Arch Capital Group Ltd. (NASDAQ:ACGL) Q4 2022 Earnings Call Transcript

But again, the smaller D&Os are not the big ticket items that you would expect, but a lot of them are going to be not for profit small policy. So minimum premium is really — a lot of times what happens and that 5% increase might be $50, right? So these are the kind of things that we do and we have grown dramatically over the last four or five years, it’s becoming a big section of what we do. That market is healthy from a perspective, right, to go back where it said about the large commercial, the SCAs are down 25%, 30% over the last four years. So it’s a pretty good market to be there. The IPO market has stabilized. It was pretty hot for a while, pricing got crazy. We took advantage of a lot of opportunity that’s not crazy, but it was a very acute needing capacity.

We expect this to sort of renormalize again. So I think I would say, D&O is normalizing for the large commercial, sort of a Stage four. I meant Stage 3 we’re recognizing some of the overreaction, but the smaller D&O is probably early stage or Stage 3, which is still very profitable and a little bit of decrease here and there or a slight increase.

Operator: I’m not showing any further questions in the queue. I would now like to turn the conference back over to Mr. Marc Grandisson for closing remarks.

Marc Grandisson: Well, spend a good day with your loved ones, and we will see you in the next quarter. Thanks for listening, guys.

Operator: Ladies and gentlemen, that concludes today’s conference call. Thank you for your participation. You may now disconnect.