Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Jay Cohen – Bank of America.
Jay Cohen – BAS-ML
Let's see, a couple of questions. I guess, just first, it's not a big line of business for you, but it has gotten some attention in the industry, trade credit. Can you talk about how big that business is and what your claims experience has been over the last year?
Keith Jensen
Sure. In general, this is our foreign trade – foreign credit insurance association and it has run volumes annually in the 25 million range. That's a bit up this year because pricing has improved substantially. But as you said, it has been a relatively small portion of the whole. We have been profitable in that line from an underwriting perspective really for decades. So it's been a very strong performer, although as you said, one of the smaller portions of our business.
Carl Lindner III
Can last year, and in this environment this year, we've probably been reserving more conservatively there just to cover ourselves for anything we think we're missing there.
Jay Cohen – BAS-ML
Have you seen a big uptick in claims or an uptick in claims?
Carl Lindner III
Yes, there've been a few more issues than normal, but again, nothing that's material or that we're worried about at this point. I think in reserving at a higher combined ratio and a more conservative basis, we think that we're prudent.
Jay Cohen – BAS-ML
And I believe you said, moving to the crop side, I believe you said that the underwriting results for your crop book this year would be similar to '08. Would you describe '08 as a normalized or normal year? I mean, some people looked at '08 and said gee, it was kind of a rough year given the drop in commodity prices, given the flooding towards the middle of the year, and I'm wondering, how would you view '08 relative to other years?
Carl Lindner III
Yes, I think '08 was, for us, it turn – we didn't – as the year, early in the year, we didn't think it was going to be a great year. As it ended, up it was a pretty decent year, kind of a normal year. This year looks solid right now. Actually, probably the '09 yield projections right now are higher for corn and soybeans versus last year. Probably the biggest risk because of some of the late planning would be the impact of an early frost and that we're not big in Texas, so the Texas drought is not really a big issue for us.
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