ENERGY INSURANCE MUTUAL

1. ENERGY INSURANCE MUTUAL 19th ANNUALRISK MANAGERSINFORMATION MEETING The Westin Innisbrook Golf Resort Tarpon Springs, Florida February 27 - March 1, 2005

3. Sam Garvin Vice President and Chief Financial Officer

4. 2004 FINANCIAL REVIEW

5. SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS)

6. 12/31/0412/31/03CHANGE ASSETS Reinsurance recoverable 318.6 361.3 (42.7) Other 45.043.31.7 TOTAL $1,367.3 $1,277.8 $89.5 LIABILITIES AND SURPLUS Loss reserves $740.4 $688.1 $52.3 Unearned premiums 116.8 113.9 2.9 Deferred taxes 16.1 4.5 11.6 Other 2.3 6.1 (3.8) Policyholders’ surplus 488.5461.227.3 TOTAL $1,367.3 $1,277.8 $89.5 SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS) Invested assets $1,003.7$873.2 $130.5 Payable for investments $3.2$4.0 $(0.8) TOTAL $1,000.5 $869.2 $131.3

7. FIXED INCOME MANAGERS Fidelity Management Trust Morgan Stanley EQUITY MANAGERS SSgA State Street Global Advisors INVESTMENT ADVISORS Frank Russell Company INVESTMENT MANAGEMENT

8. INVESTMENT MANAGERS ALLOCATION (MILLIONS OF DOLLARS)

9. ASSET ALLOCATION

10. 12/31/0412/31/03CHANGE ASSETS Invested assets $1,003.7 $873.2 $130.5 Other 45.043.31.7 TOTAL $1,367.3 $1,277.8 $89.5 LIABILITIES AND SURPLUS Unearned premiums 116.8 113.9 2.9 Payable for investments 3.2 4.0 (0.8) Deferred taxes 16.1 4.5 11.6 Other 2.3 6.1 (3.8) Policyholders’ surplus 488.5461.227.3 TOTAL $1,367.3 $1,277.8 $89.5 SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS) Reinsurance recoverable 318.6361.3 (42.7) Loss reserves $740.4$688.1 $52.3

11. 12/31/0412/31/03CHANGE ASSETS Invested assets $1,003.7 $873.2 $130.5 Other 45.043.31.7 TOTAL $1,367.3 $1,277.8 $89.5 LIABILITIES AND SURPLUS Unearned premiums 116.8 113.9 2.9 Payable for investments 3.2 4.0 (0.8) Deferred taxes 16.1 4.5 11.6 Other 2.3 6.1 (3.8) Policyholders’ surplus 488.5461.227.3 TOTAL $1,367.3 $1,277.8 $89.5 SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS) Reinsurance recoverable 318.6 361.3 (42.7) Loss reserves $740.4$688.1 $52.3 Reinsurance recoverable $318.6 $361.3 $(42.7) Loss reserves $740.4 $688.1 $52.3 TOTAL $421.8$326.8 $95.0

12. NET CLAIM RESERVES(MILLIONS OF DOLLARS)

13. SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS)

14. SIMPLIFIED BALANCE SHEET (MILLIONS OF DOLLARS) Unearned premiums $116.8$113.9 $2.9

15. UNEARNED PREMIUM RESERVES(MILLIONS OF DOLLARS)

16. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS)

17. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS) Net Premiums Earned $124.3$118.6 $5.7

18. NET PREMIUMS EARNED(MILLIONS OF DOLLARS)

19. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS)

20. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS) Net losses and LAE $157.2$118.5 $(38.7)

21. NET LOSSES AND LAE(MILLIONS OF DOLLARS)

22. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS)

23. STATEMENT OF OPERATIONS (MILLIONS OF DOLLARS) Net Investment Income $30.2$19.0 $11.2

24. NET INVESTMENT INCOME(MILLIONS OF DOLLARS)

25. INVESTMENT PERFORMANCE EIM ANNUAL RETURN 2004 9.2% 1999 7.7% 2003 18.0% 1998 14.4% 2002 (6.1%) 1997 15.4% 2001 (1.1%) 1996 10.1% 2000 1.7% 1995 19.0%

26. TAX ADJUSTED PERFORMANCE VS. BENCHMARKS BY MANAGER ONE YEAR RETURNS PERFORMANCEBENCHMARK COMBINED FUND 9.2 8.9 FIXED INCOME FIDELITY 6.0 6.3 MORGAN STANLEY 4.5 3.7 EQUITY SSgA S&P 500 11.0 10.9 SSgA NON-US 20.4 20.2

27. LONG TERM INVESTMENT PERFORMANCE AS OF DECEMBER 31, 2004 7 Years 6.0% 5 Years 4.1% 3 Years 6.5%

28. CHANGE IN POLICYHOLDERS’ SURPLUS (MILLIONS OF DOLLARS) BEGINNING SURPLUS $461.2 Plus: Net loss $(0.9) Unrealized gain of investments $28.2 Change $27.3 ENDING SURPLUS $488.5