WRB
#Yes, it was.
So let me offer a couple of sound bites, and then I suspect my boss has a view to share as well.
I think for ---+ there are several opportunities that have come into focus from our perspective.
Some of those opportunities we have capitalized on.
Some of those we have explored and decided not to pursue.
Some of those opportunities we continue to explore.
The fact of the matter is, by and large, whenever there is a meaningful merger or acquisition, that creates a degree of overlap or uncertainty or potential dislocation that impacts both the people within the organization.
And it also can honestly impact people outside of the organization, such as the distribution system and customers.
So we certainly have seen opportunities as a result of the M&A activity.
We expect we will see more.
In addition to that, as you and others are aware, just like we are aware, there are some very meaningful organizations in the P&C space that seem to be going through a process of looking in the mirror and making some significant changes.
As a result of that, that is creating some uncertainty, confusion, and ultimately potentially opportunity as well for organizations like ourselves for both talent and business.
So all things being equal, from our perspective, we do think that there are some opportunities that we've been able to capitalize on, and we think that there will be more to come.
From our perspective, as we've suggested to some in the past, the insurance business is fundamentally two things.
It's capital and its people.
We believe capital is ever more a commodity and people are what make the difference, so the opportunity to attract talented people from other organizations is certainly something that we are focused on.
Good evening, <UNK>.
A couple of questions there so let me try to take them one at a time.
First of all, we do believe that everything is not perfect, every plate is not spinning perfectly, but we think we are well on our way down the path to a better place.
I appreciate the comment, but I don't think everything in the domestic markets here we have running perfectly either.
As far as core competencies go, we do not necessarily take the same approach that other organizations take, particularly very large multi nationals.
We have no desire to be in every market around the world.
We have a desire to participate in markets or niches within markets where we are able to compete based on expertise.
Obviously, there are some places where we have not succeeded in doing that and some of the results and some of the discussion that we've shared with you in the past.
Having said that, we, as I suggested a moment ago, we believe that we are well on our way to remedy that.
So quite frankly, I think our strategy outside of the United States is not dissimilar to our strategy in the United States.
We are not trying to be the global, all things to all people.
We are trying to find niche opportunities in other markets where it makes sense outside of the United States to achieve reasonable risk-adjusted returns.
In several of the markets that we participate in, Latin America would be an example, I think we have achieved that consistently for more than a decade.
I believe we are doing that through our Lloyd's operation as well.
Having said that, some of the activity in Canada, rather ---+ excuse me, in Continental Europe has not proven to work out as well, but again, we think that we're getting that sorted.
I think the way I would suggest that you think about it is as I suggested earlier, <UNK>, there were a couple of places that we zigged when we should have zagged, and we think that we are well on her way to having that sorted out.
I would hesitate to try and start putting percentages on it because I don't have it down to the decimal point.
Thanks, <UNK>.
Have a good evening.
Again, here we go with the forward-looking statements.
I think our view is that based on what we know today, which is imperfect, and I highlight imperfect.
We think that there is a reasonably good chance, significantly better than average, that we will be able to improve our top line as well as our loss ratio.
Additionally, we think that there is good reason to believe that we will be able to improve our expense ratio.
Having said that, going back to some of the comments earlier, given some of the dislocation in the market, we will be prepared to sacrifice our expense ratio in the short run in order to invest in new operations as we have done historically.
And it's right in line where it's been in the mid-$50 millions pretty much for the year.
Yes.
I think it was just a general observation about the reinsurance marketplace.
Clearly, the entry of a meaningful amount of alternative capital over the past several years has put a meaningful amount of pressure on the reinsurance marketplace, and specifically on the traditional players.
And the pressure is still there, but it doesn't seem like it continues to flow in at the same pace.
There may be some other, but it's not of consequence.
Yes.
A good memory, <UNK>.
We have expanded a bit into the energy space, and it's something that we've chatted about with you all in the past.
Just to put it in perspective, from an underwriting perspective, our exposure to oil and gas is less than 5% of our premium.
It's closer to I think it's about 3.5% was the last time I had a look.
So, is it something we care about, sure it's something we care about.
But is it something that's going to dramatically derail the organization as that sector is under pressure.
No, we don't think it ---+ forget about dramatically, we don't think it really is going to even be a blip for us.
And as far as the loss activity goes, we've seen no evidence to date that it's going to create an issue for our ---+ the picks that we're using.
Certainly we are in touch with the reinsurance market.
By and large, it is a better moment to be a buyer than a seller.
From our perspective, we try and view the reinsurance market as a place where we can partner with long-term partners.
We do not look to arbitrage our partners, at the same time, we are not naive to the market conditions and the opportunity that generates for our shareholders.
So as far as the specifics around our reinsurance buying strategy, <UNK>, that's just not something we tend to really get into in this type of forum.
But I would suggest, we're not trying to abuse anyone but we are not naive to market conditions.
Thank you.
Okay.
Bridget, thank you very much and thank you all for calling in.
As we suggested earlier, we think both the quarter and the year were a solid showing.
We continue to be very focused on generating what we believe are solid returns.
And again, our view is that the return on equity that we should be able to achieve in the future is something that we are very focused on.
And it is our view that we will be able to improve 2016 when compared to 2015.
So again, we think the market offers meaningful opportunity.
We think some of the challenges that we faced in 2015 are behind us, and we are enthusiastic about what is ahead.
Thank you all for joining us, and have a good evening.
