Michael Zaremski : Just as a — firstly, as a follow-up to Paul’s question and Brian’s — your answer, so is it — on the work comp, is it just a small change in medical trend line, not on the indemnity side? Is that — just to kind of put a period in that conversation.
Brian Hertzman: This is Brian. On the medical cost side, we are watching for that. We haven’t experienced a big uptick in expense, but we are mindful of that, and we are considering that as we look at setting our current accident year and looking at reserve releases. So while we haven’t experienced a big uptick in medical costs, we know that, that may be coming.
Michael Zaremski : Okay. Got it. And maybe just keeping on just loss cost inflation levels. And appreciate you guys have already given us a lot of good detail on the — in the prepared remarks and in the earnings release, but maybe we can kind of further unpack the social inflation aspect that you’ve brought up. Is it touching more so commercial auto? Or — it sounds like a number of lines were cited. And is it just kind of a small inching up versus mutations? Or is it — I don’t know if it’s certain vintages you’d like to call out? Or just maybe we can unpack that conversation a bit more.
Carl Lindner : Sure. Commercial auto, the social inflation impacts, nothing new. We’ve been raising rates, particularly in the commercial auto liability side of commercial auto for 10 years or so. So clearly, social inflation continues to impact commercial auto. We haven’t really changed the guidance for our Property and Transportation. We’re happy. We’re pleased with the underwriting performance of our overall commercial auto through 6 months in 2022. And with continued price increases that we’re getting, we’re trying to stay that way. That said, commercial auto liability is a focus where — probably where a lot of the social inflation hits. It’s not where we want it to be. We’re probably still at 101%, 102% accident year combined ratio as we look at this year.
So I mean we’re continuing to take strong rate. Commercial auto year-to-date, I think we’ve taken another 10% in rate, just to give you a perspective because of the ongoing social inflation in that. And commercial auto, I don’t think there’s been any change. We’re just continuing to be aggressive in how we take rate there. I think the adjustment in our guidance really kind of came in the Specialty Casualty part of our business. And in the quarter, we talked about public sector. And we saw from — in the 2015 to, Brian, I think, 2019?
Brian Hertzman: Yes, 2015 to 2019. So the public sector business, we started to see the impact of social inflation there about 5 years ago through higher valued awards, higher jury verdicts and other large settlements. That business is coming out of coverage — of casualty coverages in excess of self-insured retentions for municipalities and school districts, other business — other entities that serve the public. So we took rate action beginning a number of years ago. So we’re really seeing the issues are in those 2015 to 2019 accident years, as Carl mentioned.
Carl Lindner : Yes. Some of the actions that we’re taking is that we’ve cut capacity. We’ve tightened aggregates. We’ve been increasing rates, increasing attachment points. A lot of this business is excess of higher retentions or annual aggregate deductibles that are retained by our pool clients. Reinsurance policies soften our risk here and our layered approach to structuring the business has helped us achieve better pricing, particularly in California. So I mean those are some of the things that we’re trying to, in our approach in the business, to get it to the kind of returns that we’re most — that we like.
