Q4 2021 CNA Financial Corp Earnings Call
Good morning, and welcome to Cna's discussion of its 2021 fourth quarter financial results CNA.
Cna's fourth quarter earnings release presentation, and financial supplement were released this morning and are available at the at the website Www, Josh CNA dotcom.
Speaking today will be Dino Robusto, Cna's, Chairman and Chief Executive Officer, and Lori Shaker Cna's interim Chief Financial Officer.
Following their prepared remarks, we will open the line for questions.
Today's call May include forward looking statements and references to non-GAAP financial measures.
Any forward looking statements involve risks and uncertainties that may cause actual results to differ materially from the statements made during the call.
Information concerning those risks is contained in the earnings release, I Didnt see any flaws research actually SEC filings.
In addition, the forward looking statements speak only as of today Monday February seven 2022.
CNA expressly disclaims any obligation to update or revise any forward looking statements made during this call.
Regarding non-GAAP measures reconciliations to the most comparable GAAP measures and other information have been provided in the financial supplement.
This call is being recorded and webcast.
The next week the call may be.
Cna's website. If you are reading a transcript of this call. Please note that the transcript may be reviewed for accuracy. Thus it may contain transcription errors that could materially alter the intent or the meaning of the statements.
With that I will turn the call over to Cna's, Chairman and CEO Dino Robusto.
Thank you Tracy and good morning in the fourth quarter, we continued to effectively leverage the favorable market conditions.
And achieved strong quarterly results, which topped off a great year with record core income.
Before I provide details let me offer a few highlights on both periods.
Our gross written premiums excluding our catheter business grew by 16% in the fourth quarter and 10% for the full year.
Importantly, the overall PNC rate increase remains at 8% in the fourth quarter consistent with the third quarter, leading to a full year rate increase of 9%.
Which was well above our long run loss cost trends.
The all in combined ratio was 92, 9% for the quarter at 96 point to for the year, each representing the best ratios in five years.
Our underlying combined ratio was 91, 2% for the quarter and a record low of 91, 4% for the full year.
All of this led to record core income of just over one point and $1 billion for the year up 50%.
Core EPS of $4.06 per share.
Drilling down on the details starting with the fourth quarter.
PNC operations produced core income of $353 million or a dollar and 29 cents per share or.
Our life and group segment produced core income of 6 million.
Our corporate and other segment produced a core loss of 94 million, mainly impacted by a non economic charge related to asbestos and environmental as usual Larry will provide more details on life and group and the corporate segments.
In the fourth quarter. The all in combined ratio was 92, 9% a half a point lower than the fourth quarter of 2020, and the lowest all in quarterly combined ratio since 2016.
Pre tax catastrophe losses in the quarter were 40 million or two points of the combined ratio compared to 14 million in the prior year period.
The P&C underlying combined ratio of 91, 2%.
The one four point improvement over last year's fourth quarter result.
The underlying loss ratio in the fourth quarter of 2021 was 61%.
Which is down <unk> three points compared to the fourth quarter of 2020.
Excluding the impacts of Covid in the prior year quarter, the underlying loss ratio improved by 0.8 points as we continue to recognize some of the margin build in the current accident year from the earned rate increases as we did last quarter.
For P&C overall prior period development was favorable by four three points on the combined ratio.
Turning to production.
Gross written premium excluding our captive business grew by 16% in the fourth quarter.
Which was twice as high as the first half of the year.
Net written premium grew by 11% for the quarter.
An increase of six points from the third quarter.
New business grew by 28% in the quarter and the overall written rate increase was 8% while earned rate in the quarter was 10%.
In addition retention of 83% was higher than it's been all year.
The strong production results were broad based across all the operating segments.
In terms of the business units the all in combined ratio for specialty was.
89, 9% and the underlying combined ratio was 91%.
They have point improvement compared to last year.
The underlying loss ratio improved by <unk> nine points to 59, 1% the expense ratio increased by <unk> five points to 39.
From a one time true up and Larry will provide more detail into discussion on expenses.
Gross written premium ex captives.
<unk> grew 15% in the fourth quarter with 58% growth in new business.
This is the sixth consecutive quarter of double digit growth in specialty.
We also achieved an overall rate increase of 11%.
Mm one point from the third quarter.
We achieved higher rate in management liability and our affinity programs.
And stable rate in our health care business.
In addition retention improved three points to 83%.
Turning to commercial.
<unk> combined ratio was 94, 9% in the quarter, including two nine points of cat.
This was the lowest all in combined ratio in four years.
Underlying combined ratio was 92, 2% this quarter, which was the lowest on record.
And was one four points lower than the fourth quarter of 2020.
2.4 points lower excluding the COVID-19 frequency impacts that lowered the loss ratio in 2020.
The underlying loss ratio of 661, 4% improved by <unk> three points compared to the fourth quarter two.
2020, excluding the COVID-19 frequency impacts.
As we referenced last quarter, the underlying loss ratio for commercial was higher in the latter half of 2021 resulting from mix change between property and casualty net earned premium due to the new property quota share Treaty we purchased in June .
The expense ratio improved two points three points to 34% this quarter.
Commercial achieved 19% growth in gross written premiums ex captives with 16% growth in new business.
Right at 5% was only slightly below the third quarter and excluding work comp the rate change was plus 7% in the quarter.
Which was consistent with the third quarter.
Retention was up two points to 84%, which was the highest of any quarter. This year.
Retentions were strong in all of our commercial business units and middle market retention improved to 85%.
This is the highest level since prior to the pandemic.
Exposure change was plus 2% and commercial this.
Quarter as a result of increases in payrolls and sales volumes as the economy continues to improve.
This is the highest exposure increase since the first half of 2019.
For international the all in combined ratio was 94, 8% in the quarter.
The underlying combined ratio improved by four two points to another record low of 99% this quarter.
The expense ratio improved two six points to 32, 4% and the underlying loss ratio improved one six points to 58, 5%.
We are very pleased with the improvement in our international results, which highlights our disciplined approach to the re underwriting and catastrophe exposure reduction we executed.
International achieved a 9% growth in gross written premium and new business growth of 15%.
Rates were up 13% this quarter, achieving double digit rate for the seventh consecutive quarter.
And nine of the last 10 quarters.
Vision retention at 82% was the strongest quarterly retention.
Over three years.
Now, let me provide some perspectives on the full year performance.
As I mentioned before core income was a record for the year, increasing 50%, so a little over $1 1 billion or $4.06 per share and net income for the year was just over $1 $2 billion or $4.41 per share.
This compares to $735 million and $690 million in 2020, respectively.
The increase from the prior year is attributed to significantly improved underlying underwriting gain.
And while still substantial a lower level of cat loss compared to 2020.
As well as higher net investment income driven by limited partnership returns.
The all in combined ratio was 96, 2%.
With 5.1 points of catastrophe loss and 0.3 points of favorable prior period development.
This is the lowest calendar year combined ratio in five years and a significant accomplishment considering the heavy levels of catastrophe loss again this core this year.
Cat losses were 397 million pre tax in 2021.
To $550 million last year.
Catastrophe losses in 2021 were actually higher than the 355 million catastrophe results in 2020, when you account for the Covid cat charge, we incurred in 2020.
Our P&C underlying underwriting profit for the full year increased 31% to 667 million is the underlying combined ratio improved one seven points.
The 91.4%, it's the fifth consecutive year of improvement in the underlying combined ratio.
The underlying loss ratio in 2020 , one was 60%.
Now 1.2 points compared to 2020.
Excluding the impacts of Covid in the prior year, the underlying loss ratio improved five six points.
The expense ratio improved 1.5.
Five point for the full year.
All three operating segments produced strong under line results in 2021.
For specialty the underlying combined ratio of 89, 7% was the best on record and 1.6 points lower than 2020.
Commercial produced an underlying combined ratio of 92, 6% in 2021, which is also a record and 1.3 points lower than 2020.
Multiple years of re underwriting initiatives in our international portfolio has paid off.
And underlying combined ratio of 92, 1% in 2021.
Three and a half points lower in 2020.
Turning to production for the full year gross written premium growth ex captives was 10% this year.
We achieved strong new business growth of 19%.
And our full year rate increase of 9%.
Retention was 82% for the full year.
Net written premium grew by 5% for the year.
In terms of the wider spread between gross and net written premium for the year compared to 2020.
This is a function of the new property quota share Treaty agreement, which was on a risk attaching basis, causing the spread to widen.
Before I turn it over to Larry I'd like to acknowledge Scott linguist, who is also on our call he'll be transitioning with Larry through the first quarter and will be handling the earnings calls after the first quarter.
We are excited to have Scott on board and with that I'll turn it over to Larry.
Good morning, everyone I will provide some additional information on our results as Dino indicated.
Starting with core income for the fourth quarter, our P&C operations produced core income of $353 million as Dino indicated a key contributor to this strong result was our pre tax underlying underwriting income of $167 million or 22% increase from the fourth quarter of 2020. In addition architecture.
The losses were relatively modest at $40 million pretax. Despite the fact that estimated cat losses for the industry were significantly above the 10 year median for fourth quarter events.
For full year 2021, a record core income of $1.106 billion produced an ROE of nine 1% up substantially from 2026, 1%.
Our Q4 expense ratio was a key component of our higher underlying underwriting profit for the fourth quarter of 2021. The expense ratio was 38%, which was one two points lower than the fourth quarter of 2020.
In specialty the expense ratio increased increased slightly in the quarter by half a point compared to a year ago due to recognition of higher profit sharing in the quarter for one of our profitable programs and commercial expense ratio improved by two points three points this quarter largely from growth in net earned premium.
International also showed significant year over year improvement of two six points driven by net earned premium growth and lower acquisition cost.
On an annual basis the expense ratio was 31, 1% in 2020 115 points lower than full year 2020, we believe 31% is a reasonable run rate going forward as we continue to make investments in talent technology and analytics.
The expense ratio improved for each segment with specialty improving eight points from 31, 3% to 35% commercial improving almost two full points from 33% in 2020 to 31, 1% in 2021 and international improving two four points.
35, 5% for 2020 to 33, 1% for 2021.
Moving to.
Prior period development for the fourth quarter, the overall property and casualty net prior period development impact on the combined ratios was 0.3 points favorable compared to no impact in the prior year quarter.
Favorable development was driven by surety in the specialty segment for more recent accident years somewhat offset by management and professional liability.
In the commercial segment favorable development in Workers' compensation was offset by unfavorable development in auto and general liability and international favorite will develop in our commercial classes was offset by unfavorable development in our specialty classes.
In terms of our Covid reserves, we've made no changes to our overall covered catastrophe loss estimates during the quarter. We continually review our Covid reserves in our previously established estimate of ultimate losses in LAE remains appropriate the majority of the loss estimate remains in Io anr.
For the full year 2021 over all development was favorable by three tenths of a point compared to zero.
<unk> seven points of favorable in 2020.
The paid to incurred ratio of eight nine was elevated in Q4 relative to the first three quarters of 2021 due largely to pay out of catastrophes that occurred in prior quarters. However, the 0.89 ratio remains at the lower end of our pre pandemic range, the ratio, which fluctuates quarter to quarter has been consistent.
Lower over the past two years with several factors driving that including our growth in underlying underwriting profits.
We also had lower non cat paid losses across several product lines, where we have taken significant underwriting actions such as our medical malpractice and excess liability lines that we have previously discussed with you.
The slowdown in the court Dockets has also contributed to the lower paid losses on a full year basis, the paid to incurred ratio was <unk> 78.
Moving to our nonprofit and casualty segments, our corporate segment produced a core loss of $94 million in the fourth quarter, which compares to a $49 million core loss in the fourth quarter of 2020 the loss for the fourth quarter 2021 was predominantly driven by our annual asbestos and environmental Reserve review.
During the quarter. The results of the review included a non economic after tax charge of $48 million driven by the strengthening of reserves associated with higher defense and indemnity cost on existing accounts.
And compares to last year's Don economic after tax charge of $39 million from a core income perspective, the impact of the fourth quarter 2021 charge was a reduction of approximately <unk> 18 per share versus an approximate reduction of <unk> 14 per share impact in the fourth quarter of 2020.
Following this year's review, we have incurred cumulative losses of $3 4 billion, which.
Which is well within the $4 billion limit of our loss portfolio transfer cover that we purchased in 2010.
Importantly paid losses are at $2 2 billion you will recall from previous year's reviews that there is a timing difference with respect to recognizing the benefit of the cover relative to incurred losses as we can only do so in proportion to the paid losses recovered under the treaty. The loss recognized today will be recaptured over time through the <unk>.
<unk> of the deferred accounting gain as paid losses, ultimately catch up with incurred losses as of year end 2021, we have $429 million of deferred gain that will be recaptured over time.
In addition to the impact from our annual investment.
<unk> and Environmental Reserve review net investment income in the fourth quarter attributed to our core corporate segment is down $13 million after tax on a year over year basis due to loss portfolio transfer agreement, we entered into the end of last year related to legacy <unk> excess workers' comp reserves.
We also strengthened our legacy mass toward IV in our reserves this quarter by $16 million on an after tax basis.
For life and group, we had core income of $6 million for the fourth quarter of 2021, which is $20 million lower than last year's fourth quarter as those results benefitted from favorable morbidity experience driven by the pandemic.
I wanted to comment on the approaching change in GAAP accounting methodology related to long duration targeted improvements are L DTI, which will apply to our life and group businesses.
We will adopt this new accounting guidance effective January one 2023 and will apply it as of January one 2021.
We are working diligently on this implementation and intend to discuss the impacts on our first quarter call.
We do expect the impact of this change will be a material decrease in accumulated other comprehensive income predominantly being driven by the difference between the expected interest rates from our investment strategy and our liability discount rate assumptions required under this accounting change.
This accounting pronouncement applies only to GAAP basis financial statements and has no statutory accounting or cash flow impacts on the businesses. As a result of this accounting change is viewed by us and the industry is non economic as none of the fundamentals of the business as I've changed by it.
Turning to investments total pre tax net investment income was $551 million in the fourth quarter essentially the same as last year's fourth quarter. The results included income of $108 million from our limited partnership our L. P and common stock portfolios as compared to $114 million on these investments.
Estimates for prior year quarter.
The strong LP returns for the quarter across both both the P&C and life and group segments were significantly driven by private equity funds and reflected the lag reporting results from the third quarter. As a reminder, our private equity funds, which comprised approximately two thirds of our LP portfolio, primarily report results on a three month lag.
Basis, whereas our hedge funds are on a real time basis.
Our fixed income portfolio continues to provide consistent net investment income stable relative to the last few quarters in the prior year quarter.
The current low interest rate environment continues to be a headwind the impact on our net investment income has been mitigated by our strong operating cash flows which have been driven by our growth in premium volume strong underwriting profitability and the slower pay out of losses that I previously discussed.
Pretax net investment income for the full year 2021 was $2 2 billion compared to $1 9 billion for 2020. The increase was largely driven by our L. P and common stock investments, which had pretax returns of $402 million for 2021 compared to $144 million for 2020.
The returns from our fixed income securities portfolio was essentially the same for 2021 as it was for 2020 as a higher asset base offset the lower average portfolio yields.
Our average book value has increased $1 $4 billion from year end 2020, while the pre tax effective income yield decreased 20 basis points.
To give a sense of magnitude of the increase in our operating cash flow in the fourth quarter operating cash flow was strong once again at $643 million.
On a full year basis increased approximately $860 million from full year 2020, after adjusting for the payment to purchase our excess workers' comp LPT agreement.
From a balance sheet perspective, the unrealized gain position of our fixed income portfolio was $4 $4 billion at year end down from $4 8 billion at the end of third quarter, reflecting the slightly slightly higher interest rate environment fixed income invested assets that support our P&C liabilities and life and group liabilities.
Had effective duration of four nine years and nine two years, respectively at year end.
Our balance sheet continues to be very solid at year end shareholders' equity was $12 $8 billion or $47 and $27 20 per share of $47 20 per share share holders' equity excluding accumulated other comprehensive income was $12 $5 billion of $46 <unk> per share.
<unk>, an increase of 10% from year end 2020, adjusting for dividends, we have a conservative capital structure with a level leverage ratio of 18% and continue to make capital maintain capital above target levels in support of our ratings.
We are still digesting the potential changes to the S&P capital model and we do.
Although we do not currently see this fact changing our.
Of course, the final version of the model has not been determined and S&P has determined the deadline for companies to provide feedback we continue to work with them to fully understand the potential impact of the proposed changes.
Finally, we are pleased to announce we are increasing our regular quarterly dividend, 5% to <unk> 40 per share, which will be payable on March 10 to shareholders of record on February 22nd in addition to the increase in our regular quarterly dividend. We are declaring a special dividend of $2 per share also payable on March 10 to shareholders.
The record on February 22nd with that I will turn it back to Dino.
Before opening the call to the Q&A session I'd like to offer a few comments about how we perceive the marketplace dynamics might involve might evolve in 2022.
Most importantly, we see pricing remaining favorable with overall rate increases.
Assisting above long run loss cost trends for most of 2022 in light of the off quoted headwinds.
Like social inflation, and economic inflation and elevated cat activity.
All of the headwinds are still present, there has been no significant change.
Since last quarter.
The uncertainty these factors create the loss cost trends have only been exacerbated by the omicron variant, which has slowed the full return of court activity in docket logs do a pre pandemic level.
It is why we have continued to prudently recognize margin improvement in our current accident year loss ratio.
And although written rate increases in the last eight to 10 quarters have allowed us to make up most of the lost ground from 2015, when the rate versus loss cost trends started to become a headwind.
It can easily become insufficient if loss cost trends increase further.
And this is why we are focused on pushing for more rate and where needed and additional improvements in terms and conditions as I mentioned earlier.
Pricing remained stable for the third quarter at eight points, while retention increased two points.
So even though rates have moderated from their high watermark in the fourth quarter of 2020.
We believe the pace down will be slower than the pace rates increased.
Finally.
As seen by our increasing overall growth as well as well as our growth in new business as the year progressed, we are bullish about our continued prospects at meaningful levels of quality business to our portfolio in 2022 and with that we.
We will take your questions.
Thank you Sir.
If you would like to ask a question. Please signal by pressing star one on your telephone keypad.
It gives me a speaker phone. Please make sure your mute function is turned off.
To allow your signal to reach our equipment.
Again press Star one to ask a question.
We will now take our first question from Josh Shanker from Bank of America. Please go ahead.
Yes. Thank you so let's say in prior calls and this one too are you spoke about the need to perhaps increase the loss cost trend assumptions based on what you're seeing in the marketplace.
But of course, we all talk about the risks from a.
Dockets opening up and creating more losses.
At the time that the courts will close and the Dockets were then.
Data was coming in that said that you know what we need to increase our loss trend was it more or less a hunch or did you actually see underlying our core data, saying that a court decision or are getting more generous to the plaintiffs win one.
Josh.
Good answer.
Based on some of the information we talked to you about originally.
With lines alike.
Medical malpractice and some of the auto.
Auto like auto liability.
We have a portion of the portfolio.
In construction, which wasn't as impacted by the Covid benefits and also just umbrella and you know what we were seeing at the time, even before the pandemic and then it continued in those lines through the pandemic in particular in professional liability.
So things like a little bit higher attorney representation on cases, which also.
Have led to you know some additional frequency F cases, oh potentially.
Interested in in and being litigated you saw.
Higher.
Settlement demands even when the facts of the case didn't warranted and so you know those are the kinds of things that that display.
Despite you know the dockets being lower it's got implications.
On on on settlement volume and we saw that and and we continued.
To move our long run loss cost trend last quarter. You also recall you know we increased our property.
Our long run loss cost trend about two points that are left to do obviously with the docket and it had to do with Oh.
Our view that you know economic inflation supply chain issues would probably continue so you know there's a dynamic in particular and in lines like medical malpractice that started before the pandemic and continued.
Through it all.
In terms of the settlements that we saw.
And if I try and think about that in terms of.
Yes.
This docket issue in paid to incurred ratio I mean, nobody really knows but do you have any advice for us in thinking about how to think about paid to incurred ratio in 'twenty, two and 'twenty three given that the courts will presumably reopen.
Yeah I'll give it.
Yes, I'll, let I'll, let Larry jump in with the considerable amount of time on these faithful incurred ratios, yes, Josh we spend a lot of time thinking about that as well I can assure you of that and it and it really is difficult to parse between them right now which is why we have been prudent about it but as we look at it as I mentioned in my remarks.
Where we have seen lower non cat paid ratios paid loss dollars actually is in product lines, where we have taken pretty significant underwriting action like medical and medical malpractice and some of our excess liability lines, particularly with auto exposures. So it's really hard for us to try and separate what what the differences between those.
But we do know that the paid to incurred loss ratio was down significantly from pre pandemic days.
And you know, where we're just being cautious about recognizing any of that potential improvement if it exists until we know more about what's happening as those dockets open back up.
Alright, well, we will certainly find out more thank you for the color.
Yeah.
We will now take our next question from Gary Ransom from Dowling and partners. Please go ahead.
Yes, good morning, I wanted to focus on the areas, where the rates are moving up more noticeably the that would be financial lines in the specialty segment in small commercial in the commercial segment.
Is there something particular going on that's making those move up and accelerate.
Compared to some of the other segments or lines.
Yeah, there's the there's a little bit on on on each I mean, clearly on on on the financial lines, which includes our cyber.
Cyber has been accelerating the rate increase and if you look at it in the fourth quarter, we actually got triple digit.
Our rate increase.
And and the other lines.
You know had some more.
More stable sort of behavior on the small business Gary we.
It's on our BOP policy, we had filed for.
About <unk>.
Viewpoints of rate increases we also got a three point of of exposure change and our retention is also up so you know it's all sticking.
So it's really just our filings in and in the BOP policy on small business.
Thank you and if I look at the <unk>.
Growth I think you did mention and commercial about the exposure increases, but just across the whole.
<unk> business is.
Can you somehow parse out what the amount of exposure increase were seeing versus rate or other factors.
Well you know in commercial we got about two points of of exposure growth and that was I think I may have mentioned.
Fair remarks, really just you know youre seeing more in the way of sales you're also seeing.
Payroll increases you have.
You know underwriting actions that work against that.
A little bit it's hard to know exactly but you know our sense is we probably had a point reduction in exposure in commercial due to our underwriting action and and so maybe youre looking at three points in the absence of that.
Which I think is sort of reflective of the economic activity. That's about you know the sort of best detail I can offer there on the exposure Gary.
That's great. Thank you and and one other thing on more on the loss trends and just thinking about your loss picks for the full year.
Are there any adjustments or true ups that you kind of changed your view at all in the as you looked back at 2021 in any of the segments or areas.
No there was nothing really significant at all in the quarter and when we when we looked at the long run loss cost trends, which obviously are despite the name of long run we look at.
All the time, but the reality is.
Still relatively in line with what.
The changes we had made in the third quarter. So there was there was nothing in the way of any meaningful true ups.
Okay, Great and one last little one can you remind us what your Covid reserves actually are at this point.
Yes, Gary there are $195 million that was.
The original and that was the original estimate we held them right.
Okay and with some of that recognized in 'twenty, one or was all of that in 'twenty.
All of that that was the initial estimate we put up and we're still comfortable with that yeah. We never moved from there right.
Great. Thank you very much.
Thank you Sir thank you.
As another reminder to ask a telephone question. Please signal by pressing star one and will now take our next question from Meyer Shields from <unk>. Please go ahead.
Great. Thank you good morning.
I want to follow up on us and with the with the exposure unit growth.
In your view that sort of unit growth is likely to have any impact on on the loss ratio.
Okay.
Did you hear the fire, we're striking a little bit hearing you, but are you asking what the impact on the loss ratio is from the exposure growth.
Sort of I'm, asking you whether you expect it to have an impact on our unit growth.
Oh, I'm, sorry, I'm a lawsuit.
Asking whether exposure unit growth should have an impact on the loss ratio going forward.
It's minimal right now I mean, you know certainly when you think about workers comp and you think about payroll what's going up is it is it salaries going up and how is the salaries that you're ensuring compare to average weekly wage versus just growth in number of employees right because if it's.
If it's just payroll going up average amount being paid and you were above the average weekly wage it would have some benefit but we haven't really.
Incorporated any benefit into two our loss ratios from that.
Okay No that's helpful on.
Do you know you're talking about in place and then obviously it everywhere just hoping you could zero in maybe on whether the various forms of inflation that we're seeing now are likely to translate into above average loss trend on the affinity business.
And so I know inflation is on the social inflation side youre, referring to Myer.
So I'm trying to incorporate that we're just to see whether any like because there's so many different aspects of in place now and most of them seem to be getting worse weather in any of those matter to affinity.
Yeah on affinity.
We've talked a little bit about it before my or in the context of social inflation, because it's all professional liability.
A R R.
Our Oh affinity programs and you know as I.
I think I've indicated before these programs largely comprised of a single practitioners like nurses and they.
They typically are there they're their coverage is largely supplementary to the facilities.
And rarely is there any singular.
Accountability to the practitioner in the facilities.
Your limits, where typically you would see the plaintiffs to go after from a social inflation. So it's clearly had a lot less impact.
On the affinity portfolio.
Even within the med Mal side of it.
Than it did on the regular health care portfolio and it's mainly there are that we focus on giving it to professional liability.
Okay perfect I'm all set thank you very much.
There appears to be no further questions I'd now like to turn the conference back to Mr. Fusco for any additional or closing remarks.
Okay. Thank you everyone and we look forward to chatting with you next quarter.
Yeah.
This concludes today's call. Thank you for your participation you may now disconnect.
Yeah.
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