Operator: Our next question is from the line of Elyse Greenspan with Wells Fargo. Please proceed with your question.
Elyse Greenspan: My first question, Christa, I think last quarter, you had pointed to CapEx of around $200 million to $225 million for the year. I just want to confirm that, that’s still your kind of best estimate there. And so with the improvement in free cash flow in the back half, I guess it’s going to come from a combination of lower CapEx and just growth in operating cash flow.
Christa Davies: Elyse, we actually have increased our CapEx guidance to be $220 million to $250 million for 2023 and that’s really driven by the investments we’re making across Aon Business Services platforms and applications. to drive future growth. And so we’re really excited about that. The improvement in free cash flow and the double-digit free cash flow growth for the year is going to be driven by operating income growth and working capital. And I did note that second half free cash flow growth is always significantly stronger than first half.
Elyse Greenspan: And then my second question, going back to commercial risk, I recognize right that you guys do have a good market share within the M&A business, right, that has slowed. But you will have easier comps in the back half of the year. even recognizing that there’ll be some headwinds from just still low M&A volume. Wouldn’t you expect sequentially commercial risk to show better growth in the back half relative to the first half of the year?
Christa Davies: Elyse, I’ll try and do this again because I probably didn’t explain this well the first time. What we — we are lapping the comps that’s absolutely right. But what we’re seeing in the external market is continued pressure into the second half of the year in the M&A environment. So we expect that trend to continue.
Elyse Greenspan: And then in reinsurance solutions, Greg, I think you highlighted just kind of robust cap on activity you guys have seen. How do you — what are you seeing on the capital side within the reinsurance market and thoughts just for the potential opportunities over the rest of the year and then also into 2024.
Greg Case: Listen, overall, Elyse, and Eric to comment on this, for sure. Look, there’s still pressure here. There continues to be pressure on the capital side, we’re incredibly vigilant about finding options, matching capital risk in terms of what we do for our clients every day. We’re navigating through it. You’re seeing movement on the ILS side. We talked about $5 billion we’ve done in 21 deals year-to-date, which has been phenomenal. So we see an opportunity there. But it’s still constrained. There’s still pressure. Eric, what else are you add to that?
Eric Andersen: Yes. Look, Greg, I would say I’ll do the ILS side first is — ultimately, we’re seeing investors that have historically invested in cat bombs, either allocate more to it, so they see opportunity. Investors that had walked away from the area have sort of returned as well as new. So you’re seeing some expanded sort of market opportunity, which is why I think that market has been so dynamic in the first 6 months. I think on the overall capital provision of the reinsurance market, you’re starting to see an equilibrium. You’re seeing the big players get more active, who see opportunities, especially on the property cat side. And so — and you’re seeing investors look to participate in support, either through their funds or other ways, not necessarily in new company creation, which is sort of what would normally happen in the cycle but more in support of existing players who are already leaders in the industry.
