Robert Qutub: Two factors in that. The $3 billion that we put out there for Validus will come out of our existing portfolio and be refunded back in by $4.5 billion. So you’re going to get a net increase of about $2 billion. And that’s why you get up to that net change is up about $40 million to $260 billion. That’s how we get there.
Joshua Shanker: Okay. Thank you very much.
Kevin O’Donnell: Thanks, Josh.
Operator: Our next question will come from Meyer Shields with KBW. Your line is open.
Meyer Shields: Great, thanks. Kevin, in your comments you mentioned that you didn’t really see an uptick in demand for cat cover this year, but you expect it next year. Is there something you could flush out why you think that will play out that way?
Kevin O’Donnell: I think we may have even touched on it once or twice in our calls earlier is. I think many buyers were surprised about the discipline for the change in rates that was required by reinsurers at the beginning of last year. With that, they ran at a wallet for demand that they already had identified that they wanted to purchase. I think as they are more prepared for this renewal, having seen the rate stick throughout the year, they’ll have a budget process that is more flexible to include the wallet to pay for the new limit.
Meyer Shields: Okay. That makes sense. Second question, I guess one area where we have seen some capital come in is in the cat bond market. And I was wondering does that have any implications for Vermeer?
Kevin O’Donnell: You know I think the capital market is — has had a good year. I think it’s probably slowing a little bit for the pace of new money coming in. But it’s something that Vermeer is designed to be an efficient vehicle to compete with both cat bonds and traditional players. So the more [indiscernible] activity tends to be at the Vermeer internationally at the top layer type level. But we continue to have great success deploying Vermeer. In lieu of people issuing cat bonds, but also alongside people who have chosen issued cat bonds as well, so.
Meyer Shields: Okay, understood. Thank you.
Kevin O’Donnell: Yes.
Operator: [Operator Instructions] And our next question will come from Alex Scott with Goldman Sachs. Your line is open.
Q – Alex Scott: Hi. First one I had for you is just sort of high-level on growth as we look across property and casualty. It seems like at least relative to one of your peers who recently reported, there is a little more restrain around where and how you’re willing to grow. And yes, I just wanted to understand what are you seeing in the environment? What are the underlying drivers of those decisions? Is it seeing more opportunity at 1/1, is sort of to do with the Validus transaction, what are the underlying reasons for that if you could?
Robert Qutub: Yes, let me they start-off and then Kevin may add couple of comments. We’ve seen growth all year. The third quarter is a difficult quarter when we look at on a year-over-year basis, because most of our renewals are done by the end of the second quarter. Think about 1/1 over half our growth. That’s why in my prepared comments, I really want to point you back to the year-to-date number. Year-to-date property cat has grown by 40%, once you take-out the reinstatement premiums. Specialty, which again, when we looked at the rates had a trend we saw that grew by 38%. So, we saw the opportunities over the course of this year, but we also were selective in professional lines, we dropped by 30%. So, we made choices that were out there and we have the opportunity in the market to show that growth. And we’ve had a really good opportunity throughout the course of the year. And that’s why we pointed it back to full-year.
