Question-and-Answer Session
Operator
(Operator Instructions). We will now take our first question from Ed Spehar – Bank of America Merrill Lynch.
Edward Spehar – Bank of America Merrill Lynch
I had a few questions, just first, some clarification on the expense reduction efforts. How much of the $25 million in annualized savings expected were in the third quarter numbers?
Dr. Floyd Chadee
Yes, I think, Ed, if you think about this, this process has been going on all year, so I wouldn't look necessarily to the third number to try to reconcile to run rate. I think if you – because some of the initiatives were still going on in the third quarter, there were also some unusual items in the third quarter that may cause some noise.
The numbers that we tend to look at would be if you look at our third quarter ending headcount, for example, at 3,202 that compares with a year ago of about 3,454, which represents a decrease in headcount of about 7% to 8%.
Edward Spehar – Bank of America Merrill Lynch
I guess, but if I look at the $25 million and say that means that at some point you're going to be saving a little bit more than $6 million per quarter.
Dr. Floyd Chadee
That's correct, yes.
Edward Spehar – Bank of America Merrill Lynch
Should I assume any of that was already reflected in the third quarter number?
Dr. Floyd Chadee
I think some of it, but not necessarily a full quarter.
Edward Spehar – Bank of America Merrill Lynch
Do you think it's half, it's three-quarters, it's 25%? I mean, just from a –
Dr. Floyd Chadee
Yes. I think there's enough noise going on in the third quarter here, just the other things going on that I wouldn't want to reconcile back to the number based on our third quarter's numbers here. But I think you are right in terms of our expectation would be about a $6 million savings off our run rate for next year per quarter.
Edward Spehar – Bank of America Merrill Lynch
Okay, but I guess a related question would be it looks like the expense ratio in the insurance services segment was higher, at least than what I thought it was going to be. When you talk about the noise in the numbers, was there something that boosted the expense ratio in the third quarter in insurance services?
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