Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. (Operator Instructions). Our first question is coming from Beth Malone of KeyBanc.
Beth Malone – KeyBanc
Thank you. Good morning and congratulations on the quarter. Just a couple of clarifications or developments on -- could you just explain a little bit more on the investment portfolio. Do you have a lot of securities that were considered very low risk just months age were now under concerned? Any exposure to just Freddie or Fannie preferred or bonds in the portfolio?
Bob Cubbin
First on the Freddie Mac, we don’t have any Fannie Mae or Freddie Mac bonds in our portfolio. And as you know Beth we maintained a very conservative high investment grade portfolio other than temporary impairments that we put on the quarter 158,000 or so, really was dictated by EIPS 9920. We saw the intense and ability to hold their bonds to maturity and we believe that it is still good money. So our investment portfolio has not deteriorated over the last few quarters and we do not expect to see it deteriorate in the future either.
Beth Malone – KeyBanc
Okay and then on the reserved development, where did that come from? Was that on the workers division line or --
Bob Cubbin
Well, actually it came from a lot of different areas that workers comp definitely continued to be favorable line of business for us but our professional liability claims made are authorized liability, our general liability, all performed very, very well.
Beth Malone – KeyBanc
Okay and then in terms for the pricing environment. Obviously, the market in general is discussing some pretty double digit decreases in a lot of sectors and could you just describe a little bit how -- given your situation how you’ve been able to avoid a lot of that pricing pressure that we are seeing in general?
Bob Cubbin
First I think a lot of the things that you heard about tend to be a little bit maybe exaggerated in some cases but when we look at the small account that we focus a lot of our attention on -- that has historically been much more volatile. You don’t see big price increases during the hard market you don’t see big price decreases in the stock market. It just tends to be a little more even to you as all of the radar screens of a lot of companies. So you jus don’t get a whole lot of people who can efficiently enter that market and find underwriter and produce that business. So it does also give us higher retention ratio than the traditional market as well.
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