Operator: The next question is from the line of Meyer Shields with KBW. Please proceed with your question.
Meyer Shields: I guess we’re all digesting just how significant the M&A practice is in terms of revenues. I hoping you could give us some guidance on sort of how to think about the margin impact, whether it’s what you’ve seen in recent quarters, or what that implies for margin expansion when this business line recovers?
Christa Davies: Yes. So thank you so much, Mark. What I would tell you is we are on track for full year margin expansion. And the margin in this business we continue to manage the business as an overall portfolio. And I would say they’re not particularly different to the rest of the business. We are focused on continuing to invest our entire portfolio in higher-revenue growth, higher-margin areas supported by — and as a services with the analytical impact. And what I would say is, as you think about margin expansion long term, it’s really just another way to measure the value we create for clients, which is why our data analytics and insight matter so much because that’s increasingly what drives value as our clients look to understand forward-looking risk.
And so it’s those areas of the business that generate more value for clients. And then obviously, with Aon Business Services, we’re driving to create that value more efficiently, which is why we’re really investing in Aon Business Services to get it to the next level around driving operational excellence, better customer service and increased innovation at scale. And so we’re really confident about driving sustainable margin expansion in 2023 and each year beyond that.
Meyer Shields: Second question, I know you typically don’t disclose expected tax rates and unless you want to change the approach now. I was hoping you could let us know, given OECD minimum tax reform, internally, so you — are you expecting the tax rate to go up?
Christa Davies: So Meyer, as you exactly predicted, we are not giving guidance on the tax rate going forward. As I look back historically, exclusive of the impact of discrete items, which can be positive or negative, and historic underlying rate over the last 5 years was 18%. So we feel really good about our overall global capital structure, our global cash structure and our ability to navigate regulation and legislative changes going forward.
Operator: Our last question is from the line of Jimmy Bhullar with JPMorgan. Please proceed with your question.
Jimmy Bhullar: So first, I just had a question for Christa on how you think about the impact of inflation on your results? Obviously, it helps on the revenue side. But to the extent there’s competition for talent or higher IT expenses than it hurts on margins. But assuming inflation stays high, is that a positive for you overall? Or is it a negative or a push?
Christa Davies: So what we would say is inflation overall is good for our business. And what we’ve seen so far is the inflationary impact on our expense base. You saw compensation impacted in ’21, ’22 and again in the first half of ’23. We’ve seen that come through on the expense base. What we’re starting to see come through is inflation impacts on the revenue side, whether that’s increased asset values or whether that’s medical and health care inflation. So it’s impacting commercial risk and health insurance prices and therefore, our revenue lines. And we expect that impact on inflation to come through in our revenue over the next 12 to 24 months. And so we would expect that positive side of inflation to start coming through. But Eric, anything else you’d add here on inflation?
