Powell Brown: No, I don’t think so. I mean, remember, if you think out a little bit sort of speculate on that the outlook on that industry, I think probably inventory levels will probably lift a little in the third quarter and beyond in the year. Also in light of the economic environment that will probably be some more incentives, I don’t know that, but incentives put-in-place to move units. So, if the inventory is there, and I use the most important thing, is we can’t fully predict that. We think you’re going to see some uptick in that, but slight.
Michael Ward: Okay. Thanks very much guys.
Powell Brown: We’ll take one more question, Norma, that would be great.
Operator: Thank you. Our next question comes from the line of Derek Han with KBW. Your line is now open.
Derek Han: Good morning, thank you. I just had a question on the Programs business. Andy, I think you previously talked about your expectation for the Program’s organic growth to kind of moderate, but even excluding that $7 million that you called out organic growth was really strong and actually accelerated sequentially. So, can you just give us some more color on what kind of drove that outperformance relative to your internal expectations?
Andy Watts: Yes. So, one of the other items in there we talked about it was we said we delivered $25 million of revenue from the captives and about $5 million of that came through the Orchid acquisition. So, the remainder of that being on the organic side. We’re going to see continued growth in ’23, but not at that same level, Derek.
Derek Han: Got it. Okay, that’s helpful. And then just one quick one. I know that the GRP and BdB integration is going well. Can you just give us some color on your European economic outlook and the anticipated impact on the organic growth for those businesses?
Powell Brown: Sure. So, remember GRP is England and Ireland, both Republic of Ireland and we have businesses already in the Republic of Ireland and Northern Ireland. And BdB, we do business in — excuse me, Italy, meaning we are the largest producer of Italian business into Lloyd’s. That’s over 50% of that business and then we do business in France and in Belgium. And we also do business obviously in England into the London marketplace. So, what I would tell you is that in England it’s not dissimilar to hear, which you see a lot of pressure on wages and cost of living, i.e., fuel oil and things like that. And so but from a comp — from a customer standpoint, we have not yet seen a significant down draft on their buying habits.
So, what I would tell you is, we think that the economy seems to be moving along in a fine way there as it relates to our exposure although it would be — it’s much smaller in Western Europe, we’re not seeing any other unusual trends either remember Lloyd’s is a big market globally. I think about 50% of their premium writings are in the United States. But the other 50 are worldwide. And so, we are continuing to have nice growth inside of our business — our Lloyd’s brokers, which we have now three. And so, we’re very pleased that decades-long Meyer and BBB.
Derek Han: Okay, thank you.
Operator: Thank you. I’m showing no further questions, I’d like to hand the conference back to Mr Powell for any closing remarks.
Powell Brown: Thanks, Norma. Thank you all very much. We appreciate your time and energy. We thought last year was a really good year and we’re excited about the future. I think my final comment would be this. As it relates to trends we don’t think that trend is one quarter and we don’t measure the outcomes of business over a quarter. We look at years and multiple years and so as it relates to each of our three largest segments, we feel good about going into next year. There are some limitations, i.e. because of market constraints and economic constraints, but we’re going to work our way through those. So we look forward to talking to you next quarter. And have a nice day. Thank you.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.
