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November 5, 2024 Reinsurance

Insurance Regulatory Filing (09/30/2024)

U.S. Markets via PUBT

*13188202420100103*

PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION

QUARTERLY STATEMENT

AS OF SEPTEMBER 30, 2024

OF THE CONDITION AND AFFAIRS OF THE

WesteSurety Company

NAIC Group Code

0218

NAIC Company Code 13188

Employer's ID Number

46-0204900

(Current)

(Prior)

Organized under the Laws of

, State of Domicile or Port of Entry

Country of Domicile

United States of America

Incorporated/Organized

07/16/1900

Commenced Business

07/20/1900

Statutory Home Office

101 S. Reid Street

Sioux Falls, SD, US 57103

(Street and Number)

(City or Town, State, Country and Zip Code)

Main Administrative Office

151 N. Franklin Street

(Street and Number)

Chicago, IL, US 60606

312-822-5000

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Mail Address

151 N. Franklin Street

Chicago, IL, US 60606

(Street and Number or P.O. Box)

(City or Town, State, Country and Zip Code)

Primary Location of Books and Records

151 N. Franklin Street

(Street and Number)

Chicago, IL, US 60606

312-822-5000

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Internet Website Address

www.cna.com

Statutory Statement Contact

Bailey W. Maenner

312-822-5033

(Name)

(Area Code) (Telephone Number)

[email protected]

312-260-4376

(E-mail Address)

(FAX Number)

OFFICERS

Chairman of the Board,
Chief Executive Officer &		Executive Vice President &
President	Dino Ennio Robusto	General Counsel	Susan Ann Stone
Executive Vice President &
Chief Financial Officer	Scott Robert Lindquist

OTHER

			Amy Caroline Adams,			Elizabeth Ann Aguinaga,	Nick Creatura,
			SVP & Treasurer			EVP & Chief Human Resources Officer	President & Chief Executive Officer, Canada
			Stathy Darcy,			Daniel Paul Franzetti,	Robert Joseph Hopper,
	SVP, Deputy General Counsel & Secretary			EVP & Chief Administrative Officer		EVP & Chief Actuary
			Mark Steven James,			Jane Elizabeth Possell,	Jalil Ur Rehman,
		EVP, Chief Risk & Reinsurance Officer		EVP, Chief Information Officer, Analytics, Operations		President & Chief Executive Officer, UK & Europe
			Amy Marie Smith,			Douglas Merle Worman,
			SVP & Chief Accounting Officer			EVP & Global Head of Underwriting
						DIRECTORS OR TRUSTEES
			Robert Joseph Hopper			Scott Robert Lindquist	Dino Ennio Robusto
			Susan Ann Stone			Douglas Merle Worman
State of		Illinois			SS:
County of		Cook

The officers of this reporting entity being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.


	DINO ENNIO ROBUSTO		STATHY DARCY		SCOTT ROBERT LINDQUIST
Chairman of the Board, Chief Executive Officer &	Senior Vice President, Deputy General Counsel &	Executive Vice President & Chief Financial Officer
		President		Secretary
						a. Is this an original filing?	...................... Yes [ X ] No [ ]
Subscribed and swoto before me this			b. If no,
5th		day of		November, 2024		1. State the amendment number
					2.	Date filed
					3.	Number of pages attached

Yolanda Jimenez

September 24, 2025

STATEMENT AS OF SEPTEMBER 30, 2024 OF THE WESTERN SURETY 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	............ 1,997,181,675	.................................0	............	1,997,181,675	............ 1,935,600,431
2.	Stocks:
	2.1 Preferred stocks	0	0	.................................	0	.................................0
	2.2 Common stocks	15,703,815	0	.................	15,703,815	................. 15,281,696

3. Mortgage loans on real estate:

	3.1 First liens	..................................................................................................				0	0	0	0
	3.2 Other than first liens			0	0	0	0
4.	Real estate:
	4.1 Properties occupied by the company (less $	0
	encumbrances)				0	0	0	0
	4.2 Properties held for	the production of income (less
	$		0	encumbrances)	.................................0	.................................0	.................................0	.................................0
	4.3 Properties held for sale (less $	0

	.......................................................................................encumbrances)				.................................0	.................................0	.................................0	.................................0
5.	Cash ($	934,905	), cash equivalents
	($	134,701,324	) and short-term
	investments ($	1,049,069 )	................136,685,298	.................................0	................136,685,298	..................36,335,353
6.	Contract loans (including $	.................................	0	premium notes)	.................................0	.................................0	.................................0	.................................0
7.	Derivatives					.................................0	.................................0	.................................0	.................................0
8.	Other invested assets				.................................0	.................................0	.................................0	.................................0
9.	Receivables for securities			.................................0	.................................0	.................................0	................. 14,770,000
10.	Securities lending reinvested collateral assets	.................................0	.................................0	.................................0	.................................0
11.	Aggregate write-ins for invested assets	.................................0	.................................0	.................................0	.................................0
12.	Subtotals, cash and invested assets (Lines 1 to 11)	............ 2,149,570,789	.................................0	............ 2,149,570,789	............ 2,001,987,480
13.	Title plants less $		0 charged off (for Title insurers
	only)					.................................0	.................................0	.................................0	.................................0
14.	Investment income due and accrued	................. 16,688,761	.................................0	................. 16,688,761	................. 18,185,645
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	................. 99,931,253	................. 17,575,437	................. 82,355,816	................. 63,129,845
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	7,280,033
	............................................................earned but unbilled premiums)	................... 5,643,888	...................... 564,399	................... 5,079,490	................... 7,598,164
	15.3 Accrued retrospective premiums ($	0 ) and
	contracts subject to redetermination ($	0 )	.................................0	.................................0	.................................0	.................................0
16.	Reinsurance:
	....................................................16.1 Amounts recoverable from reinsurers	................. (6,112,576)	.................................0	................. (6,112,576)	...................4,459,042
	16.2 Funds held by or deposited with reinsured companies	.................................0	.................................0	.................................0	.................................0
	16.3 Other amounts receivable under reinsurance contracts	.................................0	.................................0	.................................0	.................................0
17.	Amounts receivable relating to uninsured plans	.................................0	.................................0	.................................0	.................................0
18.1	....Current federal and foreign income tax recoverable and interest thereon	.................................0	.................................0	.................................0	.................................0
18.2	...................................................................................Net deferred tax asset				................. 20,146,758	...................... 934,219	................. 19,212,538	................. 18,202,272
19.	Guaranty funds receivable or on deposit	.................................0	0	0	0
20.	Electronic data processing equipment and software	0	0	0	0

21. Furniture and equipment, including health care delivery assets

	($	0 )	.................................0	.................................0	.................................0	.................................0
22.	.........Net adjustment in assets and liabilities due to foreign exchange rates	.................................0	.................................0	.................................0	.................................0
23.	.....................................Receivables from parent, subsidiaries and affiliates	................... 8,742,551	.................................0	................... 8,742,551	................. 12,895,815
24.	Health care ($	0 ) and other amounts receivable	.................................0	.................................0	.................................0	.................................0
25.	........................................Aggregate write-ins for other than invested assets	...................... 507,510	..........................2,452	...................... 505,058	.......................157,742
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	............ 2,295,118,934	................. 19,076,506	............ 2,276,042,427	............ 2,126,616,005
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	.................................0	.................................0	.................................0	.................................0
28.	Total (Lines 26 and 27)		2,295,118,934	19,076,506	2,276,042,427	2,126,616,005
	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.	Miscellaneous receivable	...................... 505,058	.................................0	...................... 505,058	.......................157,742
2502.	Prepaid expenses
..........................2,452	..........................2,452	.................................0	.................................0
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)	507,510	2,452	505,058	157,742

STATEMENT AS OF SEPTEMBER 30, 2024 OF THE WESTERN SURETY COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

									1	2
									Current	December 31,
									Statement Date	Prior Year
1.	Losses (current accident year $	68,458,064 )				............... 255,688,449	................247,328,673
2.	.......................................................................................Reinsurance payable on paid losses and loss adjustment expenses				.................................0	.................................0
3.	Loss adjustment expenses							................. 54,563,339	................. 56,340,495
4.	Commissions payable, contingent commissions and other similar charges	.............................................................................			................. 11,685,215	................. 13,245,319
5.	...............................................................................................................Other expenses (excluding taxes, licenses and fees)				.................................0	.................................0
6.	...................................................................................Taxes, licenses and fees (excluding federal and foreign income taxes)				................... 4,170,894	................... 5,075,390
7.1	Current federal and foreign income taxes (including $	(3) on realized capital gains (losses))	..............	................... 4,185,352	...................... 829,556
7.2	Net deferred tax liability							.................................0	.................................0
8.	Borrowed money $		0 and interest thereon $	0		.................................0	.................................0
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	......................	239,014	and

	including warranty reserves of $ .................................0 and accrued accident and health experience rating refunds
	including $	0	...............................for medical loss ratio rebate per the Public Health Service Act)		................345,917,810	................316,760,881
10.	Advance premium							...................4,222,249	................... 6,183,112
11.	Dividends declared and unpaid:
	11.1 Stockholders							.................................0	.................................0
	11.2 Policyholders							.................................0	.................................0
12.	........................................................................................Ceded reinsurance premiums payable (net of ceding commissions)				................... 2,804,757	................... 4,347,066
13.	..................................................................................................................Funds held by company under reinsurance treaties				.................................0	.................................0
14.	..............................................................................................Amounts withheld or retained by company for account of others				................... 3,675,227	................... 3,094,680
15.	........................................................................................................................................Remittances and items not allocated					.......................(28,973)	........................ (6,171)
16.	Provision for reinsurance (including $	.................................0 certified)				.......................157,388	.......................157,388
17.	...................................................................................Net adjustments in assets and liabilities due to foreign exchange rates				.................................0	.................................0
18.	Drafts outstanding							.................................0	.................................0
19.	............................................................................................................................Payable to parent, subsidiaries and affiliates				.................................0	..........................9,464
20.	Derivatives							.................................0	.................................0
21.	Payable for securities							.................................0	.................................0
22.	Payable for securities lending	....................................................................................................................................................					.................................0	.................................0
23.	......................................................................................................................Liability for amounts held under uninsured plans				.................................0	.................................0
24.	Capital notes $		0 and interest thereon $	0		.................................0	.................................0
25.	Aggregate write-ins for liabilities					0	0
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)				687,041,707	653,365,853
27.	Protected cell liabilities							.................................0	.................................0
28.	...............................................................................................................................................Total liabilities (Lines 26 and 27)					................687,041,707	................653,365,853
29.	............................................................................................................................Aggregate write-ins for special surplus funds				.................................0	.................................0
30.	Common capital stock							...................4,000,000	...................4,000,000
31.	Preferred capital stock							.................................0	.................................0
32.	Aggregate write-ins for other than special surplus funds				.................................0	.................................0
33.	Surplus notes							.................................0	.................................0
34.	.......................................................................................................................................Gross paid in and contributed surplus					............... 286,896,195	............... 286,896,195
35.	Unassigned funds (surplus)	.......................................................................................................................................................						............ 1,298,104,525	............ 1,182,353,957
36.	Less treasury stock, at cost:
	36.1	0	shares common (value included in Line 30	$	0	)	.................................0	.................................0
	36.2	0	shares preferred (value included in Line 31	$	0	)	0	0
37.	Surplus as regards policyholders (Lines 29 to 35, less 36)				1,589,000,720	1,473,250,152
38.	Totals (Page 2, Line 28, Col. 3)						2,276,042,427	2,126,616,005
	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 SEPTEMBER 30, 2024 OF THE WESTERN SURETY 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 $	................	403,535,136	)	371,631,283	350,246,576		................472,279,458

	1.2 Assumed (written $	...................	4,134,811 )		................... 3,975,407	................... 4,089,672		...................5,441,406

	1.3 Ceded (written $	.................	21,847,869	)	................. 22,398,438	................. 21,212,746		................. 28,539,009

	1.4 Net (written $	385,822,078 )	.....................................................................................	................353,208,252	................333,123,502		............... 449,181,855
			DEDUCTIONS:
2.	Losses incurred (current accident year $	75,262,240	):
	2.1 Direct				61,037,436	102,417,021		................134,139,995
	2.2 Assumed				463,121	572,420		...................... 806,092
	2.3 Ceded				................... 6,206,723	................. 19,792,974		................. 22,353,689
	2.4 Net				................. 55,293,835	................. 83,196,467		................112,592,399
3.	....................................................................................................Loss adjustment expenses incurred		................. 10,220,485	................. 12,255,418		................. 17,141,166
4.	.................................................................................................Other underwriting expenses incurred		................202,764,471	................195,800,374		................256,706,025
5.	Aggregate write-ins for underwriting deductions
0	0		.................................0
6.	Total underwriting deductions (Lines 2 through 5)	268,278,791	291,252,259		................386,439,590
7.	Net income of protected cells
		0	0		0
8.	Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)	84,929,460	41,871,243		................. 62,742,266
			INVESTMENT INCOME
9.	Net investment income earned		61,096,768	57,628,021		................. 79,398,458
10.	Net realized capital gains (losses) less capital gains tax of $	0	(150,011)	(3,575,474)		(3,685,896)
11.	Net investment gain (loss) (Lines 9 + 10)		60,946,757	54,052,547		................. 75,712,563
			OTHER INCOME
12.	Net gain or (loss) from agents' or premium balances charged off (amount recovered
	$	0	...................amount charged off $	1,352,664 )	................. (1,352,664)	................. (1,101,623)		................. (1,384,640)
13.	Finance and service charges not included in premiums	0	0		0
14.	Aggregate write-ins for miscellaneous income	...................................................................................	56	137		137
15.	Total other income (Lines 12 through 14)		(1,352,608)	(1,101,486)		(1,384,502)

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

and foreign income taxes (Lines 8 + 11 + 15)	................144,523,610	94,822,305	137,070,326
17. Dividends to policyholders	0	0	0

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)	144,523,610	94,822,305	137,070,326
19.	Federal and foreign income taxes incurred	30,634,490	21,549,975	29,738,013
20.	Net income (Line 18 minus Line 19)(to Line 22)	113,889,120	73,272,330	107,332,313
	CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year	1,473,250,152	1,516,583,471	1,516,583,471
22.	Net income (from Line 20)	113,889,120	73,272,330	107,332,313
23.	Net transfers (to) from Protected Cell accounts	.................................0	.................................0	.................................0
24.	........................Change in net unrealized capital gains (losses) less capital gains tax of $	42,102	...................... 580,503	................... 2,022,330	...................1,260,198
25.	Change in net unrealized foreign exchange capital gain (loss)	.................................0	.................................0	.................................0
26.	Change in net deferred income tax	................... 1,432,942	................... 1,844,533	...................2,240,516
27.	Change in nonadmitted assets	.....................(151,997)	................. (3,914,547)	................. (2,688,963)
28.	Change in provision for reinsurance	.................................0	.................................0	...................... 122,617
29.	Change in surplus notes	.................................0	.................................0	.................................0
30.	Surplus (contributed to) withdrawn from protected cells	.................................0	.................................0	.................................0
31.	Cumulative effect of changes in accounting principles	0	0	0

32. Capital changes:

	32.1	Paid in	.................................0	.................................0	.................................0
	32.2	Transferred from surplus (Stock Dividend)	.................................0	.................................0	.................................0
	32.3	Transferred to surplus	.................................0	.................................0	.................................0
33.	Surplus adjustments:
	33.1	Paid in	.................................0	.................................0	.................................0
	33.2	Transferred to capital (Stock Dividend)			.................................0
	.................................0	.................................0
	33.3	Transferred from capital	.................................0	.................................0	.................................0
34.	............................................................................................Net remittances from or (to) Home Office	.................................0	.................................0	.................................0
35.	Dividends to stockholders	0	0	..............(151,600,000)
36.	.....................................................................................................................Change in treasury stock	.................................0	.................................0	.................................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)	115,750,568	73,224,646	(43,333,318)
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	1,589,000,720	1,589,808,117	1,473,250,152
	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.	Miscellaneous profit and (loss) items	56	137	............................. 137
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)	56	137	137
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 SEPTEMBER 30, 2024 OF THE WESTERN SURETY COMPANY

CASH FLOW

Cash from Operations

Current Year

To Date

Prior Year

To Date

Prior Year Ended

December 31

1.	Premiums collected net of reinsurance	................361,030,788	................342,407,036	................456,983,477
2.	Net investment income	................. 60,856,358	................. 58,507,098	................. 79,241,868
3.	Miscellaneous income	56	137	137
4.	Total (Lines 1 to 3)	421,887,202	400,914,271	536,225,482
5.	Benefit and loss related payments	................. 36,362,441	................. 20,403,575	................. 29,667,362
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	................217,233,083	............... 206,908,648	................267,469,817
8.	Dividends paid to policyholders	.................................0	.................................0	.................................0
9.	Federal and foreign income taxes paid (recovered) net of $	83,217 tax on capital
	gains (losses)	27,278,694	30,709,528	35,125,374
10.	Total (Lines 5 through 9)	280,874,218	258,021,751	332,262,553
11.	Net cash from operations (Line 4 minus Line 10)	141,012,984	142,892,520	203,962,929

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

	12.1	Bonds	................121,269,785	................121,581,756	................166,810,873
	12.2	Stocks	.................................0	.................................0	.......................363,051
	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	........................ (3,667)	........................ (3,667)
	12.7	Miscellaneous proceeds	14,770,000	0	0
	12.8 Total investment proceeds (Lines 12.1 to 12.7)	................136,039,785	................121,578,089	................167,170,257
13.	Cost of investments acquired (long-term only):
	13.1	Bonds	................181,057,054	................133,690,212	................139,594,370
	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	358,200	14,720,000
	13.7	Total investments acquired (Lines 13.1 to 13.6)	181,057,054	134,048,412	154,314,370
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)	(45,017,269)	(12,470,323)	12,855,887
		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	............... 151,600,000
	....................................................................................................16.6 Other cash provided (applied)	4,354,229	(23,160,061)	(29,725,947)
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)	4,354,229	(23,160,061)	(181,325,947)
	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)	................100,349,944	................107,262,136	................. 35,492,869
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year	..................36,335,353	...................... 842,484	...................... 842,484
	19.2 End of period (Line 18 plus Line 19.1)	136,685,298	108,104,620	36,335,353

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

20.0001. Non-cashacquisition of bonds and stocks - cost	...................... 145,748	.................................0	.................................0

ｓｔａｔｅｍｅｎｔ＠ａｓ＠ｏｆ＠ｓｅｐｔｅｍｂｅｒ＠ＳＰＬ＠ＲＰＲＴ＠ｏｆ＠ｔｈｅ＠ｗｅｓｔｅｒｎ＠ｓｕｒｅｔｙ＠ｃｏｍｐａｎｙ

NOTES TO FINANCIAL STATEMENTS

There have been no significant changes to the following December 31, 2023 Annual Statement notes: 1(B, C1-5, C7-13), 2-4, 5(A-C, D2-3, E-R), 6-19, 21(A-B, D-H), 23-24, and 26-36.

WesteSurety Company (WSC or the Company) is a wholly-owned subsidiary of Continental Casualty Company (CCC), which is an indirect wholly-owned subsidiary of CNA Financial Corporation (CNAF). Loews Corporation (Loews) owned approximately 92% of the outstanding common stock of CNAF as of September 30, 2024.

Other related entities include American Casualty Company of Reading, Pennsylvania (ACCO), Bantry Insurance Company (BIC), CNA Insurance Company (Europe) S.A. (CICE), CNA Insurance Company Limited (CICL), Columbia Casualty Company (COL), Hardy Underwriting Bermuda Limited (Hardy), Inverin Insurance Company (IIC), National Fire Insurance Company of Hartford (NFI), Surety Bonding Company of America (SBCA), The Continental Insurance Company (CIC), The Continental Insurance Company of New Jersey (CNJ), Transportation Insurance Company (TPI), Universal Surety of America (USA), and Valley Forge Insurance Company (VFI).

Note 1 - Summary of Significant Accounting Policies and Going Concern

Accounting Practices
The accompanying financial statements of WSC have been prepared in conformity with accounting practices prescribed or permitted by the State of South Dakota (South Dakota). South Dakota requires its domiciled insurance companies to prepare statutory basis financial statements in accordance with the National Association of Insurance Commissioners Accounting Practices and Procedures Manual (NAIC SAP), subject to any deviations prescribed or permitted by South Dakota. In the opinion of management, these financial statements include all adjustments, consisting of normal recurring accruals, necessary for the fair presentation of the statutory financial position, results of operations and cash flows.
A reconciliation of the Company's net income and capital and surplus between NAIC SAP and practices prescribed and permitted by South Dakota as of and for the nine months ended September 30, 2024 and as of and for the year ended December 31, 2023 is shown below.

		SSAP #	F/S Page	F/S Line #		September 30, 2024		December 31, 2023
Net income
1)	WSC state basis (Page 4, Line 20, Columns 1 & 2)				$	113,889,120	$	107,332,313
2)	State prescribed practices that are an increase/(decrease) from NAIC SAP	N/A	N/A	N/A			-		-
3)	State permitted practices that are an increase/(decrease) from NAIC SAP	N/A	N/A	N/A			-		-
4)	NAIC SAP (1-2-3=4)				$	113,889,120	$	107,332,313
Surplus

5)	WSC state basis (Page 3, Line 37, Columns 1 & 2)				$	1,589,000,720	$	1,473,250,152
6)	State prescribed practices that are an increase/(decrease) from NAIC SAP	N/A	N/A	N/A			-		-
7)	State permitted practices that are an increase/(decrease) from NAIC SAP	N/A	N/A	N/A			-		-
8)	NAIC SAP (5-6-7=8)				$	1,589,000,720	$	1,473,250,152

Accounting Policies
6. Loan-backed securities with NAIC designations 1 and 2 are stated at amortized cost, whereas, those with NAIC designations 3 through 6 are stated at the lower of amortized cost or fair value. However, certain legacy, non-agency loan- backed securities that closed prior to January 1, 2013 are stated at either fair value or the lower of amortized cost or fair value depending on the relationship between the amortized cost of the security and modeled price points provided by the NAIC. The Company recognizes income for loan-backed securities using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments predominantly using the retrospective method. Unrealized gains (losses) resulting from loan-backed securities that are carried at fair value are credited or charged to unassigned surplus, net of the effects of income taxes.
Going Concern

Based upon its evaluation of relevant conditions and events, management did not have substantial doubt about the Company's ability to continue as a going conceas of September 30, 2024.

Note 5 - Investments

D. Loan-backed Securities

1. Prepayment assumptions for loan-backed securities were obtained by researching broker/dealer survey values, analyzing recent trends from remittance reports, and developing internal estimates.

4. The following table summarizes the aggregate gross unrealized losses of loan-backed securities based on the difference between fair value and amortized cost as of September 30, 2024.

The aggregate amount of unrealized losses:

1.	Less than 12 months	$	341,657
2.	12 months or longer		24,561,431

The aggregate related fair value of securities with unrealized losses:

1.	Less than 12 months	$	32,406,280
2.	12 months or longer		286,385,284

Ｖ

ｓｔａｔｅｍｅｎｔ＠ａｓ＠ｏｆ＠ｓｅｐｔｅｍｂｅｒ＠ＳＰＬ＠ＲＰＲＴ＠ｏｆ＠ｔｈｅ＠ｗｅｓｔｅｒｎ＠ｓｕｒｅｔｙ＠ｃｏｍｐａｎｙ

NOTES TO FINANCIAL STATEMENTS

5. The assessment of whether an OTTI loss has occurred on a loan-backed security incorporates both quantitative and qualitative information. The Company considers its intent and ability, at the reporting date, to retain its investment for a period of time sufficient to recover the amortized cost basis. The Company also considers results and analysis of cash flow modeling for loan-backed securities. The focus of the analysis for loan-backed securities is on assessing the sufficiency and quality of underlying collateral and timing of cash flows based on scenario tests.

Note 20 - Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable.

Level 1 - Quoted prices for identical instruments in active markets.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are not observable.

A & B. Assets and Liabilities Measured at Fair Value

1. The following table provides information about the Company's assets measured and reported at fair value as of September 30, 2024. The Company had no liabilities measured and reported at fair value as of September 30, 2024.

	Level 1				Level 2			Level 3			Net Asset		Total
								Value (NAV)
Assets at fair value
Bonds - Industrial and miscellaneous	$	-		$	5,876,410		$	-		$	-	$	5,876,410
Total assets at fair value/(NAV)	$	-	$	5,876,410	$	-	$	-	$	5,876,410

The Company had no Level 3 securities measured and reported at fair value as of September 30, 2024.
The Company had no transfers into or out of Level 3 securities during the three months ended September 30, 2024. The Company's policy is to recognize transfers between levels at the beginning of quarterly reporting periods.
Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third-party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company.

The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified.

Bonds

Level 1 securities include highly liquid government and exchange traded bonds, valued using quoted market prices. Level 2 securities include most other securities as the significant inputs are observable in the marketplace. All classes of Level 2 securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology, or a combination of both when necessary. Common inputs include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for loan-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with inputs that are not market observable.

C. Aggregate Fair Value of Financial Instruments

The following tables provide the aggregate fair value, statement value, and level within the fair value hierarchy of the Company's financial instruments in their entirety as of September 30, 2024 and December 31, 2023.

September 30, 2024	Aggregate fair			Admitted		Level 1		Level 2		Level 3		Net Asset Value	Not Practicable
	value			assets						(NAV)		(Carrying Value)
Bonds	$	1,936,525,403	$	1,997,181,675	$ 78,169,447	$ 1,810,546,225	$ 47,809,731	$	-	$	-
December 31, 2023	Aggregate fair			Admitted		Level 1		Level 2		Level 3		Net Asset Value	Not Practicable
	value			assets						(NAV)		(Carrying Value)
Bonds	$	1,819,341,206	$	1,935,600,431	$ 48,413,706	$ 1,725,054,480	$ 45,873,020	$	-	$	-

ＶＮＱ

ｓｔａｔｅｍｅｎｔ＠ａｓ＠ｏｆ＠ｓｅｐｔｅｍｂｅｒ＠ＳＰＬ＠ＲＰＲＴ＠ｏｆ＠ｔｈｅ＠ｗｅｓｔｅｒｎ＠ｓｕｒｅｔｙ＠ｃｏｍｐａｎｙ

NOTES TO FINANCIAL STATEMENTS

The fair value of bonds is based on the methodology described above.

The carrying amounts for cash, cash equivalents, and short-term investments, investment income due and accrued and certain other assets and other liabilities approximate fair value due to the short term nature of these items. These assets and liabilities are not listed in the table above.

The Company was able to estimate the fair value of all its financial instruments as of September 30, 2024.

E. The Company did not measure any financial instruments using the NAV practical expedient pursuant to SSAP No. 100R - Fair Value as of September 30, 2024.

Note 21 - Other Items

Other Disclosures
Uncollected Premium and Agents' Balances Due from Controlled or Controlling Persons

The Company did not have any material uncollected premium and agents' balances due from controlled or controlling persons as of September 30, 2024.

Note 22 - Events Subsequent

Subsequent events were considered through November 5, 2024, the date the statutory statements were issued.

Note 25 - Changes in Incurred Losses and Loss Adjustment Expenses

Reasons for Changes in Prior Year Incurred
Loss and loss adjustment expense (LAE) reserves represent management's estimates of ultimate liabilities based on currently available facts and case law. The Company regularly reviews its reserves, and any adjustments to the previously established reserves are recognized in the period that the need for such adjustments is determined. The estimated cost of loss and LAE attributable to insured events of prior years decreased by $25 million for the nine months ended September 30, 2024. Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.
The Company had no significant changes in methodologies and assumptions used in calculating the liability for unpaid losses and LAE during the nine months ended September 30, 2024.

ＶＮＲ

STATEMENT AS OF SEPTEMBER 30, 2024 OF THE WESTERN SURETY COMPANY

GENERAL INTERROGATORIES

PART 1 - COMMON INTERROGATORIES

GENERAL

Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of Domicile, as required by the Model Act? .................................................................................................................................................................
If yes, has the report been filed with the domiciliary state? .....................................................................................................................................

Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the reporting entity? .......................................................................................................................................................................................................
If yes, date of change: .............................................................................................................................................................................................

Is the reporting entity a member of an Insurance Holding Company System consisting of two or more affiliated persons, one or more of which is an insurer? ...........................................................................................................................................................................................................

If yes, complete Schedule Y, Parts 1 and 1A.

Have there been any substantial changes in the organizational chart since the prior quarter end? .......................................................................
If the response to 3.2 is yes, provide a brief description of those changes.
................................................................................................................................................................................................................................

Yes [ ] No [ X ]

Yes [ ] No [ ]

Yes [ ] No [ X ]

Yes [ X ] No [ ]

Yes [ ] No [ X ]

Is the reporting entity publicly traded or a member of a publicly traded group? ......................................................................................................
If the response to 3.4 is yes, provide the CIK (Central Index Key) code issued by the SEC for the entity/group. ...................................................

Has the reporting entity been a party to a merger or consolidation during the period covered by this statement? .................................................
If yes, provide the name of the entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has ceased to exist as a result of the merger or consolidation.

Yes [ X ] No [ ]

21175

Yes [ ] No [ X ]

1	2	3
Name of Entity	NAIC Company Code	State of Domicile
NONE	................. .................	.................. ..................

5. If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-

in-fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved?	Yes [
If yes, attach an explanation.

................................................................................................................................................................................................................................

State as of what date the latest financial examination of the reporting entity was made or is being made. ............................................................
State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity. This date should be the date of the examined balance sheet and not the date the report was completed or released. .................................................
State as of what date the latest financial examination report became available to other states or the public from either the state of domicile or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance sheet date). .......................................................................................................................................................................................................................
By what department or departments?
South Dakota Division of Insurance .......................................................................................................................................................................
Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial

statement filed with Departments?	Yes	[
6.6 Have all of the recommendations within the latest financial examination report been complied with?	Yes	[

Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable) suspended or revoked by any governmental entity during the reporting period? ...........................................................................................................................
If yes, give full information:
................................................................................................................................................................................................................................

Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board? .....................................................................
If response to 8.1 is yes, please identify the name of the bank holding company.
................................................................................................................................................................................................................................

] No [ X ] N/A [ ]

12/31/2023

12/31/2018

07/20/2020

] No [ ] N/A [ X ]

Yes [ ] No [ X ]

8.3 Is the company affiliated with one or more banks, thrifts or securities firms?

Yes [ ] No [ X ]

8.4 If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and identify the affiliate's primary federal regulator.

1	2	3	4	5	6
Affiliate Name	Location (City, State)	FRB	OCC	FDIC	SEC
NONE	.............................................................................	............	............	............	............

STATEMENT AS OF SEPTEMBER 30, 2024 OF THE WESTERN SURETY COMPANY

GENERAL INTERROGATORIES

9.1 Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions) of the reporting entity subject to a code of ethics, which includes the following standards? .......................................................

Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity;
Compliance with applicable governmental laws, rules and regulations;
The prompt internal reporting of violations to an appropriate person or persons identified in the code; and
Accountability for adherence to the code.

9.11 If the response to 9.1 is No, please explain:

9.2 Has the code of ethics for senior managers been amended? .................................................................................................................................

9.21 If the response to 9.2 is Yes, provide information related to amendment(s).

Yes [ X ] No [ ]

Yes [ ] No [ X ]

9.3 Have any provisions of the code of ethics been waived for any of the specified officers?

Yes [ ] No [ X ]

9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).

FINANCIAL

10.1	Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement?	......................................... Yes [ X ]	No [ ]
10.2	If yes, indicate any amounts receivable from parent included in the Page 2 amount:	$	8,664,054

INVESTMENT

11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available for

use by another person? (Exclude securities under securities lending agreements.)

Yes [ ] No [ X ]

11.2 If yes, give full and complete information relating thereto:

12.	Amount of real estate and mortgages held in other invested assets in Schedule BA:	$	0
13.	Amount of real estate and mortgages held in short-term investments:	$	0
14.1	Does the reporting entity have any investments in parent, subsidiaries and affiliates?	Yes [ X ] No [	]

14.2 If yes, please complete the following:

			1				2
			Prior Year-End		Current Quarter
			Book/Adjusted		Book/Adjusted
			Carrying Value			Carrying Value
14.21	Bonds	$	.................................0		$	0
14.22	Preferred Stock	$	.................................0		$	0
14.23	Common Stock	$	................. 15,281,696		$	15,703,815
14.24	Short-Term Investments	$	.................................0		$	0
14.25	Mortgage Loans on Real Estate	$	.................................0		$	0
14.26	All Other	$	.................................0		$	0
14.27	Total Investment in Parent, Subsidiaries and Affiliates (Subtotal Lines 14.21 to 14.26)	$	................. 15,281,696		$	15,703,815
14.28	Total Investment in Parent included in Lines 14.21 to 14.26 above	$	.................................0		$	0
15.1	Has the reporting entity entered into any hedging transactions reported on Schedule DB?			Yes [	] No [ X ]
15.2	If yes, has a comprehensive description of the hedging program been made available to the domiciliary state?	Yes [	] No [	] N/A [ X ]
	If no, attach a description with this statement.

16. For the reporting entity's security lending program, state the amount of the following as of the current statement date:

16.1	Total fair value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2	$
16.2	Total book/adjusted carrying value of reinvested collateral assets reported on Schedule DL, Parts 1 and 2	$
16.3	Total payable for securities lending reported on the liability page	$

7.1

Attachments

Disclaimer

CNA Financial Corporation published this content on November 05, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 05, 2024 at 20:46:51.470.

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