Mark Hughes: And then your broader push to expand, I think you talked about low-to-mid hazard, median hazard classes driving submissions, et cetera. How much more is there to go would you say? How far along in that process are you?
Katherine Antonello: Well, it’s an ongoing process. I don’t know that we will be done anytime soon. What I can tell you is we — from the onset of our appetite expansion which has been a little over 18 months now, we’ve written about $50 million of premium in those expanded class codes. And we’re continuing to — that group is continuing to function and look for opportunities where we see that there’s profitable growth there, so haven’t shut down that expansion. We’ll continue into the future to find growth where we can. There’s plenty of opportunity there.
Mark Hughes: Yes. If I could just slip in a couple more. Current accident year outlook? Any reason for that to be higher or lower in 2023?
Katherine Antonello: I don’t expect a material change in the current accident year. We’re 45 days in but we didn’t see anything that would cause alarm when we were looking at 2023 and trying to project what that might be. So I think it will be very similar to what you’ve seen in the prior 2 accident years.
Mark Hughes: And then finally, I wonder, Kathy, whether you have any broad comments about the potential for reserve development. Just based on the magnitude of the reserve, the — how much you’ve got in some of these accident years that have been more productive on that front? I think — I don’t know that you dipped into 2020 or 2021 but maybe just some high-level thoughts about — this has obviously been a great run for you? What could one to anticipate that — how is it looking as we go forward?
Katherine Antonello: Yes. So as you know, about a year ago, we decided to do full studies of reserves twice a year. And so that will continue into 2023. The one area where we’ve spent a lot of time looking at our reserves is in regard to inflation. And our reserves have always included a provision for inflation. But our current booked reserves recognized the possibility of an increase in over the inflation that is — has always been buried in our reserve triangles. So we did do a deep dive where we looked at several scenarios and increased our booking to reflect something over and above the implicit inflation. And so I feel like we’re in a good spot. There’s nothing that I’m seeing that is concerning about our reserves. As you know, we recognized $23 million of favorable prior year reserve development that came predominantly from accident years 2017 and prior.
Our reserve philosophy tends to hold on the more current accident years until there’s a compelling reason to adjust those. And at the moment, we have not felt that there was a need to do that.
Operator: Our next question comes from the line of Paul Newsome from AOL.com.
Paul Newsome: It’s from Piper Sandler. Congrats on the year. I didn’t hear anything about — I’d like to have some more detail just about the competitive environment in general. Any signs that things are shifting from a competitive perspective.
