Question-and-Answer Session
Operator
(Operators Instructions). Your first question comes from the line of Robert Farnam - KBW.
Robert Farnam - KBW
One question on the California Restaurant Association, any progress on policies coming through that program yet?
Martin Welch
We just started that. That was late fourth quarter that announcement; we are seeing activity there, obviously it’s not huge numbers at this point in time and we are reporting on fourth quarter numbers. So, I really don’t have a whole lot to report there but we are pleased with the relationship and we do have activity.
Robert Farnam - KBW
Okay, I just was curious if it was going according to plan or not. But the second question, can you just remind us in terms of your capital position what type of premiums or surplus you are comfortable writing at?
William Yocke
If you look at the industry as a whole it’s drifted down given some of the reductions in rates across the country and profitability. And so it’s drifted to something more like to one to one which I think is historically low for the workers’ compensation line. We seek to be more industry-like and don’t think at one-to-one we would in any way be stretched or over levered.
Robert Farnam - KBW
Right. And third question, with the AmCOMP deal now that you maybe had a better chance to take a look at the policies; how much of that type book of business do you think fits into your underwriting profile and how much do you expect to renew going forward?
Martin Welch
We have looked into that. We did that as part of the due diligence, Bob, and we continue to do integration planning with AmCOMP. They have a book of business that is somewhat different than ours from a class selection standpoint, and it really has a little bit to do, I think, with the geographic nature of their book as well. We have no intention of taking their book of business and trying to make it look exactly like ours.
One of the attractions of this was that it does help us broaden our organization both geographically and from an appetite in what our book of business will look like. So there is no intention here to not continue with classes of business that AmCOMP has written successfully that perhaps we have chosen not to write in the past.
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