Michael Kehoe: Yes. So, our retained earnings are a phenomenon. If you look at the returns we’re generating, that finances a lot of our growth. I think Bryan indicated that we would look to borrow some additional money, should we need external capital. And then, hey, if the growth is so extraordinary that we need additional equity capital, you’re liable to see something like we’ve done in the last several years, very small equity capital raises at attractive prices that really don’t impact the existing shareholders much at all.
Pablo Singzon: Got it. Thank you for your answers.
Michael Kehoe: Okay.
Operator: Your next question comes from the line of Rowland Mayor from RBC Capital Markets. Your line is open.
Rowland Mayor: Hi, good morning. Sticking on the debt discussion, I think the debt-to-cap ratio is up to 21% in the quarter. I get the high ROE solves that problem over time, but if — and thinking about doing more debt offering, would there be a level where you would not take the debt-to-cap above that in the near-term? And where in the long-term do you expect that debt-to-cap ratio to stabilize?
Michael Kehoe: This is Mike. I mean, we like that 20% or so range as a long-term and conservative level debt on our balance sheet. The ratio has been boosted lately with the real estate purchase. But there’s going to be some real estate sales over time, that will bring that backdown. But in terms of the insurance business in particular, we like the 20%, and we like the idea of using debt versus equity if we can and maintain a good conservative balance sheet.
Rowland Mayor: Okay. Thank you. And then, I guess, this is another way to come at the growth question. How does your headcount scale relative to your premium growth? And is there a point where it becomes growing 40% on 40% on 40% becomes an issue of not being able to hire enough talent? Or can you just walk through sort of the organizational management of that growth?
Michael Kehoe: Yes. I mean, we’re — when you’re growing the business as quickly as we are, you definitely adding underwriting and claims professionals. We’ve also in the last couple of years dramatically expanded our investment in our IT department. We’re making very significant investments there to drive further automation in our business process. I think we’ve achieved in the last couple of years some pretty extraordinary growth in productivity. If you look at our year-end headcount in 2021, I think it was 367 employees. I think year-end 2022 is 457. So, we obviously hired a lot of people. Our model is to — this varies by department. But in underwriting, we’re bringing a lot of new people to the industry and train them. In claims and in IT, it’s more of a mix between new and more experienced professionals.
But I think Kinsale’s put an enormous amount of effort in not just the last year, but going back years in developing people and developing human capital, and I think it’s paying-off and allowing us to grow the business and not have lack of personnel be a constraint on growth.
Rowland Mayor: Very helpful. Thank you so much.
