This excerpt taken from the ALL 10-Q filed May 7, 2009.
lower catastrophe losses. Gross frequencies excluding catastrophes increased compared to the first quarter of 2008, in part, due to an increase in freeze related claims, driven by winter weather in the first quarter of 2009. Theft claims also drove part of the increase in frequencies compared to the first quarter of 2008. Homeowner average loss costs excluding catastrophes (claims severity) increased compared to prior year, and contributed to the increase in the loss ratio. Homeowners loss ratio for the Encompass brand decreased 3.5 points to 61.9 in the first quarter of 2009 from 65.4 in the first quarter of 2008 due to lower catastrophe losses.