Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Scott Heleniak - RBC Capital Markets.
Scott Heleniak - RBC Capital Markets
Just a couple of quick questions; first, on the expense ratio line, I’m just wondering, I know you guys had some researching activity in the second quarter; did we see any of that in the third quarter or was it just a onetime event. I wonder if you could collaborate on that on the cost side there.
Frank McDonnell
We did have a slight impact from the carryover affect of recent restructuring activity in the third quarter, as well as some other minor onetime charges.
Scott Heleniak - RBC Capital Markets
Was it a small number; $1 million to $2 million or less?
Frank McDonnell
Yes there is a combination of things contributing to about on a run rate, $2 million of additional expenses. We had some premium tax accruals, we had some termination of costs associated with the UK terminations that were previously reported and other than that, we just had a few minor adjustments.
Stan Galanski
What exacerbates it from a ratio standpoint is the accruals that we set up for exceeded reinsurance restatements, so that’s something to be cognizant of.
Scott Heleniak - RBC Capital Markets
And I know you gave the pricing changes for Marine and Energy for the quarter. I was just wondering if you could comment on what you’ve seen since October started. I know that a lot has happened over the past month or so. I’m just wondering if you’re seeing any kind of big changes in pricing or you expect to see big changes in the next couple of months.
Obviously with the AIG situation, the long rider marine and energy as you know. I’m just wondering if you might be able to give a little more commentary on what you expect to unfold over the next two or three months or so and if you think there’s enough capacity out there in the marine and energy.
Stan Galanski
Is your question just on marine and energy, Scott?
Scott Heleniak - RBC Capital Markets
Yes, just marine and energy.
Stan Galanski
I think the answer is energy probably less in the marine area. The hallmark has already begun the experience rate increases and it has for some time. We’ve had positive rate change in hall for several years and the question is when is it going to be enough, because of the loss activity that the industry has in that sector and thank God we’ve missed most of.
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