One Team 1 Welcome to HMR 2 0

One Team! 1

Welcome to HMR 2. 0 September 21 st in MO &

Safeco has refreshed its home product • Updated pricing model to enable profitable growth • Improve the agent and customer experience • Add new predictive rating to attract more customers • Impact to new business only © 2018 Liberty Mutual Insurance CONFIDENTIAL

HMR 2. 0 Overview By-Peril Rating Modern System Territory Update New Variables Factor Refresh Customer & Agent Experience © 2018 Liberty Mutual Insurance CONFIDENTIAL

Quote & Issue Quoting Changes & Variables Fire station distance and type (pre-fill) Plumbing renovation and year (user input) Additional territories to ensure risks are priced accurately Rating and tier variables will be adjusted and new ones introduced Several optional coverages will display as “included” in coverage A premium © 2018 Liberty Mutual Insurance CONFIDENTIAL

New & Updated Discounts Claims-free discount Billing plan (paid in full) discount Preferred payment discount Newer home discount is now newer system discount Account credit discount is now multi-policy discount © 2018 Liberty Mutual Insurance CONFIDENTIAL

Coverage Offerings Increased coverage limits on extended dwelling Increased coverage limits on building ordinance or law Increased coverage limits on Escape of Water Service Line Coverage Endorsement All Other Peril Deductible Changes © 2018 Liberty Mutual Insurance CONFIDENTIAL

Manufactured Homes in IL & MO Manufactured Home Now Available in IL & MO: This is strictly a change in eligibility. Manufactured Homes will be written on standard H-3 policies, with the same form/coverage options. Just select Manufactured Home for the Construction Style. Mobile Home: Ineligible Eligible within set guidelines (Permanent, enclosed Foundation & 20 Yrs. or Newer). Photos will be required © 2018 Liberty Mutual Insurance CONFIDENTIAL

Auto update

AMR 2. 5 overview– Launched this week! Factor refresh • Over 3 years of new data since AMR 2– picks up recent improvements in loss trend Vehicle symbol improvements • New symbol algorithm to better align symbol assignment with updated vehicle characteristics New territory factors • New modeling sophistication allows for more granular pricing and a more accurate for risk Increased competitiveness • • More competitive rates for youthful (teen) and younger (spin-off) drivers Refreshing vehicle count pricing with notable decreases on single car policies -7% Rate decrease © 2018 Liberty Mutual Insurance CONFIDENTIAL

Introduction to Right. Track Mobile Safeco Right. Track Mobile is a smartphone-based program that collects data based on driving behavior in order to offer customers a discount. • No device installation • Customers save just for enrolling • Customers can save on average $171 / Up to $513 per year • 5 -30% driver-earned final discount applied to all vehicles • Guaranteed discount* CONFIDENTIAL – PROPRIETARY – MAY CONTAIN TRADE SECRETS

5 th car solution Available for New Business © 2018 Liberty Mutual Insurance CONFIDENTIAL

What are we doing to be more competitive? May IL -6% Auto NB July HMR 2. 0 in IL August MO -3% Auto (NB & RB) September October HMR 2. 0 in MO AMR 2. 5 in MO 5 th Car MO -7% Auto NB RT mobile (earlier this year RT 10%) IL Home NB -4. 2% Manufactured Homes © 2018 Liberty Mutual Insurance CONFIDENTIAL Q 4 -2020 Continuing to look for additional enhancements to bring to market

Unleashing Our Business Lines Potential

e. CLIQ Simple –It’s here. It’s easy. From the small landscaper to the independent beautician, our new BOP provides more coverage to more classes — at the right price. Tailored coverages for ultimate flexibility With fewer questions to answer, you can issue a policy in minutes! Hired and non-owned auto Product is eligible for Instant Incentive Tools and equipment coverage Contractor specific coverage bundles Professional liability for designated classes Additional insured endorsements © 2018 Liberty Mutual Insurance CONFIDENTIAL

New BOP Eligibility and Billing Options Eligibility • Up to 10 employees • Personal property no greater than $10, 000 • No building coverage • No losses or claims within the last three years • No bankruptcies, tax or credit liens against the business within the past five years Billing Options Pay in full or 12 equal payments via EFT or credit card Confidential & Proprietary – Not for Distribution

Inland Marine We want to be your #1 resource for Inland Marine, whether monoline or supporting a package FAST FACTS $2 B in small commercial IM. We have <1%! Low Minimum Earned Premium – Average $350 $50 M capacity for most IM classes We are more than just Builders Risk − Think Motor Truck Cargo, Contractors Equipment, Warehouse Legal, Transportation, Installation Floaters, Scheduled Property…. . Portfolio/Territory underwriting model − Quick same day turnaround <$5, 000 − Improved response time, efficiency and hit ratios 20% Commission (new/renewal) Pro-Rated Cancellation (subject to minimum earned) Dedicated assigned underwriting team Eligible for Instant Incentive Profitable Line of Business – enhance your profit sharing opportunity with Liberty! Confidential & Proprietary – Not for Distribution

Common Inland Marine Lines If it moves … • Motor Truck Cargo • Transportation • Warehouse Legal • Misc. Equipment And even if it doesn’t … • Bailees Coverage • Fine Arts • Installation Floater Confidential & Proprietary – Not for Distribution

C o n f i d e n t i a l & P r o p r i e t a r y Bigger, Better Farm Coverage Farm is here……in e. CLIQ®! Simplified, quoting Farm Products Launched in e. CLIQ • Farm Package (must include property and liability) Faster and easier • Farm Auto Enhanced competitive product • Farm Liability (monoline) Expanded coverages • Additional lines, including Excess Flexible policy construction that can include combinations of various coverages • Eligible for Instant Incentive Plant your business with us and let’s grow together! © 2018 Liberty Mutual Insurance CONFIDENTIAL • Farm Property (monoline)

Workers Compensation Broad and Expanding Appetite • More than 900 in-appetite classes • Open for monoline WC in 39 states without underwriter touch • Target Classes • BOP-eligible professional classes: Accountants, Attorneys, Dentists, Doctors, Real Estate • Established businesses with <25 employees • Eligible for Instant Incentive Upcoming Enhancements • Reduced questions on target classes • Small businessfocused WC safety materials • Increase number of policies bound without an underwriter touch PLUS: It is Here Your Way Pay™ now available countrywide! Confidential & Proprietary – Not for Distribution

C o n f i d e n t i a l & P r o p r i e t a r y Your Way Pay™ Liberty Mutual’s pay-as-you-go billing option Now available countrywide for workers compensation policies issued in e. CLIQ®! Policyholder Benefits Encourage your clients to participate! Registration is quick and easy: • Improved cash flow • No down payment • Real-time premium calculations based on actual payroll • Automatic withdrawals of premium payments • Reduction in audit exposure due to immediate premium calculations © 2018 Liberty Mutual Insurance CONFIDENTIAL Select Your Way Pay in e. CLIQ when issuing a WC policy. Policyholder will receive a welcome email with instructions to complete registration.

Instant Incentive – Spin to Win Just Got Even Better $ $ $ October 1 st – December 31 st Double Spins $ All Products Eligible Farm, Small Business, Custom Business, Monoline Inland Marine $ Minimum payout of $50 up to $100 per issued line of business Must be enrolled to participate!!! $7, 261 Paid Year To Date to VIAA $ $ $

What we have to offer Producer Development Program Instant Incentives CSR Development Program Social Share Marketer Development Program Coffee Breaks Marketing Workshops 23