Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Meyer Shields - Stifel & Company.
Meyer Shields – Stifel Nicolaus & Company, Inc.
In the press release you note that policy counts were down in personal lines and I was hoping you could go into a little more detail as to what’s driving that.
Jacob F. Scherer, Jr.
Meyer, we’ve been adjusting our rates throughout the country. We’re seeing in some areas where we’ve introduced tiering and sharpened our rates, we’ve lost some account there. The decline has been very modest, though, and we don’t see any concerns with it.
We would mention that later on this year, in October, we will be expanding our pricing process for our agencies. That should make us much more competitive in certain areas where we’re currently not. So though there was a slight decline in policy in force count in personal lines, once again, we don’t see that as an alarming event.
Meyer Shields – Stifel Nicolaus & Company, Inc.
What competitor actions are you seeing in terms of personal lines and commercial lines. Any function in terms of competition?
Jacob F. Scherer, Jr.
I don’t know that we could add anything that hasn’t already been reported by a lot of folks. We’re not seeing anything much different, in terms of what is going on in the market place in the way of competitor trends.
The pricing levels are extremely competitive, both in personal and in commercial lines. Most especially in commercial lines. But as far as any changes in what has been occurring over the last several quarters, it just continues to be a very competitively-priced marketplace.
Meyer Shields – Stifel Nicolaus & Company, Inc.
What were the investment segment results. The other operating expenses declines pretty significantly on a year-over-year basis. Is that going to continue?
John J. Schiff, Jr.
Are you just referring to the investment side itself?
Meyer Shields – Stifel Nicolaus & Company, Inc.
That’s right.
Kenneth William Stecher
I think that will probably be the run rate for the rest of the year, Meyer. I think there was a one-time line on last years number.
Operator
Your next question comes from Charlie Gates - Credit Suisse.
Charles Gates – Credit Suisse
My perception is that you write personal lines insurance as basically a concession to the agent. What do I mean by that? I believe personal lines insurance in the United States is becoming an oligopoly and the reality is you don’t have scale. What’s wrong with what I said?
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