Oct 26, 2010
Executives
William R Berkley – Chairman and CEO Rob Berkley – President and COO Gene Ballard – SVP and CFO
Analysts
Kevin Walsh – Citi Josh Shanker – Deutsche Bank Vinay Misquith – Credit Suisse Ken Billingsley – BGB Securities Doug McGregor – RBC Capital Markets Greg Locraft – Morgan Stanley Jay Cohen – Bank of America Meyer Shields – Stifel Nicolaus Bob Farnum - Keefe, Bruyette & Woods Larry Greenberg – Langen McAlenney Connie Deboever – The Boston Company
Operator
William R Berkley
Rob Berkley
William R Berkley
Gene Ballard
William R Berkley
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
So with that I’m happy to take any questions, and we are all sitting here and we’ll be pleased to answer any of your questions.
Operator
Kevin Walsh – Citi
Gene Ballard
Yeah, it’s around $1.2 billion to $1.3 billion each year, in 2011 and ‘12, that would be rolling off and maturing.
William R Berkley
Kevin Walsh – Citi
And roughly what’s the gap between the portfolio yield and the new money rate today that you’re seeing?
William R Berkley
I would guess that we’re probably talking about 0.5%, maybe 0.75%.
Kevin Walsh – Citi
Kevin Walsh – Citi
Rob Berkley
William R Berkley
Kevin Walsh – Citi
Okay, thank you very much.
Operator
Our next question comes from the line of Josh Shanker from Deutsche Bank.
Josh Shanker – Deutsche Bank
William R Berkley
Josh Shanker – Deutsche Bank
In terms of equilibrium, what would be causing admitted carriers to be behaving more responsibly if they haven’t yet seen losses?
William R Berkley
Rob Berkley
I think you covered it unless Josh had a further question.
Josh Shanker – Deutsche Bank
The only thing, is there any rule of thumb we can use to think about pricing between business – how it’s priced in the admitted market versus how it’s priced in the ENS market?
Rob Berkley
Well clearly historically the non-admitted market or the ENS market has had more robust rates and perhaps as if not more important, their terms and conditions are such that it translates into perhaps a better all-in effective rate.
Josh Shanker – Deutsche Bank
It’s difficult to quantify.
Rob Berkley
Josh Shanker – Deutsche Bank
Yep, alright.
William R Berkley
Josh Shanker – Deutsche Bank
Operator
Our next question comes from the line of Vinay Misquith from Credit Suisse.
Vinay Misquith – Credit Suisse
Rob Berkley
William R Berkley
Vinay Misquith – Credit Suisse
And then the new business that you’re getting, would it be fair to say some of it is coming from the old companies that are staying with and some of it is coming from the new companies?
Rob Berkley
William R Berkley
Vinay Misquith – Credit Suisse
William R Berkley
Vinay Misquith – Credit Suisse
Okay, thank you.
Operator
Our next question comes from Ken Billingsley with BGB Securities.
Ken Billingsley – BGB Securities
William R Berkley
Can you speak a little louder, Ken?
Ken Billingsley – BGB Securities
Yes, can you hear me okay now?
William R Berkley
Ken Billingsley – BGB Securities
Gene Ballard
Yeah, $51 million.
Ken Billingsley – BGB Securities
Gene Ballard
Ken Billingsley – BGB Securities
William R Berkley
Rob Berkley
William R Berkley
Ken Billingsley – BGB Securities
Rob Berkley
William R Berkley
Ken Billingsley – BGB Securities
William R Berkley
Ken Billingsley – BGB Securities
Great, congratulations on the quarter. William R Berkley – Thank you.
Operator
Our next question comes from Doug McGregor of RBC Capital Markets.
Doug McGregor – RBC Capital Markets
Rob Berkley
Doug McGregor – RBC Capital Markets
Rob Berkley
William R Berkley
Doug McGregor – RBC Capital Markets
William R Berkley
Doug McGregor – RBC Capital Markets
Operator
Our next question comes from Greg Locraft with Morgan Stanley.
Greg Locraft – Morgan Stanley
William R Berkley
Greg Locraft – Morgan Stanley
William R Berkley
Well since you’ve already decided what it is you’ve answered your question for yourself, there’s no sense in me responding.
Greg Locraft – Morgan Stanley
Rob Berkley
Yeah, 11% is not anywhere near a high for that.
Greg Locraft – Morgan Stanley
William R Berkley
Greg Locraft – Morgan Stanley
Operator
Our next question comes from Jay Cohen from Bank of America.
Jay Cohen – Bank of America
William R Berkley
Yes.
Jay Cohen – Bank of America
Okay.
William R Berkley
And it also says that probably one would think that any takedowns probably are somewhat offset by caution in the current years.
Jay Cohen – Bank of America
I guess you also have the other issue of prices that have been going down, so that would obviously put some upward pressure on that pick, too.
William R Berkley
Jay Cohen – Bank of America
William R Berkley
Jay Cohen – Bank of America
Any exposure to the New Zealand earthquake?
William R Berkley
Nothing of any consequence.
Jay Cohen – Bank of America
Operator
Our next question comes from Meyer Shields with Stifel Nicolaus.
Meyer Shields – Stifel Nicolaus
William R Berkley
Meyer Shields – Stifel Nicolaus
William R Berkley
Meyer Shields – Stifel Nicolaus
Operator
Our next question comes from Bob Farnum at Keefe, Bruyette & Woods.
Bob Farnum – Keefe, Bruyette & Woods
William R Berkley
Yes, sir.
Bob Farnum – Keefe, Bruyette & Woods
William R Berkley
Bob Farnum – Keefe, Bruyette & Woods
William R Berkley
I won’t say we’ll be a very different company but it’s certainly an issue that I take seriously and we will have to give consideration to that, because yes – I believe ultimately the cost of capital is a long-term driver of companies’ abilities to survive.
Bob Farnum – Keefe, Bruyette & Woods
William R Berkley
Bob Farnum – Keefe, Bruyette & Woods
So not much different than your current, your domestic book.
William R Berkley
Bob Farnum – Keefe, Bruyette & Woods
Operator
Our next question comes from Larry Greenberg with Langen McAlenney.
Larry Greenberg – Langen McAlenney
William R Berkley
Larry Greenberg – Langen McAlenney
Interesting, thank you.
Operator
Our next question comes from Connie Deboever at The Boston Company.
Connie Deboever – The Boston Company
William R Berkley
Connie Deboever – The Boston Company
Understood, thank you.
Operator
And sir, I’m showing no further questions in the queue.
William R Berkley
Operator
You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.
THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY’S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT.
USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY’S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY’S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. If you have any additional questions about our online transcripts, please contact us at: [email protected].
Thank you!