Robert Berkley: Yes. Sure, Josh and thanks for the question. And if I keep it too high level, we’re very happy to catch up offline. But ultimately, we look at the business today, we look at where things are going tomorrow. We want to make sure that we are well positioned from a capital perspective to have not just what we envision our need are but plus a cushion. And when the day is all done, to the extent that we have a surplus of capital beyond what we have today, plus — beyond what we need today plus and see we need tomorrow plus a cushion, then we’re going to think about what’s the most efficient way and effective way and thoughtful way to return that to the people that it belongs to, that being the shareholders. Obviously, there are different tools that we can use to return that capital.
Part of the analysis when we think about the returning of the capital is not just what do we think the value of the business is today and what is our view on what real book value is, we also think about what the earnings power of the business is for the foreseeable future. And then we make what I believe is a thoughtful decision, with all of that and a few other things taking into account the best way to return the value to the shareholders. So that’s sort of a long story short. Do I believe that we are able to continue to grow the business at a pretty healthy pace? Yes, I do. Do I believe that we’re going to be able to continue to generate very healthy returns? Yes, I do. Do I think we’ll be able to do that with an eye towards risk-adjusted return and do it in a consistent way?
That is certainly the expectation. So, if you want to get a bit more into the details, we can try and do that offline. But we are not going to just try and hold on to capital that we don’t need. In addition to that, we’re conscious of what the capital needs will be in the future and we’re aware of the fact that certain rating agencies are reexamining potentially what their view is going to be and we have a view as to what that may mean for us.
Operator: Your next question comes from Mark Hughes with Truist.
Mark Hughes: I appreciate the call. On the Reinsurance segment, your loss ratio was pretty low, hasn’t been that low in a while. Is that just good experience in the quarter? Or is this maybe the impact of cumulative rate increases over the last few years?
Robert Berkley: I think it’s a combination of both good underwriting and a job well done by many of our colleagues. And again, we also had a bit of positive development coming through there.
Mark Hughes: And then in the GL line, you had a nice acceleration sequentially back up into double-digit growth. You’d mentioned the challenges around the plaintiffs’ bar and the inflation but you seem to be enthusiastic. Any additional commentary about what you’re seeing in GL?
Robert Berkley: Look, we — places that we’re growing, it’s because we like the opportunity. I would tell you, a meaningful amount of the growth in that product line is coming from our colleagues that are managing E&S businesses.
Mark Hughes: And then finally, the casualty re was down, presumably a judgment on your view on — again, on the plaintiffs’ bar. But is that something you’d probably likely to shy away from here in the foreseeable future?
Robert Berkley: No. It’s not so much the plaintiffs’ bar, though. Obviously, that’s a contributor to how we think about loss cost and trend and rate adequacy. But it would seem as though the reinsurance marketplace struggles to have discipline across the board. So just as they’re getting more disciplined in the property space, would seem as the professional and liability space may not have the same discipline it had yesterday.
