And so as we move throughout the year, we are contemplating that as we think about our exposure because you put a risk on the book today, it’s going to be in force for 12 months which means it will be subject to next year’s cat treaty.And so just like last year, in 2022, we knew that rates were going to be going up. And we started around April-May time frame, increasing our benchmark pricing to consider that the next year, we will be paying more for that exposure. And so we do the similar process this year as we try to forecast forecasting spend as possible. But we think there’s the potential for rates to go up again to some extent. I’m hoping it’s a lot more manageable and an organized process this time. But we stay in touch with our reinsurers, we have some visits coming up in fact.
In fact, we have a team actually right now meeting with some reinsurers in our New York office. So we take contact to monitor what’s going on and we’ll accommodate that as we go forward as we can.Operator Our next question comes from Jamie [ph].Unidentified Analyst If you look at — I don’t want to some back in the property area. Other companies have reported and/or signaled big capacity as industry has as well. And you guys really haven’t and I’m wondering — I’m guessing part of this geographic focus. But you guys have in the past talked about changing terms and conditions [indiscernible] etcetera. And I’m wondering is there a way to quantify what changes you’ve made? And what would your loss ratio have been if you hadn’t made those changes?
Is there some way to get a sense of what’s changed in your book or how you structured the book?Jen Klobnak Yes, that’s a good question. I asked that question myself in the last week because I keep seeing these pre-announcements and I am saying what is our impact? And so I would say that a couple of things go into play there. About 10 years ago or so, we were a little larger in the habitational space, in our E&S property portfolio. We experienced a fair amount of tornado losses back in the day, hail losses. And so if you look back at our history, we had some losses from that. But we reduced our participation there because, frankly, we couldn’t get the terms and conditions we needed. And so we have a lot less exposure to that — to those perils.
I would say our books concentration really is in Florida, Texas, California, those kind of areas. And so — and it’s really peril-specific in a lot of ways. And so when you see these different events come through, depending on the region, depending on the coverage, we just don’t have concentrations. Now when events like this happen, we expect one off losses to occur. We have received a few claims hail damage, some roof issues but nothing that is headline news.Operator Thank you. There are no further questions. I will now turn the conference over to Mr. Craig Kliethermes for closing remarks.Craig Kliethermes Well, thank you all for joining us. We’re glad we could continue to deliver and look forward to talking with you all again. Thanks.Operator Ladies and gentlemen, if you wish to wish to access the replay for this call, you may need to do so by dialing 1-866-813-9403 with an ID of 890292.
This concludes our conference today. Thank you for all your participation and have a nice day. All parties may now disconnect.
