On the other hand,[Jim Little's] EDC’s results in the first half of 2009 continued to be poor, with EDC reporting an underwriting loss of $60.7 million in the period, primarily reflecting a substantial decrease in net premiums earned, a $34.5 million reserve increase, and an $8.0 million increase in its premium deficiency reserve.

In June, EDC determined that it was unable to write business at rates it deemed adequate due to the current state of the California workers’ compensation market, and as a result, determined to cease soliciting new or renewal business on a direct basis commencing August 1, 2009. In light of such determination, EDC took corresponding expense reduction steps, including staff reductions. A.M. Best downgraded EDC’s insurance company rating from A- (Excellent) with a negative outlook to B++ (Good) with a

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stable outlook. EDC intends to re-enter the market at such time as it determines that rates have returned to an adequate level.”

http://www.sec.gov/Archives/edgar/data/7...