                                                                                        
   1. Prior ... .............. .............. .............. ....X X X....  
   2. 1986 .... .............. .............. .............. ....X X X....  
   3. 1987 .... .............. .............. .............. ....X X X....  
-------------------------------------------------------------------------- 
   4. Totals .. .............. .............. .............. ....X X X....  
-------------------------------------------------------------------------- 
</TABLE> 
<TABLE>
<CAPTION>  
---------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                ------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR      
                ------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20    
                   Direct                      Direct                        Direct                        Direct                 
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded   
  --------------------------------------------------------------------------------------------------------------------------------
   <S>          <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C> 
   1. Prior ... ............. ............. ............. .............  .............  .............  .............  ............ 
   2. 1986 .... ............. ............. ............. .............  .............  .............  .............  ............ 
   3. 1987 .... ............. ............. ............. .............  .............  .............  .............  ............ 
  --------------------------------------------------------------------------------------------------------------------------------
   4. Totals .. ............. ............. ............. .............      N     O     N      E      .............  .............
  --------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -------------------------------------------------------------------------
                                                                            
                       21             22             23            24       
                                                                Number of   
                    Salvage      Unallocated       Total         Claims     
                      and            Loss        Net Losses   Outstanding - 
                  Subrogation      Expenses     and Expenses   Direct and   
                  Anticipated       Unpaid         Unpaid        Assumed    
  ------------------------------------------------------------------------- 
   <S>           <C>            <C>            <C>            <C>                               
   1. Prior ...  .............. .............. .............. ....X X X.... 
   2. 1986 ....  .............. .............. .............. ....X X X.... 
   3. 1987 ....  .............. .............. .............. ....X X X.... 
  ------------------------------------------------------------------------- 
   4. Totals ..  .............. .............. .............. ....X X X.... 
  ------------------------------------------------------------------------- 
 </TABLE> 
<TABLE> 
<CAPTION> 
  ---------------------------------------------------------------------------------------------------------------------------------
                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time    
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money      
                ------------------------------------------------------------------------------------------------------------------
                     25            26            27             28             29             30             31           32   
                   
                   Direct                                     Direct                                                     Loss
                 and Assumed     Ceded          Net         and Assumed      Ceded           Net            Loss        Expense
  --------------------------------------------------------------------------------------------------------------------------------
   <S>          <C>           <C>           <C>           <C>            <C>            <C>            <C>           <C> 
   1. Prior ... ....X X X.... ....X X X.... ....X X X.... ....X X X....  ....X X X....  ....X X X....  ............. .............
   2. 1986 .... ............. ............. ............. .............  .............  .............  ............. .............
   3. 1987 .... ............. ............. ............. .............  .............  .............  .............  ............
  --------------------------------------------------------------------------------------------------------------------------------
   4. Totals .. ....X X X.... ....X X X.... ....X X X.... ....X X X.....     N     O     N      E      .............. ............
  --------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
                ----------------------------------------------- 
                                Net Balance Sheet Reserves  
                    33               After Discount        
                                ------------------------------ 
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------              
   <S>          <C>             <C>            <C>           
   1. Prior ... ....X X X....   .............  .............                           
   2. 1986 .... .............   .............  .............                                                    
   3. 1987 .... .............   .............  .............                           
  ------------- --------------  -------------  -------------  
   4. Totals .. ....X X X.....  .............  .............                             
  ------------- --------------  -------------  -------------  
  </TABLE> 
                                                                               
                                             
                                             
                                             
                                             
                                             
                                             

                                       94
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE

<TABLE> 
<CAPTION> 
                                                          ($000 omitted)
  ---------------------------------------------------------------------------------------------------------------------------------
        1                    Premiums Earned                                                  Loss and Loss Expense Payments       
                -------------------------------------------------------------------------------------------------------------------
      Years           2             3             4                Loss Payments                 Allocated Loss             9      
     in Which                                                                                   Expense Payments                   
  Premiums Were                                           -----------------------------------------------------------    Salvage   
    Earned and     Direct                        Net            5              6              7              8             and     
   Losses Were       and          Ceded        (2 - 3)        Direct                        Direct                     Subrogation 
     Incurred     Assumed                                  and Assumed       Ceded       and Assumed       Ceded         Received  
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. Prior.... ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. .............
   2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1987..... ............. ............. ............. .............. N        O        N        E  .............. .............
   4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
   6. 1990..... ............. ............. ............  .............. .............. .............. .............. .............
   7. 1991..... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
   9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
  10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
  11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
  ------------- ------------- ------------- ---------------------------- -------------- -------------- -------------- -------------
  12. Totals... ....X X X.... ....X X X.... ....X X X.... .............. .............. .............. .............. .............
  ------------- ------------- ------------- ---------------------------- -------------- -------------- -------------- -------------
                                                              
<CAPTION>                                                     
  ----------------------------------------------------------  
        1                                                     
                                                              
      Years          10             11             12
     in Which                                   Number of               
  Premiums Were  Unallocated       Total         Claims
    Earned and       Loss         Net Paid      Reported -   
   Losses Were     Expense       (5 - 6 + 7     Direct and   
     Incurred      Payments      - 8 + 10)       Assumed     
  ----------------------------------------------------------  
  <S>           <C>            <C>            <C>            
   1. Prior.... .............. .............. ....X X X..... 
   2. 1986..... .............. .............. .............. 
   3. 1987..... .............. .............. .............. 
   4. 1988..... .............. .............. .............. 
   5. 1989..... .............. .............. .............. 
   6. 1990..... .............. .............. .............. 
   7. 1991..... .............. .............. .............. 
   8. 1992..... .............. .............. .............. 
   9. 1993..... .............. .............. .............. 
  10. 1994..... .............. .............. .............. 
  11. 1995..... .............. .............. .............. 
  ---------------------------------------------------------- 
  12. Totals... .............. .............. ....X X X..... 
  ---------------------------------------------------------- 
</TABLE> 

<TABLE> 
<CAPTION> 
  ---------------------------------------------------------------------------------------------------------------------------------
                                      Losses Unpaid                                     Allocated Loss Expenses Unpaid             
                -------------------------------------------------------------------------------------------------------------------
                          Case Basis                  Bulk + IBNR                  Case Basis                    Bulk + IBNR       
                -------------------------------------------------------------------------------------------------------------------
                     13            14            15             16             17             18             19             20     
                   Direct                      Direct                        Direct                        Direct                  
                 and Assumed      Ceded      and Assumed      Ceded       and Assumed       Ceded       and Assumed       Ceded    
  ---------------------------------------------------------------------------------------------------------------------------------
  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. Prior.... ............. ............. ............. .............. .............. .............. .............. .............
   2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1987..... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
   6. 1990..... ............. ............. ............. .............. .............. .............. .............. .............
   7. 1991..... ............. ............. ............. .............. N        O        N        E  .............. .............
   8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
   9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
  10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
  11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
  ---------------------------------------------------------------------------------------------------------------------------------
  12. Totals... ............. ............. ............. .............. .............. .............. .............. .............
  ---------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
  -------------------------------------------------------------------------
                                                                           
                      21             22             23            24       
                                                               Number of   
                   Salvage      Unallocated       Total         Claims     
                     and            Loss        Net Losses   Outstanding - 
                 Subrogation      Expenses     and Expenses   Direct and   
                 Anticipated       Unpaid         Unpaid        Assumed    
  -------------------------------------------------------------------------
  <S>           <C>            <C>            <C>            <C>           
   1. Prior.... .............. .............. .............. ............. 
   2. 1986..... .............. .............. .............. ............. 
   3. 1987..... .............. .............. .............. ............. 
   4. 1988..... .............. .............. .............. ............. 
   5. 1989..... .............. .............. .............. ............. 
   6. 1990..... .............. .............. .............. ............. 
   7. 1991..... .............. .............. .............. ............. 
   8. 1992..... .............. .............. .............. ............. 
   9. 1993..... .............. .............. .............. ............. 
  10. 1994..... .............. .............. .............. ............. 
  11. 1995..... .............. .............. .............. ............. 
  ------------------------------------------------------------------------ 
  12. Totals... .............. .............. .............. ............. 
  ------------------------------------------------------------------------ 
</TABLE> 

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------

                             Total Losses and                    Loss and Loss Expense Percentage            Discount for Time    
                           Loss Expenses Incurred                   (Incurred/Premiums Earned)                Value of Money       
                --------------------------------------------------------------------------------------------------------------------

                     25            26            27             28             29             30             31             32     
                                                                                                                                   
                   Direct                                     Direct                                                       Loss    
                 and Assumed      Ceded          Net       and Assumed       Ceded           Net            Loss         Expense   
  ----------------------------------------------------------------------------------------------------------------------------------

  <S>           <C>           <C>           <C>           <C>            <C>            <C>            <C>            <C>          
   1. Prior.... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
   2. 1986..... ............. ............. ............. .............. .............. .............. .............. .............
   3. 1987..... ............. ............. ............. .............. .............. .............. .............. .............
   4. 1988..... ............. ............. ............. .............. .............. .............. .............. .............
   5. 1989..... ............. ............. ............. .............. .............. .............. .............. .............
   6. 1990..... ............. ............. ............. .............. N        O        N        E  .............. .............
   7. 1991..... ............. ............. ............. .............. .............. .............. .............. .............
   8. 1992..... ............. ............. ............. .............. .............. .............. .............. .............
   9. 1993..... ............. ............. ............. .............. .............. .............. .............. .............
  10. 1994..... ............. ............. ............. .............. .............. .............. .............. .............
  11. 1995..... ............. ............. ............. .............. .............. .............. .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------

  12. Totals... ....X X X.... ....X X X.... ....X X X.... ....X X X..... ....X X X..... ....X X X..... .............. .............
  ----------------------------------------------------------------------------------------------------------------------------------


<CAPTION> 
  -----------------------------------------------------------
                                 Net Balance Sheet Reserves  
                      33               After Discount        
                               ------------------------------
                Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
  -----------------------------------------------------------
  <S>           <C>            <C>            <C>            
   1. Prior     ....X X X..... .............. .............. 
   2. 1986      .............. .............. .............. 
   3. 1987      .............. .............. .............. 
   4. 1988      .............. .............. .............. 
   5. 1989      .............. .............. .............. 
   6. 1990      .............. .............. .............. 
   7. 1991      .............. .............. .............. 
   8. 1992      .............. .............. .............. 
   9. 1993      .............. .............. .............. 
  10. 1994      .............. .............. .............. 
  11. 1995      .............. .............. .............. 
  -----------------------------------------------------------
  12. Totals    ....X X X..... .............. .............. 
  -----------------------------------------------------------
</TABLE> 

                                       95
<PAGE>
 
 Form 2

      ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY 
                         AND ITS AFFILIATED COMPANIES



      SCHEDULE P - PART 1R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE

                                ($000 omitted)

<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------
      1                   Premiums Earned                                    Loss and Loss Expense Payments 
              ----------------------------------------------------------------------------------------------
    Years          2            3            4             Loss Payments               Allocated Loss      
   in Which                                                                           Expense Payments     
Premiums Were                                       --------------------------------------------------------
  Earned and    Direct                      Net           5             6             7             8       
 Losses Were      and         Ceded       (2 - 3)       Direct                      Direct                  
   Incurred     Assumed                              and Assumed      Ceded      and Assumed      Ceded     
------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>         <C>             <C>           <C>           <C>                      
 1. Prior..    ..X X X..    ..X X X..    ..X X X..    .........      ..........    ..........    .........   
 2. 1986 ..    .........    .........    .........    .........      ..........    ..........    .........   
 3. 1987 ..    .........    .........    .........    .........      ..........    ..........    .........   
 4. 1988 ..    .........    .........    .........    .........      ..........    ..........    .........   
 5. 1989 ..    .........    .........    .........    .........      N       O       N     E     .........   
 6. 1990 ..    .........    .........    .........    .........      ..........    ..........    .........   
 7. 1991 ..    .........    .........    .........    .........      ..........    ..........    .........   
 8. 1992 ..    .........    .........    .........    .........      ..........    ..........    .........   
 9. 1993 ..    .........    .........    .........    .........      ..........    ..........    .........   
10. 1994 ..    .........    .........    .........    .........      ..........    ..........    .........   
11. 1995 ..    .........    .........    .........    .........      .........     ..........    .........   
------------------------------------------------------------------------------------------------------------
12. Totals.    ..X X X..    ..X X X..    ..X X X..    .........      .........     .........     .........   
------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------------------------- 
      1                                                                   
              --------------------------------------------                
    Years           9              10             11             12       
   in Which                                                  Number of    
Premiums Were    Salvage      Unallocated       Total          Claims     
  Earned and       and            Loss         Net Paid      Reported -   
 Losses Were   Subrogation      Expense       (5 - 6 + 7     Direct and   
   Incurred      Received       Payments      - 8 + 10)       Assumed     
------------------------------------------------------------------------- 
<S>            <C>              <C>           <C>            <C>                
 1. Prior..    .........        .........     .........      ..X X X..    
 2. 1986 ..    .........        .........     .........      .........    
 3. 1987 ..    .........        .........     .........      .........    
 4. 1988 ..    .........        .........     .........      .........    
 5. 1989 ..    .........        .........     .........      .........    
 6. 1990 ..    .........        .........     .........      .........    
 7. 1991 ..    .........        .........     .........      .........    
 8. 1992 ..    .........        .........     .........      .........    
 9. 1993 ..    .........        .........     .........      .........    
10. 1994 ..    .........        .........     .........      .........    
11. 1995 ..    .........        .........     .........      .........    
------------------------------------------------------------------------- 
12. Totals.    .........        .........     .........      ..X X X..    
-------------------------------------------------------------------------  
</TABLE> 

<TABLE> 
<CAPTION> 
 -------------------------------------------------------------------------------------------------------------------------------
                                    Losses Unpaid                                     Allocated Loss Expenses Unpaid            
              ------------------------------------------------------------------------------------------------------------
                        Case Basis                 Bulk + IBNR               Case Basis                 Bulk + IBNR      
              ------------------------------------------------------------------------------------------------------------
                   13           14           15            16            17            18            19            20    
                 Direct                    Direct                      Direct                      Direct                
               and Assumed     Ceded     and Assumed     Ceded      and Assumed      Ceded      and Assumed      Ceded   
 -------------------------------------------------------------------------------------------------------------------------
 <S>           <C>          <C>          <C>           <C>          <C>            <C>          <C>          <C>         
  1. Prior..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  2. 1986 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  3. 1987 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  4. 1988 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  5. 1989 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  6. 1990 ..   ........     ..........   ..........    ..........   ..N     O      N      E..   ..........   .............
  7. 1991 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  8. 1992 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
  9. 1993 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
 10. 1994 ..   ........     ..........   ..........    ..........   ...........    ..........   ..........   .............
 11. 1995 ..   ........     ..........   ..........    ..........   ..........     ..........   ..........   .............
 -------------------------------------------------------------------------------------------------------------------------
 12. Totals.   ........     ..........   ..........    ..........   ..........     ..........   ...........  .............
 -------------------------------------------------------------------------------------------------------------------------

 ------------------------------------------------------------------------
                                                                          
                     21             22             23            24       
                                                              Number of   
                  Salvage      Unallocated       Total         Claims     
                    and            Loss        Net Losses   Outstanding - 
                Subrogation      Expenses     and Expenses   Direct and   
                Anticipated       Unpaid         Unpaid        Assumed    
 ------------------------------------------------------------------------ 
 <S>            <C>            <C>            <C>            <C>                                             
  1. Prior..    .........      .........      .........      .........    
  2. 1986 ..    .........      .........      .........      .........    
  3. 1987 ..    .........      .........      .........      .........    
  4. 1988 ..    .........      .........      .........      .........    
  5. 1989 ..    .........      .........      .........      .........    
  6. 1990 ..    .........      .........      .........      .........    
  7. 1991 ..    .........      .........      .........      .........    
  8. 1992 ..    .........      .........      .........      .........    
  9. 1993 ..    .........      .........      .........      .........    
 10. 1994 ..    .........      .........      .........      .........    
 11. 1995 ..    .........      .........      .........      .........    
 ------------------------------------------------------------------------ 
 12. Totals..   .........      .........      .........      .........     
 ------------------------------------------------------------------------ 
</TABLE> 

<TABLE> 
<CAPTION> 
 -----------------------------------------------------------------------------------------------------------------------------
                            Total Losses and                    Loss and Loss Expense Percentage           Discount for Time     
                          Loss Expenses Incurred                   (Incurred/Premiums Earned)               Value of Money       
               ---------------------------------------------------------------------------------------------------------------
                    25            26            27             28            29            30            31            32     
                                                                                                                              
                  Direct                                     Direct                                                   Loss    
                and Assumed      Ceded          Net       and Assumed      Ceded          Net           Loss        Expense   
 -----------------------------------------------------------------------------------------------------------------------------
<S>             <C>           <C>           <C>           <C>           <C>           <C>            <C>             <C>        
 1. Prior..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X...     ............    .........
 2. 1986 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 3. 1987 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 4. 1988 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 5. 1989 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 6. 1990 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 7. 1991 ..     .........     .........     .........     .........      N     O      N     E        ............    .........
 8. 1992 ..     .........     .........     .........     .........     .........     ..........     ............    .........
 9. 1993 ..     .........     .........     .........     .........     .........     ..........     ............    .........
10. 1994 ..     .........     .........     .........     .........     .........     ..........     ............    .........
11. 1995 ..     .........     .........     .........     .........     .........     ..........     ............    .........
------------------------------------------------------------------------------------------------------------------------------
12. Totals.     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X..     ..X X X...     ............    .........
 -----------------------------------------------------------------------------------------------------------------------------

               ----------------------------------------------- 
                                   Net Balance Sheet Reserves  
                        33               After Discount        
                                 ----------------------------- 
                 Inter-Company        34             35       
                   Pooling                         Loss      
                Participation      Losses        Expenses    
                  Percentage       Unpaid         Unpaid     
               -----------------------------------------------
<S>             <C>               <C>           <C>         
 1. Prior..     ..X X X..         .........     .........    
 2. 1986 ..     .........         .........     .........
 3. 1987 ..     .........         .........     .........
 4. 1988 ..     .........         .........     .........
 5. 1989 ..     .........         .........     .........
 6. 1990 ..     .........         .........     .........
 7. 1991 ..     .........         .........     .........
 8. 1992 ..     .........         .........     .........
 9. 1993 ..     .........         .........     .........
10. 1994 ..     .........         .........     .........
11. 1995 ..     .........         .........     .........
--------------------------------------------------------------
12. Totals.     ..X X X..         .........     .........  
--------------------------------------------------------------
</TABLE> 

                                       96
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



          SCHEDULE P - PART 1S - FINANCIAL GUARANTY/MORTGAGE GUARANTY


                                                          ($000 omitted)

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                    Premiums Earned                                        Loss and Loss Expense Payments         
              ---------------------------------------------------------------------------------------------------------------------
    Years           2            3            4             Loss Payments           Allocated Loss            9            10      
   in Which                                                                        Expense Payments                                
Premiums Were                                        ---------------------------------------------------   Salvage    Unallocated  
  Earned and     Direct                      Net          5             6           7             8          and          Loss     
 Losses Were       and         Ceded       (2 - 3)      Direct                    Direct                 Subrogation    Expense    
   Incurred      Assumed                             and Assumed      Ceded    and Assumed      Ceded      Received     Payments   
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
 4. Totals .. ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............  
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------------------
      1                                
              -------------
    Years           11           12    
   in Which                  Number of 
Premiums Were     Total       Claims   
  Earned and    Net Paid    Reported - 
 Losses Were   (5 - 6 + 7   Direct and 
   Incurred     - 8 + 10)    Assumed   
-----------------------------------------
<S>            <C>          <C> 
 1. Prior .... ............ ....X X X...  
 2. 1994 ..... ............ ....X X X...
 3. 1995 ..... ............ ....X X X...
-----------------------------------------
 4. Totals ... ............ ....X X X...   
-----------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                                 Losses Unpaid                              Allocated Loss Expenses Unpaid
              -------------------------------------------------------------------------------------------------------
                                                                                                                           21      
                     Case Basis                Bulk + IBNR               Case Basis               Bulk + IBNR
              -------------------------------------------------------------------------------------------------------    Salvage
                   13           14           15           16           17           18           19           20           and     
                 Direct                    Direct                    Direct                    Direct                  Subrogation  
              and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded    and Assumed      Ceded     Anticipated  

-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
 4. Totals .. ............ ............ ............ ............ ............ ............ ............ ............ ............  
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
                    22          23           24
                                          Number of
              Unallocated     Total        Claims
                  Loss      Net Losses  Outstanding -  
                Expenses   and Expenses   Direct and 
                 Unpaid       Unpaid       Assumed   
------------------------------------------------------
<S>            <C>          <C>         <C> 
 1. Prior .... ............ ............ ............ 
 2. 1994 ..... ............ ............ ............ 
 3. 1995 ..... ............ ............ ............ 
------------------------------------------------------
 4. Totals ... ............ ............ ............ 
------------------------------------------------------
</TABLE> 

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
                         Total Losses and              Loss and Loss Expense Percentage         Discount for Time
                      Loss Expenses Incurred              (Incurred/Premiums Earned)              Value of Money            33
              -------------------------------------------------------------------------------------------------------   
                   25           26           27           28           29           30           31           32       Inter-Company
                                                                                                                          Pooling
                 Direct                                 Direct                                              Loss       Participation
              and Assumed      Ceded         Net     and Assumed      Ceded         Net         Loss       Expense       Percentage
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior ... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
 2. 1994 .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1995 .... ............ ............ ............ ............ ........N O N E.......... ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------
 4. Totals .. ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
-----------------------------------------
              Net Balance Sheet Reserves
                    After Discount
              ---------------------------
                   34           35     
                               Loss    
                 Losses      Expenses  
                 Unpaid       Unpaid   
-----------------------------------------
<S>            <C>           <C>         
 1. Prior .... ............ ............  
 2. 1994 ..... ............ ............
 3. 1995 ..... ............ ............
-----------------------------------------
 4. Totals ... ............ ............   
-----------------------------------------
</TABLE> 

                                       97
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                 SCHEDULE P - PART 2A - HOMEOWNERS/FARMOWNERS

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

Years in Which       2             3           4            5            6            7            8            9           10
  Losses Were      1986          1987        1988         1989         1990         1991         1992         1993         1994
   Incurred      
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ........80.. ........48.. .......234.. .......238.. .......258.. .......262.. .......262.. .......274.. .......265..
 2. 1986 ..... .....1,199.. .....1,245.. .....1,365.. .....1,394.. .....1,407.. .....1,413.. .....1,413.. .....1,413.. .....1,413..
 3. 1987 ..... ....X X X... .......793.. .....1,079.. .....1,036.. .....1,052.. .....1,059.. .....1,059.. .....1,059.. .....1,059..
 4. 1988 ..... ....X X X... ....X X X... .....1,247.. .....1,136.. .....1,157.. .....1,119.. .....1,118.. .....1,118.. .....1,119..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .......487.. .......409.. .......407.. .......402.. .......394.. .......394..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......325.. .......404.. .......394.. .......387.. .......387..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......579.. .......571.. .......587.. .......532..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......419.. .......399.. .......410..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,028.. .....1,241..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,408..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
------------------------------------------------------
      1                            Development
               ---------------------------------------
Years in Which     11           12          13    
  Losses Were     1995        One Year    Two Year
   Incurred                             
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... .......299.. ........34.. ........25..  
 2. 1986 ..... .....1,413.. ............ ............
 3. 1987 ..... .....1,059.. ............ ............
 4. 1988 ..... .....1,119.. ............ .........1..
 5. 1989 ..... .......394.. ............ ............
 6. 1990 ..... .......387.. ............ ............
 7. 1991 ..... .......604.. ........72.. ........17..
 8. 1992 ..... .......363.. .......(47). .......(36).
 9. 1993 ..... .....1,294.. ........53.. .......266..
10. 1994 ..... .....2,190.. ......(218). ....X X X...
11. 1995 ..... .....2,629.. ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ......(106). .......273..  
                           --------------------------- 
</TABLE> 

        SCHEDULE P - PART 2B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL
<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....22,513.. ....26,281.. ....26,355.. ....26,821.. ....26,227.. ....25,723.. ....25,272.. ....25,264.. ....25,396..
 2. 1986 ..... ...100,491.. ...107,127.. ...105,761.. ...106,059.. ...104,577.. ...104,734.. ...104,343.. ...104,225.. ...104,511..
 3. 1987 ..... ....X X X... ...157,264.. ...150,517.. ...150,383.. ...152,007.. ...152,215.. ...150,705.. ...150,657.. ...150,803..
 4. 1988 ..... ....X X X... ....X X X... ...208,064.. ...194,616.. ...192,384.. ...193,782.. ...189,838.. ...189,443.. ...189,860..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ...235,857.. ...210,048.. ...208,467.. ...204,740.. ...204,245.. ...204,686..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ...239,682.. ...225,667.. ...215,750.. ...213,599.. ...214,168..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...225,218.. ...196,986.. ...192,195.. ...190,560..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...200,292.. ...180,248.. ...179,945..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...185,646.. ...175,431..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...204,316..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ....25,409.. ........13.. .......145..  
 2. 1986 ..... ...104,503.. ........(8). .......278..
 3. 1987 ..... ...150,731.. .......(72). ........74..
 4. 1988 ..... ...189,831.. .......(29). .......388..
 5. 1989 ..... ...204,871.. .......185.. .......626..
 6. 1990 ..... ...214,158.. .......(10). .......579..
 7. 1991 ..... ...190,978.. .......418.. ....(1,217).
 8. 1992 ..... ...178,636.. ....(1,309). ....(1,612).
 9. 1993 ..... ...179,974.. .....4,543.. ....(5,672).
10. 1994 ..... ...198,696.. ....(5,620). ....X X X...
11. 1995 ..... ...227,052.. ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ....(1,889). ....(6,411).  
                           --------------------------- 
</TABLE> 

        SCHEDULE P - PART 2C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....2,411.. .....3,314.. .....3,833.. .....3,901.. .....3,801.. .....3,845.. .....3,653.. .....3,656.. .....3,658..
 2. 1986 ..... .....8,190.. .....8,959.. .....9,650.. .....9,598.. .....9,702.. .....9,634.. .....9,643.. .....9,633.. .....9,624..
 3. 1987 ..... ....X X X... ....13,437.. ....13,888.. ....14,847.. ....16,085.. ....16,279.. ....16,113.. ....16,058.. ....16,075..
 4. 1988 ..... ....X X X... ....X X X... ....18,139.. ....18,445.. ....19,485.. ....19,064.. ....19,021.. ....19,105.. ....19,045..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ....18,556.. ....19,029.. ....19,750.. ....18,296.. ....17,966.. ....17,792..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....16,257.. ....14,285.. ....13,362.. ....13,034.. ....12,768..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,737.. ....12,254.. ....11,512.. ....11,013..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....11,192.. ....10,811.. ....10,079..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....10,894.. ....11,280..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....11,703..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... .....3,654.. ........(4). ........(2).  
 2. 1986 ..... .....9,619.. ........(5). .......(14).
 3. 1987 ..... ....16,065.. .......(10). .........7..
 4. 1988 ..... ....19,061.. ........16.. .......(44).
 5. 1989 ..... ....17,762.. .......(30). ......(204).
 6. 1990 ..... ....12,683.. .......(85). ......(351).
 7. 1991 ..... ....10,977.. .......(36). ......(535).
 8. 1992 ..... .....9,837.. ......(242). ......(974).
 9. 1993 ..... ....11,127.. ......(153). .......233..
10. 1994 ..... .....9,920.. ....(1,783). ....X X X...
11. 1995 ..... ....11,577.. ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ....(2,332). ....(1,884).  
                           --------------------------- 
</TABLE> 

                 SCHEDULE P - PART 2D - WORKERS' COMPENSATION

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........N O N E.......... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

               SCHEDULE P - PART 2-E - COMMERCIAL MULTIPLE PERIL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .......512.. .......509.. .......6361. .......912.. .....1,029.. .......927.. .......923.. .......911.. .......910..
 2. 1986 ..... .......625.. .......616.. .......716.. .......754.. .......799.. .......768.. .......743.. .......742.. .......742..
 3. 1987 ..... ....X X X... .......441.. .......680.. .......673.. .......683.. .......678.. .......671.. .......671.. .......671..
 4. 1988 ..... ....X X X... ....X X X... .......420.. .......320.. .......487.. .......463.. .......475.. .......476.. .......478..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .......670.. .......648.. .......649.. .......614.. .......626.. .......628..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......458.. .......432.. .......420.. .......410.. .......398..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......448.. .......461.. .......422.. .......389..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,003.. .......745.. .......731..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......776.. .......917..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,199..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... .......911.. .........1.. ............  
 2. 1986 ..... .......742.. ............ ............
 3. 1987 ..... .......671.. ............ ............
 4. 1988 ..... .......478.. ............ .........2..
 5. 1989 ..... .......630.. .........2.. .........4..
 6. 1990 ..... .......398.. ............ .......(12).
 7. 1991 ..... .......389.. ............ .......(33).
 8. 1992 ..... .......784.. ........53.. ........39..
 9. 1993 ..... .....1,037.. .......120.. .......261..
10. 1994 ..... .....1,222.. ........23.. ....X X X...
11. 1995 ..... .....1,725.. ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   .......199.. .......261..  
                           --------------------------- 
</TABLE> 

                                       98
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 2F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

Years in Which       2             3           4            5            6            7            8            9           10
  Losses Were      1986          1987        1988         1989         1990         1991         1992         1993         1994
   Incurred      
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
      1                            Development
               ---------------------------------------
Years in Which     11            12          13    
  Losses Were     1995        One Year    Two Year
   Incurred                             
------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

     SCHEDULE P - PART 2F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

       SCHEDULE P - PART 2G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
                      (ALL PERILS), BOILER AND MACHINERY)

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

        SCHEDULE P - PART 2H - SECTION 1 - OTHER LIABILITY - OCCURRENCE

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .......245.. .......354.. .......619.. .......750.. .......786.. .......831.. .......906.. .......925.. .......948..
 2. 1986 ..... ........97.. ........85.. .......130.. .......116.. .......121.. .......118.. .......132.. .......132.. .......132..
 3. 1987 ..... ....X X X... .......113.. .......140.. .......146.. .......150.. .......116.. .......117.. .......120.. .......120..
 4. 1988 ..... ....X X X... ....X X X... ........25.. ........12.. ........53.. ........53.. ........63.. ........53.. ........53..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ........13.. ........13.. ........13.. ........13.. ........13.. ........13..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........9.. .........8.. .........8.. .........8.. .........9..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........39.. ........15.. ........16.. ........15..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........41.. .........5.. ........23..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......357.. .........3..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........33..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... .......987.. ........39.. ........62..  
 2. 1986 ..... .......134.. .........2.. .........2..
 3. 1987 ..... .......120.. ............ ............
 4. 1988 ..... ........53.. ............ ............
 5. 1989 ..... ........13.. ............ ............
 6. 1990 ..... .........9.. ............ .........1..
 7. 1991 ..... ........15.. ............ ........(1).
 8. 1992 ..... ........22.. ........(1). ........17..
 9. 1993 ..... .........2.. ........(1). ......(355).
10. 1994 ..... ........42.. .........9.. ....X X X...
11. 1995 ..... .........2.. ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ........48.. ......(274).  
                           --------------------------- 
</TABLE> 

       SCHEDULE P - PART 2H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                                       99
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



  SCHEDULE P - PART 2I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,

                    EARTHQUAKE, GLASS, BURGLARY AND THEFT)

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

Years in Which       2             3           4            5            6            7            8            9           10
  Losses Were      1986          1987        1988         1989         1990         1991         1992         1993         1994
   Incurred      
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......138.. .......205..
 2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......986..
 3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
------------------------------------------------------
      1                            Development
               ---------------------------------------
Years in Which     11           12          13    
  Losses Were     1995        One Year    Two Year
   Incurred                             
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... .......209.. .........4.. ........71..  
 2. 1994 ..... .....1,469.. .......483.. ....X X X...
 3. 1995 ..... .......201.. ....X X X... ....X X X...
------------------------------------------------------
                4. Totals   .......487.. ........71..  
                           --------------------------- 
</TABLE> 

                  SCHEDULE P - PART 2J - AUTO PHYSICAL DAMAGE

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....(3,873). ....(1,250).
 2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ...106,815..
 3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ....(1,603). ......(353). .....2,270..  
 2. 1994 ..... ...106,328.. ......(487). ....X X X...
 3. 1995 ..... ...134,639.. ....X X X... ....X X X...
------------------------------------------------------
                4. Totals   ......(840). .....2,270..  
                           --------------------------- 
</TABLE> 

                    SCHEDULE P - PART 2K - FIDELITY/SURETY

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E...X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ............ ............ ............  
 2. 1994 ..... ............ ............ ....X X X...
 3. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
                4. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

     SCHEDULE P - PART 2L - OTHER (INCLUDING CREDIT, ACCIDENT AND HEALTH)

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 3. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E...X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1994 ..... ............ ............ ....X X X...
 3. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
                4. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                     SCHEDULE P - PART 2M - INTERNATIONAL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ....X X X...
11. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
               12. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                                      100
<PAGE>
 
Form 2
  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES

                     SCHEDULE P - PART 2N - REINSURANCE A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

Years in Which       2             3           4            5            6            7            8            9           10
  Losses Were      1986          1987        1988         1989         1990         1991         1992         1993         1994
   Incurred      
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X...        N   O    N    E      .......... ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
------------------------------------------------------
      1                            Development
               ---------------------------------------
Years in Which     11           12          13    
  Losses Were     1995        One Year    Two Year
   Incurred                             
------------------------------------------------------
<S>            <C>          <C>          C> 
 1. 1986 ..... ............ ............ ............
 2. 1987 ..... ............ ............ ............
 3. 1988 ..... ............ ............ ............
 4. 1989 ..... ............ ............ ............
 5. 1990 ..... ............ ............ ............
 6. 1991 ..... ............ ............ ............
 7. 1992 ..... ............ ............ ....X X X...
 8. 1993 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
                9. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                     SCHEDULE P - PART 2O - REINSURANCE B

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X...   N    O      N    E      ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. 1988 ..... ............ ............ ............
 2. 1989 ..... ............ ............ ............
 3. 1990 ..... ............ ............ ............
 4. 1991 ..... ............ ............ ............
 5. 1992 ..... ............ ............ ............
 6. 1993 ..... ............ ............ ............
 7. 1994 ..... ............ ............ ....X X X...
 8. 1995 ..... ............ .....X X X.. ....X X X...
------------------------------------------------------
                9. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                     SCHEDULE P - PART 2P - REINSURANCE C

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. 1988 ..... ............ ............ ............
 2. 1989 ..... ............ ............ ............
 3. 1990 ..... ............ ............ ............
 4. 1991 ..... ............ ............ ............
 5. 1992 ..... ............ ............ ............
 6. 1993 ..... ............ ............ ............
 7. 1994 ..... ............ ............ ....X X X...
 8. 1995 ..... ............ ....X X X... ....X X X...
------------------------------------------------------
                9. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                     SCHEDULE P - PART 2Q - REINSURANCE D

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ N       O       N       E ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............ 
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
------------------------------------------------------
                4. Totals   ............ ............  
                           --------------------------- 
</TABLE> 

                                      101
<PAGE>
 
 Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 2R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE

<TABLE> 
<CAPTION> 
  --------------------------------------------------------------------------------------------------------------------------
         1                                       INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED) 
                   ---------------------------------------------------------------------------------------------------------
  Years in Which         2            3            4            5            6            7            8            9       
   Losses Were         1986         1987         1988         1989         1990         1991         1992         1993      
     Incurred                                                                                                               
  --------------------------------------------------------------------------------------------------------------------------
 <S>   <C>      <C>             <C>          <C>           <C>         <C>           <C>          <C>            <C> 
  1.   Prior... ............... ............ ............. ........... ............. ............ .............. ...........
  2.   1986.... ............... ............ ............. ........... ............. ............ .............. ...........
  3.   1987.... .......X X X... ............ ............. ...........       N        O         N      E         ...........
  4.   1988.... .......X X X... ....X X X... ............. ........... ............. ............ .............. ...........
  5.   1989.... .......X X X... ....X X X... ....X X X.... ........... ............. ............ .............. ...........
  6.   1990.... .......X X X... ....X X X... ....X X X.... ...X X X... ............. ............ .............. ........... 
  7.   1991.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ............ .............. ...........
  8.   1992.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... .............. ...........
  9.   1993.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...........
 10.   1994.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...X X X...  
 11.   1995.... .......X X X... ....X X X... ....X X X.... ...X X X... ....X X X.... ...X X X.... ...X X X...... ...X X X...  
 ---------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
 ------------------------------------------------------------------------
                            1                       Development             
                  ------------------------------------------------------           
 Years in Which         10           11            12           13                 
  Losses Were          1994         1995        One Year     Two Year              
    Incurred                                                                       
 -----------------------------------------------------------------------           
<S>   <C>       <C>             <C>           <C>          <C> 
 1.   Prior.... ............... ............. ............ ............
 2.   1986..... ............... ............. ............ ............
 3.   1987..... ............... ............. ............ ............
 4.   1988..... ............... ............. ............ ............
 5.   1989..... ............... ............. ............ ............
 6.   1990..... ............... ............. ............ ............
 7.   1991..... ............... ............. ............ ............
 8.   1992..... ............... ............. ............ ............
 9.   1993..... ............... ............. ............ ............
10.   1994..... ............... ............. ............ ...X X X....            
11.   1995..... .......X X X... ............. ...X X X.... ...X X X....            
------------------------------------------------------------------------           
                                  12. Totals  ............ ............
                                              --------------------------
</TABLE> 





      SCHEDULE P - PART 2R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE

<TABLE> 
 --------------------------------------------------------------------------------------------------------------
<C>   <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C> 
 1.   Prior... ........... ........... ........... ........... ........... ........... ........... ............
 2.   1986.... ........... ........... ........... ........... ........... ........... ........... ............
 3.   1987.... ..X X X.... ........... ........... ........... ........... ........... ........... ............
 4.   1988.... ..X X X.... ..X X X.... ........... ........... ........... ........... ........... ............
 5.   1989.... ..X X X.... ..X X X.... ..X X X.... ........... ........... ........... ........... ............
 6.   1990.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ........... ........... ........... ............
 7.   1991.... ..X X X.... ..X X X.... ..X X X.... ..X X X....   N      O     N      E ........... ............
 8.   1992.... ..X X X.... ..X X X.... ..X X X.... ..X X X....                         ........... ............
 9.   1993.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ............
10.   1994.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.....
11.   1995.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X.... ..X X X ... ..X X X.....
---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------ 
<S>   <C>      <C>         <C>        <C>         <C> 
 1.   Prior... ........... .......... ........... .............
 2.   1986.... ........... .......... ........... .............           
 3.   1987.... ........... .......... ........... .............          
 4.   1988.... ........... .......... ........... .............          
 5.   1989.... ........... .......... ........... .............          
 6.   1990.... ........... .......... ........... .............          
 7.   1991.... ........... .......... ........... .............          
 8.   1992.... ........... .......... ........... .............          
 9.   1993.... ........... .......... ........... .............         
10.   1994.... ........... .......... ........... ...X X X.....                         
11.   1995.... ..X X X.... .......... ...X X X... ...X X X.....                         
------------------------------------------------------------------                         
                          12. Totals  ........... .............
                                       ---------------------------
</TABLE> 








          SCHEDULE P - PART 2S - FINANCIAL GUARANTY/MORTGAGE GUARANTY

<TABLE> 
-------------------------------------------------------------------------------------------------------------
<S>  <C>      <C>               <C>          <C>          <C>           <C>        <C>            <C> 
1.   Prior.... ......X X ....  ............ ............ ............  ..N        O        N        E....     
2.   1994..... ......X X X.... ...X X X.... ...X X X.... ...X X X....   ......                       ....
3.   1995..... ......X X X.... ...X X X.... ...X X X.... ...X X X....   .....                        ....
-------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------           
<S>  <C>             <C>          <C>      <C>              <C>           <C>   
1.   Prior..... .............. ........... ............. ............. ...........             
2.   1994...... .....X X X.... ........... ............. ............. ...X X X...             
3.   1995...... .....X X X.... ...X X X... ............. ...X X X..... ...X X X...             
------------------------------------------------------------------------------------           
                                          4. Totals      ............. ............
                                                    --------------------------------
</TABLE> 

                                      102
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                 SCHEDULE P - PART 3A - HOMEOWNERS/FARMOWNERS

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
        1                               CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

Years in Which
  Losses Were        2             3           4            5            6            7            8            9           10
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994   

-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... .......(19). .......109.. .......219.. .......250.. .......262.. .......262.. .......272.. .......265..
 2. 1986 ..... .......765.. .....1,247.. .....1,327.. .....1,389.. .....1,402.. .....1,413.. .....1,413.. .....1,413.. .....1,413..
 3. 1987 ..... ....X X X... .......795.. .....1,046.. .....1,036.. .....1,047.. .....1,059.. .....1,059.. .....1,059.. .....1,059..
 4. 1988 ..... ....X X X... ....X X X... .......894.. .....1,080.. .....1,092.. .....1,118.. .....1,118.. .....1,121.. .....1,122..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .......303.. .......375.. .......387.. .......391.. .......394.. .......394..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......225.. .......386.. .......386.. .......387.. .......387..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......369.. .......422.. .......433.. .......443..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......287.. .......358.. .......359..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......507.. .....1,078..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,409..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
------------------------------------------------------
      1                          12           13
                              Number of    Number of   
Years in Which                  Claims      Claims
  Losses Were      11           Closed      Closed
   Incurred       1995        With Loss     Without
                               Payment    Loss Payment
------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... .......299.. .....9,014.. .....1,511..  
 2. 1986 ..... .....1,413.. .......493.. ........30..
 3. 1987 ..... .....1,059.. .......458.. ........21..
 4. 1988 ..... .....1,122.. .......433.. ........16..
 5. 1989 ..... .......394.. .......175.. .........6..
 6. 1990 ..... .......387.. .......153.. ........10..
 7. 1991 ..... .......475.. .......183.. ........16..
 8. 1992 ..... .......363.. .......139.. ........21..
 9. 1993 ..... .....1,319.. .......367.. .......100..
10. 1994 ..... .....1,901.. .......733.. .......235..
11. 1995 ..... .....1,531.. .......815.. .......264..
------------------------------------------------------
</TABLE> 

        SCHEDULE P - PART 3B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ....14,403.. ....21,069.. ....23,712.. ....25,325.. ....25,395.. ....25,400.. ....25,388.. ....23,379..
 2. 1986 ..... ....27,897.. ....76,802.. ....93,204.. ....99,368.. ...102,322.. ...103,847.. ...104,202.. ...104,310.. ...104,506..
 3. 1987 ..... ....X X X... ....42,920.. ...111,696.. ...133,395.. ...143,558.. ...148,867.. ...150,122.. ...150,635.. ...150,700..
 4. 1988 ..... ....X X X... ....X X X... ....53,801.. ...140,501.. ...171,590.. ...183,114.. ...187,798.. ...189,378.. ...189,733..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ....60,812.. ...155,385.. ...186,845.. ...198,596.. ...202,488.. ...204,006..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....65,344.. ...169,803.. ...200,631.. ...209,185.. ...212,503..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....67,539.. ...151,993.. ...178,215.. ...187,319..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....60,722.. ...138,083.. ...167,720..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....61,417.. ...140,034..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....67,635..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          <C> 
 1. Prior .... ....25,399.. ....82,682.. ....27,308..  
 2. 1986 ..... ...104,498.. ....21,010.. .....7,375..
 3. 1987 ..... ...150,675.. ....26,478.. ....13,373..
 4. 1988 ..... ...189,748.. ....31,636.. ....13,246..
 5. 1989 ..... ...204,486.. ....33,435.. ....13,651..
 6. 1990 ..... ...213,795.. ....33,132.. ....13,439..
 7. 1991 ..... ...189,354.. ....29,662.. ....11,299..
 8. 1992 ..... ...175,889.. ....29,165.. ....10,836..
 9. 1993 ..... ...168,057.. ....30,512.. ....11,649..
10. 1994 ..... ...152,257.. ....32,679.. ....13,492..
11. 1995 ..... ....73,369.. ....22,823.. ....11,837..
------------------------------------------------------
</TABLE> 

        SCHEDULE P - PART 3C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... .....1,650.. .....2,693.. .....3,542.. .....3,579.. .....3,616.. .....3,641.. .....3,651.. .....3,654..
 2. 1986 ..... .....2,118.. .....5,765.. .....7,973.. .....8,604.. .....9,293.. .....9,491.. .....9,610.. .....9,611.. .....9,619..
 3. 1987 ..... ....X X X... .....3,237.. .....8,935.. ....12,063.. ....14,523.. ....15,738.. ....15,985.. ....16,029.. ....16,052..
 4. 1988 ..... ....X X X... ....X X X... .....3,671.. ....10,292.. ....15,340.. ....17,477.. ....18,474.. ....19,025.. ....19,034..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .....3,923.. ....10,830.. ....14,787.. ....16,829.. ....17,316.. ....17,627..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .....2,789.. .....8,524.. ....11,381.. ....12,213.. ....12,542..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....3,143.. .....7,583.. .....9,904.. ....10,606..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,672.. .....6,508.. .....8,872..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....2,588.. .....7,506..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....3,120..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... .....3,654.. .....6,597.. .....1,669..  
 2. 1986 ..... .....9,619.. .....1,670.. .......457..
 3. 1987 ..... ....16,052.. .....2,271.. .......675..
 4. 1988 ..... ....19,050.. .....2,337.. .......827..
 5. 1989 ..... ....17,729.. .....2,077.. .......761..
 6. 1990 ..... ....12,569.. .....1,735.. .......667..
 7. 1991 ..... ....10,875.. .....1,405.. .......495..
 8. 1992 ..... .....9,562.. .....1,342.. .......434..
 9. 1993 ..... .....9,951.. .....1,326.. .......393..
10. 1994 ..... .....9,956.. .....1,344.. .......484..
11. 1995 ..... .....2,570.. .......778.. .......411..
------------------------------------------------------
</TABLE> 

                 SCHEDULE P - PART 3D - WORKERS' COMPENSATION

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... ............ ............ ............  
 2. 1986 ..... ............ ............ ............
 3. 1987 ..... ............ ............ ............
 4. 1988 ..... ............ ............ ............
 5. 1989 ..... ............ ............ ............
 6. 1990 ..... ............ ............ ............
 7. 1991 ..... ............ ............ ............
 8. 1992 ..... ............ ............ ............
 9. 1993 ..... ............ ............ ............
10. 1994 ..... ............ ............ ............
11. 1995 ..... ............ ............ ............
------------------------------------------------------
</TABLE> 

               SCHEDULE P - PART 3E - COMMERCIAL MULTIPLE PERIL

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... .......165.. .......469.. .......753.. .......977.. .......902.. .......903.. .......906.. .......910..
 2. 1986 ..... .......325.. .......466.. .......607.. .......663.. .......704.. .......726.. .......741.. .......742.. .......742..
 3. 1987 ..... ....X X X... .......209.. .......563.. .......652.. .......674.. .......676.. .......671.. .......671.. .......671..
 4. 1988 ..... ....X X X... ....X X X... .......363.. .......421.. .......456.. .......458.. .......464.. .......476.. .......478..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .......419.. .......409.. .......555.. .......614.. .......626.. .......628..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......267.. .......378.. .......397.. .......410.. .......398..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......208.. .......313.. .......374.. .......369..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......367.. .......575.. .......652..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......368.. .......766..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......509..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------
<S>            <C>          <C>          C> 
 1. Prior .... .......911.. .....2,921.. .......626..  
 2. 1986 ..... .......742.. .......130.. ........28..
 3. 1987 ..... .......671.. ........90.. ........17..
 4. 1988 ..... .......478.. ........77.. ........12..
 5. 1989 ..... .......628.. ........86.. .........8..
 6. 1990 ..... .......398.. ........84.. ........16..
 7. 1991 ..... .......389.. ........71.. ........30..
 8. 1992 ..... .......729.. .......106.. ........34..
 9. 1993 ..... .......776.. .......127.. ........64..
10. 1994 ..... .......964.. .......144.. ........69..
11. 1995 ..... .......902.. .......122.. ........62..
------------------------------------------------------
</TABLE> 

                                      103
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 3F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE

<TABLE> 
<CAPTION> 
  -----------------------------------------------------------------------------------------------------------------------
            1                       CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)             
                       --------------------------------------------------------------------------------------------------
      Years in Which                                                                                                     
       Losses Were           2             3             4             5             6             7             8       
        Incurred           1986          1987          1988          1989          1990          1991          1992      
                                                                                                                         
  ----------------------------------------------------------------------------------------------------------------------- 
    
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>     
    1.   Prior ....... .....000..... ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
  ----------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
  ------------------------------------------------------------------------------------------
            1                                                        12            13       
                      -----------------------------------------   Number of     Number of   
      Years in Which                                               Claims        Claims     
       Losses Were          9            10            11          Closed        Closed     
        Incurred          1993          1994          1995        With Loss   Without Loss  
                                                                   Payment       Payment    
  ------------------------------------------------------------------------------------------
   <S>                 <C>          <C>           <C>           <C>           <C> 
    1.   Prior ....... ............ ............. ............. ............. .............  
    2.   1986 ........ ............ ............. ............. ............. .............  
    3.   1987 ........ ............ ............. ............. ............. .............  
    4.   1988 ........ ............ ............. ............. ............. .............  
    5.   1989 ........ ............ ............. ............. ............. .............  
    6.   1990 ........ ............ ............. ............. ............. .............  
    7.   1991 ........ ............ ............. ............. ............. .............  
    8.   1992 ........ ............ ............. ............. ............. .............  
    9.   1993 ........ ............ ............. ............. ............. .............  
   10.   1994 ........ ...X X X.... ............. ............. ............. ............. 
   11.   1995 ........ ...X X X.... ....X X X.... ............. ............. ............. 
  ------------------------------------------------------------------------------------------
</TABLE> 


     SCHEDULE P - PART 3F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE

<TABLE> 
  -----------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .....000..... ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .N     O     N     E....... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
  -----------------------------------------------------------------------------------------------------------------------
          
  ------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C> 
    1.   Prior ....... ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. 
    3.   1987 ........ ............. ............. ............. ............. ............. 
    4.   1988 ........ ............. ............. ............. ............. ............. 
    5.   1989 ........ ............. ............. ............. ............. ............. 
    6.   1990 ........ ............. ............. ............. ............. ............. 
    7.   1991 ........ ............. ............. ............. ............. ............. 
    8.   1992 ........ ............. ............. ............. ............. ............. 
    9.   1993 ........ ............. ............. ............. ............. ............. 
   10.   1994 ........ ....X X X.... ............. ............. ............. ............. 
   11.   1995 ........ ....X X X.... ....X X X.... ............. ............. ............. 
  ------------------------------------------------------------------------------------------- 
</TABLE> 

       SCHEDULE P - PART 3G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
                      (ALL PERILS), BOILER AND MACHINERY)

<TABLE> 
  -----------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .....000..... ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
  -----------------------------------------------------------------------------------------------------------------------

  ------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C> 
    1.   Prior ....... ............. ............. ............. ....X X X.... ....X X X.... 
    2.   1986 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    3.   1987 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    4.   1988 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    5.   1989 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    6.   1990 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    7.   1991 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    8.   1992 ........ ............. ............. ............. ....X X X.... ....X X X.... 
    9.   1993 ........ ............. ............. ............. ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ............. ............. ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ............. ....X X X.... ....X X X.... 
  ------------------------------------------------------------------------------------------- 
</TABLE> 


        SCHEDULE P - PART 3H - SECTION 1 - OTHER LIABILITY - OCCURRENCE

<TABLE> 
   ---------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>          
    1.   Prior ....... .....000..... .........396. .........987. .........636. .........727. .........842. .........884.
    2.   1986 ........ ...........7. ..........44. ..........79. ..........95. .........103. .........473. .........132.
    3.   1987 ........ ....X X X.... ..........36. ......... 86. ..........83. .........120. .........117. .........116.
    4.   1988 ........ ....X X X.... ....X X X.... ..........11. ..........12. ..........53. .........116. ..........53.
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ...........4. ..........13. ..........53. ..........13.
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........8. ..........13. ...........8.
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........8. ..........15.
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........2.
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   ---------------------------------------------------------------------------------------------------------------------- 
          
   ------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C> 
    1.   Prior ....... .........915. .........925. .........987. .........346. .........210. 
    2.   1986 ........ .........132. .........132. .........134. ..........18. ..........15. 
    3.   1987 ........ .........120. .........120. .........120. ..........14. ...........9. 
    4.   1988 ........ ..........53. ..........53. ..........53. ............. ...........1. 
    5.   1989 ........ ..........13. ..........13. ..........13. ............. ...........1. 
    6.   1990 ........ .......... 8. ...........9. ...........9. ............. ...........1. 
    7.   1991 ........ ..........15. ..........15. ..........15. ...........1. ...........1. 
    8.   1992 ........ ...........2. ..........22. ..........22. ...........2. ...........7. 
    9.   1993 ........ ...........2. ...........2. ...........2. ...........1. ...........1. 
   10.   1994 ........ ....X X X.... ............. ............. ...........1. ............. 
   11.   1995 ........ ....X X X.... ....X X X.... ...........1. ............. ...........1. 
   ------------------------------------------------------------------------------------------
</TABLE> 


      SCHEDULE P - PART 3H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE

<TABLE> 
  -----------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .....000..... ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ..N     O     N     E...... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
  -----------------------------------------------------------------------------------------------------------------------

  ------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C> 
    1.   Prior ....... ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. 
    3.   1987 ........ ............. ............. ............. ............. ............. 
    4.   1988 ........ ............. ............. ............. ............. ............. 
    5.   1989 ........ ............. ............. ............. ............. ............. 
    6.   1990 ........ ............. ............. ............. ............. ............. 
    7.   1991 ........ ............. ............. ............. ............. ............. 
    8.   1992 ........ ............. ............. ............. ............. ............. 
    9.   1993 ........ ............. ............. ............. ............. ............. 
   10.   1994 ........ ....X X X.... ............. ............. ............. ............. 
   11.   1995 ........ ....X X X.... ....X X X.... ............. ............. ............. 
  ------------------------------------------------------------------------------------------- 
</TABLE> 

                                      104
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



  SCHEDULE P - PART 3I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,

                    EARTHQUAKE, GLASS, BURGLARY AND THEFT)


<TABLE>
<CAPTION> 
---------------------------------------------------------------------------------------------------------------------------
             1                             CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000
                            -----------------------------------------------------------------------------------------------
       Years in Which              2               3               4               5               6               7             
         Losses Were              
          Incurred               1986            1987            1988            1989            1990            1991

---------------------------------------------------------------------------------------------------------------------------
  <S>                       <C>             <C>             <C>             <C>             <C>             <C>
  1.    Prior ............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  2.    1994 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  3.    1995 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
---------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
------------------------------------------------------------------------------------------------------------------
             1              OMITTED)                                                        12            13      
                            ----------------------------------------------------------   Number of     Number of  
       Years in Which           8               9              10             11          Claims        Claims    
         Losses Were                                                                      Closed        Closed    
          Incurred            1992            1993            1994           1995        With Loss   Without Loss 
                                                                                          Payment       Payment   
------------------------------------------------------------------------------------------------------------------
  <S>                       <C>          <C>             <C>             <C>           <C>           <C>          
  1.    Prior ............. ....X X X... ......000.....  ...........159. .........182 .....X X X.... ....X X X....
  2.    1994 .............. ....X X X... .....X X X....  ...........768. .......1,050 .....X X X.... ....X X X....
  3.    1995 .............. ....X X X... .....X X X....  .....X X X..... ..........81 .....X X X.... ....X X X....
------------------------------------------------------------------------------------------------------------------
</TABLE>       
               
                  SCHEDULE P - PART 3J - AUTO PHYSICAL DAMAGE

<TABLE>           
  -----------------------------------------------------------------------------------------------------------------------------   
    <S>                         <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
    2.     1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
  -----------------------------------------------------------------------------------------------------------------------------  
                                                                                                          
  ----------------------------------------------------------------------------------------------------------------------------- 
    <S>                         <C>             <C>             <C>             <C>             <C>             <C>      
    1.     Prior .............. .....X X X..... ......000...... ...........672. ..........(781) .......443,346. .......156,360.
    2.     1994 ............... .....X X X..... .....X X X..... .......103,694. .......107,647. ........54,050. ........22,817.
    3.     1995 ............... .....X X X..... .....X X X..... ......X X X.... .......130,643. ........53,750. ........22,985.
  ----------------------------------------------------------------------------------------------------------------------------- 
</TABLE>

                    SCHEDULE P - PART 3K - FIDELITY/SURETY

<TABLE>        
  -----------------------------------------------------------------------------------------------------------------------------  
    <S>                         <C>             <C>             <C>             <C>             <C>             <C>              
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                  
    2.     1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....             N O N E              
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                  
  -----------------------------------------------------------------------------------------------------------------------------  

  -----------------------------------------------------------------------------------------------------------------------------  
    <S>                         <C>             <C>             <C>             <C>             <C>             <C>              
    1.     Prior .............. .....X X X..... ......000...... ............... ............... .....X X X..... .....X X X.....  
    2.     1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....  
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X.....  
  -----------------------------------------------------------------------------------------------------------------------------  
</TABLE> 

    SCHEDULE P - PART 3L - OTHER (INCLUDING CREDIT, ACCIDENT ADND HEALTH) 

<TABLE>        
  ----------------------------------------------------------------------------------------------------------------------------- 
    <S>                         <C>             <C>             <C>             <C>             <C>             <C>             
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                 
    2.     1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....             N O N E             
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                  
  ----------------------------------------------------------------------------------------------------------------------------- 

  ----------------------------------------------------------------------------------------------------------------------------- 
    <S>                         <C>             <C>             <C>             <C>             <C>             <C>             
    1.     Prior .............. .....X X X..... ......000...... ............... ............... .....X X X..... .....X X X..... 
    2.     1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X..... 
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X..... 
  -----------------------------------------------------------------------------------------------------------------------------  
</TABLE> 

                     SCHEDULE P - PART 3M - INTERNATIONAL

<TABLE>
  -----------------------------------------------------------------------------------------------------------------------------
   <S>                          <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior............... ......000...... ............... ............... ............... ............... ...............
    2.     1986................ ............... ............... ............... ............... ............... ...............
    3.     1987................ .....X X X..... ............... ............... ............... ............... ...............
    4.     1988................ .....X X X..... .....X X X..... ............... ............... ............... ...............
    5.     1989................ .....X X X..... .....X X X..... .....X X X..... ...............                                 
    6.     1990................ .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                 
    7.     1991................ .....X X X..... .....X X X..... .....X X X..... .....X X X.....             N O N E
    8.     1992................ .....X X X..... .....X X X..... .....X X X..... .....X X X.....                                 
    9.     1993................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
   10.     1994................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
   11.     1995................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  -----------------------------------------------------------------------------------------------------------------------------

  -----------------------------------------------------------------------------------------------------------------------------
   <S>                          <C>             <C>             <C>             <C>             <C>             <C>            
    1.     Prior............... ............... ............... ............... ............... .....X X X..... .....X X X.....
    2.     1986................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    3.     1987................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    4.     1988................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    5.     1989................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    6.     1990................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    7.     1991................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    8.     1992................ ............... ............... ............... ............... .....X X X..... .....X X X.....
    9.     1993................ .....X X X..... ............... ............... ............... .....X X X..... .....X X X.....
   10.     1994................ .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
   11.     1995................ .....X X X..... .....X X X..... .....X X X..... ............... .....X X X..... .....X X X.....
  -----------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      105
<PAGE>
 
 Form 2

 ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                              AFFILIATED COMPANIES



                              SCHEDULE P - PART 3N - REINSURANCE A
<TABLE>
<CAPTION>  
  ----------------------------------------------------------------------------------------------------------------------------------

           1                                            CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)   
                       -------------------------------------------------------------------------------------------------------------

     Years in Which          2             3             4             5             6             7             8             9   
      Losses Were          1986          1987          1988          1989          1990          1991          1992          1993  
       Incurred                                                                                                                    
                                                                                                                                   
  ----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C> 
    1.   1988......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
    2.   1989......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
    3.   1990......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ........ .... ...........
    4.   1991......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N      O      N      E. ............. ...........
    5.   1992......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    6.   1993......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ........ .... ...........
    7.   1994......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
    8.   1995......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
                                                                                                                                  
           1                                            
                       -------------------------------------------------------                                                    
                                                        12            13
                                                     Number of     Number of 
     Years in Which         10            11          Claims        Claims     
      Losses Were          1994          1995         Closed        Closed     
       Incurred                                      With Loss   Without Loss  
                                                      Payment       Payment    
  ---------------------------------------------------------------------------- 
    <S>                <C>           <C>           <C>           <C> 
    1.   1988......... ............. ............. ....X X X.... ....X X X.... 
    2.   1989......... ............. ............. ....X X X.... ....X X X.... 
    3.   1990......... ............. ............. ....X X X.... ....X X X.... 
    4.   1991......... ............. ............. ....X X X.... ....X X X.... 
    5.   1992......... ............. ............. ....X X X.... ....X X X.... 
    6.   1993......... ............. ............. ....X X X.... ....X X X.... 
    7.   1994......... ............. ............. ....X X X.... ....X X X.... 
    8.   1995......... ....X X X.... ............. ....X X X.... ....X X X.... 
  ---------------------------------------------------------------------------- 
</TABLE> 
                    SCHEDULE P - PART 3O - REINSURANCE B
<TABLE> 
  ----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C> 
    1.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
    2.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
    3.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    4.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N      O      N      E. ............. ...........
    5.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    6.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............  ............. ...........
    7.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
    8.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
  ----------------------------------------------------------------------------------------------------------------------------------

  ----------------------------------------------------------------------------                                                   
    <S>                <C>           <C>           <C>           <C> 
    1.   1988 ........ ............. ............. ....X X X.... ....X X X.... 
    2.   1989 ........ ............. ............. ....X X X.... ....X X X.... 
    3.   1990 ........ ............. ............. ....X X X.... ....X X X.... 
    4.   1991 ........ ............. ............. ....X X X.... ....X X X.... 
    5.   1992 ........ ............. ............. ....X X X.... ....X X X.... 
    6.   1993 ........ ............. ............. ....X X X.... ....X X X.... 
    7.   1994 ........ ............. ............. ....X X X.... ....X X X.... 
    8.   1995 ........ ....X X X.... ............. ....X X X.... ....X X X.... 
  ----------------------------------------------------------------------------                                                   
</TABLE> 
                     SCHEDULE P - PART 3P - REINSURANCE C
<TABLE> 
  ----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>   
    1.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
    2.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
    3.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    4.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N      O     N       E. ............. ...........
    5.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ .............. ............. ...........
    6.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ .............. ............. ...........
    7.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
    8.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
 -----------------------------------------------------------------------------------------------------------------------------------
 
 -----------------------------------------------------------------------------                                                   
    <S>                <C>          <C>           <C>           <C> 
    1.   1988 ........ ............ ............. ....X X X.... ....X X X.... 
    2.   1989 ........ ............ ............. ....X X X.... ....X X X.... 
    3.   1990 ........ ............ ............. ....X X X.... ....X X X.... 
    4.   1991 ........ ............ ............. ....X X X.... ....X X X.... 
    5.   1992 ........ ............ ............. ....X X X.... ....X X X.... 
    6.   1993 ........ ............ ............. ....X X X.... ....X X X.... 
    7.   1994 ........ ............ ............. ....X X X.... ....X X X.... 
    8.   1995 ........    X X X     ............. ....X X X.... ....X X X.... 
 -----------------------------------------------------------------------------                                                     
</TABLE> 
        
                    SCHEDULE P - PART 3Q - REINSURANCE D
<TABLE> 
 -----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>          <C>         <C>                  <C> 
    1.   Prior ....... ............. ............. ............. ............. ........... ............ ........... ..............
    2.   1986  ....... ............. ............. ............. ............. ....N    O     N     E.. ............ ..............
    3.   1987  ....... ....X X X.... ............. ............. ............. ............ ........... ........... ...............
 -----------------------------------------------------------------------------------------------------------------------------------

 -------------------------------------------------------------------------------
    <S>                  <C>           <C>           <C>           <C> 
    1.   Prior ......... ............. ............. ....X X X.... ....X X X.... 
    2.   1986  ......... ............. ............. ....X X X.... ....X X X....  
    3.   1987  ......... ............. ............. ....X X X.... ....X X X.... 
---------------------------------------------------------------------------------
</TABLE> 

                                      106
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 3R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE

<TABLE> 
<CAPTION> 
  ----------------------------------------------------------------------------------------------------------------------------------

           1                             CUMULATIVE PAID LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)   
                       -------------------------------------------------------------------------------------------------------------

     Years in Which          2             3             4             5             6             7             8             9   
      Losses Were          1986          1987          1988          1989          1990          1991          1992          1993  
       Incurred                                                                                                                    
  ----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C> 
    1.   Prior........ .....000..... ............. ............. ............. ............. ............. ............. ...........
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. ...........
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. ...........
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ....N      O      N      E. ............. ...........
    5.   1999 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ...........
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ...........
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X...  ....X X X.... ...........
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
  ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
  ----------------------------------------------------------------------------                                                    
                                                        12            13
                                                     Number of     Number of 
     Years in Which         10            11          Claims        Claims     
      Losses Were          1994          1995         Closed        Closed     
       Incurred                                      With Loss   Without Loss  
                                                      Payment       Payment    
  ----------------------------------------------------------------------------  
    <S>                <C>           <C>           <C>           <C> 
    1.   1988......... ............. ............. ............. ............. 
    2.   1989......... ............. ............. ............. ............. 
    3.   1990......... ............. ............. ............. ............. 
    4.   1991......... ............. ............. ............. ............. 
    5.   1992......... ............. ............. ............. ............. 
    6.   1993......... ............. ............. ............. ............. 
    7.   1994......... ............. ............. ............. ............. 
    8.   1995......... ....X X X.... ............. ............. ............. 
  ---------------------------------------------------------------------------- 
</TABLE> 

      SCHEDULE P - PART 3R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE

<TABLE> 
  ----------------------------------------------------------------------------------------------------------------------------------
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C> 
    1.   Prior........ .....000..... ............. ............. ............. ............. ............. ............. ...........
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. ...........
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. ...........
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ...........
    5.   1999 ........ ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ...........
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ...........
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N      O      N      E. ............. ...........
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ...........
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X...  ............. ...........
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...X X X...
  ----------------------------------------------------------------------------------------------------------------------------------

  ----------------------------------------------------------------------------                                                   
    <S>                <C>           <C>           <C>           <C> 
    1.   Prior........ ............. ............. ............. .............  
    2.   1986 ........ ............. ............. ............. .............  
    3.   1987 ........ ............. ............. ............. ............. 
    4.   1988 ........ ............. ............. ............. ............. 
    5.   1989 ........ ............. ............. ............. ............. 
    6.   1990 ........ ............. ............. ............. ............. 
    7.   1991 ........ ............. ............. ............. ............. 
    8.   1992 ........ ............. ............. ............. ............. 
    9.   1993 ........ ............. ............. ............. ............. 
   10.   1994 ........ ............. ............. ............. ............. 
   11.   1995 ........ ....X X X.... ............. ............. .............  
  ----------------------------------------------------------------------------                                                   
</TABLE> 

         SCHEDULE P - PART 3S - FINANCIAL GUAR|ANTY/MORTGAGE GUARANTY

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>          <C>         <C>           <C> 
   1.   Prior......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....N     O     N     E. ... 000...... ..........
   2.   1994.......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ ........... ....X X X.... ..........
   3.   1995.......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............ ........... ....X X X.... ...X X X..
--------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------
<S>                    <C>           <C>          <C>      
1.   Prior............ ............. ...X X X.... ....X X X....
2.   1994............. ............. ...X X X.... ....X X X....
3.   1995............. ............. ...X X X.... ....X X X....
---------------------------------------------------------------
</TABLE> 

                                      107
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                 SCHEDULE P - PART 4A - HOMEOWNERS/FARMOWNERS

<TABLE> 
<CAPTION> 
-------------------------------------------------------------------------------------------------------------------------
            1        BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)
                       --------------------------------------------------------------------------------------------------
      Years in Which                                                                                                     
       Losses Were           2             3             4             5             6             7             8       
        Incurred           1986          1987          1988          1989          1990          1991          1992      
                                                                                                                         
------------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>     
    1.   Prior ....... ..........54. ..........19. ............. ............. ............. ............. ............. 
    2.   1986 ........ .........127. ..........37. ..........17. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... .........132. ..........33. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... .........114. ............. ..........10. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .........129. ..........19. ...........9. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........68. ..........18. ...........8. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........62. ..........15. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........54. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
------------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
----------------------------------------------------------------                            
            1                                                                               
                      -----------------------------------------                             
      Years in Which                                                                        
       Losses Were          9            10            11                                   
        Incurred          1993          1994          1995                                  
                                                                                            
----------------------------------------------------------------                            
   <S>                 <C>          <C>           <C>                                       
    1.   Prior ....... ............ ............. .............                              
    2.   1986 ........ ............ ............. .............                              
    3.   1987 ........ ............ ............. .............                              
    4.   1988 ........ ............ ............. .............                              
    5.   1989 ........ ............ ............. .............                              
    6.   1990 ........ ............ ............. .............                              
    7.   1991 ........ .........19. ............. ..........53.                              
    8.   1992 ........ .........38. ..........51. .............                              
    9.   1993 ........ ........155. .........103. .............                              
   10.   1994 ........ ...X X X.... .........380. .........124.                             
   11.   1995 ........ ...X X X.... ....X X X.... .........366.                             
----------------------------------------------------------------                            
</TABLE> 


        SCHEDULE P - PART 4B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .......3,877. .......2,935. .......1,277. .........835. ............. ............. ............. 
    2.   1986 ........ ......29,873. .......8,813. .......2,941. .......2,071. .........(12) ............. ............. 
    3.   1987 ........ ....X X X.... ......47,187. .......8,834. .......3,222. .......2,071. .......1,037. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ......64,968. ......12,915. .......5,084. .......2,892. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ......67,175. ......12,210. .......3,712. .........267. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......53,293. .......9,331. .......1,655. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......47,436. .......6,854. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......34,167. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                             
   <S>                 <C>           <C>           <C>                                       
    1.   Prior ....... ............. ............. .............                             
    2.   1986 ........ ............. ............. .............                             
    3.   1987 ........ ............. ............. .............                             
    4.   1988 ........ ............. ............. .............                             
    5.   1989 ........ ..........(5) ............. .............                             
    6.   1990 ........ .........163. ..........52. .............                             
    7.   1991 ........ .........340. .........156. ..........17.                             
    8.   1992 ........ .......2,735. .........275. .........125.                             
    9.   1993 ........ ......22,016. .........780. .........164.                             
   10.   1994 ........ ....X X X.... ......25,130. .........193.                             
   11.   1995 ........ ....X X X.... ....X X X.... ......29,574.                             
-----------------------------------------------------------------                             
</TABLE> 

        SCHEDULE P - PART 4C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .........385. .........281. .........133. .........120. ...........1. ............. ............. 
    2.   1986 ........ .......3,005. .........986. .........418. .........313. ..........89. ...........3. ...........2. 
    3.   1987 ........ ....X X X.... .......4,419. .......1,102. .........685. .........385. .........149. ...........9. 
    4.   1988 ........ ....X X X.... ....X X X.... .......6,925. .......1,794. .......1,638. .........522. ..........23. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .......8,404. .......2,779. .......1,166. .........190. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......7,030. .......1,811. .........554. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......4,719. .........987. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .......2,985. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                              
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ...........4. ..........11. ...........7.                               
    4.   1988 ........ ..........18. ...........2. ...........4.                               
    5.   1989 ........ ..........37. ..........17. ..........12.                               
    6.   1990 ........ .........113. ..........64. ..........15.                               
    7.   1991 ........ .........285. ..........51. ..........17.                               
    8.   1992 ........ .......1,154. ..........41. ..........27.                               
    9.   1993 ........ .......2,043. .........211. ..........16.                               
   10.   1994 ........ ....X X X.... .......3,664. .........321.                               
   11.   1995 ........ ....X X X.... ....X X X.... .......3,664.                               
-----------------------------------------------------------------                              
</TABLE> 


                 SCHEDULE P - PART 4D - WORKERS' COMPENSATION

<TABLE> 
------------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>          
    1.   Prior ....... ............. ............. ............. ............. ............. ............. .............
    2.   1986 ........ ............. ............. ............. ............. ............. ............. .............
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
    5.   1989 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
    6.   1990 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............
    7.   1991 ........ ....X X X.... ....X X X.... ............  ............. ....X X X.... ............. .............
    8.   1992 ........ ....X X X.... ....X X X.... ....  N   O   N   E ....... ....X X X.... ....X X X.... .............
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X...  ....X X X.... ....X X X.... ....X X X.... ....X X X....
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
------------------------------------------------------------------------------------------------------------------------- 
-----------------------------------------------------------------                             
   <S>                 <C>           <C>           <C>                                        
    1.   Prior ....... ............. ............. .............                              
    2.   1986 ........ ............. ............. .............                              
    3.   1987 ........ ............. ............. .............                              
    4.   1988 ........ ............. ............. .............                              
    5.   1989 ........ ............. ............. .............                              
    6.   1990 ........ ............. ............. .............                              
    7.   1991 ........ ............. ............. .............                              
    8.   1992 ........ ............. ............. .............                              
    9.   1993 ........ ............. ............. .............                              
   10.   1994 ........ ....X X X.... ............. .............                              
   11.   1995 ........ ....X X X.... ....X X X.... .............                              
-----------------------------------------------------------------                             
</TABLE> 


               SCHEDULE P - PART 4E - COMMERCIAL MULTIPLE PERIL

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ..........43. ..........18. ............. ............. ............. ............. ............. 
    2.   1986 ........ ..........99. ..........34. ..........18. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... .........119. ..........36. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... .........125. ............. ..........20. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .........196. ..........39. ..........21. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........136. ..........43. ..........23. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........148. ..........47. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .........166. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                              
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ..........33. ............. .............                               
    8.   1992 ........ ..........67. ..........42. .............                               
    9.   1993 ........ .........234. ..........84. ..........60.                               
   10.   1994 ........ ....X X X.... .........295. .........118.                               
   11.   1995 ........ ....X X X.... ....X X X.... .........421.                               
-----------------------------------------------------------------                              
</TABLE> 

                                      108
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 4F - SECTION 1 - MEDICAL MALPRACTICE - OCCURRENCE

<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------
            1        BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) 
                       -----------------------------------------------------------------------------------------------------
      Years in Which                                                                                                     
       Losses Were           2             3             4             5             6             7             8       
        Incurred           1986          1987          1988          1989          1990          1991          1992      
                                                                                                                         
------------------------------------------------------------------------------------------------------------------------- 
    <S>                <C>           <C>           <C>           <C>           <C>           <C>           <C>     
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
------------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
----------------------------------------------------------------                             
            1                                                                                
                      -----------------------------------------                              
      Years in Which                                                                         
       Losses Were          9            10            11                                    
        Incurred          1993          1994          1995                                   
                                                                                             
----------------------------------------------------------------                             
   <S>                 <C>          <C>           <C>                                        
    1.   Prior ....... ............ ............. .............                              
    2.   1986 ........ ............ ............. .............                              
    3.   1987 ........ ............ ............. .............                              
    4.   1988 ........ ............ ............. .............                              
    5.   1989 ........ ............ ............. .............                              
    6.   1990 ........ ............ ............. .............                              
    7.   1991 ........ ............ ............. .............                              
    8.   1992 ........ ............ ............. .............                              
    9.   1993 ........ ............ ............. .............                              
   10.   1994 ........ ...X X X.... ............. .............                              
   11.   1995 ........ ...X X X.... ....X X X.... .............                              
----------------------------------------------------------------                             
</TABLE> 


     SCHEDULE P - PART 4F - SECTION 2 - MEDICAL MALPRACTICE - CLAIMS-MADE

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .N     O     N     E....... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                              
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 

       SCHEDULE P - PART 4G - SPECIAL LIABILITY (OCEAN MARINE, AIRCRAFT
                      (ALL PERILS), BOILER AND MACHINERY)

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                              
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 


        SCHEDULE P - PART 4H - SECTION 1 - OTHER LIABILITY - OCCURRENCE

<TABLE> 
------------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>          
    1.   Prior ....... ..........21. ...........6. ............. ............. ............. ............. .............
    2.   1986 ........ ..........48. ..........10. ............. ............. ............. ............. .............
    3.   1987 ........ ....X X X.... ..........39. ............. ............. ...........7. ............. .............
    4.   1988 ........ ....X X X.... ....X X X.... ..........14. ............. ............. ............. .............
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ...........9. ............. ............. .............
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ...........1. ............. .............
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........30. .............
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........33.
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
------------------------------------------------------------------------------------------------------------------------- 
-----------------------------------------------------------------                             
   <S>                 <C>           <C>           <C>                                        
    1.   Prior ....... ............. ............. .............                              
    2.   1986 ........ ............. ............. .............                              
    3.   1987 ........ ............. ............. .............                              
    4.   1988 ........ ............. ............. .............                              
    5.   1989 ........ ............. ............. .............                              
    6.   1990 ........ ............. ............. .............                              
    7.   1991 ........ ...........1. ............. .............                              
    8.   1992 ........ ...........3. ...........1. .............                              
    9.   1993 ........ .........353. ...........3. .............                              
   10.   1994 ........ ....X X X.... ..........33. ..........42.                              
   11.   1995 ........ ....X X X.... ....X X X.... ...........1.                              
-----------------------------------------------------------------                             
</TABLE> 


      SCHEDULE P - PART 4H - SECTION 2 - OTHER LIABILITY - CLAIMS-MADE

<TABLE> 
-------------------------------------------------------------------------------------------------------------------------
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... .....000..... ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... ..N     O     N     E...... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------                              
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 

                                      109
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



  SCHEDULE P - PART 4I - SPECIAL PROPERTY (FIRE, ALLIED LINES, INLAND MARINE,

                    EARTHQUAKE, GLASS, BURGLARY AND THEFT)

<TABLE>
<CAPTION> 
---------------------------------------------------------------------------------------------------------------------------
             1              BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000
                            -----------------------------------------------------------------------------------------------
       Years in Which              2               3               4               5               6               7
         Losses Were               
          Incurred               1986            1987            1988            1989            1990            1991

---------------------------------------------------------------------------------------------------------------------------
  <S>                       <C>             <C>             <C>             <C>             <C>             <C>
  1.    Prior ............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  2.    1994 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  3.    1995 .............. .....X X X..... .... X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
---------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------------------------------------
             1              OMITTED)
                            ------------------------------------------------------------
       Years in Which           8               9              10              11
         Losses Were          
          Incurred            1992            1993            1994            1995
----------------------------------------------------------------------------------------
  <S>                       <C>          <C>             <C>             <C> 
  1.    Prior ............. ..X X X..... ............34  ............19  .............7.
  2.    1994 .............. ..X X X..... .....X X X....  ............35  ...........136.
  3.    1995 .............. ..X X X..... .....X X X....  .....X X X....  ............33.
----------------------------------------------------------------------------------------
</TABLE> 

                  SCHEDULE P - PART 4J - AUTO PHYSICAL DAMAGE

<TABLE>           
<CAPTION>         
  -----------------------------------------------------------------------------------------------------------------------------  
    <S>                         <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
    2.     1994 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....  
  -----------------------------------------------------------------------------------------------------------------------------  
<CAPTION>                                                                                                                        
   --------------------------------------------------------------------------------------------                                  
    <S>                         <C>             <C>             <C>             <C>  
    1.     Prior .............. .....X X X..... .........1,594. ............... ...............                                  
    2.     1994 ............... .....X X X..... .....X X X..... .........2,416. ...........184.                                  
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .........3,213.                                  
  ---------------------------------------------------------------------------------------------                                  
</TABLE>

                    SCHEDULE P - PART 4K - FIDELITY/SURETY

<TABLE>        
<CAPTION>      
  -----------------------------------------------------------------------------------------------------------------------------
   <S>                          <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X.....            N O N E              .....X X X.....
    2.     1994 ............... .....X X X..... .....X X X..... .....X X X..... .............. ..............   .....X X X.....
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... 
  ----------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                                                                                       
  ---------------------------------------------------------------------------------------------                                 
    <S>                         <C>             <C>             <C>             <C>  
    1.     Prior .............. .....X X X..... ............... ............... ...............                                 
    2.     1994 ............... .....X X X..... .....X X X..... ............... ...............                                 
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... ...............                                 
  ---------------------------------------------------------------------------------------------                                 
</TABLE> 

    SCHEDULE P - PART 4L - OTHER (INCLUDING CREDIT, ACCIDENT ADND HEALTH) 

<TABLE>        
<CAPTION>      
  -----------------------------------------------------------------------------------------------------------------------------
    <S>                         <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior .............. .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
    2.     1994 ............... .....X X X..... .....X X X..... ............... ............... .....X X X..... .....X X X.....
    3.     1995 ............... .....X X X..... .....X X X..... ...........N O N E............. .....X X X..... .....X X X..... 
  ----------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                                                                                       
  ---------------------------------------------------------------------------------------------                                 
    <S>                         <C>             <C>             <C>             <C>  
    1.     Prior .............. .....X X X..... ............... ............... ...............                                
    2.     1994 ............... .....X X X..... .....X X X..... ............... ...............                                
    3.     1995 ............... .....X X X..... .....X X X..... .....X X X..... ...............                                
  ---------------------------------------------------------------------------------------------                                 
</TABLE> 

                     SCHEDULE P - PART 4M - INTERNATIONAL

<TABLE>
<CAPTION> 
  -----------------------------------------------------------------------------------------------------------------------------
   <S>                          <C>             <C>             <C>             <C>             <C>             <C> 
    1.     Prior............... ............... ............... ............... ............... ............... ...............
    2.     1986................ ............... ............... ............... ............... ............... ...............
    3.     1987................ .....X X X..... ............... ............... ............... ............... ...............
    4.     1988................ .....X X X..... .....X X X..... ............... ............... ............... ...............
    5.     1989................ .....X X X..... .....X X X..... .....X X X..... ............... ............... ...............
    6.     1990................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... ............... ...............
    7.     1991................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... ...............
    8.     1992................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
    9.     1993................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
   10.     1994................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
   11.     1995................ .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X..... .....X X X.....
  -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
  ---------------------------------------------------------------------------------------------
   <S>                          <C>             <C>             <C>             <C> 
    1.     Prior............... ............... ............... ............... ...............
    2.     1986................ ............... ............... ............... ...............
    3.     1987................ ............... ............... ............... ...............
    4.     1988................ ............... ............... ............... ...............
    5.     1989................ ............... ............... ............... ...............
    6.     1990................ ............... ............... ............... ...............
    7.     1991................ ............... ............... ............... ...............
    8.     1992................ ............... ............... ............... ............... 
    9.     1993................ .....X X X..... ............... ............... ............... 
   10.     1994................ .....X X X..... .....X X X..... ............... ............... 
   11.     1995................ .....X X X..... .....X X X..... .....X X X..... ............... 
  ---------------------------------------------------------------------------------------------
</TABLE>

                                      110
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 4N - REINSURANCE A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------

             1             BULK AND INCURRED BUT NOT REPORTED RESERVES ON LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED) 
                      ------------------------------------------------------------------------------------------------------------ 

      Years in Which       2            3            4             5             6             7              8              9    
        Losses Were      1986         1987         1988          1989          1990          1991           1992           1993   
         Incurred                                                                                                                 
                                                                                                                                  
----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>            <C>          <C>           <C>           <C>          <C>            <C>            <C>           <C> 
1.     1988 .......   ...X X X...  ...X X X...   ...........   ...........  ...........    ...........    ...........   ...........
2.     1989 .......   ...X X X...  ...X X X...   ...X X X...   ...........  ...........    ...........    ...........   ........... 
3.     1990 .......   ...X X X...  ...X X X...   ...X X X...   ...X X X...  ...........    ...........    ...........   ...........
4.     1991 .......   ...X X X...  ...X X X...   ...X X X...   ...X X   N    O    N    E   ...........    ...........   ...........
5.     1992 .......   ...X X X...  ...X X X...   ...X X X...   ...X X X...  ...X X X...    ...X X X...    ...........   ...........
6.     1993 .......   ...X X X...  ...X X X...   ...X X X...   ...X X X...  ...X X X...    ...X X X...    ...X X X...   ...........
7.     1994 .......   ...X X X...  ...X X X...   ...X X X...   ...X X X...  ...X X X...    ...X X X...    ...X X X...   ...X X X...
8.     1995 .......   ...X X X...  ...X X X...   ...X X X...   ...X X X...  ...X X X...    ...X X X...    ...X X X...   ...X X X...
----------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
------------------------------------------------------
             1       
                     ---------------------------------

      Years in Which          10             11
        Losses Were          1994           1995
         Incurred

------------------------------------------------------
<S>   <C>                    <C>            <C>
1.     1988.......... .............. .................
2.     1989.......... .............. .................
3.     1990.......... .............. .................
4.     1991.......... .............. .................
5.     1992.......... .............. .................
6.     1993.......... .............. .................
7.     1994.......... .............. ................. 
8.     1995.......... .....X X X.... .................     
------------------------------------------------------
</TABLE>

                     SCHEDULE P - PART 4O - REINSURANCE B

<TABLE>
-------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>          <C>          <C>          <C>          <C>       
1.    1988....... ...X X X.... ...X X X.... ............ ............ ............ ............ .............
2.    1989....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ............. 
3.    1990....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............                    
4.    1991....... ...X X X.... ...X X X.... ...X X X....   N    O      N    E      ............ .............
5.    1992....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ....X X X... .............
6.    1993....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
7.    1994....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
8.    1995....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
-------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------
<S>               <C>          <C>          <C>        
1.    1988....... ............. ............. ............
2.    1989....... ............. ............. ............ 
3.    1990....... ............. ............. ............ 
4.    1991....... ............. ............. ............
5.    1992....... ............. ............. ............
6.    1993....... ............. ............. ............
7.    1994....... ....X X X.... ............. ............
8.    1995....... ....X X X.... ....X X X.... ............
----------------------------------------------------------- 
</TABLE> 

                     SCHEDULE P - PART 4P - REINSURANCE C

<TABLE>
-------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>          <C>          <C>          <C>          <C>       
1.    1988....... ...X X X.... ...X X X.... ............ ............ ............ ............ .............
2.    1989....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ ............. 
3.    1990....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ............ .............                    
4.    1991....... ...X X X.... ...X X X.... ...X X X....   N    O      N    E      ............ .............
5.    1992....... ...X X X.... ...X X X.... ...X X X.... ............ ............ ....X X X... .............
6.    1993....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
7.    1994....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
8.    1995....... ...X X X.... ...X X X.... ...X X X.... ....X X X... ....X X X... ....X X X... ....X X X....
-------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------
<S>               <C>          <C>          <C>        
1.    1988....... ............. ............. ............
2.    1989....... ............. ............. ............ 
3.    1990....... ............. ............. ............ 
4.    1991....... ............. ............. ............
5.    1992....... ............. ............. ............
6.    1993....... ............. ............. ............
7.    1994....... ....X X X.... ............. ............
8.    1995....... ....X X X.... ....X X X.... ............
----------------------------------------------------------- 
</TABLE> 

                    SCHEDULE P - PART 4Q - REINSURANCE D

<TABLE>
-------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>          <C>          <C>          <C>          <C>       
1.    Prior...... ............ ............ ............ ............ ............. ........... ............. 
2.    1989....... ............ ............ ............ ............ ............. ........... ............. 
3.    1990....... ...X X X.... ............ ............ ........ N    O    N    E  ........... .............                    
-------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------
<S>               <C>          <C>          <C>        
1.    Prior...... ............. ............. ............
2.    1989....... ............. ............. ............ 
3.    1990....... ............. ............. ............ 
----------------------------------------------------------- 
</TABLE> 

                                      111
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 4R - SECTION 1 - PRODUCTS LIABILITY - OCCURRENCE

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)
               --------------------------------------------------------------------------------------------------------------------

Years in Which       2             3           4            5            6            7            8            9           10
  Losses Were      1986          1987        1988         1989         1990         1991         1992         1993         1994
   Incurred      
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------

Years in Which     11      
  Losses Were     1995     
   Incurred                
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

      SCHEDULE P - PART 4R - SECTION 2 - PRODUCTS LIABILITY - CLAIMS-MADE

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

          SCHEDULE P - PART 4S - FINANCIAL GUARANTY/MORTGAGE GUARANTY

<TABLE> 
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ............ ............ ....X X X... ....X X X... ............ ............
 2. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ 
 3. 1995 ..... ....X X X... ....X X X... ....X X X... ...N O N E.. ....X X X... ....X X X... ....X X X... ....X X X... ............ 
-----------------------------------------------------------------------------------------------------------------------------------

---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1994 ..... ............
 3. 1995 ..... ............
---------------------------
</TABLE> 

                                      112
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES


                 SCHEDULE P - PART 5A - HOMWOWNERS/FARMOWNERS

                                   SECTION 1
<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               --------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .........133 .........171 .........175 .........175 .........175 .........175
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........111 .........151 .........151 .........152 .........153
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........149 .........181 .........182 .........182
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........109 .........138 .........139
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........163 .........360
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........616
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .........175
 6. 1990 ..... .........153
 7. 1991 ..... .........183
 8. 1992 ..... .........139
 9. 1993 ..... .........367
10. 1994 ..... .........733
11. 1995 ..... .........815
---------------------------
</TABLE> 

                                   SECTION 2
<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                     NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               --------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ...........3 ...........3 ............ ...........1 ............
 2. 1986 ..... ............ ............ ............ ............ ...........1 ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ...........2 ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ...........6 ...........1 ............ ...........2 ...........1
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ...........4 ...........1 ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ...........5 ...........2 ...........1 ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........21 ...........2 ...........2 ...........2
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........20 ...........2 ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ..........81 ...........9
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........174
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ...........1
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ...........1
 8. 1992 ..... ...........1
 9. 1993 ..... ...........1
10. 1994 ..... ..........18
11. 1995 ..... .........272
---------------------------
</TABLE> 

                                   SECTION 3
<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                              CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSORTED AT YEAR END
               --------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .........139 .........177 .........180 .........180 .........180 .........181
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........120 .........163 .........163 .........163 .........163
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........183 .........198 .........200 .........200
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........145 .........159 .........160
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........289 .........464
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........911
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .........181
 6. 1990 ..... .........163
 7. 1991 ..... .........200
 8. 1992 ..... .........161
 9. 1993 ..... .........168
10. 1994 ..... .........986
11. 1995 ..... .......1,351
---------------------------
</TABLE> 

                                      113
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 5B - PRIVATE PASSENGER AUTO LIABILITY/MEDICAL

                                   SECTION 1
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ....21,325.. ....30,076.. ....32,375.. ....33,102.. ....33,332.. ....33,415..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....17,575.. ....30,254.. ....32,342.. ....32,889.. ....33,092..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,649.. ....27,231.. ....29,026.. ....29,539..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,233.. ....26,749.. ....28,702..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....17,558.. ....28,705..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....19,983..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ....33,435..
 6. 1990 ..... ....33,132..
 7. 1991 ..... ....29,662..
 8. 1992 ..... ....29,165..
 9. 1993 ..... ....30,512..
10. 1994 ..... ....32,680..
11. 1995 ..... ....22,825..
---------------------------
</TABLE> 

                                   SECTION 2
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                       NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .......588.. .......394.. .......175.. ........21.. .......101.. ........39.. ........13.. .........8.. .........3..
 2. 1986 ..... .....1,806.. .......561.. .......227.. .......105.. .......230.. ........72.. ........25.. .........5.. .........1..
 3. 1987 ..... ....X X X... .....2,487.. .......574.. .......238.. .......472.. .......166.. ........52.. ........14.. .........5..
 4. 1988 ..... ....X X X... ....X X X... .....3,660.. .......852.. .....1,311.. .......521.. .......171.. ........49.. ........12..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .....3,917.. .....3,501.. .....1,158.. .......402.. .......139.. ........30..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....15,794.. .....3,062.. .......924.. .......311.. ........81..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,369.. .....2,710.. .......792.. .......221..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....13,741.. .....2,798.. .......685..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....14,405.. .....2,592..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....16,865..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... .........3..
 2. 1986 ..... .........2..
 3. 1987 ..... .........3..
 4. 1988 ..... .........6..
 5. 1989 ..... ........10..
 6. 1990 ..... ........25..
 7. 1991 ..... ........75..
 8. 1992 ..... ........67..
 9. 1993 ..... .......642..
10. 1994 ..... .....3,280..
11. 1995 ..... ....19,068..
---------------------------
</TABLE> 

                                   SECTION 3
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECTED AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ....45,960.. ....46,894.. ....47,045.. ....47,080.. ....47,091.. ....47,094..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....43,053.. ....46,426.. ....46,568.. ....46,589.. ....46,595..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....38,490.. ....40,918.. ....41,016.. ....41,031..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....37,953.. ....40,090.. ....40,159..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....40,569.. ....42,753..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....47,107..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ....47,096..
 6. 1990 ..... ....46,596..
 7. 1991 ..... ....41,036..
 8. 1992 ..... ....40,168..
 9. 1993 ..... ....42,803..
10. 1994 ..... ....49,454..
11. 1995 ..... ....53,731..
---------------------------
</TABLE> 

                                      114
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 5C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

                                   SECTION 1
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .....1,347.. .....1,627.. .....1,948.. .....2,022.. .....2,041.. .....2,057..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......779.. .....1,531.. .....1,672.. .....1,715.. .....1,735..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......760.. .....1,251.. .....1,354.. .....1,405..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......756.. .....1,215.. .....1,340..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......739.. .....1,320..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......947..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .....2,077..
 6. 1990 ..... .....1,735..
 7. 1991 ..... .....1,405..
 8. 1992 ..... .....1,342..
 9. 1993 ..... .....1,326..
10. 1994 ..... .....1,344..
11. 1995 ..... .......778..
---------------------------
</TABLE> 

                                   SECTION 2
<TABLE> 
<CAPTION>                                                              
-----------------------------------------------------------------------------------------------------------------------------------
      1                                   NUMMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ........18.. .........8.. .........2.. .........2.. ............
 2. 1986 ..... ............ ............ ............ ............ ........32.. .........9.. .........3.. .........3.. ............
 3. 1987 ..... ....X X X... ............ ............ ............ ........64.. ........28.. ........11.. .........2.. ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ .......163.. ........76.. ........36.. ........12.. .........1..
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ .......295.. .......137.. ........43.. ........19.. ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......800.. .......243.. ........77.. ........26.. .........2..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......681.. .......182.. ........67.. .........4..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......612.. .......168.. ........26..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......579.. ........44..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......543..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... .........1..
 5. 1989 ..... ............
 6. 1990 ..... .........2..
 7. 1991 ..... .........3..
 8. 1992 ..... ........21..
 9. 1993 ..... ........42..
10. 1994 ..... .......182..
11. 1995 ..... .......745..
---------------------------
</TABLE> 

                                   SECTION 3
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .....2,553.. .....2,553.. .....2,799.. .....2,802.. .....2,805.. .....2,807..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .....1,978.. .....2,386.. .....2,399.. .....2,404.. .....2,404..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,757.. .....1,888.. .....1,897.. .....1,903..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,641.. .....1,788.. .....1,796..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,585.. .....1,753..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .....1,861..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .....2,838..
 6. 1990 ..... .....2,404..
 7. 1991 ..... .....1,903..
 8. 1992 ..... .....1,797..
 9. 1993 ..... .....1,761..
10. 1994 ..... .....2,010..
11. 1995 ..... .....1,934..
---------------------------
</TABLE> 

                                      115
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - PART 5D - WORKERS' COMPENSATION

<TABLE> 
<CAPTION> 
                                                             SECTION 1
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END               
               --------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N       O       N       E ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   
<CAPTION>                                                                                                                          
---------------------------                                                                                                        
      1                                                                                                                            
               ------------                                                                                                        
     Years                                                                                                                         
   in Which         11                                                                                                             
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1995                                                                                                            
---------------------------                                                                                                        
<S>            <C>                                                                                                                 
 1. Prior .... ............                                                                                                        
 2. 1986 ..... ............                                                                                                        
 3. 1987 ..... ............                                                                                                        
 4. 1988 ..... ............                                                                                                        
 5. 1989 ..... ............                                                                                                        
 6. 1990 ..... ............                                                                                                        
 7. 1991 ..... ............                                                                                                        
 8. 1992 ..... ............                                                                                                        
 9. 1993 ..... ............                                                                                                        
10. 1994 ..... ............                                                                                                        
11. 1995 ..... ............                                                                                                        
---------------------------                                                                                                        
</TABLE> 

                                               SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          NUMBER OF CLAIMS OUTSTANDING DIRECT DIRECT AND ASSUMED AT YEAR END              
               --------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                        
   in Which          2             3           4            5            6            7            8            9           10    
 Premiums Were                                                                                                                    
  Earned and                                                                                                                      
  Losses Were                                                                                                                     
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>        
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N       O       N       E ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  
<CAPTION>                                                                                                                         
---------------------------                                                                                                       
      1                                                                                                                           
               ------------                                                                                                       
     Years                                                                                                                        
   in Which         11                                                                                                            
 Premiums Were                                                                                                                    
  Earned and                                                                                                                      
  Losses Were                                                                                                                     
   Incurred        1995                                                                                                           
---------------------------                                                                                                       
<S>            <C>                                                                                                                
 1. Prior .... ............                                                                                                       
 2. 1986 ..... ............                                                                                                       
 3. 1987 ..... ............                                                                                                       
 4. 1988 ..... ............                                                                                                       
 5. 1989 ..... ............                                                                                                       
 6. 1990 ..... ............                                                                                                       
 7. 1991 ..... ............                                                                                                       
 8. 1992 ..... ............                                                                                                       
 9. 1993 ..... ............                                                                                                       
10. 1994 ..... ............                                                                                                       
11. 1995 ..... ............                                                                                                       
---------------------------                                                                                                       
</TABLE> 

                                               SECTION 3

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END                         
               --------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... N       O       N       E ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  
<CAPTION>                                                                                                                         
---------------------------                                                                                                       
      1                                                                                                                           
               ------------                                                                                                       
     Years                                                                                                                        
   in Which         11                                                                                                            
 Premiums Were                                                                                                                    
  Earned and                                                                                                                      
  Losses Were                                                                                                                     
   Incurred        1995                                                                                                           
---------------------------                                                                                                       
<S>            <C>                                                                                                                
 1. Prior .... ....X X X...                                                                                                       
 2. 1986 ..... ............                                                                                                       
 3. 1987 ..... ............                                                                                                       
 4. 1988 ..... ............                                                                                                       
 5. 1989 ..... ............                                                                                                       
 6. 1990 ..... ............                                                                                                       
 7. 1991 ..... ............                                                                                                       
 8. 1992 ..... ............                                                                                                       
 9. 1993 ..... ............                                                                                                       
10. 1994 ..... ............                                                                                                       
11. 1995 ..... ............                                                                                                       
---------------------------                                                                                                       
</TABLE> 

                                      116
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - PART 5E - COMMERCIAL MULTIPLE PERIL

                                   SECTION 1
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ........43.. ........81.. ........84.. ........87.. ........87.. ........87..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........65.. ........83.. ........84.. ........84.. ........84..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........47.. ........64.. ........67.. ........71..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........66.. ........98.. .......104..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........82.. .......120..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........92..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ........86..
 6. 1990 ..... ........84..
 7. 1991 ..... ........71..
 8. 1992 ..... .......106..
 9. 1993 ..... .......127..
10. 1994 ..... .......144..
11. 1995 ..... .......122..
---------------------------
</TABLE> 

                                   SECTION 2
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                   NUMMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ........12.. .........2.. .........2.. .........1.. ............
 2. 1986 ..... ............ ............ ............ ............ .........8.. .........3.. .........1.. ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ .........5.. .........2.. ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ .........2.. .........1.. .........1.. .........1.. ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ .........5.. .........3.. ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........9.. .........1.. .........1.. .........1.. ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........21.. .........8.. .........3.. ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........34.. ........11.. .........5..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........50.. ........17..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........71..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .........1..
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... .........6..
 9. 1993 ..... .........9..
10. 1994 ..... ........14..
11. 1995 ..... ........69..
---------------------------
</TABLE> 

                                   SECTION 3
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ........53.. ........93.. ........94.. ........94.. ........95.. ........95..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ........76.. ........97.. ........98.. .......100.. .......100..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........84.. .......100.. .......101.. .......101..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......119.. .......141.. .......144..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......167.. .......196..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .......212..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ........95..
 6. 1990 ..... .......100..
 7. 1991 ..... .......101..
 8. 1992 ..... .......146..
 9. 1993 ..... .......200..
10. 1994 ..... .......227..
11. 1995 ..... .......253..
---------------------------
</TABLE> 

                                      117
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



            SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - OCCURRENCE

                                  SECTION 1A
<TABLE> 
<CAPTION>                 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2A
<TABLE> 
<CAPTION>                 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                  NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 3A
<TABLE> 
<CAPTION>                 
-----------------------------------------------------------------------------------------------------------------------------------
      1                               CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                      118
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



           SCHEDULE P - PART 5F - MEDICAL MALPRACTICE - CLAIMS-MADE

                                  SECTION 1B
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2B
<TABLE> 
<CAPTION>                 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                     NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 3B
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                               CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                      119
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - PART 5H - OTHER LIABILITY - OCCURRENCE

                                  SECTION 1A
<TABLE> 
<CAPTION>                 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ .........1.. .........1.. .........1.. .........1..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2.. .........2..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... .........1..
 8. 1992 ..... .........1..
 9. 1993 ..... .........2..
10. 1994 ..... .........1..
11. 1995 ..... .........1..
---------------------------
</TABLE> 

                                  SECTION 2A
<TABLE> 
<CAPTION>                                                              
-----------------------------------------------------------------------------------------------------------------------------------
      1                                   NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ .........4.. .........1.. .........3.. .........1.. .........1..
 2. 1986 ..... ............ ............ ............ ............ .........2.. .........1.. ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ .........5.. .........1.. .........1.. ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........2.. ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 3A
<TABLE> 
<CAPTION>                                                              
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1.. .........1.. .........1..
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........1.. .........1.. .........1.. .........1..
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2.. .........2.. .........2..
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........4.. .........7.. .........9..
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1.. .........2..
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........1..
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ....X X X...
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... .........1..
 6. 1990 ..... .........1..
 7. 1991 ..... .........2..
 8. 1992 ..... .........9..
 9. 1993 ..... .........2..
10. 1994 ..... .........1..
11. 1995 ..... .........1..
---------------------------
</TABLE> 

                                      120
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



             SCHEDULE P - PART 5H - OTHER LIABILITY - CLAIMS-MADE

                                  SECTION 1B
<TABLE> 
<CAPTION>                                                             
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2B
<TABLE> 
<CAPTION>                                                             
-----------------------------------------------------------------------------------------------------------------------------------
      1                                    NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 3B
<TABLE> 
<CAPTION>                                                             
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSURED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 


                                      121
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - PART 5R - PRODUCTS LIABILITY - OCCURENCE

                                  SECTION 1A
<TABLE> 
<CAPTION>                    
----------------------------------------------------------------------------------------------------------------------------------- 
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END                
               -------------------------------------------------------------------------------------------------------------------- 
     Years                                                                                                                          
   in Which          2             3           4            5            6            7            8            9           10      
 Premiums Were                                                                                                                      
  Earned and                                                                                                                        
  Losses Were                                                                                                                       
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994     
----------------------------------------------------------------------------------------------------------------------------------- 
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............ 
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............ 
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............ 
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............ 
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ 
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... 
----------------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                                                                                           
---------------------------                                                                                                         
      1                                                                                                                             
               ------------                                                                                                         
     Years          11                                                                                                              
   in Which                                                                                                                         
 Premiums Were                                                                                                                      
  Earned and                                                                                                                        
  Losses Were                                                                                                                       
   Incurred        1995                                                                                                             
---------------------------                                                                                                         
<S>            <C>                                                                                                                  
 1. Prior .... ............                                                                                                         
 2. 1986 ..... ............                                                                                                         
 3. 1987 ..... ............                                                                                                         
 4. 1988 ..... ............                                                                                                         
 5. 1989 ..... ............                                                                                                         
 6. 1990 ..... ............                                                                                                         
 7. 1991 ..... ............                                                                                                         
 8. 1992 ..... ............                                                                                                         
 9. 1993 ..... ............                                                                                                         
10. 1994 ..... ............                                                                                                         
11. 1995 ..... ............                                                                                                         
---------------------------                                                                                                         
</TABLE> 

                                  SECTION 2A
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>                                                                                                                          
---------------------------                                                                                                        
      1                                                                                                                            
               ------------                                                                                                        
     Years          11                                                                                                             
   in Which                                                                                                                        
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1995                                                                                                            
---------------------------                                                                                                        
<S>            <C>                                                                                                                 
 1. Prior .... ............                                                                                                        
 2. 1986 ..... ............                                                                                                        
 3. 1987 ..... ............                                                                                                        
 4. 1988 ..... ............                                                                                                        
 5. 1989 ..... ............                                                                                                        
 6. 1990 ..... ............                                                                                                        
 7. 1991 ..... ............                                                                                                        
 8. 1992 ..... ............                                                                                                        
 9. 1993 ..... ............                                                                                                        
10. 1994 ..... ............                                                                                                        
11. 1995 ..... ............                                                                                                        
---------------------------                                                                                                         
---------------------------
</TABLE> 

                                  SECTION 3A
<TABLE> 
<CAPTION>                                                              
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>                                                                                                                          
---------------------------                                                                                                        
      1                                                                                                                            
               ------------                                                                                                        
     Years          11                                                                                                             
   in Which                                                                                                                        
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1995                                                                                                            
---------------------------                                                                                                        
<S>            <C>                                                                                                                 
 1. Prior .... ....X X X...                                                                                                        
 2. 1986 ..... ............                                                                                                        
 3. 1987 ..... ............                                                                                                        
 4. 1988 ..... ............                                                                                                        
 5. 1989 ..... ............                                                                                                        
 6. 1990 ..... ............                                                                                                        
 7. 1991 ..... ............                                                                                                        
 8. 1992 ..... ............                                                                                                        
 9. 1993 ..... ............                                                                                                        
10. 1994 ..... ............                                                                                                        
11. 1995 ..... ............                                                                                                        
---------------------------                                                                                                         
</TABLE> 

                                      122
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



               SCHEDULE P - PART 5R - PRODUCTS LIABILITY - CLAIMS MADE

                                  SECTION 1B
<TABLE> 
<CAPTION>                     
----------------------------------------------------------------------------------------------------------------------------------- 
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END                
               -------------------------------------------------------------------------------------------------------------------- 
     Years                                                                                                                          
   in Which          2             3           4            5            6            7            8            9           10      
 Premiums Were                                                                                                                      
  Earned and                                                                                                                        
  Losses Were                                                                                                                       
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994     
----------------------------------------------------------------------------------------------------------------------------------- 
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............ 
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............ 
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............ 
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............ 
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ 
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... 
----------------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                                                                                           
---------------------------                                                                                                         
      1                                                                                                                             
               ------------                                                                                                         
     Years          11                                                                                                              
   in Which                                                                                                                         
 Premiums Were                                                                                                                      
  Earned and                                                                                                                        
  Losses Were                                                                                                                       
   Incurred        1995                                                                                                             
---------------------------                                                                                                         
<S>            <C>                                                                                                                  
 1. Prior .... ............                                                                                                         
 2. 1986 ..... ............                                                                                                         
 3. 1987 ..... ............                                                                                                         
 4. 1988 ..... ............                                                                                                         
 5. 1989 ..... ............                                                                                                         
 6. 1990 ..... ............                                                                                                         
 7. 1991 ..... ............                                                                                                         
 8. 1992 ..... ............                                                                                                         
 9. 1993 ..... ............                                                                                                         
10. 1994 ..... ............                                                                                                         
11. 1995 ..... ............                                                                                                         
---------------------------                                                                                                         
</TABLE> 

                                  SECTION 2B
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               --------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>                                                                                                                          
---------------------------                                                                                                        
      1                                                                                                                            
               ------------                                                                                                        
     Years          11                                                                                                             
   in Which                                                                                                                        
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1995                                                                                                            
---------------------------                                                                                                        
<S>            <C>                                                                                                                 
 1. Prior .... ............                                                                                                        
 2. 1986 ..... ............                                                                                                        
 3. 1987 ..... ............                                                                                                        
 4. 1988 ..... ............                                                                                                        
 5. 1989 ..... ............                                                                                                        
 6. 1990 ..... ............                                                                                                        
 7. 1991 ..... ............                                                                                                        
 8. 1992 ..... ............                                                                                                        
 9. 1993 ..... ............                                                                                                        
10. 1994 ..... ............                                                                                                        
11. 1995 ..... ............                                                                                                        
---------------------------                                                                                                         
---------------------------
</TABLE> 

                                  SECTION 3B
<TABLE> 
<CAPTION>                  
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE NUMBER OF CLAIMS REPORTED DIRECT AND ASSUMED AT YEAR END
               --------------------------------------------------------------------------------------------------------------------
     Years                                                                                                                         
   in Which          2             3           4            5            6            7            8            9           10     
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>         
 1. Prior .... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ 
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ 
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X...    N    O    N    E   ... ............ ............ ............ 
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ 
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ 
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>                                                                                                                          
---------------------------                                                                                                        
      1                                                                                                                            
               ------------                                                                                                        
     Years          11                                                                                                             
   in Which                                                                                                                        
 Premiums Were                                                                                                                     
  Earned and                                                                                                                       
  Losses Were                                                                                                                      
   Incurred        1995                                                                                                            
---------------------------                                                                                                        
<S>            <C>                                                                                                                 
 1. Prior .... ....X X X...                                                                                                        
 2. 1986 ..... ............                                                                                                        
 3. 1987 ..... ............                                                                                                        
 4. 1988 ..... ............                                                                                                        
 5. 1989 ..... ............                                                                                                        
 6. 1990 ..... ............                                                                                                        
 7. 1991 ..... ............                                                                                                        
 8. 1992 ..... ............                                                                                                        
 9. 1993 ..... ............                                                                                                        
10. 1994 ..... ............                                                                                                        
11. 1995 ..... ............                                                                                                        
---------------------------                                                                                                         
</TABLE> 

                                      123
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



        SCHEDULE P - PART 6C - COMMERCIAL AUTO/TRUCK LIABILITY/MEDICAL

                                   SECTION 1
<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)                     
                    ---------------------------------------------------------------------------------------------------------------
    Years in                                                                                                                       
 Which Premiums           2              3            4             5             6             7             8             9      
  Were Earned                                                                                                                      
   and Losses                                                                                                                      
 Were Incurred          1986          1987          1988          1989          1990          1991          1992          1993     
-----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>          
 1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
 2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
 3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
 4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. .............
 5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. .............
 6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. .............
 7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............
 8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............
 9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ......18,237.
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>                                             
-----------------------------------------------       
      1                                               
                     ---------------------------      
    Years in                                          
 Which Premiums            10           11            
  Were Earned                                         
   and Losses                                         
 Were Incurred            1994         1995           
-----------------------------------------------       
<S>                  <C>           <C>                
 1. Prior .........  ............. ............       
 2. 1986 ..........  ............. ............       
 3. 1987 ..........  ............. ............       
 4. 1988 ..........  ............. ............       
 5. 1989 ..........  ............. ............       
 6. 1990 ..........  ............. ............       
 7. 1991 ..........  ............. ............       
 8. 1992 ..........  ............. ............       
 9. 1993 ..........  ......18,237. .....18,237.       
10. 1994 ..........  ......20,437. .....20,437.       
11. 1995 ..........  ....X X X.... .....22,120.       
-----------------------------------------------       
</TABLE>                     

                                   SECTION 2
<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------------- 
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)                    
                    --------------------------------------------------------------------------------------------------------------- 
    Years in                                                                                                                        
 Which Premiums           2              3            4             5             6             7             8             9       
  Were Earned                                                                                                                       
   and Losses   
 Were Incurred          1986          1987          1988          1989          1990          1991          1992          1993      
----------------------------------------------------------------------------------------------------------------------------------- 
<S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>           
 1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. ............. 
 2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. ............. 
 3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. ............. 
 4. 1988 .......... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. ............. 
 5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
 6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. ............. 
 7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
 8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
 9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ..........40. 
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
----------------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                                                                                           
-----------------------------------------------                                                                                     
      1                                                                                                                             
                     ---------------------------                                                                                    
   Years in                                                                                                                         
Which Premiums             10           11                                                                                          
 Were Earned                                                                                                                        
  and Losses     
Were Incurred             1994         1995                                                                                         
-----------------------------------------------                                                                                     
<S>                  <C>           <C>                                                                                              
 1. Prior .........  ............. ............                                                                                     
 2. 1986 ..........  ............. ............                                                                                     
 3. 1987 ..........  ............. ............                                                                                     
 4. 1988 ..........  ............. ............                                                                                     
 5. 1989 ..........  ............. ............                                                                                     
 6. 1990 ..........  ............. ............                                                                                     
 7. 1991 ..........  ............. ............                                                                                     
 8. 1992 ..........  ............. ............                                                                                     
 9. 1993 ..........  ..........40. ............                                                                                    
10. 1994 ..........  ...........1. .........40.                                                                                    
11. 1995 ..........  ....X X X.... ..........1.                                                                                    
-----------------------------------------------                                                                                 
</TABLE> 

                 SCHEDULE P - PART 6D - WORKERS' COMPENSATION

                                   SECTION 1
<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------------- 
       1                                     CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)                
                    --------------------------------------------------------------------------------------------------------------- 
   Years in                                                                                                                         
Which Premiums            2              3            4             5             6             7             8             9       
 Were Earned                                                                                                                        
  and Losses                                                                                                                        
Were Incurred           1986           1987         1988          1989          1990          1991          1992          1993      
----------------------------------------------------------------------------------------------------------------------------------- 
<S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>           
 1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. ............. 
 2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. ............. 
 3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. ............. 
 4. 1988 .......... ....X X X.... ....X X X.... ............. .............                             ............. ............. 
 5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... .............                             ............. ............. 
 6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ............. ............. 
 7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....          N O N E            ............. ............. 
 8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ............. ............. 
 9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ....X X X.... ............. 
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ....X X X.... ....X X X.... 
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
<CAPTION>                                                                                                                           
-----------------------------------------------                                                                                     
       1                                                                                                                            
                    ---------------------------                                                                                     
   Years in                                                                                                                         
Which Premiums           10          11                                                                                             
 Were Earned                                                                                                                        
  and Losses                                                                                                                        
Were Incurred           1994        1995                                                                                            
-----------------------------------------------                                                                                     
<S>                 <C>            <C>                                                                                              
 1. Prior ......... ............. .............                                                                                     
 2. 1986 .......... ............. .............                                                                                     
 3. 1987 .......... ............. .............                                                                                     
 4. 1988 .......... ............. .............                                                                                     
 5. 1989 .......... ............. .............                                                                                     
 6. 1990 .......... ............. .............                                                                                     
 7. 1991 .......... ............. .............                                                                                     
 8. 1992 .......... ............. .............                                                                                     
 9. 1993 .......... ............. .............                                                                                     
10. 1994 .......... ............. .............                                                                                     
11. 1995 .......... ....X X X.... .............                                                                                     
-----------------------------------------------                                                                                     
</TABLE> 

                                                             SECTION 2
<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
       1                                     CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)               
                    ---------------------------------------------------------------------------------------------------------------
   Years in                                                                                                                        
Which Premiums            2              3            4             5             6             7             8             9      
 Were Earned                                                                                                                       
  and Losses                                                                                                                       
Were Incurred           1986           1987         1988          1989          1990          1991          1992          1993     
-----------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>          
 1. Prior ......... .....000..... ............. ............. ............. ............. ............. ............. .............
 2. 1986 .......... ............. ............. ............. ............. ............. ............. ............. .............
 3. 1987 .......... ....X X X.... ............. ............. ............. ............. ............. ............. .............
 4. 1988 .......... ....X X X.... ....X X X.... ............. .............                             ............. .............
 5. 1989 .......... ....X X X.... ....X X X.... ....X X X.... .............                             ............. .............
 6. 1990 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ............. .............
 7. 1991 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....          N O N E            ............. .............
 8. 1992 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ............. .............
 9. 1993 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ....X X X.... .............
10. 1994 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X....                             ....X X X.... ....X X X....
11. 1995 .......... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   
<CAPTION>                                                                                                                          
-----------------------------------------------                                                                                    
       1                                                                                                                           
                    ---------------------------                                                                                    
   Years in                                                                                                                        
Which Premiums           10          11                                                                                            
 Were Earned                                                                                                                       
  and Losses                                                                                                                       
Were Incurred           1994        1995                                                                                           
-----------------------------------------------                                                                                    
<S>                 <C>            <C>                                                                                             
 1. Prior ......... ............. .............                                                                                    
 2. 1986 .......... ............. .............                                                                                    
 3. 1987 .......... ............. .............                                                                                    
 4. 1988 .......... ............. .............                                                                                    
 5. 1989 .......... ............. .............                                                                                    
 6. 1990 .......... ............. .............                                                                                    
 7. 1991 .......... ............. .............                                                                                    
 8. 1992 .......... ............. .............                                                                                    
 9. 1993 .......... ............. .............                                                                                    
10. 1994 .......... ............. .............                                                                                    
11. 1995 .......... ....X X X.... .............                                                                                    
-----------------------------------------------                                                                                     
</TABLE> 

                                      124
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



             SCHEDULE P - PART 6E - COMMERCIAL MULTIPLE PERIL

                                  SECTION 1

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......5,427. ......5,427.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......6,976.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which         11
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ......5,427.
10. 1994 ..... ......6,976.
11. 1995 ..... ......8,169.
---------------------------
</TABLE> 

                                  SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------

     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......1,873. ......1,813.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ......2,253.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which         11 
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ......1,813.
10. 1994 ..... ......2,253.
11. 1995 ..... ......1,579.
---------------------------
</TABLE> 

                     SCHEDULE P - PART 6H - OTHER LIABILITY - OCCURRENCE

                                   SECTION 1A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITtED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........293. ........293.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........287.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ........293.
10. 1994 ..... ........287.
11. 1995 ..... ........109.
---------------------------
</TABLE> 

                                   SECTION 2A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITTED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ........184. ........184.
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... .........14.
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ........184.
10. 1994 ..... .........14.
11. 1995 ..... ............
---------------------------
</TABLE> 

                                      125
 
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



             SCHEDULE P - PART 6H - OTHER LIABILITY - CLAIMS-MADE

                                  SECTION 1B

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE NUMBER OF CLAIMS CLOSED WITH LOSS PAYMENT DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2B

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                    NUMBER OF CLAIMS OUTSTANDING DIRECT AND ASSUMED AT YEAR END
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                     SCHEDULE P - PART 6M - INTERNATIONAL

                                   SECTION 1

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                   SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 


                                      126
 
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



                     SCHEDULE P - PART 6N - REINSURANCE A

                                   SECTION 1

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                          CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. 1988 ..... ............
 2. 1989 ..... ............
 3. 1990 ..... ............
 4. 1991 ..... ............
 5. 1992 ..... ............
 6. 1993 ..... ............
 7. 1994 ..... ............
 8. 1995 ..... ............
---------------------------
</TABLE> 

                                   SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                    CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------

     Years           2             3           4            5            6            7            8            9           10
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. 1988 ..... ............
 2. 1989 ..... ............
 3. 1990 ..... ............
 4. 1991 ..... ............
 5. 1992 ..... ............
 6. 1993 ..... ............
 7. 1994 ..... ............
 8. 1995 ..... ............
---------------------------
</TABLE> 

                     SCHEDULE P - PART 6O - REINSURANCE B

                                   SECTION 1

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. 1988 ..... ............
 2. 1989 ..... ............
 3. 1990 ..... ............
 4. 1991 ..... ............
 5. 1992 ..... ............
 6. 1993 ..... ............
 7. 1994 ..... ............
 8. 1995 ..... ............
---------------------------
</TABLE> 

                                   SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 2. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 3. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 4. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 5. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 6. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
 7. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
 8. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. 1988 ..... ............
 2. 1989 ..... ............
 3. 1990 ..... ............
 4. 1991 ..... ............
 5. 1992 ..... ............
 6. 1993 ..... ............
 7. 1994 ..... ............
 8. 1995 ..... ............
---------------------------
</TABLE> 

                                      127
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



             SCHEDULE P - PART 6R - PRODUCTS LIABILITY - OCCURRENCE

                                  SECTION 1A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
     Years          11     
   in Which
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2A

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which         11
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

            SCHEDULE P - PART 6R - PRODUCTS LIABILITY - CLAIMS-MADE

                                  SECTION 1B

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                CUMULATIVE PREMIUMS EARNED DIRECT AND ASSUMED AT YEAR END ($000 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                  SECTION 2B

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                      CUMULATIVE PREMIUMS EARNED CEDED AT YEAR END ($00 OMITED)
               ---------------------------------------------------------------------------------------------------------------------
     Years           
   in Which          2             3           4            5            6            7            8            9           10
 Premiums Were
  Earned and
  Losses Were
   Incurred        1986          1987        1988         1989         1990         1991         1992         1993         1994    
-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... .....000.... ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------

<CAPTION> 
---------------------------
      1                    
               ------------
     Years          
   in Which        11     
 Premiums Were
  Earned and
  Losses Were
   Incurred        1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                       128

<PAGE>
 
Form 2

ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES


            SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS

                                ($000 OMITTED)
                                   SECTION 1

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------- 
                                                                      2              3               4              5
                                                                                Net Losses
                                                                  Total Net    and Expenses   Loss Sensitive    Total Net
                  Schedule P - Part 1                            Losses and      Unpaid on     as Percentage    Premiums
                                                                  Expenses    Loss Sensitive     of Total        Written
                                                                   Unpaid        Contracts
---------------------------------------------------------------------------------------------------------------------------- 
<S>                                                            <C>            <C>             <C>             <C> 
  1. Homeowners/Farmowners.................................... .............. ............... ............... ..............
  2. Private Passenger Auto Liability/Medical................. .............. ............... ............... ..............
  3. Commercial  Auto/Truck Liability/Medical................. .............. ............... ............... ..............
  4. Workers' Compensation.................................... .............. ............... ............... ..............
  5. Commercial Multiple Peril................................ .............. ............... ............... ..............
  6. Medical Malpractice - Occurrence......................... .............. ............... ............... ..............
  7. Medical Malpractice - Claims-made........................ .............. ............... ............... ..............
  8. Special Liability........................................ .............. ............... ............... ..............
  9. Other Liability - Occurrence............................. .............. ............... ............... ..............
 10. Other Liability - Claims-made........................N     0    N    E     ............. ............... ..............
 11. Special Property......................................... .............. ............... ............... ..............
 12. Auto Physical Damage..................................... .............. ............... ............... ..............
 13. Fidelity/Surety.......................................... .............. ............... ............... ..............
 14. Other.................................................... .............. ............... ............... ..............
 15. International............................................ .............. ............... ............... ..............
 16. Reinsurance A............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
 17. Reinsurance B............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
 18. Reinsurance C............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
 19. Reinsurance D............................................ .....X X X.... .....X X X..... .....X X X..... ....X X X.....
 20. Products Liability - Occurrence.......................... .............. ............... ............... ..............
 21. Products Liability - Claims-made......................... .............. ............... ............... ..............
 22. Financial Guaranty/Mortgage Guaranty..................... .............. ............... ............... ..............
---------------------------------------------------------------------------------------------------------------------------- 
 23. Totals................................................... .............. ............... ............... ..............
---------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                      
---------------------------------------------------------------------------------------------- 
                                                                      6               7        
                                                                                               
                                                                Net Premiums   Loss Sensitive
                  Schedule P - Part 1                            Written on     as Percentage
                                                               Loss Sensitive     of Total
                                                                  Contracts
---------------------------------------------------------------------------------------------- 
<S>                                                            <C>            <C> 
  1. Homeowners/Farmowners.................................... .............. ................   
  2. Private Passenger Auto Liability/Medical................. .............. ................   
  3. Commercial  Auto/Truck Liability/Medical................. .............. ................   
  4. Workers' Compensation.................................... .............. ................   
  5. Commercial Multiple Peril................................ .............. ................   
  6. Medical Malpractice - Occurrence......................... .............. ................   
  7. Medical Malpractice - Claims-made........................ .............. ................   
  8. Special Liability........................................ .............. ................   
  9. Other Liability - Occurrence............................. .............. ................   
 10. Other Liability - Claims-made............................ .............. ................   
 11. Special Property......................................... .............. ................   
 12. Auto Physical Damage..................................... .............. ................   
 13. Fidelity/Surety.......................................... .............. ................   
 14. Other.................................................... .............. ................   
 15. International............................................ .............. ................   
 16. Reinsurance A............................................ .....X X X.... ......X X X.....   
 17. Reinsurance B............................................ .....X X X.... ......X X X.....   
 18. Reinsurance C............................................ .....X X X.... ......X X X.....   
 19. Reinsurance D............................................ .....X X X.... ......X X X.....   
 20. Products Liability - Occurrence.......................... .............. ................   
 21. Products Liability - Claims-made......................... .............. ................   
 22. Financial Guaranty/Mortgage Guaranty..................... .............. ................   
----------------------------------------------------------------------------------------------   
 23. Totals................................................... .............. ................   
---------------------------------------------------------------------------------------------- 
</TABLE> 

                                   SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)  
               -------------------------------------------------------------------------------------------------------------------- 

Years in Which       2             3           4            5            6            7            8            9           10   
 Policies were                                                                                                                      

   Issued          1986          1987        1988         1989         1990         1991         1992         1993         1994     

----------------------------------------------------------------------------------------------------------------------------------- 

<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
Years in Which      11
 Policies were             
   Issued          1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                   SECTION 3

<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------------- 

      1                  BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)   

               -------------------------------------------------------------------------------------------------------------------- 

Years in Which       2             3           4            5            6            7            8            9           10   
 Policies were                                                                                                                      

   Issued          1986          1987        1988         1989         1990         1991         1992         1993         1994     

----------------------------------------------------------------------------------------------------------------------------------- 

<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------
      1                     
               -------------
Years in Which      11
 Policies were              
   Issued          1995     
----------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

129
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS (CONTINUED)

                                   SECTION 4

<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------
            1                                     NET EARNED PREMIUMS AT YEAR END ($000 OMITED)
                       -----------------------------------------------------------------------------------------------------
      Years in Which         2             3             4             5             6             7             8        
       Losses Were                                                                                                        
        Incurred           1986          1987          1988          1989          1990          1991          1992      
------------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>     
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
------------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
----------------------------------------------------------------                             
            1                                                                                
                      -----------------------------------------                              
      Years in Which        9            10            11                                     
       Losses Were                                                                            
        Incurred          1993          1994          1995                                   
----------------------------------------------------------------                             
   <S>                 <C>          <C>           <C>                                        
    1.   Prior ....... ............ ............. .............                              
    2.   1986 ........ ............ ............. .............                              
    3.   1987 ........ ............ ............. .............                              
    4.   1988 ........ ............ ............. .............                              
    5.   1989 ........ ............ ............. .............                              
    6.   1990 ........ ............ ............. .............                              
    7.   1991 ........ ............ ............. .............                              
    8.   1992 ........ ............ ............. .............                              
    9.   1993 ........ ............ ............. .............                              
   10.   1994 ........ ...X X X.... ............. .............                              
   11.   1995 ........ ...X X X.... ....X X X.... .............                              
----------------------------------------------------------------                             
</TABLE> 


                                   SECTION 5

<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------------------    
            1           NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITED)    
                       -------------------------------------------------------------------------------------------------    
      Years in Which         2             3             4             5             6             7             8          
       Losses Were                                                                                                          
        Incurred           1986          1987          1988          1989          1990          1991          1992         
------------------------------------------------------------------------------------------------------------------------    
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .N     O     N     E....... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------------                                                             
            1                                                                                                                
                       -----------------------------------------                                                             
      Years in Which         9             10            11                                                                  
       Losses Were                                                                                                           
        Incurred           1993          1994          1995                                                                  
----------------------------------------------------------------                                                             
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 

                                      130
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES


            SCHEDULE P - PART 7A - PRIMARY LOSS SENSITIVE CONTRACTS

                                ($000 OMITTED)
                                   SECTION 1

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------- 
                                                                      2              3               4              5
                                                                                Net Losses
                                                                  Total Net    and Expenses   Loss Sensitive    Total Net
                  Schedule P - Part 1                            Losses and      Unpaid on     as Percentage    Premiums
                                                                  Expenses    Loss Sensitive     of Total        Written
                                                                   Unpaid        Contracts
---------------------------------------------------------------------------------------------------------------------------- 
<S>                                                            <C>            <C>             <C>             <C> 
  1. Homeowners/Farmowners.................................... .............. ............... ............... ..............
  2. Private Passenger Auto Liability/Medical................. .............. ............... ............... ..............
  3. Commercial  Auto/Truck Liability/Medical................. .............. ............... ............... ..............
  4. Workers' Compensation.................................... .............. ............... ............... ..............
  5. Commercial Multiple Peril................................ .............. ............... ............... ..............
  6. Medical Malpractice - Occurrence......................... .............. ............... ............... ..............
  7. Medical Malpractice - Claims-made........................ .............. ............... ............... ..............
  8. Special Liability........................................ .............. ............... ............... ..............
  9. Other Liability - Occurrence............................. .............. ............... ............... ..............
 10. Other Liability - Claims-made......................... N    O    N    E  ............... ............... ..............
 11. Special Property......................................... .............. ............... ............... ..............
 12. Auto Physical Damage..................................... .............. ............... ............... ..............
 13. Fidelity/Surety.......................................... .............. ............... ............... .............. 
 14. Other.................................................... .............. ............... ............... .............. 
 15. International............................................ .............. ............... ............... .............. 
 16. Reinsurance A............................................ .............. ............... ............... ..............
 17. Reinsurance B............................................ .............. ............... ............... ..............
 18. Reinsurance C............................................ .............. ............... ............... .............. 
 19. Reinsurance D............................................ .............. ............... ............... ....X X X.....
 20. Products Liability - Occurrence.......................... .............. ............... ............... ..............
 21. Products Liability - Claims-made......................... .............. ............... ............... ..............
 22. Financial Guaranty/Mortgage Guaranty..................... .............. ............... ............... ..............
---------------------------------------------------------------------------------------------------------------------------- 
 23. Totals................................................... .............. ............... ............... ..............
---------------------------------------------------------------------------------------------------------------------------- 
<CAPTION>                                                      
---------------------------------------------------------------------------------------------- 
                                                                      6               7        
                                                                                               
                                                                Net Premiums   Loss Sensitive
                  Schedule P - Part 1                            Written on     as Percentage
                                                               Loss Sensitive     of Total
                                                                  Contracts
---------------------------------------------------------------------------------------------- 
<S>                                                            <C>            <C> 
  1. Homeowners/Farmowners.................................... .............. ................   
  2. Private Passenger Auto Liability/Medical................. .............. ................   
  3. Commercial  Auto/Truck Liability/Medical................. .............. ................   
  4. Workers' Compensation.................................... .............. ................   
  5. Commercial Multiple Peril................................ .............. ................   
  6. Medical Malpractice - Occurrence......................... .............. ................   
  7. Medical Malpractice - Claims-made........................ .............. ................   
  8. Special Liability........................................ .............. ................   
  9. Other Liability - Occurrence............................. .............. ................   
 10. Other Liability - Claims-made............................ .............. ................   
 11. Special Property......................................... .............. ................   
 12. Auto Physical Damage..................................... .............. ................   
 13. Fidelity/Surety.......................................... .............. ................    
 14. Other.................................................... .............. ................    
 15. International............................................ .............. ................    
 16. Reinsurance A............................................ .............. ................   
 17. Reinsurance B............................................ .............. ................   
 18. Reinsurance C............................................ .............. ................    
 19. Reinsurance D............................................ .....X X X.... ......X X X.....   
 20. Products Liability - Occurrence.......................... .............. ................   
 21. Products Liability - Claims-made......................... .............. ................   
 22. Financial Guaranty/Mortgage Guaranty..................... .............. ................   
----------------------------------------------------------------------------------------------   
 23. Totals................................................... .............. ................   
---------------------------------------------------------------------------------------------- 
</TABLE> 

                                   SECTION 2

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
      1                                INCURRED LOSSES AND ALLOCATED EXPENSES REPORTED AT YEAR END ($000 OMITTED)  
               -------------------------------------------------------------------------------------------------------------------- 

Years in Which       2             3           4            5            6            7            8            9           10   
 Policies were                                                                                                                      
   Issued          1986          1987        1988         1989         1990         1991         1992         1993         1994     

----------------------------------------------------------------------------------------------------------------------------------- 

<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
---------------------------
      1                    
               ------------
Years in Which      11
 Policies were             
   Issued          1995    
---------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                   SECTION 3

<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------------- 

      1                  BULK AND INCURRED BUT NOT REPORTED RESERVES FOR LOSSES AND ALLOCATED EXPENSES AT YEAR END ($000 OMITTED)   

               -------------------------------------------------------------------------------------------------------------------- 

Years in Which       2             3           4            5            6            7            8            9           10   
 Policies were                                                                                                                      
   Issued          1986          1987        1988         1989         1990         1991         1992         1993         1994     

----------------------------------------------------------------------------------------------------------------------------------- 

<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C> 
 1. Prior .... ............ ............ ............ ............ ............ ............ ............ ............ ............
 2. 1986 ..... ............ ............ ............ ............ ............ ............ ............ ............ ............
 3. 1987 ..... ....X X X... ............ ............ ............ ............ ............ ............ ............ ............
 4. 1988 ..... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............ ............
 5. 1989 ..... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............ ............
 6. 1990 ..... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............ ............ ............
 7. 1991 ..... ....X X X... ....X X X... ....X X X... ....X X X... .......N O N E........... ............ ............ ............
 8. 1992 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............ ............
 9. 1993 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............ ............
10. 1994 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ............
11. 1995 ..... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X... ....X X X...
-----------------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------
      1                     
               -------------
Years in Which      11
 Policies were              
   Issued          1995     
 --------------------------
<S>            <C>         
 1. Prior .... ............
 2. 1986 ..... ............
 3. 1987 ..... ............
 4. 1988 ..... ............
 5. 1989 ..... ............
 6. 1990 ..... ............
 7. 1991 ..... ............
 8. 1992 ..... ............
 9. 1993 ..... ............
10. 1994 ..... ............
11. 1995 ..... ............
---------------------------
</TABLE> 

                                      131

                                      131
<PAGE>
 
Form 2

  ANNUAL STATEMENT FOR THE YEAR 1995 OF THE MERCURY CASUALTY COMPANY AND ITS 
                             AFFILIATED COMPANIES



      SCHEDULE P - PART 7B - REINSURANCE LOSS SENSITIVE CONTRACTS (CONTINUED)

                                   SECTION 4

<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------------------
            1                                     NET EARNED PREMIUMS AT YEAR END ($000 OMITED)
                       -----------------------------------------------------------------------------------------------------
      Years in Which         2             3             4             5             6             7             8        
       Losses Were                                                                                                        
        Incurred           1986          1987          1988          1989          1990          1991          1992      
------------------------------------------------------------------------------------------------------------------------- 
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>     
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
------------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
----------------------------------------------------------------                             
            1                                                                                
                      -----------------------------------------                              
      Years in Which        9            10            11                                     
       Losses Were                                                                            
        Incurred          1993          1994          1995                                   
----------------------------------------------------------------                             
   <S>                 <C>          <C>           <C>                                        
    1.   Prior ....... ............ ............. .............                              
    2.   1986 ........ ............ ............. .............                              
    3.   1987 ........ ............ ............. .............                              
    4.   1988 ........ ............ ............. .............                              
    5.   1989 ........ ............ ............. .............                              
    6.   1990 ........ ............ ............. .............                              
    7.   1991 ........ ............ ............. .............                              
    8.   1992 ........ ............ ............. .............                              
    9.   1993 ........ ............ ............. .............                              
   10.   1994 ........ ...X X X.... ............. .............                              
   11.   1995 ........ ...X X X.... ....X X X.... .............                              
----------------------------------------------------------------                             
</TABLE> 


                                   SECTION 5

<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------------------    
            1           NET RESERVE FOR PREMIUM ADJUSTMENTS AND ACCRUED RETROSPECTIVE PREMIUMS AT YEAR END ($000 OMITED)    
                       -------------------------------------------------------------------------------------------------    
      Years in Which         2             3             4             5             6             7             8          
       Losses Were                                                                                                          
        Incurred           1986          1987          1988          1989          1990          1991          1992         
------------------------------------------------------------------------------------------------------------------------    
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... .N     O     N     E....... ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
-------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
----------------------------------------------------------------                                                             
            1                                                                                                                
                       -----------------------------------------                                                             
      Years in Which         9             10            11                                                                  
       Losses Were                                                                                                           
        Incurred           1993          1994          1995                                                                  
----------------------------------------------------------------                                                             
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 

                                   SECTION 6

<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------------------    
            1                      INCURRED ADJUSTABLE COMMISSIONS REPORTED AT YEAR END ($000 OMITED)
                       -------------------------------------------------------------------------------------------------    
      Years in Which         2             3             4             5             6             7             8          
       Losses Were                                                                                                          
        Incurred           1986          1987          1988          1989          1990          1991          1992         
------------------------------------------------------------------------------------------------------------------------    
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>  
    1.   Prior ....... ............. ............. ............. ............. ............. ............. .............  
    2.   1986 ........ ............. ............. ............. ............. ............. ............. .............  
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. .............  
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. .............  
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. .............  
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. .............  
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. .............  
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... .............  
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....  
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....  
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....  
-------------------------------------------------------------------------------------------------------------------------
<CAPTION> 
-----------------------------------------------------------------                              
            1                                                                                                                
                       -----------------------------------------                                                             
      Years in Which         9             10            11                                                                  
       Losses Were                                                                                                           
        Incurred           1993          1994          1995                                                                  
----------------------------------------------------------------                                                             
   <S>                 <C>           <C>           <C>                                         
    1.   Prior ....... ............. ............. .............                               
    2.   1986 ........ ............. ............. .............                               
    3.   1987 ........ ............. ............. .............                               
    4.   1988 ........ ............. ............. .............                               
    5.   1989 ........ ............. ............. .............                               
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                               
   11.   1995 ........ ....X X X.... ....X X X.... .............                               
-----------------------------------------------------------------                              
</TABLE> 


                                   SECTION 7

<TABLE> 
<CAPTION> 
------------------------------------------------------------------------------------------------------------------------    
            1                      RESERVES FOR COMMISSION ADJUSTMENTS AT YEAR END ($000 OMITED)
                       -------------------------------------------------------------------------------------------------    
      Years in Which         2             3             4             5             6             7             8          
       Losses Were                                                                                                          
        Incurred           1986          1987          1988          1989          1990          1991          1992         
------------------------------------------------------------------------------------------------------------------------    
   <S>                 <C>           <C>           <C>           <C>           <C>           <C>           <C>          
    1.   Prior ....... ............. ............. ............. ............. ............. ............. ............. 
    2.   1986 ........ ............. ............. ............. ............. ............. ............. ............. 
    3.   1987 ........ ....X X X.... ............. ............. ............. ............. ............. ............. 
    4.   1988 ........ ....X X X.... ....X X X.... ............. ............. ............. ............. ............. 
    5.   1989 ........ ....X X X.... ....X X X.... ....X X X.... N     O     N     E........ ............. ............. 
    6.   1990 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. ............. 
    7.   1991 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. ............. 
    8.   1992 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ............. 
    9.   1993 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   10.   1994 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... 
   11.   1995 ........ ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X.... ....X X X....  
------------------------------------------------------------------------------------------------------------------------- 
<CAPTION> 
-----------------------------------------------------------------                              
            1                                                                                                                
                       -----------------------------------------                                                             
      Years in Which         9             10            11                                                                  
       Losses Were                                                                                                           
        Incurred           1993          1994          1995                                                                  
----------------------------------------------------------------                                                             
   <S>                 <C>           <C>           <C>                                        
    1.   Prior ....... ............. ............. .............                              
    2.   1986 ........ ............. ............. .............                              
    3.   1987 ........ ............. ............. .............                              
    4.   1988 ........ ............. ............. .............                              
    5.   1989 ........ ............. ............. .............                              
    6.   1990 ........ ............. ............. .............                               
    7.   1991 ........ ............. ............. .............                               
    8.   1992 ........ ............. ............. .............                               
    9.   1993 ........ ............. ............. .............                               
   10.   1994 ........ ....X X X.... ............. .............                              
   11.   1995 ........ ....X X X.... ....X X X.... .............                              
-----------------------------------------------------------------                             
</TABLE> 

                                      132