1. State of the Surety Industry AGC Building Contractors Conference The Homestead Hot Springs, VA June 11, 2009 Todd Loehnert NASBP President Wells Fargo Insurance Services of Kentucky

15. Ease of Obtaining Surety Bonds 2% 13% 36% 40% 10% A Year Ago 18% 46% 26% 9% 2% A Year From Now 3% 22% 55% 17% 3% Today Very Difficult Difficult Business As Usual Easy Extremely Easy

16. Outlook for Surety Capacity (Next Three Years) 32% 65% 12% Increase 30% 19% 35% Remain the Same 4% 4% 8% Don’t Know/No Opinion 34% 12% 45% Decrease 2005 2007 2009

17. Public Construction Market Assessment 3% 10% 44% 37% 6% A Year Ago 22% 55% 16% 6% 1% A Year From Now 18% 46% 29% 6% 1% Today Very Difficult Difficult Business As Usual Easy Extremely Easy

18. Private Construction Market Assessment 4% 18% 42% 32% 4% A Year Ago 46% 41% 6% 6% 1% A Year From Now 53% 26% 12% 7% 2% Today Very Difficult Difficult Business As Usual Easy Extremely Easy

19. Market Conditions 5% 74% 18% 3% 2010 N/A 68% 30% 2% 2009 Don’t Know/ No Opinion Tightening Remaining The Same Softening

20. Advice to Help Clients Meet Bonding Needs 3.99 Reduce Overhead Expenses 4.38 Produce Interim Financial Statements 4.56 Use CPA with Construction Accounting 4.57 Communicate Potential Problems Early 4.70 Prepare Proper Financial Statements Weighted Average

21. Important Criteria for Obtaining Surety Bonds 4.28 Experience in Type of Project 4.33 Track Record of Profitability 4.46 Financial Statement Presentation 4.47 Equity 4.62 Strength of Balance Sheet Weighted Average

22. Important Financial Measures in Evaluating a Contractor’s Capacity 3.94 Working Capital Ratio 3.96 Debt to Equity Ratio 4.11 History of Consistent Earning 4.12 Backlog Levels 4.55 Amount of Working Capital Weighted Average

23. Maintaining and/or Obtaining Bank Lines of Credit Compared to Last Year

24. Questions?