National Catholic 2009 Annual Report : Shareholders' Equity

Consolidated Statements of Changes
in Shareholders’ Equity

The National Catholic Risk Retention Group, Inc. and Subsidiaries

For the years ended December 31, 2009 and 2008

Capital Stock Class A

Capital
Stock
Class B

Add'l.
Paid-in Capital Orig. Reqmts.

Add'l.
Paid-in Capital Plcyhldr. Dividends

Accum.
Other
Compr. Income

Retained Earnings

Total Sharehldrs'. Equity

Book Value
Per
Share

BALANCE JAN. 1, 2008

$1,340

$298,622

$484,001

$8,862,640

$10,437,997

$3,363,054

$23,447,654

$1,047

Other comprehensive

income

(17,240,679)

Net income

3,449,357

BALANCE
DEC. 31, 2008

1,340

298,622

484,001

8,862,640

(6,802,682)

6,812,411

9,656,332

$431

Withdrawing member:

1 share of Class A –

cash

(20)

367.12 shares of Class B –

accrued liability*

(4,895)

(4,526)

(124,521)

(24,315)

(158,257)

Other comprehensive

income

5,625,993

Cumulative effect

adjustment for

change in recording

other than

temporary

impairments

(3,312)

3,312

Net income

1,119,461

BALANCE
DEC. 31, 2009

$1,320

$293,727

$479,475

$8,738,119

$(1,180,001)

$7,910,869

$16,243,509

$737

* Pursuant to the terms of the participation agreement, consideration for the redemption of the Class B shares may not be paid for a period of up to five years from the date of the shareholder's withdrawal, as further described in Note G.

Note: Johnson Lambert & Co. LLP, Certified Public Accountants has audited the financial statements of The National Catholic Risk Retention Group, Inc. and Subsidiaries for the years ended December 31, 2009 and 2008 prepared in conformity with generally accepted accounting principles in the United States, and issued an unqualified opinion on such financial statements in their report dated April 12, 2010. The auditor's report applies to the complete financial statements which are not presented.

These consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows of The National Catholic Risk Retention Group, Inc. and Subsidiaries for the years ended December 31, 2009 and 2008 were derived from the audited financial statements. The complete audited financial statements may be obtained from The National Catholic Risk Retention Group, Inc. and Subsidiaries at 801 Warrenville Road, Suite 175, Lisle, IL 60532-4334.