Question-and-Answer Session
Thank you very much. [Operator Instructions]. Let's take our first question today from Josh Shanker with Citi.
Joshua Shanker - Citigroup
Good morning. In your opening remarks, you mentioned that these CV Starr business might have appeared under price to that you are receiving and for you are returning it down. I'm wondering if you have any opinions about this. Is this business that would be otherwise placed at AIG or what the... or where that business is going and whether it will turn it back to if things harden?
And the second question and then I will get back in line. I was wondering if you can talk a little bit about outlook on 4Q investment losses?
Craig E. Eisenacher - Executive Vice President and Chief Financial Officer
Okay. If I can try on the CV Starr, I mean my understanding is that the biggest part of the decline was the public entity business in the quarter. And it's simply that the pricing pressures in the market are such that the business just isn't meeting our return levels and therefore we're not riding it.
Joshua Shanker - Citigroup
And where is it going to?
Joseph V. Taranto - Chairman and Chief Executive Officer
It is going to be a variety of competitors, but certainly AIG would be the one but not the only one. It tends to be the bigger company is riding that business.
Joshua Shanker - Citigroup
And any comments you can make about equity losses or other investment losses in the fourth quarter?
Craig E. Eisenacher - Executive Vice President and Chief Financial Officer
Clearly, since the end of the third quarter the equity markets have declined further and we've taken some unrealized losses there as well both credit and the Muni bond markets have widened some more. And we've taken some losses there. I think at this point it's premature to speculate of how much that might be. But it's not a significant amount from our perspective.
Joshua Shanker - Citigroup
Now, I'll get back in line. Thank you.
Operator
Our next question will come from Susan Spivak with Wachovia.
Susan Spivak - Wachovia Capital Markets
Good morning. Joe, thanks for your comments just on where we are in this cycle. And I guess, I just wanted to follow-up on something we heard this morning from a broker about the pricing in AIG in Lexington. Basically what AIG is doing everything they can to defend the pricing on this business.
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