why down 4%, page-24

Ah, insurance company basics

For every $1 that comes in, in rough figures 80 cents goes out in claims, 20 cents to pay the running of the company (rough figures)
A new boss comes in (an accountant generally) and looks at the $2 transaction ($1 in and $1 out) he cannot increase premiums and cannot reduce claims (he has no insurance iq) therefore he can only concentrate on 10% of the $2 transaction, expences.. !!!
Of course that money goes to pay claims and underwriting staff..... so if we make them work harder and save 2c by lowering costs to 18 cents, look at the bottom line.
Only problems is those staff are looking over their shoulders and not concentrating 100% on what they are paid to do (they have mortgages etc) so their effectiveness drops a mere 5% and a few bad claims and underwriting decisions are made, easily wiping out the 2c saving.

Seen it so many times in the industry.........and history always seems to repeat