Question-and-Answer Session
Operator
(Operator Instructions) We'll go first to Susan Spivak with Wachovia.
Susan Spivak - Wachovia
Good morning everyone. I was just in terms of the share repurchase on the authorization could you refresh my memory as to be exact percentage now that Fairfax owned and whether there is an option for you, I know you don't want to go, have that ownership go above a certain level, so is there an option for you to repurchase shares or is that something you would consider directly from Fairfax?
Andy Barnard
Hi Susan, this is Andy. As of the end of the first quarter Fairfax was at about 63%, would have crept up modestly from that with our activity since that time and we do not have an explicit auction as you put it with Fairfax, such as you described. Clearly we take into account what's the appropriate level of public ownership and flow that we wish to keep out there and that's the consideration as we go forward. But at the present time we are quite comfortable where things stand and clearly it's very advantageous for us to be retiring shares at these prices.
Susan Spivak - Wachovia
Sure. And Andy if you could follow up -- you did give some details on the competitive market side, given your extensive experience in this industry, is there a period of time that you might compare what you are currently same to? And then also, where is some of the rational competition coming from? Would you say its newer markets or is it from some of the more established players who have the bigger balance sheets and can ride this through with lower prices?
Andy Barnard
Susan, I think -- perhaps a contrast to what other people have said, I think that today we would be more akin to the let's say 95-96 period. I think there is a likelihood that we will see things deteriorate much more significantly from this point because there still is considerable downward price pressure, meaning that there is excess capacity and there is hunger of business in the market place. So, I think that the short-term prospects are of concern in terms of how much worse things can get and in particular in the casualty lines which as you know were, that is the place where usually the most long-term damage gets created. So, that is of concern I think. It will take some time for it to turn around, because it's no as though anyone out there is recognizing negative results at this point in time. So, I think there is more to go in the soft market, I don't think we are at a trough.
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