Q3 2021 ProAssurance Corp Earnings Call
In our workers compensation business.
We recognized net favorable development of $8 $6 million in the current quarter driven largely by the specialty P&C segment at $6 $8 million, which includes $2 $3 million related to the amortization of the purchase accounting fair value adjustment on nor Cal is assumed reserve.
We also recorded $1 $5 million and $1 6 million of favorable development in the workers' compensation insurance and segregated portfolio cell reinsurance segments, respectively.
The Lloyd's segment recorded unfavorable development of $1 $3 million.
Primarily related to natural catastrophe losses.
Excluding one time transaction related costs, our consolidated underwriting expense ratio decreased approximately seven points in the quarter to 23, 3%.
That's driven by the effect of significantly higher earned premium acquired through norcal and lower related expenses.
Year over year improvement is also attributable to restructuring in the third quarter of 2020 and related one time costs.
And our Form 10-Q, we provide a detailed breakout of the items affecting our expense ratio in the quarter to help readers arrive at a run rate.
From an investment perspective, our consolidated net investment result increased nearly 60% year over year to $34 $5 million.
This includes $15 $2 million of equity in earnings from our unconsolidated subsidiaries due to the results of our investments in Lps and LLC.
Consolidated net investment income was $19 $3 million in the quarter up significantly from the year ago period, and primarily due to higher investment balances following the nor Cal transaction.
Higher investment balances were offset slightly by lower yields from our short term investments in corporate debt securities due to the low current interest rate environment Ken.
Thanks, Dan.
Adjusting for commentary on the specialty property and casualty segment Mike.
Thanks, John before we get into the results of the quarter.
I'd like to provide a brief overview of where things stand with both legacy approach.
And nor Cal business.
First we continue to achieve incremental improvements in results from our legacy business.
Including higher gross premiums written.
Right and retention gains decreased operating expenses and improved loss experience.
On the Norcal front.
We are extremely pleased with progress to date and the overall execution of our integration plan.
During the quarter, we announced and implemented implemented our healthcare professional liability organizational structure.
In regional service model on a national basis.
We successfully integrated reinsurance programs financial and investment operate and investment operations and retained 87%.
Our accounts business.
While achieving average rate increases of approximately 11% on the book since the close of the transaction.
This is a great start to the re underwriting efforts on the Norcal book.
We are ahead of plan on targeted expense synergies, achieving $717 $2 million through the end of the third quarter on an overall plan of $18 million.
And for information systems consolidation is proceeding as planned.
The cultures are merging together the combination of exceptional talent from both organizations.
Now for the results of the third quarter.
Gross premiums written during the quarter increased by over 48% or approximately $77 million norcal contributed just over $72 million of that increase premia.
Premium retention for the segment was 84% in the quarter drill.
Driven by retention rates that are either improved or remained consistent in all lines of business.
Furthermore.
We achieved average renewal price pricing increases of 9% in the segment this quarter.
Driven by 9% and standard physicians and 13% in specialty healthcare.
Although not reflected directly in our rates or pricing improvement, we continue to strengthen rate adequacy through adjustments to product structure.
And conditions.
Both our small business unit and medical technology liability business achieved achieved average rate gains of 8%.
New business written in the quarter totaled $11 2 million, an increase of $2 5 million from the year ago quarter.
And primarily driven by $6 $4 million written in our <unk> specialty business.
The current accident year net loss ratio was essentially flat from the year ago quarter.
As improvements in our legacy <unk> business were offset by higher average loss ratios associated with nor Cal business.
As previously stated we are off to a great start and the re underwriting of the nor Cal business.
We are confident the <unk> loss ratio in this segment will continue to benefit from the previous re underwriting work in our legacy <unk> business.
Execution of the nor Cal plan.
And lower claims frequency experience for several quarters.
Segment net loss ratio decreased to 86, 6%.
Due to higher net favorable reserve development, which was $6 $8 million in the quarter.
This includes $2 $9 million related to the amortization.
Of the purchase accounting fair value adjustment on Norcal reserves.
The reduction in <unk> claims frequency observed in 2020 has continued into 2021, thus far.
Some of which is driven by the impacts of the COVID-19 pandemic.
And our under re underwriting efforts given these favorable trends we began to recognize some of the benefits in our healthcare professional liability current accident year loss ratio during the third quarter of 2021.
The segment reported an expense ratio of 17, 7% for the first third quarter a.
On a year over year improvement of six one points driven by significantly higher earned premiums the impact of transaction accounting.
And benefits from prior organizational restructuring and expense management efforts.
Exclusive of the nor Cal impact the expense ratio decreased approximately one point.
Overall, we continue to be pleased with the improvement in our operating results.
And the nor Cal integration process Ken.
Thanks, Mike Kevin.
Kevin will you please bring us up to date on the workers' compensation insurance and segregated portfolio cell reinsurance segment.
Sure Ken the Workers' compensation insurance segment recorded an underwriting loss of $2 $2 million and a combined ratio of 106, 3% in the third quarter of 2021.
The increase in the combined ratio quarter over quarter reflects a higher accident year loss ratio in 2021, partially offset by an improvement in the underwriting expense ratio.
Of note is the fact that the reported combined ratio includes intangible asset amortization and a corporate management fee the combined ratio.
<unk> ratio. Excluding these items for 2021 was 103% for the quarter at 97, 4% year to date, an indicator of the result of our ongoing business performance.
During the quarter the segment booked $64 $6 million of gross premiums written an increase of two 5% quarter over quarter.
Renewal pricing increased 1% in our traditional book of business in 2021 compared to a decrease of 3% in 2020 and premium renewal retention was 87% for the third quarter of 2021 compared to 84% in 2020.
Traditional new business writings for 2021 were $3 5 million compared to $6 2 million in 2020.
We continue to see higher premium retention and lower new business trend that began at the beginning of the pandemic.
Audit premium in our traditional book of business improved $700000 quarter over quarter to an audit premium returned to customers of $100 a significant improvement over recent quarters.
The increase in the calendar year loss ratio from 62, 2% in 2020 to 74, 3% in 2021 reflects an increase in the current accident year loss ratio.
Favorable prior year Reserve development was $1 $5 million in 2021 compared to $2 million in 2020 the.
The increase in the full year 2021 accident year loss ratio during the quarter reflects higher claim activity as workers return to full employment with the easing of pandemic related restrictions in our operating territories and the labor shortage, resulting in increased overtime hours by.
Existing employees are.
A reduction in skilled job training and increases in alternative work arrangement risks.
The trend in higher claim activity continues to be concentrated in our historically profitable small book of business, most notably in restaurant hospitality and small construction market segments.
Was from accounts within our renewal policyholder base.
We recorded a current accident year loss ratio of 77, 8% for the third quarter of 2021, which brings the ratio for the nine months ended September 30% to 74%.
Our detailed actuarial process each quarter is consistent in scope and scale with that at year end and this coupled with our short tailed claim strategies enables us to react and record these trends real time.
Despite the increase in claim activity in our small book of business overall frequency continues to be below pre pandemic levels and the lowest in 10 years with the exception of accident year 2020.
The claims operation closed 12, 2% of 2020 and prior claims during the 2021 quarter consistent with third quarter historical trends.
There were 160 reported Covid claims with accident dates in the third quarter of 2021 with a total reported incurred loss expense of $127000, which management relates to the spread of the Delta variant.
We continue to monitor legislative attempts to broaden workers' compensation coverage and our underwriting territories, but observed minimal movement during the third quarter.
The 2021 underwriting expense ratio decreased to 32% from 35, 2% in 2020, primarily due to the realization of the restructuring initiatives implemented in August of 2020, and the recording of $900000 in employee.
Severance costs in the third quarter of 2020.
Other underwriting and operating expenses were $8 $6 million in the third quarter of 2021, a decrease of 13, 7%.
The segregated portfolio cell reinsurance segment produced income of $539000 and a combined ratio of 87, 7% for the third quarter of 2021.
Premium trends in the SPC re segment were largely consistent with those in the workers' compensation insurance segment, we renewed all of the captive programs that were available for renewal during the current quarter.
The SPC re segment calendar year loss ratio increased from 42, 7% in 2020 to 56, 7% in 2021, driven largely by a decrease in prior year favorable development quarter over quarter two.
2021 accident year loss ratio was 67, 2% compared to 67, 3% in 2020.
The 2021 accident year loss ratio reflects the continuation of intense price competition, and the resulting renewal rate decreases and the workers compensation business and the impact of higher claim activity as workers return to employment.
Offset by favorable trends in prior accident year claim results and its impact on our analysis of the current accident year loss estimate.
Favorable loss reserve development was $1 6 million in the third quarter of 2021 compared to $4 million in 2020.
Despite the increase in loss activity in the Workers' compensation insurance segment I want to emphasize that there were several positive indications for the quarter, including a decreased expense ratio gross written premium growth of two 5% strong premium renewal retention improved audit.
Premium and rate increases of 1% the first rate increase in many years Ken.
Thanks, Kevin and I will turn it back to Ned for a review of the results from Lloyd's net.
Thanks, Ken.
The Lloyd's segment reported a profit in the third quarter and it was a smaller one than the year ago quarter.
Due to the expected top line reduction and some adverse catastrophe development.
As you know for the 2021 underwriting year, we reduced our participation in syndicate 2017, 29 from 29% to 5%.
And our participation in syndicate, 61, 31 from 100% to 50%.
Our gross premiums written in the <unk>.
Segment this quarter reflect that change.
Meanwhile, adverse development, primarily driven by certain large catastrophe related losses. Further then the margin this quarter.
I'll close with a big thank you to our team members across the organization for your continued dedication and commitment.
Change is hard.
Particularly during a period of national uncertainty and upheaval.
You've done a remarkable job.
And we're on the right track.
Thanks, Matt Robin.
Robin that concludes our prepared remarks, we are ready for questions.
Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind I would like to withdraw your question. Please press star followed by K when comparing to ask your question. Please ensure you're fine is Amit lately.
Our first question comes from Matt <unk> from Jpmorgan. Please go ahead.
Okay, Thanks, Matt <unk> at JMP.
Good morning.
Net or Mike. This one is probably for you I was hoping you could give us a little bit of a picture of where the competitive landscape sits today in the core physicians book I guess as well as the specialty book.
A large competitor announced I think just a week ago that they're pulling out of access portion of the hospital space.
Are there are those sorts of things continuing to happen we've seen some a while ago or is that just are they still happening and it takes a large public company that mentioned on our conference call for the rest of us to see just an update would be helpful.
Hey, Matt Good morning, maybe I'll.
I'll answer and then Mike can fill in with some more details I think it is to a point I think you made there I think it is important to look at.
The health care professional liability marketplace in particular in kind of two distinct pieces and one is the physician business.
One is what we would call specialty healthcare, which would pick up the hospitals and facilities.
Large national groups and the reason I think it's important to look at those differently.
The markets for them when they are served in some instances by different companies.
And then what's going on in those two markets is different in the physician space, which is continues to be served by a large number of mutual companies.
While we are seeing right and we are seeing competitors take rate I think it remains a very competitive marketplace with really very limited withdrawals of capital.
There is I would say still an abundance of capital in this space.
And the specialty healthcare business that certainly has been more volatile than we have seen players exiting the space.
I think they are probably also players that are.
Entering this space as well so the.
Capital withdrawals have not been so significant as to.
Create an intense hard market rate is needed in that part of the market.
And people are obtaining the right, including pro assurance, So I think thats very very good.
Someone said to me yesterday, if youre, if youre getting right.
On a on a piece of business that has a 160% loss ratio, that's not necessarily a hard market.
That's just getting rate, where you need rate and I think that's what's going on more so than than saying, we're in a a hard hard market, we're getting rate, where we need to get right.
And the folks that are competing in that segment of the business are chasing rate in the same way that we are.
The reductions in capital I don't think have been significant enough to change the market dynamics beyond that Mike what would you add.
Thanks Ned.
Good morning, Matt the only thing that I would add on the specialty business as we have seen.
Consistent consistent achievement of improvement in terms conditions.
Product structure and limits profile on top of the rate. So there is a market.
Has allowed us to really look at that closely and make some good decisions on the underwriting side there. So.
So that has been helpful in moving.
That book towards profitability.
Just would finish up by saying just one thing to keep in mind, Matt is that.
Our rate increases have been prolonged.
We went back to it.
2018, all the way through the <unk>.
Q3 of this year with the three.
Really positive rate across our our healthcare book of business. So.
I think we've been ahead of it I think we've gotten those incremental increase curious is to stay ahead of the frequency.
And severity trends and just one last point because theres really pleased.
We had rate increases across our overall.
We booked this quarter went beyond.
The Norcal book and <unk> eight points.
And med Mark and Ed.
In our ISG small business book, which so there was some nice consistency in our pricing across the book this quarter.
Mike Thanks for that that add on and I think one of the things that Mike said, there Matt is really important which is.
The compounding impact of rate increases over multiple years, and you can really trace the rate increases that.
That we've been driving back to 2018.
Which I do think is important.
Yes, very good point, thank you for the color and one other question if I could.
And talking about the accident year loss ratio.
And the specialty business for the quarter, yet specifically the physicians book you.
Can you talk about how you recognize some of the reduced frequency that you saw in 2020, one kind of finally this quarter, but it was offset in the reported numbers by norcal, which runs a little higher can you help us understand that nuance little more either how much do you recognize in the legacy.
Pro assurance or kind of what the spread is between where legacy pro assurance in Norcal run and then kind of a follow on to that is is that for structural reasons or otherwise healthy spot for norcal ore or is that part of why maybe they're getting a little more rate than our legacy <unk> book that youre aiming to bring it bring that to.
To narrow that gap.
Yes.
That's a great question I'll, let.
And sorry, one thing I would say, though is that just understand that even though we had a long period to do due diligence with norcal.
We're still getting to know that business and that company better and better every day and so I think we're cautious as a consequence of that and as we get more comfortable with the data loss data and spend more time with it.
In our view will likely evolve.
But my more specific to Matt's question around kind of the comparison of.
Nor Cowen legacy PRA I'll, let you answer that.
Thank you.
Thank you Matt.
Just something to think about just from a segment loss ratio perspective, we had an improvement of roughly 3435 points and that was kind of offset by a higher average loss ratio.
That was roughly about the same three five points that did include purchase accounting adjustments for <unk>.
Nor Cal.
The one a couple of things.
From a color perspective, Matt we did.
As we look at looked at the books of business we.
We did see that we've had prolonged frequency reduction.
And our pro assurance legacy book of about seven quarters.
We were able to recognize that to the tune of about two five points and about $4 million on the accident year.
I think for both as Ned said earlier and I think it's a great point, we're still underwriting understanding the book.
Data.
We will certainly do a deeper dive on those frequency trends in.
In the fourth quarter.
Both internally on the actuarial side and externally.
And.
Those changes.
We continue to see these improvements.
We will be able to take some favorable action on that so.
<unk>.
The other thing to think about here is that from an underwriting standpoint.
It was just the <unk> team has done a terrific job.
We had double digit physician rate increases.
Teen points on the specialty.
Books since we've joined joined forces.
So even though the loss ratios are higher at this point in the cycle I.
I think the re underwriting efforts are going very very well.
And just another thing to keep in mind is it was 87% retention.
We had 90% retention and the norcal positions I think that's I think we're just off to a great start there.
Alright, great.
Great. Thank you for the color and for taking my questions.
Thank you Matt. Our next question comes from Paul Newsome from Piper Sandler. Please go ahead.
Good morning, maybe a little bit more on the.
Outlook for the accident year.
Loss ratios.
Mainly in the specialty business, but I also love to hear some comments workers comp business as well.
No.
Spread of price to underlying claims inflation has been kind of the.
Topic for the last quarter or two.
Where does that sit.
And then I guess somewhat related.
Where do we think the given the win uniquely account for you.
<unk>.
How would that sort of work its which Susan.
Maybe I'll give some high level thoughts and then Mike and Kevin can fill in some details there too.
Yeah, Paul I think that the challenge from a reserving standpoint right now is just all the uncertainty.
So Mike talked about the decline in claims frequency and why we can observe a declining claim frequency, we don't know what to attribute that decline too.
We don't know if it's.
Higher selectivity on the part of plaintiffs lawyers about the cases that they are bringing.
Or what else might be driving that frequency and it's just too early to be able to turn on as a consequence of that.
We're going to be cautious and <unk>.
Recognizing any benefits associated with it.
The fact that CT systems aren't fully open right now and so things are proceeding more slowly through those court systems. If they are proceeding at all through the court system adds to that uncertainty, especially for long tail line of business like our healthcare professional liability line of business and so we are very very cautious.
And that spills over to what we saw this quarter and the workers compensation business as Kevin.
Fill in some more details on that we began to see some increases in claim frequency and some concerns about claim severity there and took action very quickly to what we're seeing.
I would note that.
Eastern writes what we.
We perceive in many perceive as a short tail to workers comp business just from the way they handle claims and I think that is somewhat unique within the workers comp industry and so I think we're probably ahead of many others in recognizing some of the trends that are actually going on in the workers' comp space.
Have reacted appropriately.
Maybe we'll work backwards, Kevin do you want to do you want to pick up on some further details on comp and then we'll go to Mike.
Yes, Im happy to thanks, Matt.
Thank you Paul if I were to look at the accident year loss ratio for comp.
And really the increase in the third quarter and kind of bifurcate it into two areas.
We talked about the return to employment with the lifting of pandemic restrictions and I would say some activity there in Q1 and Q2, and then a little bit into Q3, where workers are not in shape again small construction small manufacturing restaurant hospitality and what we saw in the third quarter.
Caused us to increase our estimate I would say it was more directly related to the labor shortage and seeing an increase in activity with employee fatigue and burn out for those that are actually working.
Not as much skilled training and.
Policyholders will say, Kevin I, just need a warm body.
Employers performing alternative tasks, because theyre short on people and just general anxiety about working in the pandemic. So I think all of those were a contributor Ned talked about frequency or frequencies down it's just up a little bit relative to 2020 and what's interesting about.
<unk> of reported claims is the hard claim counts are down so I can compare 2021 to 2011 and I actually have less reported claims in 'twenty one than I do on 11.
Severity is up a little bit.
We've seen a lot of claim activity in that 50 to 150 to $200000.
Area.
And again with our short tailed nature of our business model.
Believe we're going to recognize those trends much more quickly.
Get those reserves to ultimate faster than a lot of the industry is so hopefully that provides you a little more color.
Thanks, Kevin Mike do you want to.
Ever for health care professional liability as well.
Sure. Thank you.
Paul just a couple.
Observations.
We're pleased with the pricing improvements.
Relative to both the frequency and severity trends.
<unk> has been varies by state, but it's roughly been in that three.
Three to three 5%.
The range for our book of business. So we're encouraged by the improvements in the accident year loss ratio, we're encouraged by.
The reduction in frequency in both.
Norcal legacy.
<unk>.
I'm, sorry insurance legacy and the nor Cal book, and we're just going to contemplate all of that as we review the for the fourth quarter I think just overall theyre pretty encouraging trends on all fronts.
Maybe just a few more.
Sure.
On the workers comp business.
The mortgage business the industry has had.
Quite a pretty good run the last several years.
But if you look at your workers' comp loss ratios relative to the industry. There. Please.
Higher.
What about your mix wood versus the industry would create a generally higher loss ratio.
As analysts we have a view on the industry overall.
Yeah.
And.
So maybe kind of thinking about sort of comparing and contrasting volume loss ratios will be higher than that.
Yes.
No I'm happy to do it I would say the loss ratio is directly related to our reserving philosophy.
And again, the short tailed nature of our business and I think that there are going to be some industry trends in the future.
Others may be recognizing this but not necessarily real time, when I think about our overall book of business. We're diversified in over 600 class codes.
Our largest segment is healthcare, it's about 23, 24% of our book.
But restaurants are 5% hospitality, 6% construction nine or 10%, so we've always been well diversified.
By market segment.
And we've been diversified regionally.
And I just believe that we are recognizing this trend upfront, which is driving our accident year loss ratio.
That I believe is going to be more of an industry recognized event that hopefully will be another thing that will ultimately change the market in workers' comp long term.
Great. Thank you very much.
Thank you.
<unk> comes from Gary Ransom from Dowling and partners Gary. Please go ahead.
Good morning.
I wanted to follow up on the workers' comp.
Comments it sounded like you were saying the frequency was only up a little bit from 2020, yet we're talking about.
Recognizing something that sounds more significant.
The changes there as employment comes back just what can you connect that to me for me too.
To help understand.
Yeah. So frequency is up only a little bit from 2020 to 2021 and again I have to go back to 2010.
Before I find a lower number of reported claims I think I think if you think about 2020, a lot of businesses were shuttered in the world had really changed in that year and you fast forward to 2021 with businesses.
Opening exacerbated by the labor shortage, we're not seeing significantly more reported claims from a frequency perspective, we're just seeing some more difficult claims.
With workers.
For example, working on a piece of machinery that they didn't they're not used to working on because they are only at 80% of their required labor or a newer worker that comes in and he's trained the way. They would have been 18 months ago, because they're just trying to get warm bodies in <unk>.
General anxiety in the workplace with the pandemic and with being short staffed so anecdotally, we're hearing about 20 or 25 year experienced person that's been operating a piece of machinery for 25 years and there are like I don't know how I got my.
Hand, or arm or whatever caught in this machinery. So I think frequency is only up slightly but I really believe that the claim activity that we've recognized is directly related to the events in 2021, starting with the return to employment and most recently.
This increased loss activity, specifically related to the labor shortages.
Gary.
Yes that is helpful.
Appreciate it.
Okay.
Also wanted to ask about the.
The health care professional liability rate trends.
In the prepared remarks, you talked about terms and conditions.
And various other changes that are going on besides rate and I wondered if you could help.
Quantify at all what the.
What those changes might add up to as compared to rate.
Just any any color you might be able to add there.
Yes.
Historically, a very challenging thing to do it actually to quantify we directly in our directionally the impact that it has Mike do you have any color you can provide.
Yes.
Great. Thank.
It's a tough one Gary but.
We'll see how it plays out and.
I do think.
It's helpful.
It's material because as you bring up retentions.
And deductibles in.
We look at.
Lower limits profiles it helps but it's a long tail business thats going to help over time.
But.
I Couldnt give you a specific number on that for example for our rate accuracy standpoint.
A lot of moving parts on that book as well.
So I think the thing to think about their areas.
Book debt.
<unk> has been more in that 75% to 80% retention over the last couple of years, So theres a lot of movement there.
We just think our underwriters are doing a really good job.
Across the company.
On securing better terms terms conditions of product structure for us.
But just so I'm clear.
When we talk about whatever the whatever the quantification is of terms and conditions changes that's on top of the numbers you gave us for the average premium changes that correct that's correct.
That is correct Gary.
Okay.
Yes.
And then Hello.
One last thing on.
The.
How youre, recognizing a little bit of a benefit in the loss ratio.
I was curious whether.
This is all claims made business is there a statute of limitations element that goes into this where after enough years go by you you kind of know your frequency truly is lower.
Yes, that's a good question Gary So I think they are.
Couple of parts to that question maybe to unpack so.
The concern right now I think is not that the frequency and number is not a good number because it is a claims made books. So we kind of know the number of claims. So we don't know is let's call. It the quality of those claims relative to the quality of claims in past periods and as I said earlier, whether or not it's driven by higher select.
<unk> as an example by plaintiff lawyers.
There is a further question or a further concern that we have which is that because the court systems have been somewhat shut down.
And just the.
The malaise that has been caused by Covid.
Is there is a what I would call pension the pipe and the reporting of claims and that would show up in future years as as claims under a claims made product and whether or not those raw material I'd say in 2022 that otherwise would have materialized in 2021.
And Thats, where the statute of limitations does come into play and the statute varies from state to state, let's say on average it's two <unk>.
Last years.
And then for miners, it's very different because typically it doesn't begin to run until a minor reaches the age of majority, which is typically I think 18, so lager lager runway for for Obs as an example, as opposed to.
A general surgeon.
But yes, it's something we're watching very very closely again more because of this worry of are concerned about.
This these claims that are potentially sitting on the sidelines that may come in into the future.
Mike anything you'd add there.
I don't have any further comment thank you Dan.
And maybe just one last thing just in terms of the general impact of that pinch in the pipe.
Claims starting to come through now that gives you a.
Our feel for what May have happened during COVID-19, whether it's social inflation just stayed the same.
It's kind of running as you might have expected or whether it actually was a little better a little worse.
I'd say, it's too early to say and again just to be very clear, we're talking more about frequency when we get into the areas of social inflation Youre really talking about severity of claims.
And we have some optimism that this idea of health care workers as heroes and the fact that.
Health care workers across the country have really put themselves in the front lines in dealing with this pandemic.
Create some goodwill.
That may have some impact on claims, but I think it's too early to tell yet.
But I would say more broadly is social inflation.
Not necessarily just within the healthcare professional liability line, but across our casualty lines and within the litigation system I don't think that Theres been.
And a significant downward trend and the impact of social inflation right.
Thank you very much.
Okay.
Thank you Gary.
This now concludes our Q&A session I will now hand back to cabinet Mcewen for any pharma correct. Thank you Ken.
Thank you Rob and thank you to everybody else, who joined US today look forward to speaking with you again in 2022.
Thank you everyone. You may now disconnect your lines.
Okay.