Question-and-Answer Session
Operator
Thank you. (Operator Instructions). One moment please for your first question. And our first question comes from Doug Young of TD Newcrest. Please go ahead.
Doug Young – TD Newcrest
Yes. I guess, my first question is around Lincoln General as I am sure there is going to be a few, Shaun, can you talk about what's being discussed with the Pennsylvania regulator and is one of the options that they simply take over Lincoln General and if that's the case, what is it do for Kingsway does that trip up and debt covenants and you say in the press release that the discussions may have a bearing on the capital position can you talk about what that means?
W. Shaun Jackson
Well, Doug. We've had discussions with the Department of Insurance, we have consistently kept up appraised of the initiatives that we are taking at Lincoln that has a regular dialog with the department. And again we are in the process as we put in together a plan that we will be presenting to the department over the next couple of weeks. This is our thoughts for Lincoln going forward. The risk-based capital of the company is over a 100% it ran about 119.
Shelly Gobin
Yes 117.
W. Shaun Jackson
117, as of the end of December. And so at that level with the reduced premium levels going forward, we feel obviously there is sufficient capital to pay the obligations of the company going forward. But there will be further discussions and we will be working with the department-formulated plan.
Doug Young – TD Newcrest
What's the RBC on Lincoln General today?
W. Shaun Jackson
That's what I just said Doug. It's?
Shelly Gobin
117.
W. Shaun Jackson
117.
Doug Young - TD Newcrest
But you said that's as of the end of this, that's not as of the end of 2008 that's as of today.
W. Shaun Jackson
No, that's as of 2008.
Shelly Gobin
That's as of. Yeah at December 31.
W. Shaun Jackson
Yes.
Doug Young – TD Newcrest
So, that's as of December 31, but what is do you have it as of today?
Shelly Gobin
No.
W. Shaun Jackson
You don't measure it on a daily basis Doug, you measure it as a measurement at the end of the quarter and that's, as Shelly said that's the RBC as of the end of December.
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