U.S. INSURANCE DIVISION The U.S. Insurance Division provides highly sought “A” rated underwriting capacity for specialty markets through Hudson Insurance Group. With nearly 100 professionals, Hudson works with experienced and proven program administrators from its office in New York, and underwrites medical malpractice coverage for hospitals and physicians from its offices in Napa, California and Chicago, Illinois. Hudson’s expansion in the market has been opportune. Since its formation in 2003, the U.S. Insurance Division has achieved meaningful premium growth of 23.4% to $412.1 million from $333.8 million in 2003. The combined ratio for the Division was 84.9% in 2004 compared to 90.9% in the prior year. Hudson Programs partners with qualified program administrators, who underwrite, manage and distribute specialized insurance products through selected insurance agents and brokers. In 2004, our program business represented 66.6% of the Division’s gross James E. Migliorini Chief Executive Officer U.S. Insurance Division 2002 103.7% 2003 90.9% 2004 84.9% 2002 $168.6 2003 $333.8 2004 $412.1 14 Combined Ratio Gross Premiums Written ($ in millions)