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1. NATURE OF OPERATIONS

Economical Mutual Insurance Company (the “Company”) is a mutual insurance company which, along with its wholly owned subsidiaries, offers property and casualty (“P&C”) insurance primarily in Canada. The Company is incorporated and domiciled in Canada. Its registered office and principal place of business is 111 Westmount Road South, Waterloo, Ontario, Canada.

These consolidated financial statements were approved by the Company’s Board of Directors on February 22, 2017.