Unidentified Analyst: Hi. Yes, so my first question is kind of just more follow-up with Paul’s question on the reserve development on the commercial lines. That was kind of a surprise seeing as how we discontinued that in 2019, for me that was a surprise. So my question is, when are these reserve developments going to be done? Or are we going to see anymore? Or what’s your best guess on all that?
Barry Goldstein: I mean, let me start by saying, and first, thank you for the question, Gabe. This was the first additional reserve development we’ve taken since the third quarter of 2019. It was a painful exit from a problem that the — I’ll just say, the prior administration refused to acknowledge. And I think we did a pretty damn good job in sizing it up. But inflation got in the way and COVID got in the way. Inflation obviously everything costs more and COVID slowed the ability to resolve these claims. The courts were closed, attorneys weren’t working, so I think $2 million while it might be a surprise is not something that I would consider unusual in size at all and hopefully that just shuts the door on everything going forward.
Jennifer Gravelle: But additionally, Barry, if I may add that, that we are — we as a company have a little bit more conservative reserving policies than what was in place back in 2019. We are now — we have our Chief Actuary in-house Sarah, and we have an independent actuarial firm who reviews our reserves on an annual basis and tells us where we are within their range. And we are $2 million above their central point estimates. So we are also being more conservative to ensure that our reserves are adequate and reasonable going forward. That being said, you never know commercial multi is a commercial liability is a very volatile line. So there is some exposure there still, but we don’t expect additional claims to be coming in as statute of limitations that turns out. So it’s just a matter of handling what’s currently open.
Unidentified Analyst: Okay. Got it. Thanks, Meryl. I have a question about the bond portfolio. Your duration has stated at 4.5% or 4.4%. And I guess my question is, where do you all see the duration going? It’s really nice that we all think that the Federal Reserve is going to lower rates later this year or next year. But what if they don’t, what if rates go up and what if they do lower rates for a year or two and then rates go up again? So just — how are we thinking about that?
Barry Goldstein: Yes. I mean, it’s a good question. And I think maybe I should have added before that I think it’s just about the entire last year whatever proceeds we’ve received from principal paydowns and the mortgage bonds we own or maturity of bonds, proceeds that we get, even the interest that we earn on the portfolio. The only new securities we’ve purchased have been short-term treasuries. So the duration is going down, not just as the existing portfolio marches towards their scheduled maturities, but the incremental amount of new securities we add is at a much lower duration, bringing it down. So I think in general if bonds are basically mirroring a treasury rate plus a credit spread, right? So if there were no changes and there have been quite a lot of changes recently in credit spreads with everything going on in the world.
But in general 100 basis point reduction or increase by that matter in the five-year treasury rate will result in a $6 million change to our carrying value of our portfolio. It’s a very rough measurement. But in answer to your question, we see the duration going down over time, while the quality of the portfolio by adding just treasuries is going up. So we feel real good about the portfolio. Yes, we’d be very happy to see rates come down. I’d love to see rates come down not because of a recession, but I’d like to just see rates come down. But you’re right, I mean, rates could go up. And I think we’ve taken a conservative approach to this and have limited further exposure to the valuation of the portfolio. By relying on AAA rated or short-term treasuries.
I hope that answers your question.
Unidentified Analyst: No, that’s great, that does. Thank you very much. And I just have one last question for you all. Maybe something to think about on the reporting, we were — and I know it’s customary for a lot of these other property companies to provide reports, excluding catastrophe losses and this and that. But I’d like as to think about maybe taken those — taken that out in this report and the numbers straight up, you know, you guys were in New York, so we’re going to Winter Storms and Hurricanes and just kind of, in my opinion, it’s part of doing business, I’m from South Alabama. And if I reported a catastrophe every time it got hot out in the middle of the summer, people would laugh
