in 2008 what was the ratio of the north american net favorable prior period development to the catastrophe losses
ace usa 2019s reduction in net premiums earned in 2008 was primarily driven by the decrease in financial solutions business , as the prior year included approximately $ 170 million related to a one-time assumed loss portfolio transfer program . in addition , net premiums earned were lower in 2008 due to decreases in middle-market workers 2019 compensation business , large risk accounts and property , reflecting competitive market conditions and declining business that did not meet our selective under- writing standards . these reductions were partially offset by growth in ace usa 2019s professional liability , specialty casualty , a&h , inland marine and foreign casualty units . ace usa 2019s increase in net premiums earned in 2007 , compared with 2006 , was primarily driven by assumed loss portfolio business , as well as new business in the energy unit and growth in specialty casu- alty lines . ace usa 2019s curtailment of middle market worker 2019s compensation business partially offset these increases . ace westchester 2019s reduction in net premiums earned over the last two years was primarily due to declines in casualty and inland marine business , which resulted from competitive market conditions . this trend was partially offset by crop business growth , which benefited from generally higher commodity prices for most of 2008 and in 2007 . ace bermuda 2019s reduction in net premiums earned in 2008 , compared with 2007 , was a result of lower production , and the decrease in 2007 , compared with 2006 , was primarily due to the curtailment of financial solutions business . insurance 2013 north american 2019s loss and loss expense ratio increased in 2008 and 2007 . the following table shows the impact of catastrophe losses and prior period development on our loss and loss expense ratio for the years ended december 31 , 2008 , 2007 , and 2006. .

|  | 2008 | 2007 | 2006 |
| :--- | :--- | :--- | :--- |
| Loss and loss expense ratio, as reported | 71.8 % | 71.1 % | 70.4 % |
| Catastrophe losses | (5.4)% | (0.3)% | – % |
| Prior period development | 6.2 % | (0.2)% | (1.2) % |
| Loss and loss expense ratio, adjusted | 72.6 % | 70.6 % | 69.2 % |

insurance 2013 north american 2019s catastrophe losses were $ 298 million in 2008 , compared with $ 16 million in 2007 , and $ nil in 2006 . catastrophe losses in 2008 were primarily related to hurricanes gustav and ike . insurance 2013 north american incurred net favorable prior period development of $ 351 million in 2008 . this compares with net adverse prior period development of $ 9 million and $ 65 million in 2007 and 2006 , respectively . refer to 201cprior period development 201d for more information . the increase in the loss and loss expense ratio as adjusted in 2008 , compared with 2007 , was primarily due to changes in business mix , specifically higher premiums from the crop business , which carries a relatively high current accident year loss ratio . in addition , the 2008 loss and loss expense ratio reflects increased loss costs , including higher incurred losses for non-catastrophe events that affected the property , marine and energy business units . insurance 2013 north american 2019s policy acquisition cost ratio increased in 2008 , compared with 2007 , due in part to the inclusion of ace private risk services in 2008 , which generates a higher acquisition cost ratio than our commercial p&c business . the increase also reflects higher acquisition costs on ace westchester 2019s crop/hail business , as 2008 included more profitable results on the first quarter final settlement than in 2007 , as well as increased crop/hail production for 2008 . the first quarter settlement in 2008 generated a higher profit share commission , which added approximately 0.8 percentage points to insurance 2013 north american 2019s 2008 policy acquisition cost ratio . in addition , higher assumed loss portfolio transfer business in 2007 , which incurred low acquisition costs as is typical for these types of transactions , reduced the 2007 policy acquisition ratio by 0.2 percentage points . these increases in the 2008 policy acquisition cost ratio were partially offset by improvements at ace bermuda , primarily due to increased ceding commissions . the decrease in insurance 2013 north american 2019s 2007 policy acquisition cost ratio , compared with 2006 , was primarily related to reductions in the policy acquisition cost ratio at ace usa and ace westchester . for ace usa , the reduction reflected higher ceding commissions as well as lower premium taxes due to reassessment of obligations for premium-based assessments and guaranty funds . for ace westchester , the reduction in the policy acquisition cost ratio was primarily due to lower profit share commissions on crop business in 2007 , compared with insurance 2013 north american 2019s administrative expense ratio increased in 2008 , compared with 2007 , reflecting the inclusion of ace private risk services unit , which generates higher administrative expense ratios than our commercial p&c business , and the reduction in net premiums earned . the administrative expense ratio was stable in 2007 , compared with .

favorable_prior_period_development = 351
catastrophe_losses = 298
favorable_prior_period_development_ratio = favorable_prior_period_development / catastrophe_losses
answer = favorable_prior_period_development_ratio