"Allied EasteIndemnity Company","PNC AS","2024 03 31" Annual Statutory Statement

QUARTERLY STATEMENT

OF THE

ALLIED EASTERN INDEMNITY COMPANY

TO THE

Insurance Department

OF THE

STATE OF

FOR THE QUARTER ENDED

MARCH 31, 2024

PROPERTY AND CASUALTY

2024

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

ASSETS

		Current Statement Date		4
	1	2		3	December 31
				Net Admitted Assets	Prior Year Net
	Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1. Bonds	................. 32,966,040	...................................	.................	32,966,040	................. 31,931,223

2. Stocks:

	2.1 Preferred stocks			...................................	...................................	0	0
	2.2 Common stocks			...................................	...................................	0	0
3.	Mortgage loans on real estate:
	3.1 First liens				...................................	...................................	0	0
	3.2 Other than first liens		...................................	...................................	0	0
4.	Real estate:
	4.1 Properties occupied by the company (less $
	encumbrances)			...................................	...................................	0	0
	4.2 Properties held for	the production of income (less
	$		encumbrances)	...................................	...................................	0	0
	4.3 Properties held for sale (less $

	.......................................................................................encumbrances)			...................................	...................................	.................................0	.................................0
5.	Cash ($	12,028	), cash equivalents
	($	263,259 ) and short-term
	investments ($	......................	898,936 )	................... 1,174,223	...................................	................... 1,174,223	................... 1,955,796
6.	Contract loans (including $	premium notes)	...................................	...................................	.................................0	.................................0
7.	Derivatives				...................................	...................................	.................................0	.................................0
8.	Other invested assets			...................................	...................................	.................................0	.................................0
9.	Receivables for securities		..........................5,500	...................................	..........................5,500	...................... 130,500
10.	Securities lending reinvested collateral assets	...................................	...................................	.................................0	.................................0
11.	Aggregate write-ins for invested assets	.................................0	.................................0	.................................0	.................................0
12.	Subtotals, cash and invested assets (Lines 1 to 11)	................. 34,145,763	.................................0	................. 34,145,763	................. 34,017,519
13.	Title plants less $		charged off (for Title insurers
	only)				...................................	...................................	.................................0	.................................0
14.	Investment income due and accrued	...................... 186,274	...................................	...................... 186,274	.......................203,776
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	................... 7,323,768	.......................394,667	...................6,929,101	................... 2,031,406
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	793,000
	earned but unbilled premiums)	................. 52,572,957	........................ 79,300	................. 52,493,657	................. 51,415,635
	15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)	...................................	...................................	.................................0	.................................0
16.	Reinsurance:
	....................................................16.1 Amounts recoverable from reinsurers	...................................	...................................	.................................0	.................................0
	16.2 Funds held by or deposited with reinsured companies	...................................	...................................	.................................0	.................................0
	16.3 Other amounts receivable under reinsurance contracts	...................................	...................................	.................................0	.................................0
17.	............................................Amounts receivable relating to uninsured plans	...................................	...................................	.................................0	.................................0
18.1	....Current federal and foreign income tax recoverable and interest thereon	...................... 684,830	...................................	...................... 684,830	...................... 585,954
18.2	...................................................................................Net deferred tax asset			................... 1,013,132	........................ 11,281	...................1,001,851	...................... 996,523
19.	Guaranty funds receivable or on deposit	...................................	...................................	.................................0	.................................0
20.	Electronic data processing equipment and software	...................................	...................................	.................................0	.................................0
21.	Furniture and equipment, including health care delivery assets
	($		)	...................................	...................................	.................................0	.................................0
22.	.........Net adjustment in assets and liabilities due to foreign exchange rates	...................................	...................................	.................................0	.................................0
23.	Receivables from parent, subsidiaries and affiliates	................. 11,514,387	...................................	................. 11,514,387	................. 16,957,808
24.	Health care ($		) and other amounts receivable	...................................	...................................	.................................0	.................................0
25.	Aggregate write-ins for other than invested assets	................... 3,037,263	.................................0	................... 3,037,263	................... 2,137,362

26. Total assets excluding Separate Accounts, Segregated Accounts and

	Protected Cell Accounts (Lines 12 to 25)	110,478,374	485,248	109,993,126	108,345,983
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	...................................	...................................	.................................0	.................................0
28.	Total (Lines 26 and 27)	110,478,374	485,248	109,993,126	108,345,983
	DETAILS OF WRITE-INS

1101.	......................................................................................................................	....................................	....................................	....................................	....................................
1102.	......................................................................................................................	....................................	....................................	....................................	....................................
1103.	......................................................................................................................	....................................	....................................	....................................	....................................
1198.	Summary of remaining write-ins for Line 11 from overflow page	.................................0	.................................0	.................................0	.................................0
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)	0	0	0	0
2501.	State premium tax receivable	................... 3,037,263	...................................	................... 3,037,263	................... 2,137,362

2502.	.......................................................................................................................	....................................	....................................	....................................	....................................
2503.	.......................................................................................................................	....................................	....................................	....................................	....................................
2598.	Summary of remaining write-ins for Line 25 from overflow page	.................................0	.................................0	.................................0	.................................0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	3,037,263	0	3,037,263	2,137,362

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

							1	2
							Current	December 31,
							Statement Date	Prior Year
1.	Losses (current accident year $	3,371,298 )			................. 19,227,402	................. 19,798,600
2.	.......................................................................................Reinsurance payable on paid losses and loss adjustment expenses			................... 8,310,257	...................8,021,299
3.	Loss adjustment expenses					................... 2,530,229	................... 2,327,485
4.	Commissions payable, contingent commissions and other similar charges	.............................................................................		.......................723,856	...................... 589,031
5.	...............................................................................................................Other expenses (excluding taxes, licenses and fees)			........................ 17,466	...................................
6.	...................................................................................Taxes, licenses and fees (excluding federal and foreign income taxes)			...................... 138,091	...................... 126,938
7.1	Current federal and foreign income taxes (including $	on realized capital gains (losses))	..............	...................................	...................................
7.2	Net deferred tax liability					...................................	...................................
8.	Borrowed money $	and interest thereon $	..............................................	...................................	...................................
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	47,503,930	and
	including warranty reserves of $ ................................... and accrued accident and health experience rating refunds
	including $	0	for medical loss ratio rebate per the Public Health Service Act)
	................. 11,075,609	................... 9,905,722
10.	Advance premium					........................ 76,119	.......................747,710
11.	Dividends declared and unpaid:
	11.1 Stockholders					...................................	...................................
	11.2 Policyholders					........................ 21,301	........................ 11,439
12.	........................................................................................Ceded reinsurance premiums payable (net of ceding commissions)			................. 50,484,683	................. 49,153,000
13.	..................................................................................................................Funds held by company under reinsurance treaties			...................... 320,000	...................... 320,000
14.	..............................................................................................Amounts withheld or retained by company for account of others			................... 1,496,475	................... 1,569,627
15.	........................................................................................................................................Remittances and items not allocated				.......................331,018	...................... 141,361
16.	Provision for reinsurance (including $	................................... certified)			.......................177,000	.......................177,000
17.	...................................................................................Net adjustments in assets and liabilities due to foreign exchange rates			...................................	...................................
18.	Drafts outstanding					...................................	...................................
19.	............................................................................................................................Payable to parent, subsidiaries and affiliates			...................................	...................................
20.	Derivatives					.................................0	.................................0
21.	Payable for securities					...................................	...................................
22.	....................................................................................................................................................Payable for securities lending					...................................	...................................
23.	Liability for amounts held under uninsured plans			...................................	...................................
24.	Capital notes $	and interest thereon $	.................................................	...................................	...................................
25.	..............................................................................................................................................Aggregate write-ins for liabilities				0	0
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)			94,929,506	92,889,212
27.	Protected cell liabilities					...................................	...................................
28.	...............................................................................................................................................Total liabilities (Lines 26 and 27)				................. 94,929,506	................. 92,889,212
29.	............................................................................................................................Aggregate write-ins for special surplus funds			.................................0	.................................0
30.	Common capital stock					...................2,501,250	...................2,501,250
31.	Preferred capital stock					...................................	...................................
32.	...........................................................................................................Aggregate write-ins for other than special surplus funds			.................................0	.................................0
33.	Surplus notes					...................................	...................................
34.	.......................................................................................................................................Gross paid in and contributed surplus				.......................758,750	.......................758,750
35.	Unassigned funds (surplus)					................. 11,803,620	................. 12,196,771
36.	Less treasury stock, at cost:
	36.1	shares common (value included in Line 30	$	)	...................................	...................................
	36.2	shares preferred (value included in Line 31	$	)
37.	Surplus as regards policyholders (Lines 29 to 35, less 36)			15,063,620	15,456,771
38.	Totals (Page 2, Line 28, Col. 3)					109,993,126	108,345,983
	DETAILS OF WRITE-INS
2501		....................................
2502		....................................

2503		....................................
2598.	Summary of remaining write-ins for Line 25 from overflow page	.................................0	.................................0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	0	0
2901		....................................

2902
2903		....................................
2998.	Summary of remaining write-ins for Line 29 from overflow page	.................................0	.................................0
2999.	Totals (Lines 2901 through 2903 plus 2998)(Line 29 above)	0	0
3201		....................................
3202		....................................
3203		....................................
3298.	Summary of remaining write-ins for Line 32 from overflow page	.................................0	.................................0
3299.	Totals (Lines 3201 through 3203 plus 3298)(Line 32 above)	0	0

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

STATEMENT OF INCOME

					1	2	3
					Current	Prior Year	Prior Year Ended
					Year to Date	to Date	December 31
		UNDERWRITING INCOME
1.	Premiums earned:
	1.1 Direct (written $	29,470,897	)	................. 24,931,766	................. 24,042,227	................. 98,449,973
	1.2 Assumed (written $	.............................................................................10,012,853 )	................... 8,604,523	................... 8,534,267	................. 34,282,329
	1.3 Ceded (written $	32,354,068	)	................. 27,576,493	................. 26,549,854	................109,166,978
	1.4 Net (written $	7,129,682 )	.....................................................................................	5,959,796	6,026,640	................. 23,565,324
		DEDUCTIONS:
2.	Losses incurred (current accident year $	4,096,370	):
	2.1 Direct			................. 11,533,944	...................8,418,625	................. 65,422,507
	2.2 Assumed			...................4,914,645	................... 4,647,548	................. 21,691,187
	2.3 Ceded
			12,502,705	9,143,998	................. 69,540,619
	2.4 Net			................... 3,945,884	................... 3,922,175	................. 17,573,075
3.	....................................................................................................Loss adjustment expenses incurred		...................... 642,354	...................... 638,494	...................2,401,248
4.	.................................................................................................Other underwriting expenses incurred		................... 1,964,772	................... 1,743,345	................... 7,118,423
5.	..................................................................................Aggregate write-ins for underwriting deductions	.................................0	.................................0	.................................0
6.	...............................................................................Total underwriting deductions (Lines 2 through 5)	................... 6,553,010	................... 6,304,014	................. 27,092,746
7.	.............................................................................................................Net income of protected cells
8.	Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)	(593,214)	(277,374)	................. (3,527,422)
		INVESTMENT INCOME
9.	Net investment income earned		257,792	192,522	.......................852,376
10.	Net realized capital gains (losses) less capital gains tax of $	(551)	2,604	(125,964)	(78,155)
11.	Net investment gain (loss) (Lines 9 + 10)		260,396	66,558	.......................774,221
		OTHER INCOME
12.	Net gain or (loss) from agents' or premium balances charged off (amount recovered
	$	amount charged off $	13,605 )	.......................(13,605)	...................... (68,196)	.....................(286,898)
13.	Finance and service charges not included in premiums	39,280	22,172	45,559
14.	Aggregate write-ins for miscellaneous income	...................................................................................	0	0	0
15.	Total other income (Lines 12 through 14)		25,675	(46,024)	(241,339)

16. Net income before dividends to policyholders, after capital gains tax and before all other federal

and foreign income taxes (Lines 8 + 11 + 15)	(307,143)	(256,840)	(2,994,540)
17. Dividends to policyholders	41,117	58,009	159,078

18. Net income, after dividends to policyholders, after capital gains tax and before all other federal and

	foreign income taxes (Line 16 minus Line 17)	(348,260)	(314,849)	(3,153,618)
19.	Federal and foreign income taxes incurred	(98,325)	(28,793)	(532,290)
20.	Net income (Line 18 minus Line 19)(to Line 22)	(249,935)	(286,056)	(2,621,328)
	CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year	15,456,770	20,268,086	20,268,086
22.	Net income (from Line 20)	(249,935)	(286,056)	(2,621,328)
23.	Net transfers (to) from Protected Cell accounts	...................................	...................................	...................................
24.	Change in net unrealized capital gains (losses) less capital gains tax of $	...................................	...................................	...................................
25.	Change in net unrealized foreign exchange capital gain (loss)	...................................	...................................	...................................
26.	Change in net deferred income tax	.......................... 5,779	..........................7,696	...................... 128,228
27.	Change in nonadmitted assets	.....................(148,994)	..........................2,646	.....................(114,408)
28.	Change in provision for reinsurance	...................................	...................................	.....................(177,000)
29.	Change in surplus notes	...................................	...................................	...................................
30.	Surplus (contributed to) withdrawn from protected cells	...................................	...................................	...................................
31.	Cumulative effect of changes in accounting principles	...................................	...................................	...................................
32.	Capital changes:
	32.1 Paid in	...................................	...................................	...................................
	32.2 Transferred from surplus (Stock Dividend)	...................................	...................................	...................................
	32.3 Transferred to surplus
	...................................	...................................	...................................
33.	Surplus adjustments:
	33.1 Paid in	0	0	.................................0
	33.2 Transferred to capital (Stock Dividend)	...................................	...................................	...................................
	33.3 Transferred from capital	...................................	...................................	...................................
34.	Net remittances from or (to) Home Office	...................................	...................................	...................................
35.	Dividends to stockholders	...................................	...................................	................. (2,026,808)
36.	Change in treasury stock	...................................	...................................	.................................0
37.	Aggregate write-ins for gains and losses in surplus	0	0	0
38.	Change in surplus as regards policyholders (Lines 22 through 37)	(393,150)	(275,714)	(4,811,316)
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	15,063,620	19,992,372	15,456,770
	DETAILS OF WRITE-INS
0501	....................................	....................................	....................................
0502	....................................	....................................	....................................

0503
0598.	Summary of remaining write-ins for Line 5 from overflow page	0	.................................0	.................................0
0599.	Totals (Lines 0501 through 0503 plus 0598)(Line 5 above)	0	0	0
1401.	............................................................................................................................................................	...................................	...................................	.................................0

1402	....................................	....................................		....................................
1403	....................................	....................................		....................................
1498.	Summary of remaining write-ins for Line 14 from overflow page	.................................0	.................................0		.................................0
1499.	Totals (Lines 1401 through 1403 plus 1498)(Line 14 above)	0	0		0
3701	....................................		....................................	....................................
3702	....................................	....................................		....................................
3703	....................................	....................................	....................................
3798.	Summary of remaining write-ins for Line 37 from overflow page	.................................0	.................................0		.................................0
3799.	Totals (Lines 3701 through 3703 plus 3798)(Line 37 above)	0	0		0

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance
...................1,665,514	................... 4,613,319	................. 22,980,019
2.	Net investment income	...................... 255,361	...................... 216,654	...................... 824,954
3.	Miscellaneous income	25,675	(46,024)	(241,339)
4.	Total (Lines 1 to 3)	1,946,550	4,783,949	23,563,634
5.	Benefit and loss related payments	................... 4,667,734	................... 5,348,177	................. 11,776,193
6.	.................Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	.................................0	.................................0	.................................0
7.	...............................................Commissions, expenses paid and aggregate write-ins for deductions	................... 1,801,328	................... 1,573,216	................... 7,044,923
8.	Dividends paid to policyholders	........................ 31,255	........................ 55,993	.......................147,639
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital
	gains (losses)	0	0	276,737
10.	Total (Lines 5 through 9)	6,500,317	6,977,386	19,245,492
11.	Net cash from operations (Line 4 minus Line 10)	(4,553,767)	(2,193,437)	4,318,142

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	.......................202,237	1,059,219	2,439,073
12.2	Stocks	0	.................................0	.................................0
12.3	Mortgage loans	.................................0	.................................0	.................................0
12.4	Real estate	.................................0	.................................0	.................................0
12.5	Other invested assets	.................................0	.................................0	.................................0
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	.................................0	.................................0	.................................0
12.7	Miscellaneous proceeds	125,000	330,000	329,500
12.8 Total investment proceeds (Lines 12.1 to 12.7)	.......................327,237	................... 1,389,219	................... 2,768,573
13. Cost of investments acquired (long-term only):
13.1	Bonds	................... 1,217,125	................... 1,030,304	................... 8,051,887
13.2	Stocks	.................................0	.................................0	.................................0
13.3	Mortgage loans	.................................0	.................................0	.................................0
13.4	Real estate	.................................0	.................................0	.................................0
13.5	Other invested assets	.................................0	.................................0	.................................0
13.6	Miscellaneous applications	0	0	0
13.7	Total investments acquired (Lines 13.1 to 13.6)	1,217,125	1,030,304	8,051,887
14. Net increase (or decrease) in contract loans and premium notes	0	0	0
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	(889,888)	358,915	(5,283,314)

Cash from Financing and Miscellaneous Sources

16. Cash provided (applied):

16.1	Surplus notes, capital notes	.................................0	.................................0	.................................0
16.2	Capital and paid in surplus, less treasury stock	.................................0	.................................0	.................................0
16.3	Borrowed funds	.................................0	.................................0	.................................0
16.4	Net deposits on deposit-type contracts and other insurance liabilities	.................................0	.................................0	.................................0
16.5 Dividends to stockholders	0	0	2,026,808
16.6 Other cash provided (applied)	4,662,082	2,297,991	709,314

17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5

	plus Line 16.6)	4,662,082	2,297,991	(1,317,494)
	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

18.	Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) .	.....................(781,573)	...................... 463,469	................. (2,282,666)
19.	Cash, cash equivalents and short-term investments:
	19.1 Beginning of year	................... 1,955,797	................... 4,238,462	................... 4,238,462
	19.2 End of period (Line 18 plus Line 19.1)	1,174,224	4,701,931	1,955,797

Note: Supplemental disclosures of cash flow information for non-cash transactions:

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

NOTES TO FINANCIAL STATEMENTS

Allied EasteIndemnity Company ("Allied Eastern" or the "Company") is a member of EasteAlliance Insurance Group ("EAIG"), whose member companies include EasteAlliance Insurance Company ("EasteAlliance"), Allied Easteand EasteAdvantage Assurance Company ("EasteAdvantage"). EasteAlliance, Allied Easteand EasteAdvantage are 100% owned by EasteInsurance Holdings, Inc. ("EIHI"). EIHI's other wholly-owned subsidiaries include Inova Re Ltd., SPC ("Inova Re") and EasteRe Ltd., SPC ("EasteRe"), which are segregated portfolio cell companies domiciled in the Cayman Islands. EIHI is wholly-owned by ProAssurance Corporation ("ProAssurance"). Refer to Schedule Y-Part 1 for additional details on ProAssurance's corporate structure.

NOTE 1 Summary of Significant Accounting Policies and Going Concern

Accounting Practices
The accompanying financial statements of the Company have been prepared on the basis of accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania (the "Insurance Department"). The Insurance Department requires insurance companies domiciled in Pennsylvania to prepare their financial statements in accordance with the National Association of Insurance Commissioners' ("NAIC") Annual Statement Instructions and Accounting Practices and Procedures Manual (collectively, "NAIC SAP").
The Pennsylvania Insurance Commissioner has the right to permit accounting practices that deviate from NAIC SAP. The Company did not have any permitted practices in 2024 or 2023.

NET INCOME

State basis (Page 4, Line 20, Columns 1 & 3)
State Prescribed Practices that are an increase/ (decrease) from NAIC SAP:
State Permitted Practices that are an increase/(decrease) from NAIC SAP:

	F/S	F/S
SSAP #	Page	Line #			March 31, 2024		December 31, 2023
XXX	XXX	XXX	$	(249,935)	$	(2,621,328)

(4)	NAIC SAP (1-2-3=4)	XXX	XXX	XXX	$	(249,935)	$	(2,621,328)
SURPLUS
(5)	State basis (Page 3, Line 37, Columns 1 & 2)	XXX	XXX	XXX	$	15,063,620	$	15,456,771

State Prescribed Practices that are an increase/(decrease) from NAIC SAP:
State Permitted Practices that are an increase/(decrease) from NAIC SAP:

(8) NAIC SAP (5-6-7=8)

XXX

15,063,620

15,456,771

The term "NONE" or "NOT APPLICABLE" is used in the following notes to indicate that the Company does not have any items requiring disclosure under the respective note.

Use of Estimates in the Preparation of the Financial Statements
The preparation of the Company's statutory financial statements in conformity with accounting practices prescribed or permitted by the Insurance Department requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires disclosure of contingent assets and liabilities at the date of the statutory financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.
Accounting Policies
1. Basis for Bonds and Amortization Method
  Bonds not backed by other loans are stated at amortized cost or at the lower of amortized cost or fair value, if rated NAIC 3 or below, in accordance with SSAP No. 26R - Bonds, Excluding Loan-Backed and Structured Securities. Premiums and discounts on bonds are amortized or accreted, respectively, over the life of the related debt security as an adjustment to yield using the scientific method. Interest income is recognized when earned.

1. Basis for Loan-Backed Securities and Adjustment Methodology
  Company reports the securities at the lower of amortized cost or fair value. The Company uses the prospective method to make valuation adjustments when necessary.
Going Concern
Management has concluded that there is no doubt regarding the Company's ability to continue as a going conceas of March 31, 2024.

NOTE 2 Accounting Changes and Corrections of Errors

NONE

NOTE 3 Business Combinations and Goodwill

NONE

NOTE 4 Discontinued Operations

NONE

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

NOTES TO FINANCIAL STATEMENTS

NOTE 5 Investments

Mortgage Loans, including Mezzanine Real Estate Loans
NONE
Debt Restructuring
NONE
Reverse Mortgages
NONE
Loan-BackedSecurities
1. Description of Sources Used to Determine Prepayment Assumptions
  Prepayment assumptions for single-class and multi-classmortgage-backed securities were obtained from broker dealer survey values or internal estimates.
2. Other-ThanTemporary Impairments
  NONE
3. Recognized OTTI Securities
  NONE
4. All impaired securities (fair value is less than cost or amortized cost) for which an other-than-temporary impairment has not been recognized in earnings as a realized loss (including securities with a recognized other-than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains):

a) The aggregate amount of unrealized losses:

1.	Less than 12 Months	$	(24,376)
2.	12 Months or Longer	$	(2,638,973)

b)The aggregate related fair value of securities with unrealized losses:

1.	Less than 12 Months	$	2,782,241
2.	12 Months or Longer	$	21,010,636

1. Information Investor Considered in Reaching Conclusion that Impairments are Not Other-Than-Temporary
  The Company used pricing services in determining the fair value of its loan-backed securities. In determining that a security is not other-than-temporarily impaired, securities are analyzed for future cash flows by using current and expected losses, historical and expected prepayment speeds (based on Bloomberg and broker dealer survey values), and assumptions about recoveries relative to the seniority or subordination in the capital structure. If the results indicate that we will be able to maintain the current book yield, no other-than-temporary impairment is warranted.
Dollar Repurchase Agreements and/or Securities Lending Transactions
NONE
Repurchase Agreements Transactions Accounted for as Secured Borrowing
NONE
Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing
NONE
Repurchase Agreements Transactions Accounted for as a Sale
NONE
Reverse Repurchase Agreements Transactions Accounted for as a Sale
NONE
Real Estate
NONE
Low Income Housing tax Credits (LIHTC)
NONE
Restricted Assets
NO SIGNIFICANT CHANGES
Working Capital Finance Investments
NONE
Offsetting and Netting of Assets and Liabilities
NONE

6.1

STATEMENT AS OF MARCH 31, 2024 OF THE ALLIED EASTERN INDEMNITY COMPANY

NOTES TO FINANCIAL STATEMENTS

5GI Securities
NONE
Short Sales
NONE
Prepayment Penalty and Acceleration Fees
NONE
Reporting Entity's Share of Cash Pool by Asset Type

NOT APPLICABLE

NOTE 6 Joint Ventures, Partnerships and Limited Liability Companies

NONE

NOTE 7 Investment Income

NONE

NOTE 8 Derivative Instruments

NONE

NOTE 9 Income Taxes

Inflation Reduction Act - Corporate Alternative Minimum Tax (CAMT)
1. The Act was enacted on August 16, 2022.
2. The controlled group of corporations of which the reporting entity is a member has determined that it does not expect to be liable for CAMT in 2024.
3. Based upon projected adjusted financial statement income for 2024, the controlled group of corporations of which the reporting entity is a member has determined that average "adjusted financial statement income" is below the thresholds for the 2024 tax year such that it does not expect to be required to perform the CAMT calculations.

NOTE 10 Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties

Nature of the Relationship Involved

Effective January 15, 2024, affiliate Medmarc Casualty Insurance Company paid a dividend in the form of its subsidiary, Hamilton Resources Corporation, whereby Hamilton Resources Corporation became a subsidiary of Medmarc's parent, PRA Professional Liability Group, Inc.

Material Management or Service Contracts and Cost-Sharing Arrangements
The Company participates in an Expense Allocation Agreement and a Management Services Agreement (the Agreements) with affiliates under which expenses are allocated in accordance with SSAP No. 70 - Allocation of Expenses. For the three months ended March 31, 2024, EIHI was charged $544,612 under the Management Services Agreement. No management fees were charged directly to the Company.
The Company amended its Management Services Agreement to modify allocation percentages effective January 1, 2023. Regulatory approval or non-disapproval was received.

NOTE 11 Debt

NONE

NOTE 12 Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other

Postretirement Benefit Plans

NONE

NOTE 13 Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations

The maximum dividend payout available to the Company's shareholders in 2024, without prior approval of the Insurance Department is $1,545,677. The maximum dividend is equal to the greater of 10% of statutory surplus or 100% of statutory net income as reported in the Compnay's 2023 Annual Statement filed with the Insurance Department.

NOTE 14 Liabilities, Contingencies and Assessments

NO SIGNIFICANT CHANGES

NOTE 15 Leases

NONE

NOTE 16 Information About Financial Instruments With Off-Balance Sheet Risk and Financial Instruments With Concentrations of Credit Risk

NONE

NOTE 17 Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

NONE

6.2

Attachments

Disclaimer

ProAssurance Corporation published this content on 03 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2024 20:03:00 UTC.

"Allied EasteIndemnity Company","PNC AS","2024 03 31" Annual Statutory Statement

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