Jeff Farber: Absolutely. So, obviously, everything gets re-planned and re-baselined based on the guidance that we have. And so, the 30.8%, while flat to 2022, is a 50 basis point improvement over a two-year period or a 30 basis point improvement over the 2022 guidance that we gave.
Meyer Shields: Okay. That was helpful.
Jack Roche: On the agency compensation side, as we look at that every single year, there’s puts and takes on the direct compensation as well as the profit sharing or bonus plan calculation. So, you’ll see some ups and downs on that, but that’s embedded in this expense ratio.
Meyer Shields: Okay. No, that’s perfect. That’s helpful. The second question, and I don’t know if this is meaningful, but if we tease out the exposure unit growth from the pricing and rate changes in Core Commercial and Specialty, it seems like exposure unit growth is decelerating in Core Commercial and picking up in Specialty. Is that random? Is there something actually going on there? And should we expect that to continue going forward?
Jack Roche: So great question, actually. If you look at our pricing overall in Core Commercial, we have made progress in terms of getting rate up and holding it stable. We expect that, that will continue. Exposures on the property side will continue to go up. We are ratcheting up insurance to value appropriately and making sure, as Dick said, that certain occupancies and business types get reflected more than just the general increases. The casualty exposures for many classes are driven by payroll and/or sales, and those will fluctuate, particularly if the economy hits different sectors in different ways. And we saw a little of that frankly, in 2022. So, we try to reflect that. We’re focused mostly on rate in the casualty lines because of that, because when those exposures come down, generally loss costs tend to follow that.
I think in the Specialty Lines, I think, for the most part, our exposures have been growing because there is some property also in our Specialty portfolio, but exposures aren’t as sensitive to those payroll and sales. And so, I don’t think you’re going to see that same kind of up and down, if you will, on the casualty side of Specialty.
Meyer Shields: Okay. Should we infer that there’s maybe more not property exposure but property premium coming into the mix in Specialty relative to Core Commercial?
Jack Roche: No, I would not come to that conclusion. I think it’s just less downside on some of the casualty exposure, particularly when you think of workers’ comp or the sales on manufacturing and retail and wholesale, it just doesn’t have that dynamic in it.
Meyer Shields: Okay. Perfect. Thank you so much. That’s very helpful.
Jack Roche: Thank you, Meyer.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Oksana Lukasheva for any closing remarks.
Oksana Lukasheva: Thank you all for all your questions today, and we’re looking forward to talking to you next quarter.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
