To: Our Policyholders/Owners and the Nevada Physician Community

In May, 2007 your company will complete its fifth year of operation. With your help, much has been accomplished during these years.

Nevada Mutual was the first mutual insurance company formed in the history of Nevada. It was formed by doctors to provide stable, long term professional liability coverage. As a Nevada mutual insurer, we insure only Nevada doctors and our owners are our policyholders. Our goal is to insure only the finest Nevada physicians and to assist them in their efforts to provide quality health care.

In pursuit of these goals, your company took a lead in tort reform, carefully underwrote applicants and introduced innovative claims defense techniques. The result has been heartening. Since inception, rates have been stable, assets and policyholders' surplus have grown and your company insures more Nevada doctors than any other. With this size comes greater stability and knowledge, as we draw on the talents of our many insured owners to help improve health care while protecting our doctors.

The Directors and staff of Nevada Mutual want to thank all of our policyholders/owners for their confidence in your company. We will continue to work hard to maintain that trust in years to come.

Dan McBride,M.D.
Chairman