Ryan Tunis: And then just lastly, the acquisition expense ratio has been kind of hard to pin down at Arch over the past few years, but it’s gone up. Obviously, it sounds like there were some changes in terms of ceding commission structures, things like that at 1/1. Is there anything directional you can say about maybe how the acquisition expense ratios could move in ’23 versus ’22, or do we just kind of expect something relatively similar?
Francois Morin: I don’t think it’s going to move a whole lot from where it’s been. I think there’s been a lot of shifts in the mix of business over the years, right, as particularly as our insurance book in the UK has grown, that’s a bit higher acquisition ratio, different kind of that reinsurance purchasing decision. So there’s a long list of reasons or explanations as to why it is where it is now. And obviously, what we focus about — what we’re focused on is the bottom line returns whether — if we’re going to pay a bit more acquisition, we certainly think we’re going to get a lower loss ratio and that has been the case. But for your modeling, we kind of, I think, exercise. I assume something pretty similar to ’22 as a starting point, and we’ll keep you updated as the year goes on.
Operator: Our next question comes from the line of Elyse Greenspan with Wells Fargo.
Elyse Greenspan: My first question, I guess, is going back to the reinsurance margin discussion that came up earlier. So you guys have a flat PML and you guys are seeing 30% to 50% rate increases in cat. Wouldn’t that triangulate into margin improvement coming through in the reinsurance book in 2023?
Marc Grandisson: Well, if I could just isolate. First, we wonder where you were, so good to see you there. Second, I think if you look at the property characters, I think the returns have dramatically improved. But as you know, for us, it’s going to be incrementally, of course, accretive to our bottom line, but we’re not — it’s not the biggest line of business for us. So that’s what allows us, we believe, the opportunity and room to grow the way we think we could grow in 2023. So it’s hard to say how much more, but the property cat itself, the market itself, has significant margin improvement.
Elyse Greenspan: Would you say, building on that, Marc, would you say that of all your business lines as you sit here today, the line with the best expected return in ’23 would be catastrophe reinsurance?
Marc Grandisson: It’s up there, but there are others that we don’t advertise too much that are really, really healthy and getting better, as we speak. And as big, if not has been — probably, some of them are as big as a property cat — property cat writing. So we have quite a few who are giving us pretty high returns, but it is up there, you heard on the call, this is a good time to write property cat excel, a really good time.
Elyse Greenspan: And then you said, on the PML discussion, you had mentioned, right, that we need to kind of see how things come together at June 1 that, that could also be a good opportunity. What could derail this, is it just alternative capital and more capital coming into the reinsurance space as you think leading up to June 1? And even when we think beyond that, what are you guys concerned about that could derail the uplift that we’ve seen in the catastrophe reinsurance market?
