But when — I think we understand what they’re trying to do and we are managing through it. So do I think that this is going to be a radical sea change? No. But are we conscious of it? Yes, we are. And I do not have the loss ratio in front of me but we will follow up with that for you, Mike.
Mike Zaremski: Okay. And I guess lastly, we’ve obviously — we and others value your insights. So when you’re — you’ve been talking a lot about medical inflation is brewing. In the CPI data, at least, it looks like it’s inching higher but still looks a bit tame versus historic levels. Is this thesis kind of based on — similar to what you just said about just talking with your folks on the front lines and understanding the macro and kind of you feel that there’s going to be more inflation coming? Or are you actually seeing it? For example and I’ll be quiet, Travelers commented today that the workers’ comp inflation is still negative overall for them.
Robert Berkley: I think the frequency trend is very attractive. I would — I think as far as the medical trend goes, I don’t believe that it’s a negative and I believe it’s going to be ticking up and that’s just based on industry data that is available. I think if people choose to dig in, they will find out.
Operator: Your next question comes from Josh Shanker with Bank of America.
Josh Shanker: So my first question, I just been asked a little bit — earlier today, one of your competitors or maybe not completely a competitor, they reported a significant acceleration in the renewal price change for business written and they said it was pretty broad in their portfolio. And then, that said, 8.2% renewal price change is insignificant but it’s fairly stable with what it was last quarter. Has anything — the mix changes over time but would you say the market today is materially different than the market 3 months ago? Has anything you identified happening dynamically right now in the pricing of business?
Robert Berkley: I think more people are starting to realize that they need to do something about rate. So I’m not going to comment specifically on other market participants. But whoever it is that you may be referring to, maybe they just recognize that they need more. And that’s why they decided to put their foot harder down on the pedal. We had a view as to what we need and what rate adequacy is for some period of time and we feel comfortable where we were. It’s consistent with where we — what we believe we need today. So again, I think that we feel as though that we’re in a pretty good place.
Josh Shanker: Okay. And if my model is right, I think the quarter enjoyed the most share repurchase you’ve done on dollar value basis anytime in 15 years. It suggests to me that you probably find the stock attractive at the current value. At the same time, this quarter, you did a 15%, 16% operating ROE in a quarter with a lot of cat losses and poor results on the investment fund portfolio which I think is a pretty good result given the headwinds.
Robert Berkley: Did you say poor results in the investment portfolio?
Josh Shanker: I mean the investment funds portfolio.
Robert Berkley: Okay, yes. Okay, yes. Understood.
Josh Shanker: Yes. Yes. And I mean that’s volatile. We know it is. But I think it’s a pretty good result. What I’m saying, you have a lot of headwinds and you still had a good result.
Robert Berkley: Yes.
Josh Shanker: The repurchases are a choice but they’re also a cost. You could have put that $300 million into more underwriting but you bought back the stock instead. Can you walk us through, I guess, the capital utilization model and how you think about the trade-off between the value of Berkley stock and the value of putting money to work in the 2023 insurance marketplace?
