Elyse Greenspan: And then I think, you guys, some of your peers, right have elected to set up a DTA around Bermuda tax changes. I don’t think you guys have done that yet. Do you have a sense of how impactful that could be? Because my understanding why it isn’t, that would be helpful to your capital position, if you did choose to similarly set something up like that.
Pete Vogt: So we’re going to look at it this quarter, especially after the clarifications we got on January 16. Elyse, if we do elect to do something, my expectation is it would be beneficial. We have to let the tax guys go through all their work. But we’ll have more to talk about that at the end of the first quarter on the first quarter call.
Elyse Greenspan: And then on insurance. I know it came up earlier, a few guys are from an underlying loss ratio, right running, just around 52%, slightly below. And it sounds like you guys are comfortable at that level. So based on your view of pricing and loss trend, and then I guess there could be an impact of mix right as property perhaps has a greater concentration? Where would you within your overall view of 2024, what do you think the underlying loss ratio in insurance shakes out if stay within range of that 52%?
Pete Vogt: At least I’d agree it does stay within that range of 52%. Like I said, I think it’ll be in the low 50s. And as we said, we think there’s plenty of market opportunity available to us in 2024. But we’ll see it as we go through the year and see how the markets evolve.
Operator: The next question is from Meyer Shields with KBW.
Meyer Shields: Great, thanks. I have a number of questions all over the place. But one that I’m being urged to ask is whether there’s any risk that establishing a DTA in 2024 will be taxable in a way that it wasn’t in 2023?
Pete Vogt: That’s a great question, Meyer. I think right now what we know, if we set up the DTA, we follow that the guidance by the ETA, it should not be. But I do think that as tax evolves through the course of the year, as Bermuda continues to give out clarifications through the rest of the year. And as the OECD kind of sees what Bermuda is doing. We’re going to get more clarity as the year progresses.
Meyer Shields: Okay, now, that’s probably fair, I certainly have no clue. When we talk about the reserves strengthening for the fourth quarter. So we talked about a lot in the context of lines of business. But I’m wondering because we’re hearing a lot from competitors, and there was a strengthening specific construction, I was hoping you could talk through how you evaluated the reserves that for AXIS are construction related.
Pete Vogt: Specific to the line of business construction, what I would say we’ve only been. Go ahead.
Meyer Shields: No, that’s what I meant, I guess the industry rather than line of business but yes.
Pete Vogt: Yes, I would say we’ve only started leaning into construction as a growth out of our specialty London operation in the last few years. So we don’t have dramatically large reserves when I think about that in our property book. As I go back to ‘19 and prior. So I’d say overall, we’re very comfortable with our construction reserves. But it’s not the same, I’ll call it depth of timing, as you actually have in some other people.
Vince Tizzio: And the construction segment, Meyer, fell under the same scrutiny that we outlined in our call a week ago in terms of the process we undertook.
Meyer Shields: Okay, perfect. And then one last question, if I can. So you talked about shifting towards I guess larger cyber accounts. Is that because the pricing trends are different? Or is it that the expected profitability is better with similar pricing?
Vince Tizzio: We think that the margin potential is strong. We think that there’s a strong opportunity for us internationally in the large cyber segment. And in the fourth quarter you saw, or you will see through our supplement, a leaning towards the larger segments and consistent with what we’ve been reporting in prior quarters, shifting away from the smaller size enterprises where we see it very competitive.
Operator: This concludes our question and answer session. I would now like to turn the call back to management for closing remarks.
Vince Tizzio: Thank you, and thank you for joining today’s call. We look forward to reporting on our continued progress in future calls, as well as during our upcoming Investor Day in May. I’ll take a moment now to extend great appreciation and gratitude to all of my colleagues across the globe who performed exceedingly well this past year. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.
