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2 0 1 3 WE S T FIE LD GROUP ANNUAL R EPO R TWESTFIELD INSURANCEWESTFIELD BANKWESTFIELD SERVICES

from Westfield Group’s LeaderFor more than 166 years, Westfield has been upholding our promise ofprotection. I am excited about what we accomplished in the past year,and I look forward to our strong future. The annual report highlightsboth our insurance and banking achievements for 2013, as well asour significant goals for 2014.Our operating results for the insurance business exceeded theindustry’s results in 2013 on almost all measures. Our statutorysurplus now exceeds 1.8 billion and our GAAP equity exceeds 2 billion. Our financial strength is the underpinning of our promiseof protection and allows us to invest in our company. You will findvarious metrics throughout the report.Part of our success in 2013 was attributed to very benign weatheracross our footprint. We are very mindful of the volatility associatedwith the weather. We also had strong investment returns associatedwith our equity portfolio. And, our reserves remain strong.This is against the backdrop of a slow economic recovery. Perhaps themost significant part of our continued success is the hard work by ouremployees and agency partners.Our multi-year claims initiative remains on track for deployment in2014. It will enhance the customer claims experience and it will helpadvance our analytics to understand risk in order to create betterproducts and services.Westfield continues to invest in our independent agency partners. Weare committed to align the resources with agencies to create value inrelationships and grow business. Westfield has been a major investorin the Consumer Agent Portal (CAP) as part of our commitment toTrusted Choice . We also offer our agencies support through a strongcombination of services provided by Westfield Bank and Westfield Services.Westfield Bank had its best year yet. In 2013, the Bank successfullyintegrated Western Reserve Bank into our organization. Westfield Bankprovides diversification to our business portfolio and complements theinsurance operations. As a community bank, it provides support to thevitality of Northeast Ohio. Also, the Bank recently announced its intentto acquire Valley Savings Bank. This is a positive addition to the Bankand overall Group. The Bank is committed to growing organically andthrough targeted acquisitions.Westfield has a strong heritage and an exciting future. There is anambitious agenda set for 2014. We will continue to grow profitablywhile delivering on our customers’ expectations. Our employeesremain committed to building strong relationships and workingsmarter. We will continue to invest in our employees, our capabilities,our agency partners and the community.I hope you find this report useful and that you get excited about thestory it tells. Our mission and values guide us as we build our futuretogether. I have no doubt that we will be successful.2

since 1848

SHARING KNOWLEDGE. BUILDING TRUST.Westfield Group is a customer-focused insurance andbanking group of businesses. From its humble beginningsin 1848, the Company was formed by farmers for farmersfor the purpose of insuring farmers in small townsagainst loss or damage by fire. In the 1840s, fires werethe difference between hardship and prosperity – forfamilies, for businesses and for entire communities.The great fire of Chicago that burned 3.3 square milesof property would happen in 1871, 23 years after thecompany was established.ABOUT WESTFIELD GROUPWESTFIELD INSURANCEWESTFIELD BANKWESTFIELD SERVICESis a super-regionalproperty and casualtyinsurance companyproviding a broadportfolio of commercialand personal insuranceproducts and suretybonds backed byknowledgeableemployees and anetwork of professionalindependent insuranceagencies. The businessis among the nation’stop 50 largestproperty and casualtyinsurance groups.Westfield Insurancehas earned the ratingof A (Excellent) orbetter from A.M. BestCompany for more than75 consecutive years.provides relationshipbased banking servicesfor businesses andindividuals acrossNortheast Ohio andto Westfield Insuranceagency partners.Customers look toWestfield Bank forknowledgeable personalservice, local decisionmaking, and theconvenience of onlinebanking anytime andanywhere. Customerschoose WestfieldBank for the peace ofmind that comes fromworking with bankerswho know them andare committed to theirsuccess. BauerFinancialawards Westfield its5-Star (Superior) rating.is a specialty insuranceagency and services firmbased in Columbus,Ohio. A resource toindependent insuranceagencies, WestfieldServices offers customerservice center support,access to specialtyinsurance products, andstructured settlementsolutions for claims.Westfield Servicesmanages the WestfieldFlood program throughthe National FloodInsurance Program,marketing to more than500 agencies nationally.2 013 WESTFIELD GR OUP ANNUAL RE P ORT4

Westfield’s founders were very concernedabout the livelihood of their fellow communitymembers, but they were also enterprisingbusiness people. Their actions createdopportunity for their community to grow andprosper. The guarantee against future lossenabled individuals and businesses to acquireassets and make investments that lead to a moreprosperous life for themselves, their familiesand society as a whole. Our founders not onlyunderstood this concept but embraced it byseizing the opportunity and taking the personalrisk to create the company.It is on this history and with a similar passionto enable our customers’ peace of mind andfinancial stability that Westfield continues tooperate. Westfield has been guided by the sameenduring core values throughout its history –Knowledge, Trust, Integrity, Respectand Stewardship.“We trust Westfield with all of our banking and insurance needs. We’ve been withWestfield for 30 years and the relationship is very important to us. Our agent andbusiness banker always provide personalized attention and immediate response. And,it makes me feel important that everyone knows my name when I visit the bank.”Curtis Perkins, ownerC. Martin TruckingWestfield customer52 0 1 3 WE S T FI E LD G R O U P A N N U A L R E P O R T

FINANCIAL STRENGTHA.M. Best, a leading independent financial analyst,recognized Westfield Insurance’s financial stability asone of its greatest strengths and rated the company‘A’ or “Excellent.” With more than 75 years ofconsecutive ratings of “A” or better, A.M. Bestconfirms Westfield’s sound financial conditionand places Westfield Insurance among the nation’sbest carriers.Westfield remains a financially stable organizationwith a rock solid balance sheet. An effectiveinvestment philosophy ensures obligations toagents and customers can be met while stillsignificantly increasing surplus.Investment philosophy highlights: Emphasis in investment grade bonds 64% of the bonds held in the straight bond portfolioare rated AAA by Moody’sFinancial Strength RatingAMBEST“A” or Higher Since 1934 45% of fixed income assets are directly issued andbacked by the U.S. Treasury and/or federal agenciesof the U.S. GovernmentWestfield InsuranceCompanyGenuine care and support for the customeris what has differentiated Westfield formore than 166 years. Customers look toWestfield for information they can trustto make decisions about insurance andbanking. The broad portfolio of insurance andbanking services is backed by knowledgeableemployees and a network of more than 1,000professional independent insurance agencies.Westfield has always been a relationshipcompany, guided by core values that helpcustomers protect the things they care aboutmost. This rich heritage enables Westfield toconfidently embrace the future in an everchanging business and customer environment.This, coupled with financial strength andstability, ensures Westfield will keep itspromises now and in the future.Westfield independent agents are trustedprofessionals able to offer advice and answerquestions about customers’ insurance needs.Throughout Westfield’s history, the qualityof the independent agent has always beenan asset, an advantage and an importantbenefit to customers. Customers work hardto build their businesses, raise their familiesand create a quality of life they can enjoyand want to protect. They realize insurancecan be complex, and while they researchinformation online, there is no substitutefor knowledgeable, personal service thatWestfield-appointed agencies deliver.Westfield Insurance provides customers witha broad range of insurance products to meetboth personal and commercial insuranceneeds. The company operates in 21 states forcommercial property and casualty insurance,10 states for personal insurance and 48 statesfor surety. Westfield is among the nation’s top50 largest property and casualty insurancecompanies, one of the top providers of farminsurance in the country, and one of thelargest providers of contract performancebonds in Ohio.2 013 WESTFIELD GR OUP ANNUAL RE P ORT6

WESTFIELD INSURANCETrusted Choice Pledge of PerformanceWestfield is a participatingcompany in Trusted Choice,providing homeownersinsurance, auto insurance andbusiness insurance througha network of independentagents who have committedto the Trusted ChoicePledge of Performance. Thisendorsement promotes thevalue of independent agentsand sets the standard ofquality service that customersexpect and deserve.“Westfield was excellent fromstart to finish. It made a difficultsituation a breeze.”Westfield customer comment onpost-claim survey cardTrusted Choice agencies are insurance and financial services firms whoseaccess to multiple companies and commitment to quality service enableus to offer our clients competitive pricing, a broad choice of products andunparalleled advocacy.As a Trusted Choice agency, we are dedicated to you and are committed totreating you as a person, not a policy. This commitment means we shall: Work with you to identify the insurance and financial services that areright for you, your family or your business and use our access to multiplecompanies to deliver those products. Guide you through the claims process for a prompt and fair resolution ofyour claim. Help you solve problems related to your coverage or account. Explainthe coverages and options available to you through our agency, atyour request. Return your phone calls and e-mails promptly and respond to yourrequests in a timely manner. Provide 24/7 services for our customers, offering any or all of thefollowing: emergency phone numbers, Internet account access, e-mailand call center services. Use our experience and multiple company relationships to customizeyour coverage as needed. Commit our staff to continuing education so they may be moreknowledgeable in serving you. Treat you with respect and courtesy. Conduct our business in an ethical manner.We pledge this to you, our clients, and ask that you let us know if we fail tomeet our commitment, so we may take corrective action.72 0 1 3 WE S T FI E LD G R O U P A N N U A L R E P O R T