TriNet Group, Inc. (NYSE:TNET) Q4 2023 Earnings Call Transcript

So, they will be buying plans with higher deductibles with more of a coinsurance type relationship, et cetera, would be what I anticipate. But it’s something we’re watching very closely, especially with pharma costs, which obviously are getting a lot of press [ph] these days.

David Grossman: Right. And sorry, just one last thing just on workers’ comp. Is there — it sounds like you expect favorable experience in 2024. Did I hear that right?

Kelly Tuminelli: Yes. We are expecting continued favorable experience in 2024 related to workers’ compensation.

David Grossman: And will that be just less of a tailwind in 2024 than it was in 2023? Or is it a tailwind year-over-year?

Kelly Tuminelli: I think it’s less of a tailwind. We had some very favorable prior period development in 2023. I do not expect it at the same level as we move into 2024. We tend to be relatively conservative reservers in general as we’re looking at emerging trends in our workers’ comp book. But I think our workers’ comp team is one of the best in the industries as well at working with our clients and making sure we’re ensuring safe workplaces and I think that gives us a competitive advantage as well.

David Grossman: All right. All right, guys. Well, thank you very much. Burton, good luck, and I’m sure we’ll be in touch. So, thanks again.

Burton Goldfield: Yes, I look forward to seeing you. Thanks. Bye, bye.

Operator: Thank you. This concludes today’s question-and-answer session and today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.