Peter Zaffino: Yes, Erik, it is. We €“ in Other Operations, think about it in a couple of components. I think you’ve outlined most of them, is that upon deconsolidation we would have $300 million or there thereabouts go with Corebridge. I mean, there could be some stair step up. I mean, it’s hard in 2023 to look at each quarter because we’re building Corebridge, as we’ve talked about before, as a stand-alone public company. So those amounts will be in each quarter, depending on the progress that we’re making. So think about the $300 million. I think we’ll have savings in Other Operations throughout the year separate from that in the $100 million to $200 million range. And then as we get to the future target operating model, we’ve given guidance from the past that we anticipate that we’ll get around $500 million, not out of all €“ that will not all come out of Other Operations.
It come out of the combination of what is General Insurance in the parent company today. But that will take deconsolidation. It will take us to get to the target operating model. But I think in the short run, you should think about Corebridge’s $300 million, and that between $100 million to $200 million of other reductions in Other Ops is how I would think about it in 2023.
Erik Bass: Thank you.
Peter Zaffino: Thanks Erik. Next question.
Operator: Thank you. Our next question comes from Alex Scott with Goldman Sachs. Your line is open.
Alex Scott: Hi. Good morning. First one I had is just on net premium written growth in General Insurance. I mean we saw it slow in 2022, particularly towards the back end of the year. And it sounds pretty interesting, some of the opportunities you have both in Validus Re and Lexington. But I just wanted to get sort of a higher level perspective from you on what the strategy has been to sort of slow some of that premium growth in the back half of this year? And how you see that potentially inflecting as we go into 2023?
Peter Zaffino: Thank you for the question. You have to really look at the full year, I believe, in terms of showing the progress of what we’ve done as a company. First and foremost, again, I’ll mention it again, which is a culture of underwriting excellence. When we look at Commercial with a 340 basis point improvement in the fourth quarter in terms of its action year combined ratio, ex-CATs, 440 for the year, I mean that’s substantial progress. I mean, we made enormous improvements in profitability. And so we’ve shaped the portfolio the way we like it, where again, the fourth quarter not all roads lead to financial lines. But again, it was just a disproportionate amount of premium relative to the overall size. Fourth quarter’s small.
We saw real good growth in the businesses that we want to grow in, which is in the excess surplus lines, global specialties. But as we’ve been talking about, I hope it’s evidenced through what we did at 1:1, which is why we wanted to put it in the prepared remarks, which is I kept talking about taking aggregate down where we didn’t think we were getting the appropriate risk-adjusted returns. But when we thought we felt that the risk-adjusted returns were there, like in the reinsurance business, we expanded significantly and expect to see that through 2023. Can’t really predict the market, but I don’t believe this is all played through. We had a very complicated 1:1, but you have Japan coming up and the hardest part in terms of the reinsurance market and thus then the primary market on peak zone is going to be Florida at 6:1.
