In 1988, Harford Mutual formed a downstream holding company, Harford Group, Inc., and a wholly-owned
stock insurance company, Firstline National Insurance Company. Firstline National is used to write special
program insurance business and to provide alternative pricing on other insurance business subject to
underwriting guidelines. By way of management agreement, all of Firstlineís direct business is ceded to Harford
Mutual, later receiving back a 25% share of Harford Mutualís net premium.