Marc Grandisson: I mean it’s hard to imagine, Elyse. I think the third party capital you mentioned, there’s still — we’re in a wait and see attitude. The US renewal, as we all know, is a small portion of the overall cat writing in the year, so more has to happen and as we all know. And in line with what — our Tri-County was up, Florida exposure — Florida is the biggest exposure. So it’s hard to tell what could derail it. I’m trying to think out loud, the third-party coming in, I don’t see it being a case. No cat in the first half of the year. While we better have no — it would be great for an industry to take advantage of the less cat activity. No, it’s hard to see anything at least, because I think that the psychology of the market is quarry of the kind of remediating what needs to be remediated in a property cat space at all levels.
And from the C-suite all the way down to the underwriting system desk, I think it’s clearly a recognition that we need more. I think the only thing I could say is, the one thing that I could say just to help you out here, I think that will make sense to you that we may have a bit less than perhaps some people have budgeted or maybe a bit more than budgeted price increase when we have a delta around what we see. But in terms of core capital needs and supply and demand, I don’t see a major shift. I mean that was a long question, because I was thinking out loud here, but there you go.
Operator: Our next question comes from the line of Meyer Shields with KBW.
Meyer Shields: I hope this one covered. I missed about a minute of the call. But I was hoping it would be dig into the nonrecurring transactions in reinsurance, I’m assuming this was a retroactive reinsurance. And I was hoping you could talk about specifically the sort of risks or the lines of business that you’re assuming, and maybe give us an update on what that market looks like now?
Francois Morin: I mean to keep it at a fairly high level, those are general — I mean, I consider them to be kind of capital relief, capital support transactions for a variety of reasons. Companies that have grown a lot under some rating agency pressures, aiming capital relief, companies trying to put some exposures behind them, et cetera. But just to clarify those are not retroactive so they’re all insurance accounted transactions, insurance or reinsurance accounting, so that flows through our premium. They are across — you saw it in our line of business, they did hit multiple of our lines of business. Some were other specialties, some were casualty, some are a little bit of property. So it’s a spread. But it’s all in a vibrant market.
I mean there’s a lot of pain that some companies are experiencing right now, and they’re working for solutions. And again, we think we have strong balance sheet and capital to support them. So I think — we don’t know if they’re going to happen again, those are lumpy. But if and when they are presented to us, we’re happy to consider them and once in a while, we end up writing a few of them.
Meyer Shields: Second question on mortgage insurance, and I don’t even know how to phrase this, but you put up very conservative reserves for mortgage insurance over the course of COVID. And I’m wondering how much of that unusual reserve is still there because clearly, speaking at least for myself, we haven’t done a great job of forecasting reserve releases in that unit.
