Mark Hughes: And so nothing unusual this quarter in the Reinsurance & Monoline excess.
Rob Berkley: Rich, is there anything that you can think of?
Rich Baio: No, I think it’s for the same reasons that we’ve been talking about and that you alluded to, Rob.
Rob Berkley: Excellent. Thank you.
Operator: [Operator Instructions] We’ll take our next question from Yaron Kinar with Jefferies.
Yaron Kinar: Thank you. Good afternoon. My first question, and I may be paraphrasing what I think I heard from you, but I think you’re not taking the foot off the pedal in terms of rate. At the same time, you are achieving a ROE of about 20% new money rates would suggest upside there. So why is there a need to continue to aggressively push rate here? Is it that you worry about medical inflation, social inflation and once they rear there had they quickly impact margins?
Rob Berkley: Well, I don’t think it’s once they rear their heads. I think their head is fully reared at this stage, and the neck just keeps growing. So from my perspective, it is exactly what you suggested, it is loss cost trend. And while perhaps there’s some evidence that financial or economic inflation is slowing, though still elevated relative to what it’s been in the recent past. There is no evidence that social inflation is abating at all. And as a result of that, we’re just going to keep pushing. And at a minimum, we need to keep up with that.
Yaron Kinar: Got it. And then we haven’t heard in a while about the international book. Can you maybe give us a quick update there. Is it margin accretive, dilutive for the quarter for year-to-date? How growth patterns developing there?
Rob Berkley: It’s accretive. We have some terrific businesses outside of the United States. Run by some outstanding people with a shared set of values that we have in other parts of the business, very focused on a lot of the things that we talked about, particularly risk-adjusted return. And it is certainly not dilutive to the franchise overall.
Yaron Kinar: Got it. If I could sneak one last one, if I may. On the property book in the loss picks there. assume those develop a bit faster than you see in the casualty line. So how long before you start updating those? Is it mostly frequency driven and we could see those start to move according to the actual frequency within a couple of quarters? Or does it take longer?
Rob Berkley: It takes a little bit of time. We look at it every 90-days or so and don’t want to get ahead of ourselves. I think there’s two pieces to it. One is how do we think about attritional or, if you will, the risk book versus how do we think about the cat exposure. The cat piece is a little bit of a different story, as I was at least trying to suggest earlier, we have a cat load that we build in, and we’re not going to release that prematurely. We’ll have that roll over from quarter-to-quarter. As far as the attritional goes, we just want to give it a little bit of time to see how it plays out. But yes, it’s not — it shouldn’t be measured in years and years.
Yaron Kinar: Okay. Thank you very much.
Rob Berkley: Thank you.
Operator: And that concludes the question-and-answer session. I’d like to turn the call back over to Rob Berkley for any additional or closing remarks.
Rob Berkley: Okay. Lisa, thank you very much for hosting us. Thank you to our colleagues for participating in the call. I think just going back to some of the earlier comments, the table is set, and it’s pretty visible how it’s set. I think the earnings power of the business is just going to be growing for the foreseeable future. more likely than not, we’re going to get the double benefit of both of our core activities, both the underwriting and the investing and the momentum should continue. So thank you again, and we will look forward to speaking with you early next year. Have a good night.
Operator: This concludes today’s presentation. Thank you for your participation, and you may now disconnect.
