Timothy Turner: We see a steady increase in flow in the high-hazard aspects of casualty Meyer. I gave a few examples earlier, but transportation, maybe the number one – the loss leader in the reinsurance world is being dumped and shed by almost every standard company, that’s pouring into the channel. And that’s every aspect of transportation from long-haul trucking, delivery, to shared economy and small commercial fleets we’re seeing. And we were prepared for it. We’ve made the Crouse acquisition for that reason. We’ve built up our binding authorities and our MGUs in transportation. And then habitational. Maybe the second largest leading loss leader in the reinsurance world, doing a lot of damage in the standard market, we see that increasing in flow.
And the rates continue to rise even in the non-admitted marketplace. Any type of venue business where large crowds gather, unfortunately, whether it’s universities, stadiums, large sports venues, we see that pouring in. And then one of our traditional long tail, high hazard classes of business, consumer product liability, we see a tremendous amount of that pouring into the channel. Lots of demand for our solutions there. So it’s really the loss leaders and the high-hazard niches within the casualty segment.
Meyer Shields: Okay. Thank you very much.
Operator: Our next question comes from the line of Michael Ward with Citi. Please proceed with your question.
Michael Ward: Thanks, guys. I think the – so on the margins, I think year-to-date margins are like a little over 30%. And the guide is for 29.5% to 30%. I know it’s not that big of a difference, but just wondering what you’re expecting to drive lower margin in 4Q. Is it simply hiring?
Jeremiah Bickham: It’s hiring continued investments in the business that we’re doing perpetually, and there is still a little bit of a lingering effect of the hiring we made in 2022 that will have an impact in Q4. It’s getting less as time goes on, but there’s still an impact in Q4 from that.
Michael Ward: Okay. Thank you. And then the three – the benefits businesses that you’ve acquired, just wondering sort of how they fit together or complement each other. I think they’re relatively smaller. So curious how the integration effort differs from your wholesale P&C deals.
Patrick Ryan: Great question. You’re right. They do differ, but they were very deliberately targeted, the first two ACE and Point6 are basically distributors and quite effective distributors. AccuRisk, is, in fact, a managing general underwriter that specializes in medical stop loss, but has a really excellent integrated health plan which is a major part of our strategy. We have a terrific management team, a very experienced outstanding management team. So that helps tie those three together. But AccuRisk also has skills that we believe are going to be important to the distribution and building of the entire plan, which is that they’ve got an ability to manage group captives in addition to the integrated health plan. And we believe the funding of self-insured plans often are going to migrate in the group captives.
Also, we believe that there’s a really strong need by retailers generally, maybe not the top two or three or four or five, but they need help. And that’s why we’ve gone into it to provide these services to our clients. So it really runs through the top 100, I have to say, the top pick at five, need help in executing on these opportunities. And so we feel that this foundation of these three now really gives us a product to take the market that will solve for the needs of these retail brokers. So this is a step-by-step process. More to come, but we really believe that together now, we have close to $400 million of medical stop loss premium. And as we’ve said in the past, Self-insurance is migrating quickly in different segments of the commercial market.
Many smaller firms in 100 to 200 and even sometimes smaller than that, migrating into self-insurance. And so the ability to help them provide medical stop loss and then to get them an integrated health plan to supplement that has been our goal. And then ultimately, as we said in the past, we believe that the funding often as we go in the future here is going to be through group captive funding mechanisms. And so AccuRisk brings us that as well.
