Neil Spector: Sure. Thanks. Well, first, I’m sure you’ve seen the news that several large national carriers have kind of withdrawn writing new business in both those markets due to the challenges. However, in Florida specifically, we haven’t seen any additional liquidations and there’s been no reduction in the ratings of the carriers that are there. So there’s still availability in that market of carriers. And you may have seen recently a press release we put out in the last quarter showing how citizens, which is the state run insurer is leveraging some of our aerial imagery data to help with evaluation of properties in Florida. So that’s really stable as far as between the last time we reported. And now California, there’s certainly challenges both in the amount of time it takes to get rates approved and also in what tools you’re allowed to use in Florida as far as pricing goes and those continue although the regulators in California are seriously looking at the potential to use more tools in the future to help with challenges like wildfire.
Lee Shavel: And I would add to that, Andrew, and I think that gives a great kind of current sense of where things are. Neil and I were in Washington, D.C. last week meeting with a number of the trade associations just to understand how we can be helpful to the industry from a data perspective. And one thing that was very clear is that the Florida and California are both very engaged with the industry to understand what steps could be taken to improve the health of those markets. I think they understand the risk and the challenges. They obviously face some political pressure, but we’ve been encouraged by their openness to discussing how they can improve the market dynamic for the carriers within each of those markets. And that’s an intense level of dialogue that could ameliorate some of kind of the early pressures that we saw.
Operator: Your next question comes from the line of Jeff Meuler with Baird. You may now go ahead.
Jeff Meuler: Yes. Thanks. I’d imagine we’re at the time of year where you’re starting to send invoices on 2024 pricing. So can you just talk through how you’re thinking about it relative to the historical context, just given the cross currents of still elevated inflation, but maybe it’s coming down the P&C insurance, industry profitability challenges and then just not sure how things like core lines play into that pricing realization versus discrete upsell. Thank you.
Elizabeth Mann: Yes. Thanks, Jeff, for the question. Obviously, we’re looking at it. It’s still early in the cycle, and I’m not in a position to quote any numbers or any thoughts on 2024. The data on 2022, while it’s still being finalized, it does show net written premium growth still in an elevated level around the eight — slightly north of 8% that has tapered from the 2021 growth, but still relatively high on a historical basis. I think Lee pointed to both that environment, but also the fact that it is a function of the challenges and the desire to move towards profitability that our carriers, our customers are seeing. And so we are balancing those two things as we go into the rate — the pricing cycle for next year.
Lee Shavel: I think those are the two core elements. One, the impact of premium growth, which as we indicated, remains strong, as well as the value that we are creating, particularly in core lines where we’ve increased the number of data sets, we’ve increased the ability of our clients to utilize that data. And so we certainly look to capture the value that we’re creating for our clients there and all of those factor into our pricing considerations.
Operator: Your next question comes from the line of Russell Quelch with Redburn. Your line is now open.
Lee Shavel: Russell, are you there?
Operator: Russell, your line is now open.
Lee Shavel: Moving to the next question.
Operator: Your next question comes from the line of Toni Kaplan with Morgan Stanley. You may now go ahead.
Toni Kaplan: Thank you. Lee, I was hoping you could talk about the M&A pipeline. Any areas of particular interest, maybe technology, just given you highlighted the digital transformation theme earlier. Just wanted to ask about sort of how — what would be interesting and how you’re seeing levels of assets right now. Thanks.
Lee Shavel: Thanks, Toni. So the first thing that I would say is, hopefully is as evident by kind of what we have been doing has been a primary focus on our internal operations and what we can accomplish with the core business. And we’re particularly focused on the growth objectives that we’ve set, the margin objectives that we’ve set. And we feel it’s important coming after — coming off of Investor Day that we are focused on demonstrating what the core franchise is able to deliver. So in that regard, we are not looking at any substantial large acquisitions that would be transformative. We obviously are entirely focused on insurance right now. And so that’s the orientation. We do maintain active engagement on smaller mid-size opportunities; generally sub $100 million, where we feel there may be a high quality product that has gotten initial traction with the industry and where we can add substantial value by accelerating its adoption.
In many cases, our clients feel more comfortable adopting a product when they know that they have the strength and the stability and our capabilities behind it, or we can enhance that product by improving the data set, improving the efficiency or the technology that’s driving it. And we’ve had success with that in a number of areas, probably most notably our acquisition of FAST on the life side, which has been a textbook case of where we can add value in those areas. We continue to be excited about the marketing opportunity, even though as we mentioned in our earlier comments, the advertising environment has been a headwind for that. But we see broader appetite for those and we’ll look to across all of our businesses to see where there might be a technology or a product or a data set that is relevant.
So I wouldn’t say that there is anything in particular, we really are aware of it across all of our businesses, and we want to make certain that we don’t miss an opportunity to enhance one of our businesses if there is something that is truly additive.
Operator: Your next question comes from the line of Andrew Steinerman with J.P. Morgan. Your line is now open.
