Question-and-Answer Session
Operator
Thank you, sir. Today question-and-answer session will be conducted electronically. (Operator instructions) And our first question comes from Bijan Moazami with FBR capital Markets.
Bijan Moazami – FBR Capital Markets
Good morning, everyone. Pretty impressive results. My first question is for you, Barry, if you can expand a little bit more about your growth initiative, should we expect the same – similar kind of growth rate that you’ve had historically in the warranty business or should we expect that more of your growth rate is generated from the P&C side and your relationship with Cardinal?
Barry Zyskind
It really depends on where we are. It really depends on the market environment and where we could take the advantages of the opportunities. As things calm, as the market shifts, the fact that we have a diverse platform allows us to move around and grow in different areas. So if you look at the last year, obviously, the growth was not coming from comp. We kept our pricing discipline very strong. But we had a lot of opportunities to warranty. Now we are seeing opportunities in comp, so we are going to go there. We are going to take opportunities there. We are still pushing to grow our warranty, but I would tell you that for – based on the CardinalComp relationship and some of the other things similarly trends we are seeing in the small comp – in the comp arena, we think that we’ll see significant growth coming in the comp now probably outpace the warranty for the next 12 to 18 months.
Bijan Moazami – FBR Capital Markets
Wonderful. Could you talk a little bit about your bond portfolio and what kind of securities you have in your corporate investment? Should we expect anything like the charges that you had with Lehman and Washington Mutual, going forward?
Barry Zyskind
I don’t believe so. I think the portfolio as it stands today is very solid. As we mentioned, half the portfolio is in the AAA MBS’, which are government-backed and then in the corporate portfolio the names that we are left with are names that we feel very, very comfortable with and we don’t see this situation again which happened with Lehman and WaMu. And we’ve taken steps – and if – from now and going forward we are not going to take a chance, meaning if you look at what happened the weekend before Lehman Brothers went out, the bonds were trading in the 70s, I don’t think the market thought that it would go out of business. But going forward, if we see those types of situations, we will sell them before it gets to the situation where we’d have to take an impairment.
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