Edward Rand: And then, Bob, the other part of your question, it’s really been driven by — the medical inflation, I think, has been driven by just labor costs within medicine that are now catching up. And then as new therapies come online that are life-saving and life-changing, they tend to very, very expensive. And I think it’s a combination of those 2 things. So just price pressure within the health care system and then the services being more expensive as well.
Robert Farnam: All right. Okay. And just one more question, Ned. Sorry to hog the call here. But — so 65% of your business is — or 65% of your losses are related to the medical side. Is that typical for the industry? Or is there something that you face — insurance faces more medical trends because you have a higher portion of medical cost in your typical claim?
Edward Rand: I think one thing, Bob, that probably skews that on a comparison basis is because we do have a shorter tail book of business. The wage component is resolved much faster, and so as a percent of total cost may be lower overall. That’s more about the duration of the clients than the actual dollars being spent on medicine. Kevin, what would you add to that?
Kevin Shook: No, I agree with that. I would say 65% medical is more or less in line with the industry, which is the inverse of what it was 12, 15 years ago when it was higher indemnity. So medical is the driver. For ProAssurance, Medical is also the driver for the industry. I can’t quote a specific number for the industry, but would certainly suggest that it’s in and around the 65%. And to Ned’s point, maybe a couple of percentage points lower.
Operator: The next question today comes from the line of Matt Carletti from JMP Securities.
Matt Carletti: Hey, thanks. Good morning. Ned, I was hoping to kind of shift focus back to the medical professional liability side of the business. Can you just update us on the competitive landscape a bit? I mean for a while, obviously, pricing has been moving, but I think you’ve talked a bit about how some of the maybe larger competitors — even smaller competitors that just don’t have profit initiatives or mutual and so forth, it takes a while for them to kind of get the message. Is anything changing in that regard? Or if you could just update us on kind of the state of the market right now.
Edward Rand: Yes. Good question, Matt, and then I’ll let Rob chime in. What I would say is that certainly from a — who are the competitors and what are their motivations, nothing is really changing. The mutual companies continue to have good amounts of excess capital and they use that to leverage pricing and willingness to write at a pretty high combined ratio as a result. I do think we see — and again, this — I hate to make broad generalizations. I do think we do see some type of behavior out of some of those peers on individual accounts as we compete for new business, but there’s always going to be the one that doesn’t go that way. But Rob, would you add anything to that?
Robert Francis: Just a little color. The — certainly, the reinsurance market is putting more pressure on companies. The reinsurance rates are going up. For some of the smaller organizations that maybe don’t have as much capital, the reinsurers are tightening on their business plan allowances, if you will, what those carriers can do and can’t do under those reinsurance contracts. So we’ve seen some pullback on some of those most aggressive smaller carriers. The larger carriers, as you mentioned, continue to be a little bit more responsible overall, seeking appropriate returns. Maybe not quite the returns that we as a public company are seeking, but still appropriate returns and are acting responsibly against competition. Those mid-level mutual carriers, certainly still highly capitalized, are willing, as Ned said, to write at a higher combined ratio.
And several of those right now have growth goals. They’ve decided to increase their relevancy in a changing world where the average account size is growing and the accounts are multistate. And so they’re pursuing that business. So we are taking a very opportunistic-only approach on that type of business and focusing more on our standard business in core states where we believe there is more potential return. There are no additional questions waiting at this time. So I’d like to pass the call back over to the management team for any closing remarks.
Frank O’Neil: Thank you, Bailey. And I think that concludes our conference and our remarks. We look forward to speaking with you again on next quarter’s call.
Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.
