41-G2 - City of Burleson STD Exp Rev 12.31.2025.pdf

Experience Summary

Disclaimer: The data provided in this experience package includes confidential plan-related data for the sole purpose of evaluating plan experience. The data has been de-identified to protect the confidentiality of nonpublic personal information and to facilitate use of this data for its intended purpose only. This experience package may not be disclosed to any party other than a licensed insurance company without Symetra’s written consent except as provided in this Disclaimer.

This data is provided solely for financial planning purposes and may not be shared with any employees of the plan sponsor or producer who are not involved in the financial planning of the plan. The recipient assumes full responsibility for use or disclosure of this data by its employees and other representatives. Sharing of this data with any other party is subject to the recipient’s agreement to these restrictions. If these conditions are not accepted, the experience package must be returned to Symetra or destroyed without use or re-disclosure.

Valuation Date: 12/31/2025

Symetra Group Benefits

Prepared for:

City of Burleson

Policy Number: 01-017859-00

Short Term Disability Incurral Exhibit

1/1/2022 1/1/2023 1/1/2024 1/1/2025 12/31/2022 12/31/2023 12/31/2024 12/31/2025

Number of Months 12 12 12 12 48 Average Lives 359 393 409 343 376 Revealed Lives 359 393 409 343 1,504

Earned Premium $71,733 $86,362 $89,015 $85,110 $332,219

Paid Claims $53,691 $108,334 $97,326 $57,304 $316,655 IBNR Reserve $0 $0 $0 $11,048 $11,048 Total Incurred Claims $53,691 $108,334 $97,326 $68,353 $327,704

Incurred Loss Ratio 74.85% 125.44% 109.34% 80.31% 98.64%

Claim Count 9 21 19 12 61 Incidence per 100 2.51 5.34 4.65 3.50 4.06

Incurred Period Total

The data contained in this report is a snapshot in time and is subject to change.

Collected Premium The premium that has been received and processed as of the valuation date.

Disabled Life Reserves (LTD) Represents the present value of expected future benefit payments for active and pending claims that have surpassed the Elimination Period. This takes into consideration the Claimant's Earnings, Gross Benefit, Net Benefit, Age at Disability, Gender, Diagnosis, Current Interest Rate Environment, Plan Design, and Expected Termination Rates.

Earned Premium The premium accrued over the defined experience period. It includes both collected premium and due and unpaid premium (if applicable).

IBNR Period (LTD) The period of time prior to the valuation date where incurred claim liability may not be fully revealed due to claim submission lag and the longer elimination period associated with LTD coverage. Known claims during the IBNR Period are shown on the LTD Claim Listing to provide insight into potential impacts to plan performance.

IBNR Reserve (Life) Due to lag in waiver of premium and death claim submissions, Incurred But Not Reported (IBNR) Reserves are funds being held to cover outstanding claim liability over the experience period.

IBNR Reserve (STD) Due to lag in STD claim submissions and the run out of payment liability on active claims, Incurred But Not Reported (IBNR) Reserves are funds being held to cover outstanding claim liability over the experience period.

Incurred Loss Ratio Reflects experience results prior to adjustments for rate and plan changes. This loss ratio measures the actual financial gain/loss for Symetra. Equals the incurred claims divided by the earned premium, illustrated as a percentage.

Incurred Period The revealed time period(s) used in the experience evaluation.

Interest Credit (LTD) An interest credit applied to Paid Claim Amounts and Disabled Life Reserves in order to reflect the present value of all liabilities.

Paid Claim Amounts (LTD/STD) Total benefit amounts paid allocated to the revealed experience period.

Recorded Claims (Life) Includes approved claims, pending claims, and interest allocated to the experience period.

Revealed Lives Exposed number of lives over the experience period. If the experience period is a partial year, revealed lives will be prorated based on the number of revealed months. If there is an average of 12,000 covered lives and 6 revealed months in the experience period, then there are 6,000 revealed lives.

(12,000 Covered Lives / 12 Months * 6 Months = 6,000 Revealed Lives)

Target Loss Ratio This represents the percentage of premium available to cover the incurred claims after taking into consideration the cost of doing business. As an example, a target loss ratio of 75% would mean for every dollar of premium received, 75 cents would be allocated to cover incurred claims and 25 cents would be allocated to cover expenses, taxes, profit and commissions.

Total Incurred Claims (Life) Represents Symetra's total claim liability over the defined experience period. It equates to the sum of the approved claims, pending claims, interest, waiver of premium reserves and IBNR reserves.

Waiver of Premium Reserve (Life) Represents the funds being held for the expected future liability of approved disabled individuals. Reserves are allocated to the experience period based on the incurred date. Date of Birth, Date of Disability, Gender, Current Face Amount, and Expected Termination Date are taken into consideration in the reserve calculation.

Glossary