Robert Qutub: That’s a good question. We’ve been working through that. As we spoke, we had an ability to reposition some of the portfolio to the $500 million. So we actually were able to direct payments to some shorter-term securities lot of T-Bills and shorter-term notes. And I think that’s — sorry, we had the ability to position the portfolio pre-purchase with that $500 billion — $500 million allocation. The $217 million will come down when we redeploy the. $1.4 billion — that $3 billion a little bit, because that was being invested in there. But we had pretty significant upside already. We were 2%, when we looked at it probably five months ago with the repositioning of the portfolio to the shorter-duration similar to ours. That is going to take us up to $260 million. So $260 million is a better reflection of the run-rate this quarter. And as we go into 2024, we should expect to see that continue to lift.
Yaron Kinar: And that continued look, is that just coming from higher interest rates or also from the reallocation of the portfolio?
Robert Qutub: Our new money, what I alluded to or I said in the call was that our new money rate is 6% right now, and we’re closing in on that. So, we have upside of 4.9% in what we’ve seen this quarter, 4.7% for the book yield. So, we’ll see upside, we’ll see it continue to grow as rates –rates are kind of all-around right now, but we’re still benefiting from where they are at.
Yaron Kinar: Thank you.
Operator: Thank you. Our next question will come from Josh Shanker with Bank of America. Your line is open.
Joshua Shanker: Yes. Thank you very much. Given [indiscernible] and the Fed’s comments yesterday and whatnot, maybe either there’s going to be an ending to the inverted yield curve and a steepening, does this change at all how you orient the investment portfolio. Would you have a smaller allocation to short-term and be willing to go out to three or four years or what’s normal in the portfolio income securities that are currently maybe three months in duration?
Kevin O’Donnell: That’s a great question. We have a lot of agility in the portfolio and the teams is looking at how do your leg into some longer duration right now. We’ve seen rates moving around, but it’s a balancing act between what you’ve seen with the Fed has said, [indiscernible] the economy still seems to be on fire. For the bond market players, well, I think it took some — captured some duration of what you’re seeing right now with the 10 year and in the five year. But we’re actively looking at it, Josh. It’s a good question. Duration will not happen overnight, we’ll leg into it over time.
Joshua Shanker: And so, Bob, when you have a phone with us after this call here and you have all this $4.6 billion in investments, you’ve just received from AIG. How you shape that rate now and [indiscernible] currently investing in a bunch of securities that AIG is choosing. What are you going to do with that portfolio in 45 minutes.
Robert Qutub: On the portfolio has — a lot of it’s been pre-positioned. We got out of that since we had a $500 million allocation that we could remove assets from that portfolio and put into T-Bills. And that’s what we get. We directed them to do it — fund administrator and they took care of that. So that of think about things like single-asset backed securities, we don’t want to hold. There things in there that we don’t like that are not in our portfolio. We got rid of most of that. So the portfolio is more like ours than not. So, I think that gives us a very distinct advantage and it’s a pretty short-term portfolio. It’s around 2 point — just under 3. So it’s getting close to our duration. Q – Joshua Shanker And if I get one more in, any guidance. I’m having a big boost in the investment portfolio for the last two months of the year. Sequentially, what that’s going to do to net investment income comparing 4Q 2023 to 3Q 2023.
