Robert Berkley: Yeah. So we’re very focused on risk-adjusted return. And we think volatility, as you point out, is an important part of thinking about risk. Do I think that we are going to dramatically shift the risk profile of the organization to become a heavy cat exposed writer? No. But do I think that there is opportunities within the property market where rates are going to get to a point that they haven’t been in some number of years, and the risk return balance makes more sense than it has? Yes, I do. And to that end, are we going to be prepared to participate in a more meaningful way than we would if it was a less attractive market? Yes, sir, we will. But do I think you should think about we’re going to dramatically shift our risk profile and how we think about volatility. No, sir. I don’t think you should.
Yaron Kinar: Okay. And then I think in response to a previous question, you talked about increasing your premium retention, just given the dynamics in the reinsurance market. Can you also maybe talk a little bit about any structural changes that you may have had in your reinsurance program, whether it’s lower ceding commissions or higher retention rates or move to , what other changes can you call out here?
Robert Berkley: Yeah. I think ultimately, on a net basis, it’s going to prove to be something very similar for the business and by extension for our shareholders. As I said, the retention moved up incrementally relative to the scale of the business and the earnings power of the business on a quarterly basis, forget about on an annual basis. So again, I think that you should not expect that in the event of a cat, we have a dramatically different risk profile. And that, again, is that’s by design.
Yaron Kinar: And maybe a follow-up to that. Are there lines of business where your appetite is somewhat curtailed by the fact that reinsurance appetite or structures have changed.
Robert Berkley: No.
Yaron Kinar: No. Okay. Thank you.
Robert Berkley: Fortunately for us, we have a lot of long-term relationships on the amongst reinsurance partners. And I think that they are conscious of the fact that we are an organization that is a collection of people of expertise and discipline. And I think people understand that we are gross line underwriters.
Yaron Kinar: Thank you very much.
Robert Berkley: Thanks for the question. Have a good evening.
Yaron Kinar: You too.
Operator: We’ll go next to Brian Meredith at UBS.
Robert Berkley: Hey, Brian
Brian Meredith: Hey Rob. How are you doing? Just a couple of ones here for you. Excellent. God Couple of brokers you’ve been citing the lack of M&A and kind of transactional stuff going on this quarter versus the fourth quarter last year is a reason for strong organic growth. Are you all involved in that business? Could that perhaps have been part of kind of a difficult comp headwind for someone of your like professional liability in other areas?
Robert Berkley: Yes. So to the point that you’re raising, we kind of — we do plan the transactional space. I perhaps mistakenly lump that in there with D&O. They oftentimes go hand-in-hand. And yes, I think that part of what we’re seeing in the D&O market is a competitive environment, but even more so, it’s just a reduction in demand. During the heyday of D&O a couple of years ago or over the past couple of years. That was really in part not just driven by losses and discipline on the underwriting side, it was the IPOs and the specs were enormous. That level of activity And on the transactional side, I think as we all have an appreciation, the level of M&A activity has slowed dramatically as well. So yes, there’s a bit more competition there, but even more so, it’s the reduction in demand than the addition of supply.
