Stan Starnes – President and CEO Ned Rand – EVP and CFO Frank O’Neil – SVP and Chief Communications Officer Howard Friedman – President, Healthcare Professional Liability Group Mike Boguski – President, Alliance Insurance Group.

Matt Carletti – JMP Securities Ryan Barnes – Janney Capital Steve Roseberry – - Surveyor Capital Paul Newsome – Sandler O’Neill.

Good morning everyone. Welcome to the ProAssurance Conference Call to discuss ProAssurance’s results for the nine months and quarter ended September 30, 2014. These results were reported in a news release on November 5, 2014.

That news release and the company’s other SEC filings, including its 10-Q, also filed on November 5, 2014 will provide you with important information about the significant risks and other factors that could affect ProAssurance’s business and alter expected results.

Also, management expects to make statements on this call dealing with projections, estimates and expectations and explicitly identifies these as forward-looking statements subject to applicable Safe Harbor protections.

The content of this call is accurate only on November 6, 2014 and except as required by law or regulation, ProAssurance will not undertake and expressly disclaims any obligation to update or alter information disclosed as part of these forward-looking statements. Now I would like to turn the call over to Mr. Frank O’Neil. Please go ahead, sir..

Thank you, Maura. Everyone please note that we will also be referencing non-GAAP items in our call today. Our recent news release provides a reconciliation of these non-GAAP numbers to their GAAP counterparts.

Participating in today’s call are Howard Friedman, the President of our Healthcare Professional Liability Group; our Chief Financial Officer and Executive Vice President, Ned Rand; Mike Boguski, the President of Eastern Alliance Insurance Group; and our Chairman and CEO, Stan Starnes, who will start us off with some opening thoughts.

Stan?.

Thanks Frank and thanks to everyone on the call for your participation and interest. This is an exciting time for our company and our industry. Our American healthcare system continues to progress through meaningful change and we continue to find opportunities in this evolving landscape.

We are positioning ProAssurance for continued success through our ongoing build out of our insurance platforms and through our thoughtful capital management practices. Our insurance operations produced strong results and significant profitability in the third quarter.

And we have returned a record amount of capital through our share repurchase and dividends as we focus on meaningful value creation for our shareholders.

Frank?.

Thank you, Stan. Howard Friedman, the President of our Healthcare Professional Liability Group will cover both Specialty P&C and Lloyd segments.

Howard?.

Thanks Frank. There’s no question that the marketplace is highly competitive in all lines of business in Specialty P&C. and given the nature of the market, I believe our ability to maintain a strong topline this quarter is a testament to our employees, the range of products we offer and our capabilities to meet evolving market needs.

First premiums written were down slightly in the segment, a bit less than 2% quarter over quarter. New business premiums for physicians and other healthcare providers were essentially level and new business for healthcare facilities was $2 million, an increase of $1 million over Q3 2013.

Medical technology and life sciences added $1.4 million in new business. The physician business makes up the greatest part of Specialty P&C, and retention is one point higher this quarter than in last year’s third quarter.

At the same time, renewal pricing in this portion of the segment was 2% higher than expiring, a one point improvement quarter over quarter. Healthcare facilities are a two point year over year improvement in retention in the quarter.

We are seeing progress in a number of our joint marketing and shared risk programs, the most prominent being our relationship with Ascension, now with approximately $22 million in annualized premiums and approximately 2,700 insureds. This includes for the first time insuring some Ascension employed physicians and facilities.

CapAssurance, another shared risk program, continues to add new business in California and adjacent states as well. Emphasize this because as we increase the penetration and importance of these shared risk efforts, we will continue to write additional high quality business that we believe will provide opportunities we would not otherwise see.

We believe the risk sharing features of the joint programs are important because they ensure alignment of interests and the resulting level of commitment of the participants. But we recognize that these arrangements also result in an increase in seeded premiums.

Our cession of podiatry premium to Lloyd’s Syndicate 1729 also increases overall seeded premiums. Two additional points about the shared risk business. It's generally very sticky, which allows us to build long term relationships and create loyal policy holders.

Also, these programs demonstrate to the marketplace in a very real way that we can be a meaningful partner that brings a range of services and financial strength to any program in which we are a participant. Turning to losses, we see no change in overall loss trends in the specialty P&C segment.

That’s particularly true in healthcare, both in our historical business and in the larger, more complex risks that have emerged over the past four years due to market consolidation. We have maintained our underwriting focus and that has allowed us to ensure the long term profitability of the business we have written.

Our net favorable reserve development in the segment was strong at $42.3 million, although down 14% from the same quarter last year. That’s the main reason our net loss ratio was five points higher at 51.4%. Premiums and loss costs have been lower for the past several years and as a result the overall pool of loss reserves is smaller.

The current accident year net loss ratio is 85.6% versus 83.1% in the year ago quarter.

As we noted in previous quarters this year, this increase is primarily due to higher accruals for internal claims adjustment expenses against a lower volume of premiums earned and a recognition of administrative claims defense cost on a more current basis rather than making a true up at year end.

This doesn’t signify any deterioration in our Specialty P&C business and I want to assure you that we continue to be as disciplined as ever in our reserving practices for the business we are writing now. I want to highlight two emerging opportunities. The first is the introduction of ProAssurance Risk Solutions.

This is a new unit led by a team of industry of veterans that is focused on, as the name implies, complex financial transactions and risk financing opportunities primarily in the medical liability and workers compensation space.

These are often one off liabilities in M&A transactions, but they can also involve the assumption of existing liabilities in larger organizations seeking to restructure capital or other transactions designed to provide financial flexibility.

I need to emphasize that this will not be frequent transactions, but they can be quite large and have been historically profitable for this underwriting team. We are already seeing some opportunities and we are confident that this will be another portent weapon in our arsenal as we offer a wide variety of liability and risk financing solutions.

That’s also the case with the second new product I want to mention, ProAssurance Complex Medicine or ProCxM. This is a program that enhances our commitment to large healthcare facilities that are retaining more of their own risk. Generally hospitals with 750 or more licensed beds and a self-insured retention of at least $2 million.

We are working with Pro-Praxis on this program.

Pro-Praxis is an underwriting agency capitalized by Cooper Gay Swett & Crawford Group, which will provide ProAssurance with their proprietary advanced underwriting analytics for these complex risks and will assist us in developing complimentary insurance products to bolster the coverage these organizations require.

There is quite a bit of interest in this program already. Let’s switch though to the Lloyd segment now and let me remind you that our participation in Syndicate 1729 which began operations on January first is 58% and we are reporting on a one quarter lag with the exception of investment results and certain expenses.

Duncan Dale and his team and his team are seeing a high level of submission activity, indicating broad acceptance in the Lloyd’s market, due in no small part to the reputation of the team working for the syndicate. Our 58% share of Syndicate 1729’s net written premium was $3.9 million for the second quarter and was $24.2 million through June 30.

Duncan continues to exercise his well-known underwriting discipline and we are pleased overall with results so far. The mix of business has not changed. It’s still primarily property casualty reinsurance and some direct property coverage, mostly in the US market.

The Syndicate’s expenses are about as we expected and we anticipate loss ratios will fluctuate from quarter to quarter as the Syndicate writes more business and the book begins to mature.

Frank?.

Thanks Howard.

Next up is workers compensation and Mike Boguski, Mike?.

Thank you, Frank. Eastern had another solid quarter, benefiting from continued growth in payrolls, favorable production results across all operating territories and consistent loss trends in the traditional book of business. We are pleased with the third quarter production results.

Eastern’s gross premiums written were $60.3 million and direct premiums written were $58.4 million, which included premium renewal retention of 84.6% and new business writings of $12.6 million. We achieved renewal rate increases of 2.1% and auto premiums were $2.2 million during the quarter.

The calendar year net loss ratio was 66.4% with a benefit of 1.2 points of favorable development. In our traditional workers compensation business, the calendar year loss ratio remained consistent year-to-date, including favorable frequency in severity trends.

We did experience an increase in severity related claim activity in the alternative markets business, which is the primary driver of the $483,000 negative segregated portfolio sale dividend expenses in the third quarter.

The combined ratio was 96.1%, which includes 2.6 percentage points of intangible asset amortization and 0.3 points of non-recurring expenses, primarily related to ProAssurance’s acquisition of Eastern. We also received a benefit of 1.4 points from increased auto premium in the quarter. We continue to be proactive with our approach to closing claims.

At September 30, Eastern had just 15 open claims in our traditional book of business net of reinsurance for action years 2007 and prior and closed 44.8% of 2013 and prior claims in the first nine months of 2014.

We continue to be pleased with the progress in our 2014 strategic plan, including continued focus on organic growth, geographic expansion and cross-selling initiatives.

We launched the Grandville Michigan satellite office during the quarter to further diversify the company’s geographic footprint and to deliver a local service platform in the growing Michigan market.

Cross-selling initiatives produced approximately 15 new agency appointments for one joint customer relationship and one new segregated portfolio cell program that will officially launch in 2015.

Frank?.

Thank you, Mike. We’ll wrap up segment discussions with our chief financial officer Ned Rand who will discuss the corporate and consolidated results.

Ned?.

Thanks Frank. Let me quickly hit a few highlights from our corporate segment, with investment related items producing the bulk of the segment’s results. Our net investment results were essentially flat quarter over quarter and year over year.

Declines in our fixed income portfolio, driven by low interest rates and reduction in our investment portfolio from our stock buyback initiatives were largely offset by a strong performance in our alternative investments. Operating expenses were up slightly as we achieved about $700,000 in operational savings form a variety of small items.

Those were offset by costs associated with previously discontinued operations, a one-time expense. It was also the interest expense due to the debt issuance in fourth quarter 2013 that had no counterpart in last year’s third quarter.

During the quarter, we received a significant income tax refunds as we wrapped up the dispute with the IRS that has been detailed in our past 10-K filings.

Turning to our consolidated results, the addition of Eastern has been a shot in the arm for our topline and to a lesser extent, the topline has benefited from our participation in Lloyd’s Syndicate 1729. Gross premium written were up 37% over last year’s third quarter to $227 million and are up 40% year-over-year.

Howard referenced the $42.3 million of favorable development we saw in Specialty P&C and this comes from action in years 2007 to 2012. We also saw $600,000 of favorable development from the workers compensation segment.

If you will remember from last quarter, there was approximately $400,000 of net favorable development in workers compensation attributable to the amortization of the purchase accounting fair value adjustment of the reserves. We will continue to reflect that level of quarterly amortization over the next six years.

I want to emphasize something that Howard said. The decline in the amount of favorable development we have seen this quarter and for the year is not unexpected and is not being driven by a change in our underwriting or reserving process.

Pricing has been relatively stable over the last several years and severity continues to climb upward, currently at around the 2% rate.

This, coupled with a smaller base of reserves, means that while there remains potential for further reserve development, assuming a continuation of a favorable loss environment, the absolute dollar amount of development is likely to be less.

The consolidated current accident year net loss ratio improved three points quarter over quarter to 80.3% due primarily to the lower loss ratios on our workers compensation business. However, with the quarter over quarter decrease in reserve development, the consolidated net loss ratio was up approximately 10 points to 56%.

Consolidated expenses I want to mention as well as there were a number of moving parts. The majority of the increase was driven by the inclusion of Eastern and Syndicate 1729.

Additionally, as Stan mentioned, we are making investments in our infrastructure and our people as we evolve to meet the changing demands of the healthcare industry, and these investments are pushing up the expense ratio. In addition, our expense ratio also increased as a result of a few distinct items.

One of these is also a part of debt evolution as we write off capitalized software costs that we no longer believe have value for our organization. This increased expenses by approximately $700,000 in the quarter. We also incurred unanticipated costs associated with previously discontinued operations that added $1.7 million in expenses to the quarter.

Our underwriting results were strong. The combined ratio was 86.6% for the quarter and 85.1% for the year-to-date. Operating income in the quarter, which excludes realized investment losses, was $40.1 million or $0.68 per diluted share.

Turning to the subject of capital management, in the third quarter, we purchased approximately 999,000 shares at a total cost of $45 million.

Since the quarter ended, we have continued to purchase shares under the auspices of our 10b5-1 plan and our year-to-date repurchase stands at 4.3 million shares at a total cost of $192 million, which leaves us with $112 million in our current repurchase authorization.

The repurchases, along with the $53 million in dividends declared so far this year mean that we have already returned more capital to investors through 10 months of 2014 that we have in any single year in our history.

As we have mentioned in previous calls this year, we are confident in the value represented by ProAssurance shares and we believe the record amount of capital we are spending on our shares represents a sound investment in the future of ProAssurance.

However, please be aware that in the short run, buying at these levels does hamper our ability to grow book value per share, which is up 3% since year end at $40.24. Tangible book value per share at September 30 was $34.80.

Finally, at September 30, there was $263 million in cash and short-term investments at the holding company, more than enough to support our capital management program and pursue opportunities that might arise to grow our business through M&A or other expansions.

Frank?.

Thank you, Ned.

Stan, final thoughts from you?.

Thanks Frank. It’s no secret that we take a long term view and structure our company and our strategy accordingly. In light of our certainty that healthcare will be delivered in large part through vastly changed organizations in the future. We are augmenting the services and lines of insurance we write to meet those specialized complex risks.

We are committed to fundamental change and we are investing human and corporate capital to uniquely position ProAssurance as the best organization to serve those of all needs.

Indeed, one would be hard pressed to find another organization that is so poised to serve healthcare with the array and scope of products and expertise that ProAssurance offers. Not only are we bringing new products to market, we are refining those we have always offered so that they are able to respond as new theories of liability emerge.

We are providing comprehensive liability, insurance solutions for risk which were undreamed of a decade ago. And in doing so, we are making ourselves more attractive to the different distribution channels that will be required in the future.

Our insureds today and tomorrow can be confident that we have the financial foundation, the experience and the foresight to be a trusted partner. And our investors should have the same confidence that we are not doing this in a vacuum.

We understand the need for profitability and we have a remarkable track record of maintaining that profitability and creating value for our shareholders even as our organizations evolve. We have done before and we are proud to be doing it again today. Now for questions. .

Thanks Stan. Maura, that concludes prepared remarks and we are ready for questions. .

(Operator Instructions). And we take our first question from Matt Carletti at JMP Securities..

I’ve got two questions. One relates to capital and one more of just a housekeeping numbers question. On the first one, you guys obviously have been active in M&A over the years.

Every year we see probably at least a few transactions some small, some large, any given one sometimes it’s hard see how much your capital is being deployed in any one transaction.

I guess there’s two questions, the first of which is, can you give us some idea over the longer term two years, five years, whatever time horizon you might be able to comment on with your view of how much ProAssurance capital has deployed and grown the business, whether through M&A or organically.

And then secondly just an update on where you see the M&A environment today and if you still see a full pipeline of opportunities. .

Hey Matt, it’s Ned. I’ll take the first part of that question and then as far as the pipeline I’ll let Stan address that. I think that’s great question. And if we pick an arbitrary timeframe, maybe look back to 2010, over that time we’ve done four transactions for a total value of around $612 million.

And over that same time period going back to 2010 we have bought back and paid dividends totaling $677 million. So, in the aggregate approaching $1.34 billion in capital that we have deployed either through return of capital or through M&A transactions over that time period. .

Matt, as to the pipeline, as you know, you can’t make the transactions happen. You have to be opportunistic. These types of transactions are episodic and they occur frankly for reasons that are outside of our control.

We spend a lot of time and effort in developing our relationships with those in this sector and we like to be thought of as the aggregator of choice. But you can’t make them happen.

You just have to be available and ready and that’s one reason we maintain a significant capital within the organization is to take advantage of these opportunities as they arise. And given the fact that you can’t plan for them, you have to be in a position to move quickly when they come up. I think we will see activity in the years ahead.

I think the changes in healthcare will propel a lot of that activity is just going to be very attractive to some of our smaller mutual brethren to join with an organization who has the financial scope and the geographic reach to take full advantage of all the changes that are coming in healthcare.

I’m optimistic that we’ll have opportunities in the future and again I can’t begin to tell you when they might occur, but we are ready for them when the opportunities arise. .

Thanks Stan, that’s very helpful. And then there’s one last numbers question I guess for Ned. Obviously your guys are no different than many of your peers in the quarter and investment portfolio. There’s mark-to-market headwinds that hampered book value growth.

But as we sit here, it looks like a lot of that potentially could have reversed already in the four quarter.

Do you – can you give us a ballpark, do you have a number of what the mark-to-market mark on your portfolio would be if, say end of October today?.

Yeah. So if we look through the end of October, Matt, on the bond portfolio, it’s about a $6 million improvement and then on our equities it’s probably around $2.5 million..

Great. Thanks very much..

Those are gross numbers pretax..

We’ll move now to Ryan Barnes of Janney Capital..

Thanks. Good morning everybody.

Hey Mike, I just had a question on how we should we think about the combined ratio in the comp segment?.

Well, just from the perspective of the combined ratio and how we looked at it through the first three quarters, obviously we’ve had our intangible asset amortization and purchase accounting expenses overlay the combined ratio and the onetime charges.

The volatility in the SPC business in the first two quarters benefitted the company 1.1 and a half point and first quarter was a point, the second quarter was about a point and a half. In the third quarter, when we had the volatility within the cells, it added about 2.5 points back to the loss ratio.

From the combined ratio perspective normalized through those three quarters, it’s really been about a 91..

Well, just from the perspective of the combined ratio and how we looked at it through the first three quarters, obviously we’ve had our intangible asset amortization and purchase accounting expenses overlay the combined ratio and the onetime charges.

The volatility in the SPC business in the first two quarters benefitted the company 1.1 and a half point and first quarter was a point, the second quarter was about a point and a half. In the third quarter, when we had the volatility within the cells, it added about 2.5 points back to the loss ratio.

From the combined ratio perspective normalized through those three quarters, it’s really been about a 91..

We’ll go now to Steve Roseberry of Surveyor Capital..

Hi, good morning everybody. Just a quick question on pricing in the physicians’ book. In the release it says that pricing improved and points to plus two versus adding plus one and some of the retention improved in the physicians’ book. I think it’s at a point.

I was just curios given the rate of change in pricing and in high retention, what do you guys -- I guess the question is, is this the beginning of a trend and do you suspect that as you look out over the next year that pricing will be up three or four? Do you think we’re kind of like just --- it’s a little bit of a statistical blip?.

This is Howard. I wouldn’t expect or I wouldn’t call it either one. I really don’t see it in terms of being a price increase trend. We are getting some increases in areas where we feel like we need it.

Podiatry book for example continues to have price increases due to the increased scope of practice among podiatrists and therefore some additional loss costs which drive pricing there. We had other areas, other states where we had price increases in the quarter.

Some of it is due to maturing of business that was written last year or the year before on a first year clients made basis, some larger accounts that came to us. So they are moving through the clients made progression. We have gotten price increases that way. And then I think generally, we do see the variation in pricing from quarter to quarter or so.

We have a range that we normally look at over the -- and if you look back over the past several years, anything I’d say between minus two and plus two for a given quarter, I would consider within the normal range and in various based on the mix of business by state and also by type of account..

Next we move Paul Newsome at Sandler O’Neill..

Good morning and thank you very much for the call. I was hoping you could talk a little bit more about some of these new investments initiatives that you’ve mentioned in the call as to what maybe specifically they are and maybe just more details about what they say about the future of the firm..

Hey Paul. I’ll be happy to address that. I think a couple for things, part of it is just continued investment in our existing infrastructure and maintaining that infrastructure even though when you look at our core business you’re seeing a decline in premiums.

That human capital in particular we value highly and we are doing all that we can to hold on to that human capital. In addition to that we have a number of initiatives going on across the organization, typically in Information Technology arena.

So making improvements to or updating the policy administration systems that we use across the various lines of business so that we can provide an even higher level of service to both our insurance and the agency services insurance I would say is the biggest component of it.

Lastly, is as we’ve become a larger and more complex organization with the addition in particular of Medmarc and Eastern, it’s making sure that we have the appropriate infrastructures in place to manage and oversee the complex business that we have become. Now I may have not answered your question. That was on the expense side.

If you’re talking about some of the underwriting opportunities on the healthcare professional liability side, I’ll let Howard address those two..

Sure. I mentioned the two things during the prepared remarks on ProAssurance Risk Solutions and also ProCxM ProAssurance Complex Medicine. The risks solutions as I mentioned in the prepared remarks really focuses on financially oriented larger transactions, things like loss portfolio transfers.

As an example, hospitals that are merging or acquiring another entity may not want to take on the past liabilities and might want to close out both the known claims as well as any unreported claims and they are willing to enter into a transaction to do that. And we think that we are well suited to be able to evaluate those transactions.

We have the capital base and we have the financial ratings to provide them with the security for that. And similarly in workers comp business, you can have that type of transaction when mergers takes place.

And they might have been a self-insured program or other type of employer funded programs that need to be closed out or the acquirer might desire for them to be closed out. You can also have adverse loss development protection for these programs. These types of transactions as we mentioned can be large and periodic.

And they also may be retroactive in nature. And some of them may be booked as premium and some of them may be booked as deposit accounting. So it’s hard to predict, but those are the things that we see a need for in the marketplace and we are able to attract a team of people that have done this quite successfully over the years.

Then briefly on ProAssurance Complex Medicine or ProCxM, that’s really what we see as an opportunity to leverage our abilities in the hospital professional liability space with some really unique analytics that have been developed to look at utilization and patient mix and procedure mix for the larger hospitals and where there’s a large body of data and be able to not only look at the historical loss experience, but look at what’s being done real time within these entities in terms of developing the appropriate pricing.

Hopefully all of that has answered the question, but if not let us know..

No, that’s absolutely fantastic. I have a second question that’s unrelated, but a bit of a follow up to the M&A question.

The question is this; now that you have some success and history with Eastern and the Lloyd’s operations, has that changed the kinds of companies that you look for when you are looking at acquisitions? Are you more likely now to buy another workers comp company or a Lloyd’s or even something completely different that’s outside of the medical malpractice and your traditional businesses?.

This is Stan. I think we are at the present moment satisfied with the span of product offerings that we have. We started in 2009 to build an organization that could serve what we perceive to be the significant changes that were going to take place in the healthcare system in the United States.

and the first order of business was to make certain that we could cover the entire provider spectrum. It became clear even back then that the provision of healthcare is going to be pushed down to lower and lower provider cost levels. That’s why we bought Mid-Continent in 2009. That is why we bought PICA in 2009.

We are able to cover the entire healthcare provider spectrum. And then it became important we felt like to make certain that we could fill in for the market provided needed needs in medical products, clinical trials, genetic therapeutics. And that was the reason for Medmarc.

And then we felt because of the changing nature of the structures through which medicine will be delivered in the future, it was very important to have the workers comp segment. And we are very proud that Eastern is the workers comp arm of ProAssurance. Why was that important? The two hardest coverages to place in healthcare are MPL and workers comp.

With workers comp we are able to barbell those coverages and then fill in organically as needed with our healthcare insured such as with our DNO products. I think we feel like we are well positioned today with respect to our product offerings.

And M&A activities in the future will be designed to deepen our expertise and deepen our abilities within each of those different segments. I would be surprised, although this is just a guess if our next M&A was something other than sort of the traditional medical professional liability carrier. I would think that would probably be what's next.

I have no idea when it's coming, but having said that, we will look at all the opportunities that are presented to us. We have to take into account the new distribution systems that will be utilized as healthcare continues to evolve in the future and that will be important to us.

All that is a long way of saying that today is a result of what we’ve done over the last eight years. We are well positioned. indeed I would suggest to you, uniquely positioned in the healthcare field.

For example, who else has such a strong record of defending insureds in the litigation that is brought against them and at the same time can provide the workers comp product for the complex organization? We are very satisfied with where we are product wise and I think we will continue to deepen that as we go forward..

Terrific. Thank you for the answers and congratulations on the quarter..

(Operators Instructions) We are going to take a follow up now from Ryan Barnes at Janney Capital..

Great, thanks guys. Just had a question about the premium growth at Lloyd’s. Obviously in the second quarter it was $ 21 million. It dropped down to $6 million this quarter. I realized there were some podiatry business in the second quarter. But just want to see how we should think about how that business ramp up.

I realize that probably will be a little bit lumpy, but is there anything -- can you guys maybe help us there as to how you guys think that will grow?.

I’m not sure we can give you a lot about how we think it will grow, maybe more just in terms of the -- what we’ve seen so far. As you mentioned, the podiatry business came on and you talked about second and third. We will talk about first and second because of the way that we record things.

Podiatry business came on effective January 1and it gets booked for the whole year in terms of written. So, that was a big portion of what was recorded by the Syndicate in the first quarter.

And as we moved in -- their business moved into the second quarter, which is big time in Lloyd’s for property renewals, the property reinsurance team did not really come on board until -- because of non-competes and so forth, really didn’t come on board until the end of the second quarter, beginning of the third.

So some of the property reinsurance business that might have been written and likely be written next year did not get written this year. That was not an expected really part of the overall plan of staffing out the Syndicate. Also the property reinsurance marketplace is quite soft right now.

So the pricing that they saw in a lot of submissions even when they were in place didn’t really lend itself to writing that business. In terms of what we expect, again we’re really not in the position to project the future, but overall on the business plan, we think that we are going to see a nice mix of business throughout the year.

It will continue to develop. The underwriting staff is fully in place right now. And just as an example, we have about 70% of the business is in casualty. About 8% of the business is in property insurance and that’s direct insurance business primarily in the US. About 18% is property capped and about 5% is other property reinsurance.

Just give you a little bit of a profile of what we have..

Great. Thanks for the color there. Then just my last question is, I think that you guys probably just renewed your Medmarc reinsurance treaty. And we’ve hearing at least in the primary side of people getting increased ceding commissions basically should help expense ratios going forward.

Just want to see if you guys had any color on how your renewal went and if they can have any impact going forward?.

Yes and this is the reinsurance for the -- what we call the traditional healthcare professional liability, the physician business and hospital business that renewed October 1. We saw some modest reductions in our cost, reductions in the margin that is built into that reinsurance program I’d say approximately 7, 8%. This is an excess of loss program.

So really doesn’t involve seeding commissions. We’ve heard about the same things that you have I think in the marketplace with large ceding commissions, but that really doesn’t affect the re-insurance that we buy for that program. But we were satisfied, more than satisfied, pleased with the results.

We were able to expand the scope of coverages that we have to include our recently introduced directors and officers program and made some other small improvements in terms of the program as far as renewals..

([operator instructions). Mr. O’ Neal, there are no further questions at the moment, sir..

Maura, thank you and thank you everybody for joining us. We will speak to you next believe in February with yearend results..

Ladies and gentlemen, that concludes today’s conference. Once again thank you everyone for joining us..