This excerpt taken from the ACGL 8-K filed Feb 16, 2006.
I had a couple of questions. First, if I look at what your margins look like, backing out favorable development, as well as the catastrophes, the back half looks significantly better than the first half. And you alluded to some of the non-cat property performance. But I guess I am just trying to get a sense for what the right number is to focus on, because I had 55 in the back half versus low 60s in the first half.
Well, Matt, one thing, and weve discussed this on prior calls, when people do the 55, they are taking the cat losses out, but they are not adjusting for the cat load. So thats one point that you have to bear in mind. We would estimate across our book, property and marine and aviation, that the cat load is something between 15 and 20 points of earned premium. Or if you looked at it in our book, it is somewhere between 4 and 5 points, depending upon the mix of business.