And then on a personal side, I’m actually going to coach my son’s flag football team next week. He’s told me, I’ve never been able to coach a team that he’s played on. He’s seven years old. And so there’s a unique opportunity we have. Our kids are still at home. And we’re going to get to spend some time doing things that when you’re working 90 to 100 hours a week, you can’t do. And we get to make up some of that time. So we’re really excited for the opportunity to spend some extra time with our family. I know, John feels the same way about that and we’re just really grateful for Trevor and the team. We did recruit a lot of people here and it’s a fantastic platform and business and we really think it has a super bright future ahead as some of the guidance and you look forward into ‘24 and ‘25.
I think it becomes quite evident.
Josh Shanker: Okay. Thank you for that answer. And this is a real quick one. And by the way, good luck with everything. That sounds terrific. Just a quick one. The organic growth in the company was faster than the overall growth. Was there a disposition of something during the quarter?
Trevor Baldwin : Yeah, it was part of purchase accounting adjustments related to a prior year partnership, Josh that with our single partnership in Q3 of last year.
Josh Shanker: Okay. Thank you.
Trevor Baldwin : Thanks, Josh.
Operator: Our next question comes from the line of Pablo Singzon with JP Morgan. Please proceed with your question.
Pablo Singzon: Hi, good evening. The first question, I was wondering if there are upfront charges to consider that will match $10 million in your benefit you’re expecting in ’24?
Bradford Hale: We expect to incur some charges in Q4, Pablo, that will get booked through severance expense. But the $10 million mark is anticipated saving in the ‘24 guides that we provided.
Pablo Singzon: Okay. And then, secondly, Brad on cash interest expense. It sounds like maybe delevering happens and by that I mean that going down that’s an amount. Seems like more like a ‘25 event. But it’d be fair to assume that cash interest expense stays roughly the same assuming no material change in the interest rate environment?
Bradford Hale: Yeah, we’ve modeled cash interest expense at approximately $120 million next year, Pablo under the assumption that rates stay consistent with where they are today.
Pablo Singzon: Got it. And then, maybe this one for Trevor. I was wondering how much of a pricing you’re getting in the personal lines market? Would it be fair to assume that it’s larger than what you’re getting commercial lines at this point?
Trevor Baldwin : It is, Pablo. So if we look at the combined impact of rate and exposure on the business in Q3, it was about 2.3%, which is actually down from around 4% on the first half of the year. And as you parse through that, what I would say is that IAS business was actually lower than that. The MIS business would have been higher than that. And so, we’re getting close to, if not slightly above double-digit rate on the personal lines side, whereas we’re getting, at this point, largely through some contraction and exposures we saw manifest in the third quarter as I already talked about low-single-digit impact and tailwind in the IAS business.
Pablo Singzon: Got it. That makes sense. And then last one for me, I don’t think it’s an issue for you, but I didn’t just because I hear how the, in the balance sheets that are paired up against that MGA you are seeing right now. Just given them what’s happening on the personal line side, right, some states chose they don’t have appetite to write, but, that seem like a issue for you? But I’d be curious to hear what you’re seeing on that side of the business. Thanks.
Trevor Baldwin : Yeah. I mean, Pablo, we have a good fortune of having broad-based support from a large panel blue chip insurers, that you would know very well. We just finished our flood renewal on improved terms. And we feel really good about our capacity situation and that’s a testament to the underwriting first approach that our MGA team takes and the terrific and consistent – consistently industry-leading loss ratios that our product lines are generating. And so, we understand in the, in the MGA business, we’ve got multiple stakeholders and we’ve got to deliver consistently profitable business to our capacity providers, while also providing competitive solutions and products that meet the unique and bespoke needs of our clients in the market. And our MGA team is really striking that balance incredibly well.
Pablo Singzon: Great. Thank you.
Trevor Baldwin : Thank you, Pablo.
Operator: [Operator Instructions] Our next question comes from the line of Meyer Shields with KBW. Please proceed with your question.
Meyer Shields: Great. Thanks. So a lot, obviously to digest tonight. Trevor, you comment and talk about conservatism – audio is bad, I apologize, about a conservatism – conservative look at fourth quarter contingent commissions. I was hoping you could go a little bit deeper in there in terms of which lines of business have, I guess less certain contingencies?
Trevor Baldwin : Yeah. So, hey Meyer, this is Trevor. What you’re seeing there is a conservative view of a few loss ratio, sensitive contingent contracts on the personal lines side where we’re taking a conservative viewpoint. Over the past couple years, we’ve been doing a ton of work to kind of, create master contracts with our core trading partners. And generally convert those contracts from contingent loss ratio based payouts to what we would consider to be GSEs or guaranteed supplemental commissions. And as you’ve looked at the supplemental commission and contingent commission growth, we’ve experienced over the past couple of years, it’s largely on the back of that. There’s still some loss ratio sensitive contracts and considering just kind of where certain of those are performing largely tied to convective storm activity across the US. We just felt it was prudent to take a conservative view.
Meyer Shields: Okay. Is there any way of ballparking, I’m sorry that issue impacts like the good change in view on the fourth quarter adjusted EBITDA?
Trevor Baldwin : Yeah. I’d attribute a few million dollars to that.
Meyer Shields: Okay. That’s all for me. Thank you so much.
Trevor Baldwin : Thanks, Meyer.
Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.
Trevor Baldwin: Thank you all for joining us this evening. And I want to thank our nearly 4,000 colleagues for their hard work and dedication. I also want to thank our clients for their continued trust and confidence in our teams. Thank you all very much and we look forward to speaking with you again next quarter.
Operator: Ladies and gentlemen, this does include today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
