Jen Klobnak: Let’s see. That’s an interesting question. So I would say outside of rate, we do focus on coverage. So we have a discussion between our underwriters and our claims staff. We’ve had one-off fires collapse. We’ve had pipes burst. We had a guy step on a pipe that burst then. So we have these interesting scenarios that occur outside of wind or earthquake type of claims. And we look at each one of these as we think about, is that scenario described in our forum and we covered or not covered and do we want to cover that and are we repricing for that. So it goes back to what we call here the big back loop which is all about underwriting. So we do look at the words and making sure that we describe things like water damage very carefully, and we have evolved those kind of clauses over time, also look at deductible.
How much should people retain of those losses versus how much should we cover. So those are a couple of the levers that we have adjusted. I would say nothing material in that space, but we’ve made some minor adjustments to coverage and things of that nature over the last couple of years. We still see there’s a need for more rate in those habitational spaces in the Midwest. A lot of people talk about the Midwest hailstorm and then we’re here in the Midwest. So we see the events happen. And so there still needs to be more movement there before we would be willing to grow in this area too much.
Operator: We now have a follow-up question from Andrew Anderson of Jefferies.
Andrew Andersen: Just on NII, I guess I would have thought there would be a little bit more expansion quarter-over-quarter. Is there anything kind of one-off in this quarter’s number? And way to think about the full year.
Aaron Diefenthaler: Andrew, it’s Aaron. Nothing unusual. As Todd mentioned, we’re sticking to our knitting with high quality assets on the new purchase sides of things. Operating cash flow tends to be a little bit lighter in the first quarter versus other quarters. Throughout the year, we got a lot of reinsurance renewals in Q1. Bonus and profit sharing payments go out in the first quarter. Still very strong positive operating cash flow. We’re happy to have that accrue to the portfolio, but that should pick up in the balance of the year. So outside of that, nothing unusual there.
Operator: As there are no further questions, I will now turn the conference back over to Mr. Craig Kliethermes for closing remarks.
Craig Kliethermes: Well, thank you all for joining today. A good quarter to build upon. We believe our hallmark underwriting discipline and diversified portfolio of specialty products should translate into consistent financial outcomes over time and allow us to continue serving as a stable market for our customers. I would like to thank all of our RLI associate owners for their contributions to our shared success. We will continue to focus on making decisions and executing on strategic initiatives that are in the long-term best interest of our company, our shareholders and our customers. Our team is very comfortable being different because being different works. Thank you all again for tuning in, and we’ll visit again next quarter.
Operator: Ladies and gentlemen, if you wish to access the replay of this call, you may do so on the RLI home page at www.rlicorp.com. This concludes our conference for today. Thank you for your participation and have a nice day. All parties may now disconnect.
