And then the rate changes, which we’ve indicated do have a bit of a lag from new to renewal as we get these filings approved and implemented, will start to come through on an earned rate basis as we move through subsequent quarters. We are on a path to profitability, but I’m going to stop short of putting a specific quarter out there.
Grace Carter: Thank you.
John Marchioni: Thank you.
Operator: Thank you. Our next question comes from Paul Newsome from Piper Sandler. Your line is now open.
Paul Newsome: Good morning. Thanks for the call. Almost as a follow-up here. In the past, we’ve seen claim trends diverge between private passenger auto and commercial auto, but maybe it’s converging now. Could you just kind of maybe contrast what you’re seeing in those two books and where they may or may not be different in – from a claims inflation perspective?
John Marchioni: Yes. So, I think from an auto physical damage standpoint, I think the trends were fairly well aligned. Those were the ones that were driven by inflationary impacts. And I think you saw those stay fairly well aligned and continue to be fairly well aligned. I think from a liability perspective, you might have seen a little bit of the difference on the social inflationary impacts, generally with us and in an industry, you’ve got higher limits profile on commercial auto BI than you do on personal auto BI and with movement in litigation rates. I do think you probably saw a little bit more of a lag where it impacted commercial auto more quickly than it might have impacted personal auto. So, I think those are probably the two differences.
But ultimately, the societal factors that are driving social inflationary trends will ultimately impact both lines, personal and commercial similarly, but the magnitude might look a little bit different just because of a difference in limit profiles.
Paul Newsome: That’s all I had. . I will appreciate the help very much. Thank you.
Operator: Thank you. Our next question comes from Derek Han with KBW. Your line is now open.
Derek Han: Good morning, and thank you. So just going back to the guidance, I completely understand your conservatism just given the uncertainty and elevated loss trends. But if we’re thinking about just how should we think about the pricing reaccelerating to 7% in commercial? And just the assumed loss trends for the year? I think last quarter, you talked about 6.5% loss trends. And I’m just wondering if there’s an update to that number?
John Marchioni: So, the 6.5% we cited in January for the full year, that broke down to 6% on casualty and 7% on property. And as Mark indicated earlier in his prepared comments and then in a subsequent question, we don’t see the need to change those at this point. And I think – and again, we always want to make sure we talk about loss trends, separating casualty from property because they’re different. And casualty, that 6% trend that we mentioned is embedded in our loss picks. And a quarter into the year, we or anybody else would be very hard-pressed to say there’s enough reported activity in frequency and certainly not in severity to say that they’re going to make an adjustment downward in loss trend, and we’re certainly not going to do that.
