Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Devin Ryan with Sandler O’Neal.
Devin Ryan - Sandler O’Neill
Hi, guys, how are you doing?
Lionel Conacher
Hi, Devin
Devin Ryan - Sandler O’Neill
First questions on the brokerage business I guess first, what were the loss rates in the quarter, were those meaningful and then I guess to follow on, seems like that business just gotten tougher and tougher every quarter. Do you see revenues kind of leveling half year, especially kind of given the new people that you hired and I guess also potentially what the pickup in capital raising activity and how should we think about growth in that business going forward?
Lionel Conacher
So, Devin, this is Lionel. Let me talk to the brokerage business and Ryan will try in here. On the quarter, our overall retention ratio actually improved from 75% from 70%. We had a more difficult July and August, but September we ran quite a low loss ratio and so on an overall basis for the quarter, our loss ratio improved quarter-over-quarter from Q2 to Q3 and it’s inline our target loss ratio is in the 20% to 25% on institutional business.
So for Q3, we were kind of at the top end of that range, but we think with we’re kind of volatility that we had in Q1, Q2 has largely gone out of the market and things seem to be much more stable. In terms of the second question, can you just clarify specifically; you’re talking about the follow on business, is that are you talking about?
Devin Ryan - Sandler O’Neill
Essentially with revenues essentially declining in the last few quarters, just trying to get a sense if you have seen any signs of them leveling off on the brokered business and I guess suggesting that maybe reason why that would be, given that you hired new people there and that also that capital raising activity may pick up which will help brokerages as well. You trying to think about what the growth in that business it look like, maybe the level of where we have been, is going to level off.
Ryan Stroub
Devin, I don’t think $24.3 million we would consider a baseline level. I think certainly what we expect going forward, is something more what you saw in 2008, as far as a baseline and depending how some of the new hires go, and somewhat business lines go, it could go up from there.
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