So we think doing more in-person physical inspections in addition to continuing to leverage quick photo claim capabilities is the right thing to do to best manage loss cost going forward and that’s what we intend to do to ensure that we’re operationally excellent in claims and again, paying what we owe but eliminating any leakage in the system and we’re prepared to invest in the claims organization to be able to execute on that. So in terms of the expense ratio, the LAE ratio as part of our adjusted expense ratio. We’re still committed to hitting the 23 by the end of next year. The investments we’ll make in claims are inclusive of that goal. We think we can do both.
Unidentified Analyst: Got it. And then I just wanted to get your thoughts on longer-term severity drivers that you’re seeing in terms of medical inflation and any impacts from the UAW strike?
Mario Rizzo: Sure. So we’ll start with medical inflation. And you’ll note that we talked about our severity expectations in auto being about 9% currently which has improved from the 11% we talked about last quarter. All that improvement came from physical damage coverages. Our outlook on casualty and injury severity is unchanged. It didn’t get worse but it’s consistent with where we were last quarter. And the drivers behind that continue to be medical inflation more attorney representation, higher levels of treatment being pursued kind of all the components of both kind of economic and social inflation that have driven injury severities up. Overtime, those will continue to be headwinds for us. But as we — again, as I talked about on the physical damage side, as we’ve adapted our claims processes to take into account those inflationary trends, we’ve seen some good progress.
So we’re looking to settle claims earlier in the cycle and we’ve seen a real improvement in terms of reduction in pending injury claims as well as faster settlement times on injury claims. We’re using things like analytics and testing AI models to identify accidents where injuries are likely and those that have a higher likelihood of potentially being represented by attorney so that we can further accelerate claimant contact time and get out ahead of the process and manage the overall claim process. So we’re doing things proactively to help mitigate some of those inflationary impacts. And we’ll continue to do that. And like I said, we did see some stability in injury severity trends during the quarter.
Operator: [Operator Instructions] And our next question comes from the line of Elyse Greenspan from Wells Fargo.
Elyse Greenspan: My first question, during the quarter, you guys spoke about looking to buy some additional aggregate stop-loss reinsurance. Do you have any update on what you’re doing on the reinsurance side in terms of looking to protect your capital position?
Jesse Merten: Yes, Elyse. Thanks. This is Jess. We have talked a lot about our reinsurance program in general. As you know, we have a robust reinsurance program that reduces our overall capital levels. We’ve talked more recently about the aggregate cover. At this point, we don’t have specific updates about the potential transaction. As I’ve talked about a number of times, we’re looking at whether or not we can economically reduce overall risk and target capital. And to the extent we find a structure where we can get that done, we’ll do it. And to the extent we can’t get it done economically we’ll move on and look at other options. So I would say, as it relates to this quarter, no updates. We continue to be interested in understanding what might be available to attract some new capital. sources into the industry and make them available. But we don’t have anything firm to talk about at this point on that.
Elyse Greenspan: And then my second question, you guys highlighted that you’re looking into a potential transaction with the benefits business. Were there any diversification credits that you guys got from a capital perspective by owning the benefits business?
