Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Executives

Leslie Loyet - IR, Financial Relations Board

Richard Smith - President and CEO

John Marazza - EVP and CFO

Analysts

Mark Lane - William Blair & Company

Keith Alexander - JP Morgan

Doug Mewhirter - RBC Capital Markets

Amit Kumar - Fox-Pitt Kelton

Joel Salomon - Citi

Bob Farnam - KBW

First Mercury Financial Corporation (FMR) Q4 2008 Earnings Call February 19, 2009 11:00 AM ET

Operator

Good morning ladies and gentlemen thank you for standing by. Welcome to the First Mercury Financial Corporation Fourth Quarter 2008 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session instruction will be provided at that time for you to queue up for questions. I would like to remind everyone that this call is being recorded.

I will now turn the call over to Ms. Leslie Loyet of the Financial Relations Board. Please go ahead.

Leslie Loyet

Thank you. I would like to thank everyone for joining us today. Yesterday we filed a press release outlining the results for the fourth quarter and year-end 2008. If anyone has not received the release, please visit the Investor Relations page on the company's website at www.firstmercury.com to retrieve a copy. Management will provide an overview of the quarter and the year, and then we will open the call up to your questions.

Please be advised that this call may involve forward-looking statements, as discussed in the February 18, 2009 press release. Risks associated with these statements can be found in the company's latest SEC filings. Additionally, we want to remind participants that the information contained in this call is current only as of the date of this call, February 19, 2009. And the Company assumes no obligation to update any statements, including forward-looking statements made during this call. Listeners to any replay should understand that the passage of time by itself will diminish the quality of the statement.

Joining us today from management of First Mercury are Richard Smith, President and Chief Executive Officer; John Marazza, Executive Vice President and Chief Financial Officer; [Brian Roney], Executive Vice President and Treasurer; Jim Thomas, Senior Vice President of Product Management and Ed LaFramboise, Vice President of Finance.

At this point, I would like to turn the call over to Richard for his opening remarks. Please go ahead.

Richard Smith

Thanks Leslie. Good morning. Welcome to the First Mercury Financial Corporation fourth quarter earnings call. I'm very pleased with the results we reported last night. The results reflect important contributions from each of our underwriting platforms including the two most recent additions [FMMO] and AMC. As well as significant growth in book value for the quarter and year resulting from continued profitability of our business and the outstanding investment results resulted from our conservative approach to investing no bad debt.

When viewed in the light of normal operating environment, which of course we are not experiencing, I think quarter was solid. When viewed with the extremely challenging environment, we actually experience, I think the results were outstanding.

I think the conservative approach we take to underwriting investing our assets to the expense managerial company each played an important part in achieving those results we saw in the fourth quarter and positioning ourselves us for the future.

I also believe we are extremely well positioned to take advantage of the changes that are occurring in the marketplace with more and better underwriting assets, a strong balance sheet and a capital position that provides for us and supports our continuing growth.

The growth in premiums produced of 23.5% for the quarter and 16.4% for the year was well within our expectations and guidance. It reflects the continued efforts to diversify the product and customer segment offering for the company.

FM Emerald's rollout efforts really gained some sound footing in the fourth quarter was $16.9 million of premium production for the quarter and we expect continued growth from that platform during 2009.

The competitive environment remains challenging. However, we continue to see moderating rate declines in the fourth quarter especially in December. As an example, to show where the current rate environment is or the [set forth] in our specialty book approximately one third of the policy had a rate increase. About one third and a rate decrease of up to 10%, and one third had a rate decrease of over 10% with the aggregate result being a mid single digit rate decline.

We are working with our underwriters to make sure that we have good underwriting reasons to write those accounts. Accounts with rate decreases over 10% as we cautiously move in to 2009.

Terms and conditions continue to hold up reasonably well.

We continue to see good growth of business in each of the underwriting platforms. It provides some quantification of that in December we received almost 9000 submissions of business across all of the underwriting platforms excluding the contract underwriting.

That is up about 45% over January of 2008 and up about 20% over the 2008 average month. A longer-term this gives us great business for all to take advantage of. However, in the short-term, it causes our underwriters to work harder and to sort through the business to find account, the right accounts to work.

I mentioned earlier the contributions from each of our platforms that how important that was. I want to point out that continued improvements in a contribution to our results from AMC, the MGA we purchased earlier this year. I continue to have very high expectations for AMC, both as underwriting platform for business that we may choose to underwrite the future, as well as an MGA platform for underwriting on behalf of others.

We continue to see good business development opportunities. We very recently announced the addition of professional liability thing. I am very enthusiastic about this growth and the near-term and longer-term prospects.

We also see opportunities to add additional underwriters in the professional liability segment. We continue to be focused on adding experienced underwriters and our teams of underwriters that probably see more opportunities in this area than in any time in recent history.

We are more likely to hire than to buy during 2009, but then we would not really allow to buying the right business at the right price probably in terms of being small tuck in acquisition.

Our balance sheet has never been stronger the asset portfolio continues to conservatively invested. We have good flexibility with holding company cash of more than $20 million, or $30 million line of credit available. And we have adequate statutory capital to support the expected growth over the next 12 to 24 months.

One additional point worth making is that our invested asset base has grown from $298 million just a little over two years ago, right after the IPO just $543 million in year end '08.

Investment income was $6 million for the fourth quarter, or 25% over year end, over fourth quarter 2007 and doubled from fourth quarter 2006. This becomes a more significant component of our financial results going forward.

I will now hand it off to John Marazza to discuss more details on financials.

John Marazza

Thanks Richard. Since everyone has had the opportunity to review the press release which went out last night. I will focus my comments on the financial highlights and trends for the fourth quarter and full year.

I think the story for the for the fourth quarter and full year and first month focus on underwriting coupled with our conservative approach to investing and capital management permitted us to achieve a combined ratio of 83.7% and an increase in book value per share of 15% for the full year 2008 consistent with our long-term strategy of growing book value.

Excluding the gain from sale of ARPCO our pro-forma book value per share growth was still have been 6.6% inclusive of ARPCO's pro-forma earnings for the full year of 2008.

With the unprecedented turmoil in investment markets in the third and fourth quarters we are pleased with the results of our investment portfolio. During fourth quarter our net realized losses primarily from our convertible portfolio were offset by the increase in the market value of our fixed income portfolio.

As a result in the fourth quarter operating earnings were accretive to book value. I will provide more details on our investment portfolio results in a few moments. We are pleased to report net income for the fourth quarter of $0.13 per diluted share or $2.4 million and net income for the full year 2008 at $2.19 per diluted share or $40.8 million. Our fourth quarter net operating income was just under $8 million or $0.43 per diluted share. For the 12 month ended 12/31/08 our operating net income was $31.4 million or $1.68 per diluted share.

As Richard, mentioned premiums produced increased roughly 24% to $83 million in the quarter and increased over 16% to $21 million for the year ended 2008 inline with our guidance of 10% to 20% for the full year. As anticipated our growth in the fourth quarter was attributable to the continued roll out of FM Emerald.

As I mentioned last quarter, since we no longer rely on the funding model, gross written premiums, approximate premiums produced growth in both the quarter and for the year. Net earned premiums were up 38% in the quarter to $54.5 million and up 14.5% for the full year to $193.7 million.

The approximated growth and net written premium and the purchase of less reinsurance for our specialty and security businesses.

As we have previously mentioned, we relied more on reinsurance for our newer contract underwriting and FM Emerald businesses. For the quarter and full year 2008, 75% and 82% respectively of our net earned premiums are from our security, capacity and legal liability program businesses.

Current pricing trends continued to have an impact on our actual year loss ratios, which have increased slightly.

Our loss ratio was 57.1% for the fourth quarter and 55.7% for the full year 2008.

We had no net reserve development on prior action years reserves impacting the fourth quarter earnings, though we did recognize $4.8 million of favorable development for the full year.

All of the favorable development came in the third quarter when our total actuarial and external actuarial concerns completed their in depth reviews of our reserves.

Our 2008 calendar year loss ratio of 55.7% included current accident year loss ratio of 56.7%. Hurricane Ike added 1.5 percentage points to 2008 calendar year loss ratio, offsetting that increase was 2.5 percentage points of favorable development on prior year's loss reserves. The 2008 accident loss ratio at 56.7% increase, 4.1 percentage point of the 2007 accident year loss ratio.

Our expense ratio was 30.7% for the fourth quarter and 28% for the full-year. This anticipated increase is primarily due to the impact of us purchasing last quarters share reinsurance, less profit-sharing commissions and increased expenses due to ramp up of new initiatives such as the build out of the FM Emerald platform.

Insurance commission revenue was a negative $818,000 in the fourth quarter as a result of a negative profit sharing commission adjustments, more than offsetting that decrease was an increase in insurance services revenue due to our AMC acquisition completed in February of 2008.

Our total commissions and fees were $5.1 million in the fourth quarter and $21 million for the full year. We are also pleased to report as Richard said that in the fourth quarter AMC continues to be accretive to earnings. We reported net realized investment losses of $8.3 million in the quarter and $20.7 million for the year.

These investment losses were largely due to mark-to-market adjustments on a convertible portfolio and it was roughly $4 million of OTTI, or other than temporary impairments for the full year. Our net realized losses for the quarter were offset by a decrease in the net unrealized loss position on the fixed income portfolio.

At December 31, 2008, the net unrealized loss position on the fixed income portfolio was at $1.8 million pre tax that is included in the other comprehensive loss of $3 million in our balance sheet.

The total return for our portfolio was a positive 1.42% in the quarter and a positive 0.4% for the 12 month-period. I would also note that the investment portfolio was priced at December 31, 2008 by two different independent pricing resources.

For the year, we also recorded a realized gain on the sale of ARPCO of $20.9 million, or $12 per diluted share. Net investment income increased by 25% for the quarter to $6 million, and increased 33% to $21.6 million for the full year, primarily due to the increases in the investable assets during the year of 18% to $543 million.

At year end 2008, the effective duration on our investment portfolio was just over three years and our taxable equivalent yield was 4.95%. Our total investment portfolio of quality remains high as our fixed income fixed income investments at an average credit quality of AA.

High quality, short duration Municipal Securities and agency pass-throughs still comprise the largest portion of our portfolio at roughly 54% of our total investment, and non-agency residential exposure remains minimal.

We closely monitor our CMBS and ABS exposures, relative advantage, credit support, loan to value and overall delinquency rates. We are comfortable that securities will provide ample credit support against principle erosion.

Our financial operating leverage remains modest and year-to-date net written premiums surplus is just over one-to-one allowing room for future growth. Our debt consists entirely trust preferred securities, and our debt-to-capital is 20.4% well above acceptable levels for our current ratings KMP ratings.

During the fourth quarter we bought back approximately 474,000 shares of common stock for $5.3 million at an average cost of $11.25. For the full year, we bought back approximately about 699,000 shares of common stock for $8.6 million, at an average cost of $12.25.

These purchases in our third and fourth quarter leave us roughly $800,000 of (inaudible) capacity under a $1.5 million share plans. Our stock repurchase plan is in place for August of 2009.

We believe our balance sheet remains strong as Richard said, that the holding company we have cash and liquids investments of approximately $22 million in debt capacity in the form of a $30 million committed revolving credit agreement in place through September of 2011.

As of December 31st, our book value per outstanding share was $14.67, which represents a 50% increase on December 31, 2007 and is up 47% since December 31, 2006. Our first quarter as a public company.

We are pleased that our (inaudible) consistently grant book value, which you believe and why that benefits our shareholders. And now I will conclude my remarks with guidance for 2009.

As Richard mentioned, we believe we will grow gross written premiums in 2009, but due to uncertain economic conditions and a competitive property and casualty marketplace, we will not provide a range for this anticipated growth. We will have every upper guidance.

For 2009 operating net income in the range of a $1.65 to $1.80 per diluted share, that’s an overview of our comment for diluted results. I will now turn it back to Richard for concluding remarks.

Richard Smith

Thanks John. I believe our business is in a great shape to continue delivering solid results over the short-term, but more importantly to be in a position to take advantage of the opportunities that market will provide for us over the next 12 to 24 months.

Our current underwriting asset have the capacities to support substantial growth in an improving market and we continue to look to underwriter both the existing platforms, as well as potential expansion opportunity.

With that we will take questions.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions).

We will go first to Mark Lane, William Blair & Company.

Mark Lane - William Blair & Company

Good morning. I had just a question about accident year loss ratio, trends, then you mentioned excluding capacity losses that the accident year loss ratio was up roughly about 400 basis points this year, almost 8%.

Can you give any insight as to how business mix changes or the changes in the reinsurance buy may have influenced the accident year loss ratio or can you give us some idea of how much of your accident year loss ratio was up, just on product-by-product basis? It was up 4 points, or it was up less than that?

John Marazza

We don't write our product-by-product basis, but it's really to thinking about the accident year '08 versus '07. It's primarily reflective of sort of overall price decrease we have been talking about for the full year in the high single-digits on the security business and the low double-digits on the specialty business. So that really is a primary driver, more so than the mix.

Mark Lane - William Blair & Company

All the changes new reinsurance buying and that has influenced?

John Marazza

Right. Again most bilateral exposures are coming from the specialty and security business, there was price changes and as it drives the accident year loss ratio a lot more than any mix or reinsurance impact.

Mark Lane - William Blair & Company

Okay. So can you give us some idea of renewal pricing changes, or some of your businesses this quarter versus last quarter?

John Marazza

What we have been saying pretty consistent through the year as for the security business has been sort of high single-digits and then specialty business low double-digits. So if you are trying to think about accident year loss ratios going forward. They tend to increase about 10% on the loss ratio not 10%.

So, 55% loss ratio was dropped about 5.5% next year, but it doesn’t go up in the first quarter, it goes up one fourth each quarter as the business earns, so that's probably pretty good way to think of '09.

Mark Lane - William Blair & Company

Okay. So, it's safe to say then consistent with rest of the industry you saw a slight moderation in price declines by December from those kind of annual levels, what you are seeing?

John Marazza

Right, but that moderation really what impact on '09 because most general premiums obviously in early part of the year or that basically rose all through last year at a little more higher level of decline.

Mark Lane - William Blair & Company

Sure. Okay. Thank you.

Operator

We will go next to Keith Alexander, JP Morgan.

Keith Alexander - JP Morgan

Good morning. I was wondering if you guys could just discuss a little bit why retention was higher and contract underwriting and security and whether you see any changes to AMC going forward?

John Marazza

Yes. The reason you saw quarter over change in contract underwriting is we had quarter share with that one of the producers had in place that we terminated at the beginning of the fourth quarter, so we are keeping all that business in that, so that's the reason that went out. The other part of your question, how to think about AMC?

Keith Alexander - JP Morgan

Yes, as well as the higher retention in security to lesser extent in contract underwriting?

John Marazza

Yes, that's planning consistent with what we have been saying that as we want to increase our net exposures. We will tend to do that on a more seasoned businesses, so that's we have been doing is dropping a quarter share on the specialty and security businesses consistently.

The way we are thinking about AMC in '09 is primarily we continue to operate it as an agency. As Richard said, we got a lot investment in growth from the other businesses that we have been putting in place. So, we would probably be thinking about AMC as an agency again for '09.

Keith Alexander - JP Morgan

Okay. What about FM Emerald growth going forward? Are there any opportunities that are arising from current market condition?

Richard Smith

We continue, we take FM Emerald has reached a sound cutting, but we still think there is still an opportunity here with those guys for some continuing substantial growth for the platform. But we would look at those, both from, that's sort of considering current market conditions. As I mentioned in my comments, an improvement market condition, we think will provide growth opportunities for all our platforms.

Keith Alexander - JP Morgan

Okay. And let me see, as property is increasing relative to total premium, how is the P&L change in terms of percentage capital and inventory should expose?

Richard Smith

The property earned premium for the year as the percentage of a total was less than 5%. So, even though it has increased from zero, three years ago, it is still a very small component. And for 2009, at least as we look at the current plan, we would look for that to be in that sort of same relative range, 5% plus or minus a little bit.

So, reasonably it's a small through the overall and the performance we follow, we buy the cap protection to the 100, 250 year of that and our retention on the cap is $4 million, our debt reduction.

Keith Alexander - JP Morgan

Okay. And when does that program renew?

Richard Smith

July 1st.

Keith Alexander - JP Morgan

Do you think you might change the size of it, given the changes to the reinsurance cost?

Richard Smith

No we buy the net 150 to 250 year event and we don’t at this point in time as we sit today we don’t see a dramatic change in the size of the portfolio. Obviously, it can’t cost our going up but hopefully the pricing underlying exposures will go up to allow us maintain our net margin on that.

Keith Alexander - JP Morgan

Okay one last question if I may. Loss ratio at FM Emeralds business different announcement in the rest of the business to drive a change in the underlying cost ratios of the entire business.

Richard Smith

No.

Keith Alexander - JP Morgan

Okay, great. Thank you guys very much.

Operator

Over next to Doug Mewhirter, RBC Capital Markets.

Doug Mewhirter - RBC Capital Markets

Hi, good morning. I just had a couple of questions, the first, this new underwriting team that you hired I guess to (inaudible) intent and excel underwriters. What kind of overlap if any would there be with the contract underwriters. Somewhat I understand some of those contact underwriters are in the professional liability area.

Richard Smith

Only one of the contract underwriters like legal liability and there will be no overlap with the team at least in their initial focus. That’s not an area that will be focused on with the bookings.

Doug Mewhirter - RBC Capital Markets

Okay. And second one, we figured with FM Emerald, can you just give some ideas about what lines within the FM Emerald group or sub-segment are showing the most growth recently like in the third and fourth quarter.

Richard Smith

There are three major components of FM Emerald, excess and umbrella group, a primary casualty group and the property group. And really the growth is coming pretty equitably among the three underwriting groups. So as expected the primary underwriter probably generating a little or upper growth than the other two but not disproportionate. So all three have performed well and we are seeing the growth pretty ratably across the three groups.

Doug Mewhirter - RBC Capital Markets

Okay, that’s helpful. And just a last question, you think higher submission rates, are you also seeing a corresponding decrease in your hit rate or a lot of it just I guess backed up quotes or safety quotes because of uncertainty with other insurers, was it real life submission?

Richard Smith

Yes probably sum of both, we have worked very hard in the marketplace for recognition. So I think some of it's just gaining ground as we have a larger footprint, we talked last year about opening a new offices that are starting to have an impact and then with FM Emerald, but clearly there is also the whole issue of the backup quote that you said protecting their quotes. So that’s why I just had a brief mention that in the short-term our underwriters are working pretty hard trying to understand which of the submission have more productivity, but we definitely see a longer term potential for more business as the market strengthens a little bit.

Doug Mewhirter - RBC Capital Markets

Okay, Thanks, that’s all my questions.

Operator

We go next to Amit Kumar, Fox-Pitt Kelton.

Amit Kumar - Fox-Pitt Kelton

Thanks and good morning. Just going back to your opening remarks regarding the leverage and I think you mentioned, one is to one, in terms of as you look forward, how far can you go on those levels and at what point, the rating agencies are okay or at what point do they say that this is too much work?

John Marazza

As you know that the formula that obviously we must be concerned they also have invested. The formula they have used has lots of variables and it's growth is in line, reinsurance reliance what we invest in, we have class of the business. So the real rule of thumb sort of used to be for our rating, it could probably be in a 1.2, 1.25 to 1. We haven’t had the opportunity and don't see the near-term opportunity to go there, because we are growing and those sorts of things. So, there is no (inaudible) what operating leverage we can have but we are forecasting, we keep our card score sorted in the AA+ ratings for our ratings, we have cushion there and that’s the (inaudible).

So, the way we look at '09, we don’t see a major change in operating leverage.

Amit Kumar - Fox-Pitt Kelton

Okay, that’s helpful. And I guess just moving on and staying on, on the discussion on the capital levels. In terms of the buyback just based on some of the new opportunities, is it fair to say that one should expect less of a buyback going forward or based on where the stock is, at this counter book, is it still at an attractive level?

Richard Smith

I already answered that one, that at the prices we have been at recently, certainly we regard it still very much as attractive buy for us. But we will balance that against our overall [capacity]. I think I mentioned in my discussion that currently we think we have enough statutory capital for at least 12 to 24 months and so we still have the cash at the holding company and the line of credit. So, we still see it as a very attractive opportunity and we will bit more balanced, and what we see is the business opportunity. So as we said today looking at the market conditions today, it still looks like an attractive opportunity for us.

Amit Kumar - Fox-Pitt Kelton

Okay. That’s very helpful. And in terms of the [expense season], I might have missed this, obviously with the new hires and the new growth, what's sort of good run rate for foreign expense ratio going forward based on the recent changes?

John Marazza

It's 30% range.

Amit Kumar - Fox-Pitt Kelton

Okay, that’s helpful. And I guess just finally and I will re-queue. In terms of the guidance range of $165 million to $180 million that does not factor on any reserve changes, plus or minus, right?

John Marazza

Yes, the way we think about that is that’s correct, we very comfortable with our reserve levels and in line sort of model, how to model cap, how to model reserve change next year. We sort of assume that in the event that we are going to recap that would be offset by reserve. So, we think about (inaudible) our calendar year in '09.

Amit Kumar - Fox-Pitt Kelton

And then just remind me obviously you had the reserve review previously, but you would have looked at it again. And is it at mid point, above mid point what's that range?

John Marazza

Again as we said before our outside [advance rate] just gives us a point estimate, they don’t give us a range. And as you also remember we added our own internal reserving actuarial staff during the year and this year we now done two full round of reviews internally with [fulfill] of the [casualty actuarial society] they joined our team last year. So we did the full, we did a major work mid-year when we had ended our work at December 31st. We didn’t see any indications or change in the prior year reserves.

Amit Kumar - Fox-Pitt Kelton

And then who are the higher sort of estimate the internal or the external?

John Marazza

We don't report that information Amit.

Amit Kumar - Fox-Pitt Kelton

Okay. This is helpful. Thanks so much guys.

Operator

(Operator Instructions). We will go next to Joel Salomon, Citi.

Joel Salomon - Citi

Hi, thanks for the call. Just a follow-up on Amit's question on the guidance, maybe you could just also talk about is there any assumption as to buyback for 2009 in that guidance and also what your assumptions are on the investment side or that investment yield?

Richard Smith

We don’t factor any buyback in the guidance. And what's the question on investments?

Joel Salomon - Citi

I was just wondering, what are you assuming yields for 2009, any expected change to the [method] allocation.

Richard Smith

No major changes in allocation. We have been allocating new money to corporate which we find attractive, but already it's going to be a significant shift in allocation. Our assumption for next year obviously includes, we got the book unit as existing portfolios. So, I think we are probably using something around buying on new money. That’s equivalent.

Joel Salomon - Citi

Thank you very much.

Operator

(Operator Instructions). We will go next to Bob Farnam, KBW.

Bob Farnam - KBW

Hello guys. Good morning. Most of my questions have been answered. But I wanted to go back to the professional liability unit, perhaps you can give us some more color on maybe what expectations you might have in that group. What type of retention you are going to be keeping in that business? What the underwriters were writing before and what the market share is going to be looking like? Just can you give us more flavor for what you expect out of that unit?

Richard Smith

Hi Bob, this is Richard. What we expect going, I mean, you have been (inaudible) you know our track record is to bring the team up, start them slowly, make sure they can get our feet on the ground and heavily reinsure and they won't be substantially different with this. For the professional liability team, we think the opportunity on the gross written premium would be to add 5 to 10 points of growth for the professional liability gain for the guys that we bought plus any additional hires. And so if you add that to other team development, I think you are likely to see an announcement or so in the near future on additional hires.

And I think that’s being consistent with what we said last year with Emerald maybe adding 10 points to the growth from specifically new teams that we have identified so far. The retention levels we continue to work through that, the guys we have hired so far are experienced guys of AIG and XL had pretty good size books of business so far, they are going to riding surplus fund, professional liabilities towards a specific segment. And we think that long-term potential is large, I sort of gave you a framing for a short-term potential.

Bob Farnam - KBW

Okay, that's it from me. Thanks.

Operator

And at this time there are no further questions in the queue. I would like to turn the conference back to Mr. Smith for any additional or closing remarks.

Richard Smith

Okay thanks for your participation. And if you have any questions please contact us directly. Thank you. Bye.

Operator

This concludes today's conference. We appreciate your participation. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: 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: transcripts@seekingalpha.com. Thank you!

Source: First Mercury Financial Corporation, Q4 2008 Earnings Call Transcript
This Transcript
All Transcripts