Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We'll go first to Matthew Heimermann.
Matthew Heimermann - JPMorgan
Hi, gentlemen. That was real quick. Couple of questions if I may. I guess first in can you just give us a color on the work comp line. And in particular, I'm just trying to get a sense of how actually your margins are comparing year-on-year given that on a calendar year basis obviously there is a pretty dramatic bump up.
John Finnegan
Yeah. There work comp Matt is negative 9% this quarter. So premiums for worker's comp though on an industry wide basis have declined about 15% over the last over two years 2006 to 2008 while our premiums were down only about 5%.
The book is still profitable, both year-to-date and in the third quarter. Little less so in the third quarter this year due primarily to two things, one large loss and some less favorable development this year.
Matthew Heimermann - JPMorgan
Okay. But there is still you're seeing still favorable development there? Or there is absence of favorable versus favorable last year?
John Finnegan
It's actually about flat this quarter.
Matthew Heimermann - JPMorgan
Okay. And then it -- that large loss, I mean is that because you had kind of elevated last ration's in that line now, I think the first three quarters of this year, is that something that's been affecting every quarter or is there just a trend that's been affecting a particular portion of the book every quarter? I am just...
John Finnegan
I think, Matt that our combined ratio this year is 91.5. Third quarter was 95.7. That reflected the effect of the one large loss. Now but certainly to be fair, worker's comp has had some margin compression over the last year or two, given what's happened to rates. 91.5 though is terrific by historical trends, I think you'd agree and probably 15 points better than the industry as a whole.
Matthew Heimermann - JPMorgan
No, that's fair, I just don't want to make the mistake of assuming the type of deterioration we've seen on year-on-year. So I would just -- but the color is helpful there.
Two other; just kind of clean up questions I guess. One just on the reassurance assumed; what's the unearned premium reserve loss there,
John Finnegan
Fairly insignificant, Matt. Not much at all.
Matthew Heimermann - JPMorgan
Okay. And then just with respect to auto, it looks like you kind hit an inflection point with respect to some of the growth weakness you've seen in the first half of the year. And I just wondered if it's anything you need to yet point out there or is that just random mess at this point in the numbers?
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