Evan Greenberg: Hey, you’re not listening. Not listening. Did you see that? So, I’m going to interrupt you. Are you – really? Financial lines. Frank, number one. Number two, I said right up front in major accounts, in certain areas of casualty where we’re taking action and we saw it last quarter, saw it this quarter, and it impacts growth and then there were other areas growing. Those are two that are visible.
Bob Huang: No, okay… [Cross Talk]
Evan Greenberg: By the way, look at our 20-year track record over any period of time, where we have shrunk our business, cut businesses in half over periods of time when we couldn’t earn an underwriting profit, and then tripled them after that. Do you have another question for me?
Bob Huang: No, I think that’s very helpful. Yeah, it helped me contextualize things. Thank you.
Evan Greenberg: You’re welcome.
Operator: Your next question comes from the line of Robert Cox with Goldman Sachs. Please go ahead.
Robert Cox: Hey, a high-level question. So, Chubb produced an 86% combined ratio, which has continued to improve, and net investment income contributions to ROEs have gone up. I know there’s more bifurcation than ever with respect to pricing adequacy by line of business, but I’m curious, when do you think the market will sort of dictate the matching of rate and loss trend versus the excess margin you are generating now?
Evan Greenberg: I’m not sure I understand your question. Sorry.
Robert Cox: So, I’m curious. Yeah, I’m just curious when you think basically rate and loss trend will be at similar levels versus rate exceeding loss trend.
Evan Greenberg: I have no idea. It depends on when the market, and it’ll never really happen, but so you’re asking in a very theoretical way for something neat in what is a market? So, it’s always inherently messy. But typically when rate and price are adequate or in excess of what’s required to earn a reasonable return, then the market, in time notices and responds and becomes more competitive. And at that time, rate and price stay steady with loss cost, and then the market begins to go soft. And when that part of the cycle happens, it means that rate and price are less than loss cost, and that is not terrible until rate and price versus loss cost is not enough to achieve a reasonable return on capital.
Robert Cox: Thanks for that color. And maybe just to follow-up on that, I’m curious if you think that with data and analytics, these cycles are becoming less volatile over time.
Evan Greenberg: In some areas, yes. Some areas, absolutely not, because the loss cost environment, which data and analytics cannot help you with, is not less volatile. When the loss cost environment is more specific, i.e., loss cost inflation, then with data and analytics in steady periods like that, then the amplitude of cycles is different.
Robert Cox: Thanks. Really helpful.
Operator: Your next question comes from the line of Jimmy Bhullar with JP Morgan. Please go ahead.
Jimmy Bhullar: Good morning. So I had a question on just your comments on dumb behavior in financial lines. I was wondering if you could talk about who it is that you are seeing being undisciplined. Is it companies that are established, that are large players in the market or smaller competitors, new money that’s coming. Just some color on who is driving, because it’s been going on for a while.
Evan Greenberg: Next question, Jimmy.
Jimmy Bhullar: Not going to comment? All right.
Evan Greenberg: No.
Jimmy Bhullar: And then on casualty reserves, there’s been a lot of talk about pre-COVID years starting to emerge negatively, and a few companies have seen post-COVID adverse development as well. So any comments you can make on your view of casualty reserves overall for the industry and for your own book?
Evan Greenberg: You know, we did expect a change of loss cost pattern, frequency in particular. And we had talked about it during COVID, that we didn’t take the head fake, that loss costs during shutdown. Obviously, courts are closed, frequency plummets, as does severity. And at that time, we maintained our view, we saw right through it and said, trends aren’t changing. So we continue to trend. It’s just a question of reporting, and what period does it get reported in? So we expected that the trend doesn’t change, but the reporting pattern changes. So therefore, if you really want to look at it in a correct way, you’d say, it went down during COVID to re-accelerate after COVID, and then the expected cohorts of claims in aggregate still appear, and that’s what we’ve seen. The pattern post-COVID is not out of line with our expectations in our pricing and loss specs.
Jimmy Bhullar: Okay. And just for Peter, what do you expect your tax – do you expect to change in your tax rate next year given what the changes in Bermuda and to the extent you can quantify the expected tax rate?
Peter Enns: For next year and after, it’s just too early to say. There’s too many moving parts in terms of how the different countries and growth are going to adopt. You know we’re looking at it closely, but it’s just too early to say.
Jimmy Bhullar: Thank you.
Evan Greenberg: You’re welcome.
Operator: Your next question comes from the line of Cave Montazeri with Deutsche Bank. Please go ahead.
Cave Montazeri: Good morning. There was nothing called out this quarter with regards to the Baltimore bridge losses. I appreciate its early days, but is there any color worth sharing with us on this topic?
Evan Greenberg: You know, our policy is we do not report on individual claims, but I’ve noticed a lot of commentary on this. Look, it’s a tragedy. An accident like this occurs, and it’s done a lot of damage. However, when it comes to job, it’s another large loss. There is nothing. Yeah, of course we have exposure, but the exposure is within what we would contemplate, and there’s nothing outsized to us, and so another large unfortunate claim, that’s all there is to it.
Operator: Your next question comes from the line of Elyse Greenspan with Wells Fargo. Please go ahead.
Elyse Greenspan: Hi, thanks. Good morning. My first question, Evan, I was hoping you could just provide some more color on what role the sequential acceleration and exposure growth that you pointed to within, you know property casualty as well as within workers’ comp.
