Scott Heleniak: Okay. Understood. That’s helpful detail on how you’re looking at that. I just wanted to ask too about the property reserve release that was pretty significant in the quarter. I know you mentioned marine E&S admitted. But was that just a true-up from some recent events? Was that just — was that spread over from several years? Or any more detail you can give on that because it’s just — it was a little more significant than normal.
Todd Bryant: It was. This is Todd. It was larger, I would agree. I think marine is one, the commercial property is another. The one thing I think to think about as we head into the end of the year, we’re expecting — we’ll put an IBNR up and expecting that in the first quarter, we’re going to have some of those prior year losses reported to us. And I mentioned in my comments that it was just a very low non-CAT quarter from that standpoint. So naturally, you end up with some release just in the nature of very short-tail products. So outside of that, there wasn’t anything unusual, just really favorable loss experience.
Jen Klobnak: So the other thing to note is that burning has grown a lot, and the property component has. And so the dollar amounts are getting bigger. We’re adjusting to that ourselves, seeing larger numbers. And so if the year has been good in terms of activity, loss activity, you’ll see a larger number in that first quarter given that growth.
Scott Heleniak: Okay. That makes sense. And then just the last one. You mentioned in your comments about Hawaii. You said you’re still seeing growth there. You’re seeing some competitors pull back. Is that mostly rate-driven growth for you? Are you still seeing that as kind of a growth opportunity for you over the next few years as you continue to see competitors pull back. Just anything you can kind of comment on that market now that market had a few quarters to adjust the loss there.
Jen Klobnak: Sure. So in Hawaii, we cover homes as well as condos and everything is admitted. So we have to go through the state and get some approvals. We’ve gotten some approvals and are waiting on others. And so a little bit of that growth is raised, but the majority at this point in time is winning business from our amazing service by our local team both on the underwriting and the claims side. We’ve been really proactive in responding to our insurers and their time of need and that has translated into our producers wanting to give us more business as other markets are pulling back. And so we look at that and manage how much business we’re taking in, make sure that we are comfortable with the pricing and where things are located. And as long as it meets our appetite, then we’ve been taking on more risk as well.
Operator: Your next question comes from the line of Fiona Diamond of William Blair.
Fiona Diamond: This is Fiona on for Adam Klauber. I was just wondering, going back to the development trends. Is there any way you could expand upon or just give any commentary on the trend, how more recent accident years are trending for like ’22, ’23 versus maybe some of the more ’19, ’20 years, and that’s primarily focused on property and casualty. Just how more recent accident year development is trending compared to maybe more later years, if that makes sense?
Todd Bryant: Yes, it does. I think if you look at the 2016 to 2019 years, which I know the industry has reported unfavorable there, we have yet to see that. So those were still favorable for us. 2020 was pretty flat. We had a little bit of adverse in the ’21. But again, we’re talking a couple of million dollars, which we — the surety loss was a ’21 accident year. So ’23 certainly makes up a decent portion of it when you think in terms of where property was so favorable, but it’s pretty spread out. I don’t think we’re seeing much difference between accident years that developing favorably for the most part.
Operator: Your next question comes from the line of Meyer Shields of KBW.
Unidentified Analyst: This is Dean on for Meyer. My first question was back to the premium growth in casualty lines. I’ve noticed like a nice uptick in recent quarters and the premium growth. And I was wondering if that was more just rate driven or if your appetite has expanded potentially into different product lines or certain ones?
Jen Klobnak: Well, thanks for the question. I would say our rate has increased a bit. So in the first quarter of ’24, overall casualty rate change was 7%. And in the fourth quarter of ’23 was 5%. So we’re seeing a little bit more rate, a lot of mix change with personal umbrella growing and getting a 13% rate increase that explains the math later. The other part of the growth, I would say, is really taking advantage of market opportunities where they exist. So that’s applicable to our previous discussion on first umbrella. It’s also applicable to where we’re seeing regionally in our construction book, whether that’s in the admitted smaller contractor space or the larger mid-market, I’ll call it, E&S contractors that we support.
We see spotty growth in transportation. It hasn’t happened this quarter but those can be chunky accounts. And so if you win one or if you lose one, that can make a big difference within a quarter. But over the long term, I think we see some potential there as well. So I think it’s a mix of rate and opportunity and just relying on our underwriters to make those solid underwriting decisions because they’re all focused on making sure that we make an underwriting profit for the long term so we can pay our claims when they come up.
Unidentified Analyst: Yes. That’s helpful. And my last one is back to property. Can you talk about maybe some nonrate actions that you’ve sort of gone through in the property book to sort of address like that to be a convective storm in the non-catastrophe activity?
