Ryan Tomasello: Hi everyone. Thanks for taking questions. Just to drill a bit further into the transition post the reciprocal conversion, do these conversions tend to drive a material amount of churn or attrition in new policyholder based near term? Second, will your ability to grow that business post conversion be dependent on launching the new Porch brand into more markets or you can you continue to grow kind of status quo based on the existing licenses. And then just finally, and I think you touched on this earlier, Matt, but are there any limitations that this puts on your ability to cross sell broader B2B2C services across the newer structure here?
Matt Ehrlichman: I think that was several questions, but I’ll see if I can get them. So the application we’re making is in the State of Texas. So the insurance, Reciprocal Exchange is licensed state by state, just like HOA. To your first two points, we would in the application apply to sell the insurance carrier in return for a coupon bearing note to the Reciprocal Exchange entity. So what that means is that we would have strong value propositions that we want consumers to switch from one entity to the other, but even a consumer that stays in the existing HOA company would be in a subsidiary of the exchange. So that’s one key way that we manage both the licensing risk of we will apply for our licenses state by state and filings, but we’ll be able to use inside a Reciprocal the fact that HOA is a subsidiary of that entity.
It also means that if a consumer chooses not to move for some reason that they’ll still be underneath that exchange umbrella, which is part of how we’ve managed that risk of churn. So I focus on those and then Matt, I don’t know if maybe you want to talk about how you’re thinking about it more broadly across categories that we’re helping consumers with.
Matthew Neagle: Yes, so in terms of how this transition can help us just with our broad strategy, Ryan and selling more B2B2C services, I mean, we’re excited about introducing the Porch insurance brand, first off, so this will be the launch we’ve kind of hinted at or talked about in the past. As soon as it’s approved, we’d be able to start selling to new customers Porch insurance as well as transitioning existing customers into that brand. We noted in the prepared remarks that we will be bringing in an expanded value proposition set for these Porch insurance customers to be able to help that product really stand out in the market. So one of those examples is our existing 90-day warranty product we’ll be able to provide to those customers.
But there’s a variety of things that Porch can do. It’s very different than others, moving concierge, the app to help them manage their home free recall check that’s built in to monitor their appliances for any potential recalls and more. That’s a lot of what Porch has built over time are these unique capabilities for consumers that we can be able to bundle into that insurance product to really help people holistically, more than just insurance and to be able to differentiate their, what that means is it does give us opportunities to not just help with insurance, but to help them again with a variety of other services around their home that we think can create a lot of value.
Ryan Tomasello: Thanks for that. And then can you help us understand how the fair value of the transfer is determined? Is that dictated by HOA’s book value? And if so, can you tell us where that’s currently carried? And secondly, how long do you think it will take to get repaid on that kind of bridge note that you’re providing as you recapitalize the Reciprocal with third-party capital?
