Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Mike Grasher - Piper Jaffray Companies.
Mike Grasher - Piper Jaffray Companies
I got a few questions. First of all, you spoke of the 34% top line growth, you mentioned in Northeast. I am wondering, how much of the growth was actually attributable to the new states, the California, Texas and Florida and I believe those are all, with regard to wholesalers as the distribution point, can you talk about where you stand? I think you had mentioned earlier in the year that you hope to get around $50 million, if I am not mistaken, out of the wholesalers. Can you just give us an update on all that?
Michael Lee
Yes, this is Michael Lee. The 25% as I mentioned, 25% of the new business production came from those three states; California, Texas and Florida and I think Frank, you also gave some statistics on the total amount of business year to date which I think was approximately $50 million or so from those states, the three states. As far as Northeast, we have maintained underwriting discipline and we have reduced our exposure to middle market accounts. Therefore, we are seeing slower growth rate. I believe it is probably 5% to about 6% organic growth so that slowdown somewhat but we are making it up through the growth from these states that we have expanded into.
So, consistent with our strategy of allocating cap specific from market segments depending on the competitive market conditions. We have been able to manage, to grow profitably so I think we are doing a very good job despite the challenging market conditions of rotating our capital and resources to profitable market segments. For that reason, we are able to report these very positive results.
Mike Grasher - Piper Jaffray Companies
And then to follow up on that, had you, do you feel like you have rolled out your product line up to these wholesalers at this point? And I guess second question would be what are you doing in terms of new product development at this point?
Michael Lee
I am glad that you asked that. I think we are in our early stage especially in California. We are not getting, we have not really seen the full benefit of expending into California. California is a big state for us. We think that many of the characteristics that we have experienced in New York metropolitan area; we are seeing those same types of trends in California. So, I think that state is very good fit for us and therefore, we see that state to be a territory that will give us very good opportunity not only in 2008 but into 2009 and beyond.
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