Jeff Farber: We’re getting rate meaningfully above loss trend. And so we feel optimistic about our ability to have some improvement in the loss ratio going forward. From time to time, you have particularly higher or lower individual losses for property. I think a year ago, we happened to have had some lower levels losses this particular quarter, a little bit higher. But I’m pleased with how that business is producing at 58.5%, but I think we have a little bit of opportunity to improve that going forward as the rate earns in.
Unidentified Analyst: Perfect. That’s helpful. My second question is on Personal Auto. I saw like a slight reserve charge there. I know it’s very small. Just wondering if you can add more color on that? Just want to make sure I’m not missing anything behind it.
Jeff Farber: Can you clarify the question? I think I missed a word or two. It was about Personal Auto and what was the concern on the slide?
Unidentified Analyst: It’s not a concern, just there’s a slight reserves charge on that?
Jeff Farber: So in Personal Lines, overall, we had no development. Auto was favorable and Home was slightly — it was adverse. And in Home, it was actually the umbrella. And truth be told, it’s actually Auto that’s showing itself in the umbrella. And I think we talked in our prepared remarks about some of the catastrophic activities such as pedestrian hits and some of those things are driving us to increase our picks for both prior and current period for umbrella.
Operator: The next question will come from Grace Carter with Bank of America.
Grace Carter: Hi, everyone. The data on limits that you gave for the Liability exposures in Core Commercial is really helpful. Just kind of looking at continued growth in the Small Commercial book versus the underwriting and Middle Market over the past few quarters? Even though that’s kind of geared towards the property side. I was wondering if you expect any sort of perceptible impact on the limits going forward in the liability book just kind of given maybe a greater emphasis on smaller accounts?
John Roche: Yes, Grace, this is Jack. Given our current trajectory of growth patterns, I think those — that limits profile will be either equally as impressive or maybe even a little bit better because we are growing our smaller business, both in the Core Lines and in Specialty at a faster clip. And we believe we have a real competitive advantage in both of those areas. That said, I think as we move through this liability environment. Longer term, our hope and expectation is, is that we can put ourselves in a position so we can participate in the mid-range Specialty business and eventually middle market in a more robust way. But this is an environment where I think caution and prudence is appropriate. But I don’t want you to miss the point that our relevance with agents and our ability to take the company to the next level, has some bearing on whether we can navigate these trends that we’re all going through and grow all of our businesses into the future.
So that’s how we’re approaching it.
Grace Carter: And I guess following up on that, I think last quarter, you all had mentioned maybe a greater emphasis on Liability Lines versus history going forward. I was just wondering if given kind of, I guess, the noise is growing loud around social inflation around the industry, if there’s been any tweaks to that plan so far on the magnitude of the shift? And just kind of any sort of progress on how you’re thinking about that so far?
John Roche: Yes. I think we — I think at the time, we were clear about the fact that this was not going to be a major step change in one direction or the other. We were clearly disadvantaged last year by having more property in our mix than some of our competitors. I believe we’ll be less disadvantaged and potentially advantaged going forward if the liability trends continue to present themselves. So I think to your point, Grace, we’re not having an identity crisis with our book mix, we’re trying to optimize. And where we see particularly in certain geographies, in certain sectors. We are moving forward on our liability mix. Bryan spoke about that, particularly in E&S and the lower end of Management Liability and our Healthcare businesses. We have great margins, great transparency to what growth looks like. So overall, I think you’re right, it will be somewhat balanced. We’re pretty excited about our business mix going forward.
Operator: The next question is a follow-up from Michael Phillips with Oppenheimer.
Michael Phillips: Just your last couple of questions there. On Small Commercial kind of prodded me on this one. Small Commercial has been kind of a sweet spot for the industry for a while. You guys are killing it there. But I guess because it’s been such a sweet spot, it seems like — it feels like at least going back a couple of years, that’s a place where many people said they would want to go. And not sure you’ve seen them come into that space and maybe the competitive landscape has changed? And if not, here’s why not? Maybe what’s the moat to get into that space and be as successful as you guys are?
John Roche: Yes, Mike, I think that’s very perceptive, and I’ll let Dick speak to that. But I do believe that Small Commercial a business that takes significant investment and frankly, insight in terms of where the profit pools are? What pricing sophistication needs to look like? And so it is not something that you can just turn the switch and get into, and there have been carriers that have highlighted that and either not made the progress that they intended to make or in some cases, regressed. So Dick, maybe you can build on that.
