Keith Demmings: Yes. No, it’s a great question. And certainly, Richard can add in. But when I think about that business, and we’ve talked about over the long term an expected combined ratio range of 86% to 91%. If we look at where we sit on a reported basis this year looks a little bit lower, but adjusting for the prior year development, it’s about 85% year-to-date with a relatively light cat year so far in terms of the P&L. So we’re relatively close to that range today, which is good. Obviously, we think that’s an appropriate long-term range for the business. We do think rate will continue to come through. But as we’ve said, at a more moderated pace as we have less of that double-digit AIV earning through and then it obviously comes through at just over 3% going forward, let’s call it a more normalized level.
I think policy count is relatively stable. But we do think we’re well positioned. If you think about industry consolidation and think about the clients that we operate with, we partner with a lot of major players in the space. And hopefully, as the market dynamics move around, there could be some opportunity for us to continue to grow policies over time. So I do think it will be just a moderated trend line from what we saw this year, but certainly still expect strong results in Housing and hence, overcoming the $40 million of prior year development. But Richard, what else might you add?
Richard Dziadzio: Yes. I think that, I guess, I would also say that, Grace, when we look at the combined operating ratio, something we keep our eye on. So really a combination of everything we’re getting. We’ve talked about the top line growth, and that would be tapering the expense ratio, we’re in a good place with that. I think that could continue, maybe not as low as it is now because we’ll always have — maybe some — have some investments and so forth. But we’re in a good place there. The loss ratio think about 40%, 42% maybe full year, that kind of thing. But even then, it’s going to depend on what weather we’re going to get. What’s the severity, what’s the frequency, what are the storms, the convective storms that we had in the spring time.
So obviously, that’s something that’s hard to call. But if we talk about the combined ratio at 86% to 91% with cat, that’s probably something that we look to and say, on a normal cat year, we’d probably be in and around that range, if that’s helpful.
Grace Carter: Yes, that’s helpful. And I guess on the Renters book. We’ve heard some personal auto players this quarter say that they’re starting to see severity trends maybe flatten out a bit. And I was just curious on the affinity partners aspect of that business, if you all are seeing any green shoots there or when that might inflect back to strong growth.
Keith Demmings: Yes. I think we’re seeing maybe early signs of modest improvement there. I’d say it’s probably too early to call it, Grace. But definitely, when we look at Renters, really strong performance, and we’ve signaled this over the last few years in the property management channel. So certainly diversifying our portfolio between affinity and property management, and we actually grew our PMC in the third quarter this year more than we grew it all of 2022. So the team has done an incredible job adding clients, driving attach and leveraging our Cover360 platform. And then to your point, should we start to see an acceleration in marketing relative to auto insurers, then that could certainly provide upside opportunity over time?
I’d say it’s too early to suggest that we’re seeing firm trends, but definitely feel like there’s opportunity there as we look forward and certainly in ’24. Okay. I think that was the last question. So thank you, everybody, for joining the call. We’ll certainly look forward to reconnecting in February. And as always, if you have questions, please reach out to Suzanne or Sean, and we’ll get back in touch. Thanks so much.
Operator: Thank you. This does conclude today’s teleconference. Please disconnect your lines at this time, and have a wonderful day.
