Alexander Kramm: Just maybe quickly on the international side. I think 23% growth year-over-year. I know that’s not organic, but still pretty impressive. Can you just maybe give us an update where you’re seeing the most growth in those businesses? And then maybe related to that, as historically viewed, those businesses are a disparate collection of different businesses in different regions. So curious if there’s any efforts to maybe bring those businesses closer together or if you’re already seeing any synergies between those businesses or if it is still just a lot of different disparate things.
Lee Shavel: Thank you, Alex. It’s a great question. So I think the first question relates to the overall growth. And I think when we look at the businesses on an organic basis, I think we are generally viewed, as we’ve spoken before, and we continue to believe that they have and will continue to drive double-digit growth within the — within our business. And so I think that’s kind of the baseline. We continue to see opportunity on that front. Your question on the coordination, I think, is an important one. And I would say that each of those businesses are serving distinct insurance industry constituencies. And the opportunity, I think, has been less to tie all of those products together from a single client perspective, but to partner more effectively with the U.S. team to mix and the international team to make certain that we are integrating our expertise, our data, some of the investments that we’ve made in the U.S. to enhance and strengthen those client — or those product sets.
And so I think we’re seeing a heightened level of partnership in that regard, but not so much tying together, for instance, the claims and the underwriting businesses as well. Another dimension, which I referenced earlier is that I think that we are seeing an opportunity to partner with institutions within Europe that see that value and through their existing distribution networks have an ability for us to deliver some of that value in partnership with other players within that market. And so that, I think, becomes an enhancement opportunity for those products as well as some of even our U.S.-based products and technology that can be applied there.
Operator: Your next question comes from the line of Heather Balsky with Bank of America.
Heather Balsky: I was really curious about the catastrophe bond piece of your business. There’s been some really strong data out there, and it seems like there’s some outlook for continuation of that. What’s driving that? And can you also remind us just how you benefit from strength in that market?
Elizabeth Mann: Yes. Thanks, Heather. Yes, it is a strong market. I think it’s — what’s driving it is both the need — the increased catastrophe risk and the need for diversifying the set of investors in that space of risk. And for new investors, it’s their own desire to diversify and find uncorrelated areas of investment. So that’s been driving strength in that cat bond market. How we benefit from it is our extreme event business is one of the primary providers of models and assessment of that risk, so that the investors and the issuers of those cat bonds can agree to transact on the pricing by assessing the risk.
Lee Shavel: And Heather, the — what we are seeing that is driving that is both demand from investors for noncorrelated returns and interest, particularly in this hard market from an insurance standpoint, what are perceived to be more attractive returns. We’re also seeing that in terms of more capital being attracted into excess and surplus lines and reinsurance generally. And it speaks to, I think, the ongoing development and the increasing sophistication of the portfolio — active portfolio management of the insurance industry that is an opportunity for us given our modeling capabilities, given the loss costs and the rate modeling activities that we have. And that has been something that we have been engaged in thinking about at an enterprise level in terms of how we can support the development of that market.
One example would be there is a category of insurers that are ILS managers, insurance-linked securities managers. And those have been modeling clients of ours and also represent opportunities for us to build broader relationships and how our suite of products can serve their needs as they manage external sources of capital.
Operator: [Operator Instructions]. Your next question comes from the line of George Tong with Goldman Sachs.
George Tong: In the early part of last year, subscription revenue growth was in the 9% range. And over the past 2 quarters, growth was in the 7% to 8% range. What’s a reasonable and sustainable rate of growth for subscription revenue? And what are the top 1 or 2 factors that you believe will drive either acceleration or deceleration from current levels?
Elizabeth Mann: Yes. Thanks, George. We don’t forecast subscription growth for you. We do — we obviously give our medium-term target range for total revenue growth. That’s 6% to 8% organic constant currency, and subscription has historically been 80% of that. So that’s kind of what we can say numerally. In terms of drivers for acceleration and deceleration, I think all of the things that we’ve been talking about are investment in our products, our customer engagement and our industry expertise drive strength in the subscription revenue, both from a renewal, from a new customer base and from a pricing perspective. Headwinds can come with — we’ve talked about this before, with potential attrition or industry consolidation or [indiscernible].
Operator: Your next question comes from the line of Gregory Peters with Raymond James.
Charles Peters: Great. So Lee, in your comments, you talked about the hard market in non-life insurance. And one of the things that’s becoming apparent is that the pricing trends are going to begin to moderate. So building on Elizabeth’s last answer, how does a market that’s more normal affect subscription and transactional revenue growth as we look ahead?
Lee Shavel: Thanks, Greg, and thanks for coming back for seconds. We appreciate it. So I think that we are seeing — I would first challenge that we are seeing kind of continued pressures on the industry, both in terms of ongoing inflation as well as increased risk that they are experiencing, that seemingly is continuing to support premium growth as well as kind of natural expansion in coverage for the industry. So at this point, based upon the financial reports and our engagement with clients, we have not seen early signs of that market. In fact, a lot of the reading that I have seen has been to a sustained hard market. But we do have to anticipate at some point that there may be some pressure from a margin standpoint. And in that context, our products and services remain critical in achieving a higher level of operational efficiency within the business in order to maintain or improve that combined ratio as well as the efficiency of making good underwriting decisions.
