uh you know we're really becoming important to our distribution partners and from the middle market perspective i think that's your question was about middle market that's that goes back to that earlier question on brokerage versus small business small business is the more micro type accounts and middle market are small accounts but they're in the you know we call them in the mid size range and so at we have been growing in that brokerage channel in a meaningful way and that's been uh that's been part of these numbers that you're seeing here yeah yeah we have talked about this also before but for us small is you know like two gas stations and then it goes into medium once it goes about five so let's say family you know are running three gas stations they purchase two more we take

a long-term view on risk so we are very we tend to stay on those accounts and as they grow they move into our middle market segment so there's some of that dynamic happening also.

Got it. So it sounds like both are in your key verticals. And then if I would like to follow up on the prior year development question, so you got the release and property.

It sounds like casualty was just kind of a nothing positive or negative, but any color you could share on how your casualty book is developing and how you feel about that book over the last several years yep uh you characterized it correctly there's nothing in the casualty book in terms of development this quarter um and as the book is developing well our actuals our actual reporting are coming in below expected as you know we're a quantitative firm and we do a lot of analytics around that and the firm-wide casualty uh actuals are coming in below expected and that reflective of strong performance yes we we have maintained underwriting

discipline on how we deploy coverage furthermore we charge for the trickier coverage on the casualty side many of our peers do not that is that ensures that you know as as the exposure within a million dollar limit if it is slightly higher we are getting adequate rates so that technical pricing discipline which can sound a little abstract really has layers to it uh and what it does though is it it insulates us from some of the um usual casualty um pitfalls uh so things like putting up or uh those are uh

we have very very specific so there's casualty then there's what are you uh covering and how broad is that coverage we tend to be a conservative side what we call sense and when we deploy coverage in those categories we charge the next question comes from alex scott with barclays alex your line is now open please go ahead hi good afternoon uh first one i had p is just maybe some broad commentary on the marketplace i mean i i've kind of thought about you all as you say, coming into regions and solving coverage gaps and issues and finding interesting niches to play in, does that get harder as the market is becoming more competitive?

And are you seeing any of that kind of activity where maybe some of the issues out there get solved by capacity and it gets a little harder to find places to go? or you know are there still lots of regions and products i'm just trying to understand how it's shifting we believe we are in a we're in some unique spaces um uh one because we take it we took the time to understand them but um we are succeeding in those spaces and this is really the catalyst because we are providing a unique solution we're taking the time to design the intake rules in the right way, to craft the product in the right way, and develop the pricing in the right way for those markets. Most of our peers, if they're participating in those spaces, they tend to take a very generic approach. And as a result, we are seeing more momentum and more opportunities there. There's always going to be a shift of business in and out of the space. I think the competitive advantage here is the fact that we have a machine to study that external environment, and we are able to quickly, and when I say quickly, I mean in a matter of weeks, go from research to deployment of solutions.

Got it. That's all helpful. Next question, I wanted to see if I could just get you to give a little color around, I guess, the CFO transition and, you know, how that's proceeding and just sort of, you know, what led to that? Is there anything operationally we should expect to change, that sort of thing?

Thanks for the question, Alex. So, in terms of the transition, this was a scheduled expiration of a existing contract and we were excited to have the opportunity to have neil join our company i've known neil for seven years and he is an extraordinary cfo he's been around this business since since its foundation and he really takes a forward-looking view uh into how we can scale this business as you're seeing us grow we have we are looking to have a finance department that scales in the same way so focused on on automation and and uh streamline processes so that is that is it uh neil is there anything you want to add about uh your your outlook or any changes no i would just reinforce that um you know i've been involved

in integrity since its founding and um i everything i've seen since taking the reins have just been reinforcing that it's an experienced finance group with you know established reporting your next question comes from matthew heimerman with city matthew your line is now open please go ahead hey good morning or good morning good evening everybody sorry tomorrow um a couple numbers questions and i have a just a business development question um just do you have the paid loss number in the quarter by chance i just want to double check my math um i don't have the dollars but

The paid to incurred, so you can back into it, was in the high 50s.

All right, then I'm roughly close. It looked like the recoverable balance popped up in the quarter. I wasn't sure if that was a reflection of losses picking up sequentially and you just haven't got recoveries yet, or if that was a function of some of the growth you have is naturally larger size, and so there's a bit more session to reinsurers just as you manage your own limit.

Yep, that is associated with the shift to the brokerage channel, as we said previously. You also saw that retentions like net written to gross was also down at unusually low quarter. But that's all associated with having more reinsurance in the brokerage channel. So those are mid-sized accounts and we have more programs there, more reinsurance placements So that's what you've probably been seeing in the numbers.

Okay. Thank you for confirming that. And then I guess the last question is just thinking about as you grow, you're eventually going to have some claims or a greater volume of it. So I'm just curious how the staffing plans have unfolded in the claims operation to date.

I know it's something we talked about as you guys were going public, but I'm just curious if you could give an update and just um are we staffing ahead or in step with that um yep just be curious thank you yep we have we have we have over 30 people in our in-house claims team um we have a sophisticated staffing model that they utilize and we make sure that we are ahead of the curve we have actuals versus expected on claim counts so that all feeds into that and so we are um we're very focused on making sure we have the right resources we're also doing working to do some more innovative things on claims over time which we'll introduce at a later date but the idea is that there is uh we are well

resourced for the claim volume that we are receiving and and uh and we're also deploying technology as well yeah so our um in parallel with uh our core operating system improvements There is a, we've been deploying new capabilities product by product on the claim side. It includes integration estimation tools. It includes an array of, you know, new functionality that allows us to get more precise on how we do case reserves, but also it allows us to handle claims. We, you know, across the business, including in finance, as Neil mentioned, we are looking to utilize the current technology to get core staffing. We're really looking for strong people, not more man hours.

We have reached the end of the Q&A session. I will now turn the call back to Justin Cohen for closing remarks.

Well, thank you so much all for your questions and for taking your time this evening. We appreciate your interest and integrity, and we look forward to having further conversations with you in the months ahead. All the best.

This concludes today's call. Thank you for attending. You may now disconnect.