Question-and-Answer Session
Operator
Thank you. (Operator instructions) And our first question comes from Cliff Gallant with KBW.
Cliff Gallant – KBW
Good morning.
Joe Taranto
Good morning.
Cliff Gallant – KBW
First question was about the reserve additions in the quarter, you mentioned of one large claim in the primary side, but it looks like four out of the five segments saw some adverse development. Can you talk a little bit about what’s happening there?
Joe Taranto
Well, first of all, I think, any of the developments you’ve seen is in our view, relatively de minimis relative to $8 billion of total reserves. And yes, there was some movement among particular segments. Overall, our casualty reinsurance portfolio had favorable development. There was some movement in some of our property lines, in particular, marine, from some energy losses in prior year, but nevertheless, quite manageable overall. And, of course, in the insurance space where we had one large significant claim contributing to prior period development there. And that’s essentially blowing it down most of the development is coming from that – claim.
We do not, from what we see in our quarterly process, and we do go through our reserves quarterly, we see things emerging quite nicely and favorably. We see no major surprises and we will undertake a more detailed analysis in the fourth quarter along with our auditors, but nothing that we’ve seen in the quarters as cause for any concern.
Cliff Gallant – KBW
In the primary side, you are setting aside the one claim, you are still looking at a combined ratio of 104 taking up to six points for the one large claim. I would say with change in interest rates being where they are, should we assume that’s a profitable level you are running here to be running the businesses. Any comments as to what you are doing to address that just to start to move that to below a 100?
Ralph Jones
All right, Cliff, this is Ralph. The big issue that comes in the program both where it really comes down to price monitoring and price movement up, and, of course we’ve – when you approach the action here one-on-one that whole process is in motion. Very hard to get it at the first couple of quarters, we saw actual movement in the third quarter in almost every program with the change in direction. But the real only positive gains were in the California comp book where finally the market is showing some signs of kind of accepting the rate movements upwards. So, we have that price increase effort on every one of the program in the book which makes up about 75% of the insurance total.
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