The Harford Mutual Insurance Companies

Financials

Condensed Consolidated Financial Exhibits

Balance Sheet as of		2008 (in 000's)	2007 (in 000's)

Cash and Short-Term Investments		$15,955	$23,839
Long Term Bonds		202,143	185,693
Stocks		44,828	62,349
Real Estate		2,885	2,968
Premium Balances Less Reinsurance		27,268	28,623
Accrued Interest and Dividends		2,447	2,304
Other Assets		7,559	4,077

	Total Assets	$303,085	$309,853

Unpaid Loss & Loss Adjustment Expense Reserve		$116,117	$118,298
Unearned Premiums		49,913	51,052
Reinsurance Balances Payable		2,126	2,094
Underwriting Expenses and Tax Reserves		12,152	13,022
Other Liabilities		814	1,342

	Total Liabilities	$181,122	$185,808

	Total Policyholders' Surplus	$121,963	$124,045

	Total Liabilities & Policyholders' Surplus	$303,085	$309,853


Underwriting Exhibit		2008 (in 000's)	2007 (in 000's)

Direct Premium Written		$105,153	$105,703
Net Premium Written		90,881	92,657
Net Premium Earned		91,793	94,376
Net Losses Incurred		39,689	40,966
Net Loss Adjustment Expenses Incurred		8,435	8,654
Underwriting Expenses Incurred		34,013	32,474
Dividends to Policyholders		1,014	1,066
Net Gain from Underwriting		$8,643	$11,214
Combined Ratio		90.9	88.7
Operating Ratio		81.4	79.1


Investment Exhibit		2008 (in 000's)	2007 (in 000's)

Ordinary Investment Income		$8,731	$9,018
Realized Capital (Loss) Gain		(2,694)	5,389
Unrealized Capital Loss Net of Deferred Tax		(12,561)	(775)

	Total (Loss) Gain on Investments	($6,524)	$13,632


Net Income		2008 (in 000's)	2007 (in 000's)

Net Income after Federal Income Tax		$10,297	$17,996