TRV
#Well, what we've talked about, <UNK>, is that the percentages probably won't be the same because our base is growing.
And as you probably recall, Quantum 2.0 rolled out over a couple of years and even including three more states this year, California, North Carolina, and Massachusetts.
So we think that the percentage will moderate, but we are not anticipating that the product would be less competitive.
We also are pleased to see and so are our agents that they are actually getting a disproportionate share of their new business from captives in the direct marketplace, which is something that we talked to them about.
So I would say the percentage we definitely don't think will stay the same but probably from account perspective, we expect it to continue to perform at similar levels.
Next question, please.
<UNK>, let me just make sure that I reset because what we talked about at AIFA was we had pilots underway with 10 agents in a couple of states and we took all of those suggestions.
Some few coverage, a lot of process changes, and some guidance on pricing, and all of that work is getting done now so we are anticipating later in the year, beginning of 2017, that would be broadly available.
So all the work being done but it's not yet broadly in the marketplace.
No, <UNK>.
What we did as part of this assessment was looked at whether our current infrastructure, our current claim handling, and our current product could support that.
We'll need to make a few tweaks to that but we are not building this super high end home capability.
This is really the [math affluent], and we think we have a really good match with our current capabilities in that marketplace.
Okay.
In terms of the P&L, it's in a couple of places because pension expense of course relates to headcount and headcount ends up in G&A as well as ULAE.
So it's in more than one spot.
But it equates to what's taking place in the pension area.
You may recall in the 10-K we provided a disclosure saying that we were adopting a new methodology for ---+ that went into the estimation of pension, and that dealt with using a yield curve approach rather than a spot rate for looking at the interest in service cost to coincide with how the PBO is being calculated.
And that did have a benefit and that will be a benefit that carries on into the future.
No.
The answer is no, it doesn't really.
There's obviously some claim expense that could be impacted but in that case, nothing unusual this past quarter.
And the only thing down the road I would say about G&A is if we have a very, very profitable year in home, that's where we would add contingent commission and so we'd be really happy if that line ---+ if that went up because it was a great year.
There's nothing about the current level of disruption that's causing us to look at that in the sense that we look at that all the time.
We are always looking for opportunities to expand our product set and to drive our competitive advantages and capabilities into new lines of business, new products.
We certainly don't wait for a moment in time to do that.
And this will be our last question, please.
Yes, <UNK>.
This is <UNK>.
I mean the 88% retention in middle market was very, very strong and clearly would be at the upper end.
We dissect where we are getting the retention.
We feel great that it's about 90 in our best business but it's ---+ our experience in the business would be that those are very tough levels to sustain.
So every single day in the marketplace with every transaction, that's what our underwriters are doing.
They are working with agents and brokers in the middle market and in the other business insurance stuff account by account, and they are trying to determine what's the appropriate thing to do for that account.
You can get caught up in the arithmetic of what you just said, and we do ourselves at times but it's not a straight line to say, well if you reduce retention 2 points and you raise prices X, that's not exactly how the marketplace dynamics work.
But we are always trying to look at the retention rate trade-off and looking at that in the context first and foremost of the return that we believe we are generating on that account or that book of business and is it appropriate and where do we want to go.
We are balancing it all the time.
I would take you back to the conversation about account by account execution.
The graph that <UNK> referenced in his opening comments.
Thank you.
This completes our call.
Thank you very much for joining us this morning, and as always, we're available at investor relations for any follow-up.
Thank you, and have a nice day.
