Think about that and try to manage that risk for the book as a whole.

Yeah, I mean, that's the normal course of business, and that would be a vector and a thing that would be looked at and managed and thought about all the time. Oftentimes, State National gets involved with very specific kinds of risk or very specific products, and I wouldn't say there are industry-wide aggregation events that are as relevant to some of the selections they would make. that would be the case sort of for the industry as a whole. But they do have an over 40-year history of managing those processes and that kind of risk quite well. State National has been a great investment for us, a great contributor. We paid roughly $900 million for that back in 2017, even including the events of this last quarter, earning since that time cumulatively over a billion dollars. They are disciplined, first-class Just the daily business work, their operations.

Andrew might have one. Andrew, just adding one thing. It's Andrew Crowley. When we think about aggregation, I think you do want to look at it two ways, one of which is the programs that are originating, the other of which is the reinsurers. And I can confirm that we do look at both. And in fact, as a result of the work we've been doing, it will result in some collateral top-ups for similar lines of business with other reinsurers who are in financially healthy positions, but we will have collateral increases as a result.

Okay, that's good to hear. And just final question, since a lot of these fronting insurers are pretty thinly capitalized because they see the risk, I'm curious if this loss will and Per State National's ability to do business. And if so, under what conditions would the parent provide support? Thank you.

Yeah, State National is part of the family and it is well capitalized and continues to be so. We move capital around between different subsidiaries on a regular basis. It's normal course of business. So State National is in good shape and will continue to be so from a capital point of view.

Okay, thanks.

As a reminder, if you'd like to ask a question, please press star then one on your touch-tone phone. Your next question comes from the line of Mark Hughes with Truist. Mark, your line is open. Please go ahead.

Yeah, thanks. Good morning. Just on State National, just sort of curious what you see in terms of new business opportunities with State National. and what it might say about just broader capacity flows within the P&C space. And then I think related to the ongoing discussion, what do you see in terms of, I guess, terms and conditions, capacity providers being eager for risk sharing, that sort of thing, just how much demand and then what are the What's the competitive environment and the ask on the part of potential partners?

Right. I can't really speak to what others are going to do and industry wide comments. I can tell you that state national operations that has and will continue to operate with discipline and professionalism and doing their homework and making sure things are buttoned up.

And as Simon alluded to earlier, we care about the bottom line more than the top line.

They'll continue to operate with that focus, as does and the rest of the industry.

Yeah, I hear you definitely. How about the flow of business or opportunities? Any kind of reflections on capacity, looking at it through the state national lens?

Andrew has a thought. Yeah, I would put it in the camp of normal course ins and outs. So there are times where programs will naturally sunset and move on, and there's times where new opportunities arise. I wouldn't put the trajectory as unusually up or down in that regard. and in fact if you just go back over a five-year time horizon you would see modest growth at State National and some publications would point to industry growth well above that which is a reflection of State National continuing to picket spots where its terms and conditions can be met and letting go of spots where it's best suited for another party.

And I do want to pick up on that because I think that speaks to the beauty and the and a long-term time horizon and the ability to make good long-term decisions and not be under unusual short-term quarterly pressure is really one of the keys and one of the factors that has allowed the double-digit compounding, the relentless compounding that's been going on around here for decades. So obviously State National's front and center and it's in everybody's mind right now, but this is the sort of thing that we can absorb, learn from Improve, and the Markel Group system and all the individual operating businesses out there are not overreacting. They're making the good long-term decisions that as a result of this is a pretty powerful map over a long period of time, and we fully expect that to continue.

Appreciate that. Thank you.

This concludes our question and answer session. I would like to turn the conference back over to Tom Gayner for any closing remarks.

Thank you so much for joining us. Appreciate your interest and support, and we look forward to connecting with you again soon. Thank you.

The conference call has now concluded. Thank you for attending today's presentation. You may now disconnect.