A member of the United Heritage Financial Group

2017

United Heritage Property & Casualty Company

United Heritage Property & Casualty Company and its predecessors, Canyon County Farmers Mutual and Idaho Mutual Insurance Company, began

operations on April 20, 1908. The first board meeting was held in a packing house near Roswell, Idaho. By

the second meeting, the Company had built its surplus to $21.92.

United Heritage Property & Casualty Company offers a wide range of policies including auto, home,

farm, small business coverage, and personal umbrella coverage. We serve policyholders in Arizona,

Idaho, Oregon, and Utah.

We invite you to look at our web site at unitedheritagepc.com for the latest

product offerings.

• Arizona

• Idaho

• Oregon

• Utah

• Washington (Certificate of authority)

Company Headquarters

LICENSED STATES

OFFICERS

BOARD OF DIRECTORSOUR COMPANY

NANCY K. NAPIER, PHD | CHAIRMAN OF THE BOARD | BOISE, ID

JOSEPH P. SHIRTS, CPA | VICE CHAIRMAN OF THE BOARD | EAGLE, ID

MICKEY L. WARE, CPCU | PRESIDENT & CEO | MERIDIAN, ID

LINDA PAYNE SMITH | DIRECTOR | BOISE, ID

RICH L. STUPPY | DIRECTOR | BOISE, ID

ROBERT J. MCCARVEL | DIRECTOR | MERIDIAN, ID

MARJORIE A. HOPKINS | DIRECTOR | NAMPA, ID

MARJORIE A. HOPKINS | EXECUTIVE VICE PRESIDENT

DEBRA K. ETCHESON-FRISBY | VICE PRESIDENT, MARKETING

ROBIN J. ROBERTSON | VICE PRESIDENT, OPERATIONS & CORP. SEC.

STEVE A. BROWNING | VICE PRESIDENT, CLAIMS

JACK J. WINDERL | VICE PRESIDENT, INVESTMENTS/TREASURER

DEAN D. SANDROS | VICE PRESIDENT, INVESTMENTS/ASST. TREASURER

TODD H. GILL | VICE PRESIDENT, CHIEF FINANCIAL OFFICER

STEPHEN G. HANEY | VICE PRESIDENT, CHIEF TECHNOLOGY OFFICER

JEFFREY D. NEUMEYER | VICE PRESIDENT, GENERAL COUNSEL

STEFANIE A. THIEL | VICE PRESIDENT, HUMAN RESOURCES

SERVING THE PEOPLE SINCE 1908

unitedheritagepc.com | Like Us On Facebook707 E. United Heritage Court | PO Box 5555

Meridian, ID 83680-55551.800.877.8862 | 1.208.493.6200 |

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DIRECT WRITTEN PREMIUM 2013-2017

2013 2014 2015 2016 2017

2017 FINANCIALS

BUSINESS MIX

2017 was a challenging year for United Heritage Property & Casualty Company. The January through March “snowmageddon/snowpocalypse” that hit the northwest, in particular Idaho and Oregon where we do business, was devastating on several levels. First, many of our policyholders

suffered losses from collapse, ice dams, and freezing. Record accumulations of snow and low temperatures made for the perfect storms in terms of wreaking havoc on our clients. Secondly, adjusters and contractors were hard to find because of the massive amounts of claims all insurance companies were experiencing. In addition, the snow accumulations made it very difficult to inspect many of the losses until the thaw in April. Finally, part of the losses we incurred were covered by our reinsurer, and we appreciate this partnership.

Despite the challenging year, there were positives to take away from 2017. Premium growth exceeded projections, increasing by 11.3% to just over $38 million of direct written premium. Also, expenses remained relatively stable and investment returns were strong. Finally, we achieved three successive quarters of positive net income, following the first quarter snow storms, allowing us to finish the year with a net loss of ($812,965).

With the help of our dedicated independent agents, we strive to serve communities in Arizona, Idaho, Oregon, and Utah by offering affordable individual homeowners, farmowners, and automobile insurance products. Our professional insurance staff, management, and board of directors thank our customers and agents for continuing to support United Heritage Property & Casualty Company.

Mick Ware President & CEO

United Heritage Property & Casualty Company

December 31, 2017HOMEOWNER 49.34 %

AUTO 20.17 %

HOME & FAMILY 15.65 %

FARMOWNER 4.98 %

MESSAGE FROM THE PRESIDENT & CEO

TENANT, CONDO, LIP 4.70 %

MANUFACTURED 3.44 %

BUSINESS 1.46 %

UMBRELLA .24 %

32,0

91,5

66

15,8

60, 4

15

34,1

71,6

89

17,0

22,2

37

38,0

49,6

43

15,5

81,1

06

31,0

15,4

20

15,8

76,0

25

29,8

18,5

45

13,8

64,0

90

POLICY HOLDER SURPLUS 2013-2017

Assets 2017 2016

Bonds $34,057,667 $34,769,348

Preferred Stock 312,279 217,340

Common Stock 996,618 268,911

Mortgage Loans 0 0

Cash 822,168 240,111

Uncollected Premiums 1,972,502 1,736,331

Deferred Premiums 2,912,671 2,462,705

Reinsurance Recoverable 612,714 1,287,975

Interest & Dividend Income Accrued 315,807 344,533

Federal Income Tax Recoverable 187,900 415,807

Net Deferred Tax Asset 923,809 1,027,418

All Other Assets 102,594 92,644

Total Assets $43,216,730 $42,863,122

Liabilities & Surplus 2017 2016

Loss & Loss Adjusting Expense Reserves 7,709,352 7,230,685

Unearned Premiums 16,480,697 15,179,171

All Other Liabilities 3,445,576 3,431,030

Total Liabilities $27,635,625 $25,840,885

Policyholder Surplus 15,581,106 17,022,237

Total Liabilities & Surplus $43,216,731 $42,863,122