Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jay Cohen - Banc of America/Merrill Lynch.
Jay Cohen - Banc of America/Merrill Lynch
Can you just quantify and describe those assessments? Where do those come from and how much were they?
Craig Mense
So, it some from the Department of Labor and some from New York Second Injury Fund in total, they are about little less than $20 million.
Jay Cohen - Banc of America/Merrill Lynch
Is this something that should be one time in nature or could it continuing?
Craig Mense
It should be one time in nature.
Jay Cohen - Banc of America/Merrill Lynch
Next question, maybe for you, Craig, on the capital side. So, obviously you had a great recover in the equity position. Your capital looks to be at or better than it was in the end of 2007 and I guess it was about that time, I forget the exact timing, where the company acknowledged it had excess capital and began to pay a dividend. Can you talk about your flexibility now versus then, having just lived through the credit crisis whether it’s on your own metrics, whether it’s from the rating agencies? That, be helpful.
Craig Mense
You obviously recognize it, so we’d be certainly more cautious this time having lived through what we did. It’s nice to be in a position to begin to think about the financial flexibility we have. As I said, last call, we think one of the most important things that we can do for this company is position it to get an increase from the rating agencies, obviously, the first step would be to get the outlook changed. So, as we think about things, we’re those are kind of that’s really what’s front and center in mind of what we would do or might do, if that answers your question.
Jay Cohen - Banc of America/Merrill Lynch
Then just on that topic really quickly, what were the terms of the preferred from low’s as far as the maturity of that if there was any?
Craig Mense
There was not a maturity. It’s 10% preferred dividend. There’s an automatic reset in 2013, which at that time it goes to 700 over whatever the 10 year treasury is.
Jay Cohen - Banc of America/Merrill Lynch
Then the last question, maybe a bigger picture one on the new business, which is encouraging to see, but I guess, we continue to hear a constant drumbeat from everyone in the industry that new business is very competitive and when you see a company that is increasing its new business, it is a bit of a red flag in this environment. How do we get comfortable with your new business generation, given that backdrop?
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