RNR
#Still strong interest, but not a great opportunity to deploy.
And, <UNK>, the gross losses on the Fort McMurray wildfire and the Texas weather events across Cat Specialty and Lloyd's was about $77 million.
So net negative impact [41], the gross losses across all three platforms or all three segments was $77 million.
Thanks, <UNK>.
Sure.
What I meant to highlight there is a reduction in economics is a reduction in economics.
The difference between the two is the ceding commission is fixed and known definitively at time zero where you need to monitor books very carefully and it takes awhile to figure out whether underlying rates are moving up or moving down.
Our concern now is that there could be rate pressure coming in on the underlying books and we're spending a lot more time monitoring those reductions because they are less transparent than an increase in ceding commission.
Either one has the same net effect on the overall returns on the margins on the business, it's just one is harder to figure out than the other.
For the growth, the vast majority of the growth is coming from the mortgage business.
We do have some renewals in there for the trade credit stuff, but I have been thinking about the growth, the vast majority of it is coming out of the mortgage markets.
I would say broadly it is really a function what's available in the market and whether you can add that to your portfolio and improve net returns.
We don't have a bias at this point to try to increase or reduce sessions and I would say the opportunity from now to year end certainly for increased sessions is pretty minimal.
Looking at next year, the only ---+ the place that we ---+ let me just divide the world between casualty, specialty, and property cat.
Property cat, the net risk we retain and the sessions that we apply to get there change the level of capital committed to the business.
Within casualty and specialty it really is around optimizing the risk profile and the risk return/fee return we are getting on the business, but it doesn't necessarily change capital.
So it's two different philosophies for the different books, but there will be no change in the way we are thinking about our ceded between now and year end and probably limited to opportunity to increase the sessions.
For ceded or for ---+.
I think the sessions that we have in 2016 compared to the sessions we had in 2015 are more favorable to us, but that's really ---+ I think as people become more comfortable with us as underwriters and being partners of ours they generally will share more of the economics back to the cedant.
I wouldn't say broadly we're seeing a material change the economic benefit of sessions between last year and this year though.
I think that's normal marks of behavior is what I'm commenting on.
Thank you.
I did not listen to that call this morning, so I'm not familiar exactly what the commentary is.
I think looking at it, I think I don't have an answer to your questions as to whether it was high or low relative to the worldwide cat expectations of our competitors, but I think what we tried to comment on is it was a big loss in Canada.
The Canadian market is protected differently than the US market.
A lot of that will come to the reinsurance community.
And the Texas events, even though discussed as Texas convective storm, it really was 10 events.
I don't think it certainly showed that there was an increase in convective storm activity in the United States, but was pretty bad for Texas and for Texas companies.
Yes, I think it depends on ---+ it's kind of by company within Canada but, in general, our view is to where the most likely estimate of loss is that we could see continued increase in primary loss and increase in reinsurance losses, the analysis that we did was, as we normally do, bottom up and top down.
We did a much more granular bottom-up analysis and we feel pretty comfortable with our estimate even at a larger than what is discussed industry loss.
Thanks, <UNK>.
Thanks, <UNK> Thank you, everybody.
We appreciate you tuning in for the call and we appreciate all the questions and look forward to speaking to you with Bob next quarter.
