Turning to our Specialty Insurance segment, we achieved pretax earnings of $7 million, for a 9% margin. The overall loss ratio was 60%, compared to 53% in the third quarter of last year. During the quarter, we experienced adverse development for title claim losses, primarily related to policy year 2007, resulting in a $14.7 million reserve charge.In addition, as mentioned on last quarter's call, we've been engaged in a multi-stage mediation process with Bank of America and FiServ that was scheduled to conclude at the end of August. The parties agreed to delay the final stage until the fourth quarter. As part of that process, we’ve engaged the services of statisticians and other experts to help us analyze the claims involved in the lawsuit. As a result of that analysis, we’ve estimated our financial exposure to be between $13 million and $42 million, with $13 million being our best estimate of the Company's financial exposure. We've booked a reserve and offered to settle the case for that amount.
First American Financial's CEO Discusses Q3 2011 Results - Earnings Call Transcript
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