So — and we like the pace that we’re going at. So I can see that being elevated for several quarters, but eventually trending down as the scale starts to catch up with the size of the foundation we’re building.
Juan Andrade: Bob, this is Juan. Let me add a couple of comments as well to what Mark said. I think one important thing to keep in mind is really the hallmark expense discipline of Everest. And if you look at the group expense ratio really at that low 6% range, 6.1%, 6.2%, we’ve been able to maintain that throughout the entire build-out of that international component because of our expense discipline and our ability to prioritize things that matter and say no to things that don’t. So I think that is something you can expect for the company going forward is that we continue to have one of the most competitive expense ratios in the industry, and that, frankly, is not going to change as we invest and build and grow the international component.
Operator: And next in question is Yaron Kinar from Jefferies.
Unidentified Analyst: This is Andrew on for Yaron. Within Insurance, it sounds like there could be some benefit on the underlying loss ratio for the remainder of the year. But does the guide of 90 to 92 for reported combined for full year ’24 still stand, considering the reported 93 this quarter?
Mark Kociancic: Yes, Andrew, it’s Mark. The short answer is yes. I think there are several factors that are going towards that. You heard me in the previous question speak to some of the scaling benefits that we expect to get, particularly from the insurance franchise. So there are several factors, tailwinds that we have that I think will help us achieve that range. I would start with — we’ve got a mix that’s going to trend a little bit more short-tail in terms of its proportion to the overall book. That will come with lower combined ratios. You’re still seeing very strong margin that’s being added to the portfolio across the board as we cycle manage through the different opportunities that we have. The expense ratio, really the 2 points.
So the earned is going to grow more quickly on the international side as it trails the gross written. So that’s going to help mechanically when you do the math. And then the expenses as a whole, I think given the fact we’ve spent over a year, well over a year building the foundation, those benefits are going to start to pay off and expenses will start to level out as an overall ratio. So those factors overall are what’s going to drive us back into that 92, 90 range.
Unidentified Analyst: And maybe on Reinsurance, some strong growth within casualty pro rata and casualty XOL. Could you talk about some of the opportunities there this quarter?
Juan Andrade: Yes. So let me start, and then I’ll turn it over to Jim. This is Juan, Andrew. So I think 2 things drove particularly that casualty pro rata. Again, some of it is the timing of the business that was written at 1/1/23 last year. And I think Jim has talked a little bit about how the earnings pattern on that business works. So I think that’s an important part of that. And we felt good about the pricing for that business as well. The second part of it is we saw some attractive opportunities in both Canada and Europe, outside of the United States where you don’t have the social inflation issues that you have in the U.S. But Jim, maybe you can provide a little bit of additional color?
Jim Williamson: Yes, I think that’s right. It is on the pro rata side, it is largely timing of recognition. As we had indicated after the January 1, 2023 renewal, we earn casualty pro rata or I should say, recognized written premium over 8 quarters. And it’s really in the middle of that period that you see the largest recognition of premium. And so we’re in that period. We had really strong printed numbers last quarter on cats pro rata, same this quarter, et cetera. And there have been incremental opportunities, as Juan indicated. And in particular, when those are taking place outside the U.S. and in a very balanced way, we’re more than happy to lean in to those opportunities. On the XOL side, not an entirely different story.
I mean, we have chosen to grow in a targeted way with some of our top cedents. But the other thing that you’ll see in that line, in particular, which is a relatively small part of our portfolio is that the amount of rate that will be flowing through in that line is going to be elevated. That’s our expectation, and that certainly helps to support the growth numbers that you’re seeing in the quarter.
Operator: And next, we have a question from Meyer Shields from KBW.
Unidentified Analyst: It’s [indiscernible] on for Meyer. I have a question on the professional line growth, kind of accelerated from 9.9 in 4Q. So instead of 11.7, you mentioned rate acceleration. Are you guys expecting more if rates continue? Can you give more color on that, please?
Jim Williamson: Yes, it’s Jim Williamson. Thanks for the question. Actually, for the most part, the acceleration you would have seen some of the growth in professional lines for the quarter in our insurance business was really related to one large fronting arrangement in our Canadian operation. So it’s not really a general trend that you can apply to the rest of our business.
Juan Andrade: Yes. The only other comment I would make, and this is Juan, is [fright] also had some implications into that as well. But the growth that you’re seeing is really what Jim has described, is that fronting deal in Canada.
Unidentified Analyst: Got it. So we don’t expect that to continue for the rest of the year?
Juan Andrade: No, I don’t think we would expect that to continue for the rest of the year. Again, that was due to just one specific deal in Canada.
Unidentified Analyst: Okay. Got it. Just one more question, just a board question on Reinsurance. Just curious, can you share any plans for buying reinsurance for the Insurance segment?
