ProAssurance Corporation Q1 2023 Earnings Call
Good morning, everyone.
Okay.
Welcome to <unk> conference call to discuss the company's first quarter 2023 results.
These results were reported in a news release issued May nine 2023 and in the company's quarterly report on Form 10-Q, which was also filed on May nine 2023.
Included in those documents were cautionary statements about the significant risks uncertainties and other factors that are out of the company's control and could affect <unk> business and alter expected results. Please review those statements.
Management expects to make statements on this call dealing with projections estimates and expectations and explicitly identify these as forward looking statements within the meaning of the U S Federal securities laws and subject to applicable safe Harbor protections.
This call is accurate only on may 10th 2023.
And except as required by law or regulation co insurance will not undertake and expressly disclaims any obligation to update or alter information disclosed as part of these forward looking statements.
The management team approach also expects to reference non-GAAP items during today's call.
The company's recent news release provides a reconciliation of these non-GAAP numbers to their GAAP counterparts.
I'd like to remind you that the call is being recorded and there will be a time for questions. After the conclusion of prepared remarks.
This morning, we will discuss selected aspects of our quarterly results and remind investors that they should review our filings on Form 10-Q, and accompanying press release for full and complete information speakers on the call today will be Ned Rand President and CEO.
And Dana Hendricks Chief Financial Officer also joining on the call today are executive leadership team members, Rob Francis Kevin Shook Ross Todman and Kieran Murphy.
When you start us off please.
Thank you, Jason and good morning.
Today, Dan and I are looking forward to giving you some insight into the first quarter numbers that we released last night.
And outlining some of the challenges in the medical professional liability and workers compensation markets.
I'll talk about the market dynamics that we're seeing and then Dan will provide the consolidated results and key drivers of our investment results and book value.
I would also like to welcome Rob <unk> President of our healthcare professional liability business Ross President of our small business unit and Karen President of our life Sciences business for the call today and to thank Kevin for his continued participation in this quarterly call.
As we announced in February of this year, Mike Bogusky will be retiring from his role as president of specialty property and casualty on June 30th.
After carefully considering the leadership structure that will best serve pro assurance going forward.
We decided to add Rob Ross and Karen to the executive leadership team with.
With each of them reporting directly to me.
This decision reflects the excellent and conscience guidance that these individuals have shown in managing their respective portions of our business.
That's the questions arise during the Q&A session that or better answered by one of them rather than by Dana and me we.
We will direct the question to allow them to respond in their area of expertise.
The results, we released last night reflect what we see is a continuation of the challenging claims environment for medical professional liability carriers.
The past three years has been significant disruption and change and.
And as a consequence, increasing uncertainty.
While COVID-19 did not resolved in the increase in claims and initially concern in the industry.
Its effects were manifest in other ways.
The delay in jury trial outcomes resulted in changes to claim reporting and payment patterns, which in turn impacted the actuarial process.
And increase the range of possible outcomes for our reserve estimates.
As we've entered the post pandemic period trends reversed soft prior to the pandemic in particular, social inflation and an increased number of larger verdicts across the industry.
Have returned and in some instances and grown.
We continue to be vigilant in monitoring the impact of these trends on our reserves.
We are seeing the effects in the broader claims environment as well in some cases specific approach Terence.
I will detail shortly.
With that background I'll walk you through the results reported in our key segments.
The specialty P&C segment produced an operating loss in the first quarter of 2023.
Youre going to primarily by unfavorable prior accident year reserve adjustments.
Current accident year loss ratio was 87, 2% essentially unchanged from last year after excluding the effects of purchase accounting adjustments.
We recognized unfavorable prior accident year reserve development of $8 million in the quarter.
In contrast, a favorable development in the same period of 2022.
This unfavorable development in the quarter is attributable to several excess verdicts and settlements that occurred during the quarter as well as recently observed loss severity trends.
I wanted to take a moment to describe the claims environment that all NPL carriers are facing.
After a pause in 2020 and much of 2021 and the number of excess verdicts being returned by Jerry's against health care providers is back near or above all time highs.
Pro assurances insureds largely avoided such verdicts last year as our policyholders received a favorable verdict in over 85% of the 229 cases, we took their trial.
In the first quarter of 2023, and our Insureds did not avoid them completely.
We believe these outsized jury awards reflect a number of trends.
Including the level of underlying anger in the jury pools, a disconnect between proof of fault and the desire to compensate entered parties.
And the view that large awards have no consequences.
All of these may lead juries.
So occasionally ignoring the facts regarding the care rendered in a given case and assuming instead of an unfavorable outcome occurs with a patient compensation should follow without regard for actual liability.
Such awards can also result from the view of insurance carriers as deep pocketed targets, rather than protectors of our health care workers.
Allowing them to practice medicine without fear of financial ruin Litigious Society.
These issues won't go away as a result of hope or wishful thinking.
Rather we must work to educate our lawmakers regulators and the general public about the need for a robust and functioning professional liability market and a jury system that fairly assigns liability where it is appropriate.
Bids are indications where it is not.
Looking at our topline gross written premium decreased by 7% from a year ago as we face competitive market conditions and Kenny can you to focus on underwriting efforts on achieving rate of retaining business.
Premium retention for the segment was 85% in the quarter an improvement over last year.
Retention in both the standard physician and specialty healthcare Bucks contributed to the improvement from 2022.
This was despite the loss of a large hospital account in our specialty book.
Pricing increased by 6% in the quarter and we were at $11 million in new business.
And our expenses, we are seeing increases in acquisition costs and professional fees.
The base of lower earned premium this quarter. This exerts upward pressure on the expense ratio.
This was offset by a $4 million payroll tax refund from the employer retention credit program and a decrease in the norcal accrued contingent contingent consideration, resulting in a segment expense ratio of 22, 8%.
Turning to the Workers' compensation insurance segment gross written premium increased by $1 million in the quarter as we saw increases in audit premium and new business compared to last year.
Top line growth continues to be a challenge in the highly competitive workers' compensation market.
We were encouraged by the new business in our traditional book increasing to $6 $6 million this year.
In our traditional business renewal pricing was down 6% and retention was 83% for the quarter, both reflecting the competition we're seeing in this market.
Our strategies continue to focus on working with our valued distribution partners to secure quality, new business opportunities and retaining profitable accounts.
Our current accident year loss ratio was 72, 6% for the quarter less than a point higher than last year.
A portion of this increase was due to higher head count and compensation costs, which flow into our loss ratio through unallocated loss adjustment expense.
The increase in the calendar year loss ratio was primarily due to unfavorable prior year development of $1 $2 million.
In contrast, a favorable development last year.
<unk> was primarily on an older open claim from the 1997 accident year.
The segment maintained discipline in our underwriting policy acquisition and operating expenses with these expenses coming in slightly lower in the quarter than a year ago.
The expense ratio improved compared to last year due to the effect of higher audit premium this quarter.
We may see in the expense ratio increase in future quarters due to the timing of general expenses, which may not be evenly distributed throughout the calendar year.
With the segregated portfolio cell reinsurance segment, which posted a profit of just under $1 million for the quarter and the Lloyds Syndicate segment, which also was profitable on a similar level just below $1 million.
Now I'd like to turn the call over to Dana to share our consolidated results and some highlights from the balance sheet and investment returns Dana.
Thanks, Dan and good morning, everyone for the first quarter, we reported a net loss of $6 2 million or 11 cents per share and an operating loss of $8 million or <unk> 15 per share.
The main difference between the two is the impact of the change in fair value of investments and contingent consideration.
The operating loss in the quarter reflected a challenging operating environment, which led to a modest increase in our current accident year loss ratio coupled with unfavorable prior year development.
Gross premiums written declined to $316 million with most of the decline occurring in our specialty P&C segment.
Premium increased slightly in the workers' compensation insurance segment, and Lloyd's premium declined to $3 $5 million.
Excluding the impact of purchase accounting and prior year transaction related costs, our consolidated combined ratio increased seven percentage points from the first quarter of 2022, driven mostly by the change in prior accident year Reserve development.
Investments investment results provided a five point benefit to the consolidated operating ratio.
Therefore, the operating ratio increased two points from last year.
Our consolidated current accident year net loss ratio after excluding the impact of purchase accounting and prior year ceded premium adjustments changed slightly compared to the first quarter of 2022.
Primary driver behind the change in consolidated net loss ratio for the quarter was the change in prior year Reserve development in.
In the first quarter of 2022, we recognized $5 million of favorable development.
As a result of the excess verdicts that Ned mentioned and a significant reserve increase on an older workers compensation claim we booked $7 million of unfavorable development in 2023.
The unfavorable development was driven by a handful of claims largely from what we feel were outsized verdicts based on the facts underlying the cases.
These reserve increases primarily relate to older accident years for which there was little DNR to absorb the law.
Our consolidated expense ratio was pressured by a decrease in net premiums earned along with the impact of higher operating expenses, such as IP consulting fees and travel related expense.
These pressures were partially offset by a $4 million payroll tax refund available under the cares Act and a $1 million reduction to the contingent consideration liability related to the nor Cal acquisition.
In total the consolidated expense ratio increased one three points to 28, 3%.
Net investment income grew nearly 50% to $30 million in the quarter as our reinvestment rate has exceeded that of the maturing assets in each of the last seven quarters, and our floating rate asset treats at higher yields as well.
With the scale of our investment leverage we see the significant positive impact. This has on operating performance and we expect the increases to continue in the coming quarters.
In the first quarter, we reinvested maturing bond yields approximately 200 basis points higher than the portfolio's average book yield.
Results from our investment in L. P and L. L C, which are typically reported to us on a one quarter lag decreased to a loss of $1 million in the quarter driven by the performance of one L P, which reflected lower market valuations during the fourth quarter of 2022.
This particular L. P is a private equity fund and the decline in results was driven by the Mark down to a single portfolio company data the performance of its public company comps.
Given the performance of the same public comps this quarter, we do not expect this time to rebound next quarter.
Further to provide additional context on our entire L. P and L. L. C portfolio the results in the quarter excluded fourth quarter results of eight funds due to the timing of when those funds report to us.
The majority of these eight funds are in private credit and private equity and based on market movements during the fourth quarter and first quarter. We would expect positive marks on Mezz Fund next quarter.
Net investment gains, which are excluded from operating income and drive the difference between operating loss and net loss of $3 million in the quarter.
Unrealized holding gains resulting from changes in the fair value of our equity investments and convertible security more than offset almost $3 million of credit related impairment losses, which were primarily on bond positions in Silicon Valley Bank and signature bank, resulting in the net investment gain.
Other income declined $2 million in the quarter due to changes in foreign currency exchange rate and the impact of foreign currency denominated loss reserves in our specialty P&C segment.
This quarter the effect of foreign currency movements was a loss of $1 million due to strengthening of the euro in the quarter compared to a gain of $1 $3 million in the prior year period.
We mitigate foreign exchange exposure by generally matching the currency and duration of associate investments to the corresponding loss reserve the.
The impact of unrealized gains and losses on foreign currency denominated investment flows directly to equity through other comprehensive income or loss, while the impact of changes in foreign currency exchange rates on loss reserves is relay is reflected through our results as a component of other income.
These items should roughly offset each other economically.
The FX impact on the reserves flowed through the income statement.
Our book value per share at quarter end was $21 seven.
Up 3% from year end <unk>.
Given by after tax holding gains of $40 million on our fixed maturity portfolio, which plays directly to equity.
Adjusted book value per share, which excludes $4 74, so the accumulated other comprehensive loss primarily from unrealized holding losses is $25 81 as of March 31st.
We consider these unrealized losses to be temporary as we have both the intent and ability to hold to maturity.
Before I conclude I will briefly touch on the refinance of our maturing senior notes due this November .
As you May have seen we filed an 8-K last week announcing the renegotiation and extension of our $250 million revolving credit agreement, which includes a $125 million go.
<unk> term wow delayed draw term loan and the execution of two corresponding interest rate swap agreements.
Our intent is to use the proceeds from the $125 million term loan plus a draw of $125 million on the revolver to retire the $250 million senior notes in November .
The interest rate swaps effectively fix the floating base rate on any borrowings under the revolver and term loan to roughly three 2%.
However, there is also a margin component.
The interest rate is based on our debt to cap ratio that will remain variable.
Based on our current debt to cap ratio. The total interest rate for the revolver and term loan would be approximately five 1% and five 2% respectively.
And the current lending environment is considerably higher borrowing rates and on the heels of the turmoil in the banking sector. We're very pleased to have actually reduced our borrowing costs with these transactions.
In summary, we continue to operate in a challenging environment. However, we did see a number of positives in the quarter, including rate gains and solid retention in our <unk> business, along with increasing investment income and book value given our investment leverage and changes in the interest rate environment.
With that I'll turn it back over to Jason.
Thank you Dana.
Glenn that concludes our prepared remarks, we are ready for questions.
Okay.
Thank you, ladies and gentlemen, if you would like to ask a question. Please press star followed by one on telephone keypad now.
Let me trying to ask your question. Please ensure your phone is on mute locally.
We have our first question comes from Greg Peters from Raymond James.
Your line is now open.
Good morning, everyone.
I guess just.
Like to go back.
And your comments about the excess verdicts.
And I guess.
Is there any sort of rhyme or reason from a geography standpoint, where the problems are popping up.
And I'm.
Theres, obviously, a segue question into how are you adjusting your pricing.
As a result of what Youre seeing in the marketplace.
Yeah, Gregg those are both good questions.
We really don't see in this really don't look at the question around geography, you have to look down brochure and so I think you can look at just the.
The market itself.
While there remains some very challenging jurisdictions there've been a number of very large verdicts for example, in Illinois, and the wrong Cook County, Illinois.
More broadly.
The answer to your question I think is no.
These vertical kind of pop up and happen in very surprising places.
So it's hard to pinpoint a geography from a from a pricing and underwriting.
Our point of view, it's I think it's about a couple of things it's about driving right now and I think we're doing an excellent job of driving rate and have been doing a good job of driving rate over the last three to four years.
And that's compounded into the rate that we're charging today and recognize that.
These claims some of these claims date back to the early two thousands right. We have a long tail on some of this business.
So we our view is that the pricing we're getting today is adequate I think the other piece of that is around.
The business that we are writing and.
The other thing that we've done over the last three years is.
Take a really really hard look at those risks that we want to write and those risks that we've done in the book looks significantly different today than it did.
Five years ago.
So you know, it's always hard when you're dealing with things that occurred 20 years ago to say what are you doing today about them, but I think the things that we have done.
Over the last three to five years differentiate the book today from where it was.
As well as with pricing.
Ken can you just when I think of excess verdicts.
Thank you mean in excess of policy limits, but maybe.
So understand what yes.
Yeah, absolutely so to put some numbers out there as we mentioned we made it through through 2022 without really seeing any very large verdicts, we've had insured take verdicts.
Two two in the area of $15 million and two in the area of 40% to $45 million this year.
And is the 40% to 40% to the go to 40 to 40 is that is that all retained on your on your balance sheet or is there.
Yes, the vast majority of that is reinsured correct.
We do retain a portion of those risks.
We have a co participation in some of the reinsurance layer. Some of this goes back to very old reinsurance treaties.
But the vast majority of of all of this.
As reinsurance.
So I guess to just to close the loop on this issue when I think about the net policy limits on any NPL policy that you are writing.
I think about it in a single seven figure range not.
Going beyond that is that the right perception to have.
Yeah, so actually in each and every one of these the verdict itself was far in excess of the policy limits that we'd written.
What you didn't have to deal with is protecting your insured.
<unk>.
Turns around bad faith, which oftentimes.
Cause claims to be settled at above policy limits and that's why we buy insurance that protects against that and have other measures that protect us against that because we know that's a possibility.
And important to say.
While we've put up reserves for these claims.
Many of them are resolved two of them are not.
And then it'll be a long time before.
The other two finally play out and we know exactly what the ultimate liability.
Fair enough.
21 of them one of them that have a $20 million limit. So it was.
One of the $15 million losses had a $20 million limit. So it was within the limits that we wrote in Princess.
Principally covered by insurance.
Insurance excuse me got it.
Got it and then.
The other question I had just would be.
If I look at the specialty segments, you know what the decline shrinking top line.
How do I think about this in terms of.
Go forward is this is this.
Losing policies.
Youre underwriting away from certain policies or is this the market pressure on rate or is it a combination of both factors.
It's not market pressure on rate, we're getting we're getting rate gains right. So it is it is more about new business opportunities and losing some business because of rate.
And then as we mentioned in the prepared remarks, we have one large hospital account that we lost that really contributed to that decline and I believe in the first quarter of last year. We also had a large tail policy that was written.
Kind of inflated the first quarter of last year from a comparison standpoint.
We continue to get positive rate, we think that's really important in the marketplace and we're going to walk away from business that we don't think is adequately priced and theirs.
Long as we have competitors out there that are willing to write business at what we believe to be underpriced and oftentimes significantly underpriced.
We're going to walk away from that and protect the balance sheet and there will be times to grow.
This may not be one of them.
Sounds reasonable thank you for your answers.
Thanks, Greg.
Thank you Greg.
With our next question comes from Mark huge choice.
Mark Your line is now open.
Yes. Thank you very much good morning.
Good morning.
He is changing your view on that.
I know the.
Difficult to adequately.
Scoop, but curious that are listening in.
Presumably.
Hmm.
Motivation to go ahead and get things settled.
<unk>.
Yeah.
Okay.
Is that completed.
Uh huh.
It is more common.
Ill leave it at that.
Yes.
Uh huh.
Yeah, It's a very good question and some of you have heard this story before so I apologize for those that you have that.
When there are CRO was our CEO .
He would have told you that the medicine trumped everything and he put a hard period at the end of that sentence.
And when Stan Kamen he'd like to talk about the fact that you to raise that period and he put a common there and.
So the Madison trumps everything comma, except when the facts and circumstances surrounding the medicines don't allow for a fair hearing of the facts.
And that's been the kind of the mode that we've operated in under and contingent under my leadership I'd say the differences that we've we've now increased the font on that second part of the phrase there maybe 40 points and put it in bold.
We yes, we have to be judicious in what we do take the trial.
We use high lows, where we can where we are going to trial to protect.
Us against outsized verdicts.
So there are measures that we're taking.
<unk>.
But.
A reasonable resolution through settlement is not always achievable and so there we will continue to go to trial in support of our.
Our insureds.
Okay.
I think there is.
Beth.
Webinar going on.
Pretty soon.
In the past.
Yes.
I didn't get a chance to look at the <unk>.
<unk>.
Professional liability.
Anything in that report.
That.
<unk> suggests your competitors are more aware of these issues I think you said.
Youre going to walk away from that business with other people are willing to write it.
Yeah.
Great.
Is there any any rays of hope out there.
Yes, I think there are I mean from an awareness standpoint, yeah, I would say that there is awareness across the entire industry I mean.
We took some lumps this quarter with some large losses, but.
The industry took a lot more.
And if you look back at 2022.
It was a record level of losses in excess of $25 million trends really does a nice job attracting that data.
So so yeah the <unk>.
Market is taking notice and I would say.
By and large.
Sure.
The market is responding to that and that's in part why we are able to achieve the rate gains that we have achieved.
But.
Every now and then.
Companies will do things that you kind of scratch your head out.
I think that always is the case.
And that probably prevents.
Affirming of the overall marketplace that might otherwise be warranted.
We're not going to let that interfere with what we need to do and it does mean that growing the top line is a challenge.
But the team is extremely committed to ensuring we get adequate rate going forward for the organization.
Now the other piece of that I mentioned in the press release and we've invested heavily.
And data analytics over the last number of years and continue to do so to allow ourselves to become better underwriters better understanding of risk.
And I think we are doing a better job today of risk selection than we ever have.
6%.
Our rate increase had been adequate.
Circumstance.
Yeah again, I think you've got to you've got to look at what we've done over the last four years or so and kind of recognized that thats compounding on top of.
High single digit low double digit rates over the last four years.
Yeah, and we did see I would expect it probably will push up as the year goes on.
So yes, we feel good about where we are but again.
The claims in the quarter that kind of hurt us this quarter with some large verdicts dating back I think one of them with 2000 early two thousands even.
So yeah, when you think about the compounded effect of rate.
Right that we've taken yes, now as I said in my prepared remarks, we continue to operate under and I believe this is your phrase.
<unk> of war with the loss environment and that continues to be the case right I mean, we've seen.
Jerry trials and other things began to return to normal levels, but there's still a sizable backlog backlog for us and for the industry.
That just makes the actuarial analysis more opaque and as a consequence of that more volatile.
With maybe volatile is not the right word, but with a wider spread of potential outcomes, we tend to try to err on the cautious side of that.
And do the mirror Cosmo.
Right.
Well you said it as it pertains to us I think.
[laughter].
When we think about the potential for reserve development in the future.
We have a long extended track record of conservative.
Careful.
Alrighty then.
Yeah.
Being in position.
<unk> gains and things.
Usually it turned out better than expected.
Does this.
Trends I mean is it.
We're likely that.
Even if you see.
Good times in coming quarters.
Youre going to be more careful about protecting the balance sheet under these circumstances I know you're.
When you said your reserves based on the best information you got it.
I was just wondering if there's any.
Shifting to that based on the.
Current circumstances the emerging.
That's a nice question Mark I think we have historically been and continues to be an organization that probably respond more rapidly to negative trends than we do positive trends.
Because we think there's prudence in that.
And so I think that.
All right.
Assuming we can.
See improved results in kind of underlying trends in the coming quarters will probably be slow to give credit to that so we have a much more certain feeling about it.
Thank you very much.
Thank you Mark.
As a reminder, ladies and gentlemen, if you would like to ask any further question. Please press star followed by one on tackling key patent now.
You're paying to ask your question. Please ensure your mute a little quickly.
With our next question comes from Paul Newsome from Piper Sandler Paul Your line is now open.
Okay.
Good morning, Thanks for the call.
<unk>.
Just just to kind of touch.
When we look at the current accident year.
Are you trying to fully incorporate these.
Large losses or are you assuming.
But there is some level of normalization of those losses.
Prospectively.
And is.
And is there a difference in how.
Are you putting reserves aside.
Hi.
Versus how your pricing policies.
Okay. There's a lot to unpack in that question, Paul So I'll try to try to do my tried to do my best.
Thank you I succeeded.
[laughter].
<unk>.
The number of claims that kind of influenced the quarter.
I would not say, we are responding specifically to those <unk>.
James with the influence of those claims and reserving in.
Pricing.
What I would say is with both reserving and pricing that the claims environment that we are operating in and the one that we've observed going back pre COVID-19.
With increasing volatility increasing large verdict is something that we are pricing too.
And something that we're considering when we're establishing our reserves.
So I do think that the kind of the environment that we sit in is reflective there.
And ultimately.
Whether there is redundancy in those reserves will be determined on kind of how those trends play out over the next 10 years.
But we are certainly taking then they can all of that into consideration as we establish our reserves.
To your question of kind of trying to type pricing to reserving I know that's something that we that we did in the past we've tried to talk about I think just because of some of the.
The variability that's out there today, that's harder harder to to link one to the other right now I think the reserving is very much being driven by what we're seeing in the loss environment.
And trying to peg losses.
Based upon that and pricing likewise is doing that but I would I would not draw a connection necessarily between the two if that makes sense.
Yeah.
And then maybe sort of pullback to an industry question.
I was just looking at the statutory data who in the industry.
And it looks like your loss ratio is.
<unk> loss ratio.
Is <unk>.
Significantly higher than what the industry was last year.
Obviously, the first quarter.
Equates to a pre launch.
Launch increased solutions.
What the industry put up last year.
Maybe we could talk about what you.
Do you believe you're just more conservatively.
Reserved.
Or.
Is there something about your particular business mix that would be just.
Medical malpractice.
Yes.
Would make it so much.
Then the rest of the industry.
Yes.
So no I don't think our business mix will be dramatically different than the industry and so I don't think that would equate to enter China.
I can't speak for what others are doing.
What they may be seeing within their individual.
A business.
What we are doing is we believe is being cautious.
And in a very challenging marketplace, where.
You can kind of thinking about your analogy you can kind of think that the trends are going to get better or they're going to get worse or going to stay the same I imagine there are those out there that are perhaps thinking trends are going to get better in building that we.
We don't think that's the prudent thing to do but I can't speak specifically to what others are doing.
But we see the same data that you do.
Recognize that perhaps were a bit of an outlier and perhaps that's because of our caution.
Would the same thing be true on your workers' comp book.
Which is also running a loss ratio significantly.
Yes, I think I think on the on the work comp book, maybe it's a little bit different.
I think we are faster to recognize trends than the industry. When you. When you look at the work comp book, we resolve claims closed claims a lot faster than the industry and as a consequence I think we are kind of ahead of others in recognizing trends and.
Mike I feel a little more confident saying that with the work comp business that I think we have a better understanding of some of the underlying claims trends that are going on and because we close claims faster owning up to those trends and perhaps.
Others in the market place Youre doing.
Okay.
Much appreciate it.
Thanks, Paul.
Thank you Paul.
As a reminder, ladies and gentlemen, if you would like to ask any further question. Please press star followed by one telephone keypad now.
We have no further questions on the line.
Thank you to everyone that joined US today, we look forward to speaking with you again on next quarter's conference call.
Thank you.
Ladies and gentlemen. This concludes today's call. Thank you for joining you may now disconnect your lines.
[music].
Yeah.
Yes.