To all Terra Policyholders/Shareholders:

We are pleased to report that 2013 was another outstanding year for Terra RRG.

Book value per share rose to an all-time high of $341.83 at December 31, 2013 from a balance of $322.04 at December 31, 2012.  Earnings per share for 2013 equaled $19.09 as compared to $15.94 for 2012. 

Terra RRG has now achieved both earnings and growth in book value per share in all 26 calendar years of its existence.

For many of our shareholders who have been with Terra since its formation as a Risk Retention group in 1988, Terra’s stock price has grown by over 3,300%, eclipsing the performance of all major stock indices including the DOW, NASDAQ and S&P 500.  Also, and according to A.M. Best’s Capital Adequacy Ratio analysis (BCAR), Terra continues to maintain its position as the highest rated professional liability insurer in the United States.

Hal Arditti will provide you with a more complete synopsis of our 2013 financial performance along with a copy of Terra’s audited financial statements late next month.

Congratulations and thanks for your support of the Terra program.