Nic Iacoviello: Okay. Got it. All right. I guess I just had one more macro I guess. Specific to Hurricane Ian, right, it seems like the reinsurers and the cat modeling firms are still holding on to that $50 billion industry loss figure. But I mean it looks like ground-up losses from the primaries are implying a lower amount than that. I’m wondering what you guys have seen in terms of claims development, if you had a similar view in losses trending lower than that $50 billion at the industry level?
Steve Donaghy: Nick, there’s so much involved in the industry level that I’m going to leave that to those experts. We pegged Ian a $1 billion event. And through the development thus far and the benefits of the timing, we’re sticking with the $1 billion estimate that we released at the time of the hurricane. And we feel good about that number as we sit here even taking into account IBNR and other things in the future.
Nic Iacoviello: All right. That’s all I had. Thank you.
Operator: One moment for our next questions please. It comes from the line of Paul Newsome with Piper Sandler. Please proceed.
Paul Newsome: Good morning. Sorry, I got myself a little confused here, but could you talk a little bit more about reserve impacts in the quarter positive negative? Start with there just to straighten that.
Frank Wilcox: Yes. So the biggest difference year-over-year when you look at the net ratio which was I think $113.7 million for the three months ended ’22 versus 87% this year. The biggest difference would be the difference between the impact from Ian last year, which on a consolidated basis was $111 million versus the $45 million. So the net loss ratio changed by 26 points. That difference in the impact from the storms was about 25 points of that. And then comparatively speaking prior year development of the $17.7 million that Steve highlighted compares to $2.7 million last year, so that’s a $15 million. And then, of course Alder continues to adjust claims for the Ian storm, they generated profits of about $18.7 million versus $5 million. So that’s a little bit of an offset there. But when you kind of flush that away, the biggest impact would be the difference in the storms year-over-year.
Paul Newsome: Right. So, are we looking at sort of ex cat, ex reserve development improvements? Or if we adjust all that, and maybe talking about prospectively from that perspective as well?
Frank Wilcox : Well, right now, I mean, we see a lot of favorable trends from an operational standpoint — number of claims coming in, number of represented claims, litigated claims, the benefit of which will manifest in the future and that’s all coming from the favorable legislation. But as we stand here today we’re being conservative in our current accident year loss pick. So when you’re looking at the larger of the two insurance entities, we’re booking to a higher pick this year so far for the first nine months than we are — than we were first nine months of last year.
Paul Newsome : Could we maybe explore that a little bit more why the loss pick is up not down? You’re pushing through an enormous amount of rate you’ve had obviously — I guess, there’s some peg of claims inflation in there. But then I guess there’s no benefit from potential tort reform in that peg as well is that kind of the way to think about it? Or is there something you want to be thought of there?
Steve Donaghy : Well, I think, Paul we need to — we look at it from a conservative perspective. And as we’ve talked about the legislation still hasn’t impacted our entire book of business. So as that flows through the book of business, and as we look to the future, we see a lot of very positive developments that I believe — that I think will be reflected in future years. And again, when we look into the future, we look at potential rate reductions in Florida as a result of the legislation. We see a lot of positive impacts. And as you know, the repurchase decision in the quarter reflects our optimism as we look forward as a result of a whole lot of things impacting our business.
