John Heagney: So maybe more broadly then, because that all makes sense to me. You’ve had – you’ve been able to release some of the excess capital there and basically sort of front load some of the release and dividend and up. How should we think more broadly about capital management going forward? You returned quite a bit. The mortgage has helped. The Title results being a capital-light business has helped. You’ve been able to move capital up and out there. The market is sort of shifting. The growth is more P&C side, maybe heavier lines of business from a capital perspective. You take all that together, how are you thinking about your capital return over the next ’24, ’25, maybe beyond?
Craig Smiddy: Well, capital management and more specifically, return of capital to shareholders is a matter that we review with the Board every quarter. And I think the biggest generator of any excess capital has been really the retained earnings coming from the General Insurance group. And if you look at that trend and those combined ratios and the amount of income that the General Insurance group continues to contribute. Then it would suggest that we will continue to build capital and need to continue to look at every quarter how much capital we have and whether we have excess capital, discuss that with the Board. And then as a secondary discussion, in which way did we return that capital to shareholders if we’re not putting it to work in new businesses.
And we are – I mentioned some of the new businesses that are starting to produce business as well as the newest in April, and we’re in discussions regarding another business or two to get into. So, first order of business is putting that capital to work in a way that we can maximize return to shareholders through us investing that capital into the business. And then the second order of business, if we still deem that we have the excess capital, then discuss that with the Board and the best way to return it.
John Heagney: Great. Appreciate the answers. Thank you.
Craig Smiddy: Thank you, John. Appreciate your participation.
Operator: The next question is from Ryan Winrick with Guggenheim. Your line is open.
Ryan Winrick: Hello, kind of echoing Greg’s comments.
Craig Smiddy: Hello Ryan.
Ryan Winrick: Hello, congratulations on the 100-year anniversary and the ringing of the bell next month. And then similar to John’s question, you have three of the past four August, you have declared a special dividend with the off year being declared into December. I guess, when you’re evaluating your excess capital level, from our end, we’re trying to determine the likelihood of another special dividend. Do you target certain thresholds when determining that amount that you will not go under, for example? Any commentary would be helpful?
Craig Smiddy: Sure. So – well, first thing I would just say is that the timing of those dividends, I wouldn’t read anything into that, as I just mentioned in the earlier response. We review capital levels with our Board every quarter. And there is not a particular quarter whereby we focus on making a decision about returning capital. We ask ourselves that question every quarter. So that’s the first thing I would say. The second thing I would say is, as we went out in the release and have discussed over the last few years, we have introduced share repurchases in addition – as an additional tool in our capital management strategy. So over the last couple of years, we’ve returned a considerable amount of capital through share repurchases.
