Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question is coming from Rohan Pai with Banc of America. Please go ahead
Rohan Pai - Banc of America Securities
Good morning and congratulations on the quarter. First question was on the reinsurance. I guess, first of all did the aggregate reinsurance contract of $21 million, did it come into play at all in limiting your Cat losses or was the $4 million California wildfire your gross and net loss.
Peter Heckman
This is Pete Heckman, the way we recorded the quarter was to not assume that the aggregate came in to play. Obviously that kicks in at $21 million of 2007 paid losses and we will likely exceed that number, and the entire cost of wildfires would have been covered by our catastrophe treaty. But the particular language in our aggregate treaty limited those events to PCS declared catastrophes and as you may have seen the PCS only declared the one fire, the [bush] fire as a catastrophe. So at this point we are not assuming recoveries, we will be pursuing those in the year, in the months ahead but we've booked the year rather conservatively in that regard.
Rohan Pai - Banc of America Securities
Okay. And then could you remind us did your property Cat program renew at Jan 01.
Peter Heckman
Yes it did.
Rohan Pai - Banc of America Securities
And could you give us the details for that please?
Doug Reynolds
This is Doug Reynolds, the 2008 program, a couple of things, one is we raised our top end limit of coverage from a $130 million to a $150 million and I might point out that’s equal to about the one in 250 year event and over the last four years we've raised that each year from $80 million to $110 to $130 and now to the $150.
We also have retained our attachment point at $25 million, which is the same as we had in 2007 and we purchased second and third event coverage, as well but, at an attachment of $15 million with no limit and industry-related storms, which is what we had in 2007.
We've also eliminated the aggregate this year and really the reason behind it was we had some we had a very favorable program in the first two years. As we tried to renew it this year the cost and the attachment points grew quite a bit and we decided that that was not a good move for us to do, based on the price.
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