保德信金融集團 (PRU) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Prudential's quarterly earnings conference call. (Operator Instructions). As a reminder, today's call is being recorded. I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.

女士們，先生們，感謝你們的支持，歡迎來到保誠的季度收益電話會議。 （操作員說明）。提醒一下，今天的通話正在錄音中。我現在將把電話轉給 Bob McLaughlin 先生。請繼續。

Good morning, and thank you for joining our call. Representing Prudential on today's call are Charlie Lowrey, Chairman and CEO; Bob Falzon, Vice Chairman; Andy Sullivan, Head of International Businesses; and P. Jim, our Global Investment Manager; Caroline Ben, Head of U.S. Businesses; Ken Tanji, Chief Financial Officer; and Rob Axel, Controller and Principal Accounting Officer. We will start with prepared comments by Charlie, Rob and Ken, and then we will take your questions.

早上好，感謝您加入我們的電話會議。代表保誠出席今天電話會議的是董事長兼首席執行官 Charlie Lowrey； Bob Falzon，副主席；國際業務主管 Andy Sullivan；和我們的全球投資經理 P. Jim； Caroline Ben，美國業務負責人；首席財務官 Ken Tanji；財務總監兼首席會計官 Rob Axel。我們將從 Charlie、Rob 和 Ken 準備好的評論開始，然後我們將回答您的問題。

Today's presentation may include forward-looking statements. It is possible that actual results may differ materially from those predictions we make today. In addition, this presentation may include references to non-GAAP measures. For a reconciliation of such measures to the comparable GAAP measures and the discussion of factors that could cause actual results to differ materially from those in the forward-looking statements, please see the slide titled Forward-Looking Statements and -- non-GAAP Measures in the appendix to today's presentation and the quarterly financial supplement, both of which can be found on our website at investor.prudential.com. And now I'll turn it over to Charlie.

今天的演示文稿可能包含前瞻性陳述。實際結果可能與我們今天做出的預測存在重大差異。此外，本演示文稿可能包括對非 GAAP 措施的引用。有關此類措施與可比的 GAAP 措施的協調以及可能導致實際結果與前瞻性陳述中的結果存在重大差異的因素的討論，請參閱標題為前瞻性陳述和 - 中的非 GAAP 措施的幻燈片今天介紹的附錄和季度財務補充，兩者都可以在我們的網站 investor.prudential.com 上找到。現在我將把它交給查理。

Thank you, Bob, and thanks to everyone for joining us today. As we look back on 2022, I am proud of the progress we have made executing against our strategic priorities. During the year, we continued to transform our business to be less market-sensitive and better positioned to deliver sustainable long-term growth. We exceeded our $750 million cost savings target 1 year ahead of schedule. And our rock-solid balance sheet provided the financial strength to navigate the evolving macroeconomic environment. I'll provide an update on each of these areas, beginning with our business transformation.

謝謝你，鮑勃，感謝大家今天加入我們。當我們回顧 2022 年時，我為我們在執行戰略重點方面取得的進展感到自豪。在這一年裡，我們繼續對我們的業務進行轉型，以降低對市場的敏感度，並更好地實現可持續的長期增長。我們提前 1 年超額完成了 7.5 億美元的成本節約目標。我們堅如磐石的資產負債表提供了應對不斷變化的宏觀經濟環境的財務實力。從我們的業務轉型開始，我將提供每個領域的最新情況。

Turning to Slide 3. During 2022, we reduced the overall market sensitivity of our business by completing the sales of the full service retirement business and the PALAC block as well as the runoff of traditional variable annuities. We simultaneously continue to invest in the long-term sustainable growth of our business through programmatic acquisitions and partnerships in emerging markets. In Africa, we acquired a minority interest in AlexForbes, a leading provider of financial advice, retirement, investment and wealth management in the South Africa.

轉到幻燈片 3。在 2022 年期間，我們通過完成全面服務退休業務和 PALAC 區塊的銷售以及傳統可變年金的流失，降低了我們業務的整體市場敏感性。同時，我們通過在新興市場的程序化收購和合作夥伴關係，繼續投資於我們業務的長期可持續增長。在非洲，我們收購了 AlexForbes 的少數股權，AlexForbes 是南非領先的財務諮詢、退休、投資和財富管理提供商。

We also continued to grow our third-party distribution network in Latin America, particularly in Brazil, where third-party distribution now accounts for about 50% of sales and complements our strong Life Planner channel. Additionally, we advanced our vision to be a global leader in expanding access to investing, insurance and retirement security. For example, we completed the second largest pension risk transfer transaction in U.S. market history with IBM and closed several major longevity risk transactions, including the $8 billion transaction we completed in the fourth quarter with the Barclays Bank U.K. Retirement Fund.

我們還繼續擴大我們在拉丁美洲的第三方分銷網絡，特別是在巴西，第三方分銷現在約佔銷售額的 50%，並補充了我們強大的 Life Planner 渠道。此外，我們提出了成為擴大投資、保險和退休保障渠道的全球領導者的願景。例如，我們與 IBM 完成了美國市場歷史上第二大養老金風險轉移交易，並完成了幾筆重大的長壽風險交易，包括我們在第四季度與巴克萊銀行英國退休基金完成的 80 億美元交易。

These transactions underscore our leadership in these markets as well as the strength of our interconnected business model. Our IBM PRT transaction provided PGIM with more than $8 billion in additional assets under management and is a good example of how we leverage synergies across our businesses. We see a strong pipeline of opportunities in these markets in the year ahead. We continue to expand our product offerings to meet the increasing customer needs for financial solutions.

這些交易凸顯了我們在這些市場的領導地位以及我們相互關聯的商業模式的實力。我們的 IBM PRT 交易為 PGIM 提供了超過 80 億美元的額外管理資產，並且是我們如何利用跨業務協同效應的一個很好的例子。我們在未來一年看到這些市場中的大量機會。我們繼續擴大我們的產品供應，以滿足客戶對金融解決方案日益增長的需求。

For example, building on the success of our FlexGuard annuity products we introduced during the fourth quarter, FlexGuard Life, an index variable universal life product. In PGIM, we expanded our private loan capabilities through PGIM Private Capital, including our direct lending capabilities. This broad proprietary origination platform provides our insurance businesses and our institutional clients with unique investment opportunities and is another example of our self-reinforcing business model. We also invested in enhanced customer experiences that blend human touch with advanced technology.

例如，基於我們在第四季度推出的 FlexGuard 年金產品的成功，FlexGuard Life 是一種指數可變萬能壽險產品。在 PGIM，我們通過 PGIM Private Capital 擴展了我們的私人貸款能力，包括我們的直接貸款能力。這個廣泛的專有發起平台為我們的保險業務和我們的機構客戶提供了獨特的投資機會，是我們自我強化商業模式的另一個例子。我們還投資於增強客戶體驗，將人性化與先進技術相結合。

In Brazil, for example, we expanded our digital sales application to expedite same-day policy delivery and processing with greater automation. In addition, as the administrator for the IBM PRT transaction, we introduced new technology capabilities to expedite the onboarding experience for 100,000 IBM pensioners and as part of our continued efforts to refine customer experience, we implemented a company-wide initiative to better understand the evolving needs of all our customers around the globe and in turn, deliver the most effective products and solutions to meet their needs. Moving to Slide 4.

例如，在巴西，我們擴展了我們的數字銷售應用程序，以通過更高的自動化程度加快當日保單交付和處理。此外，作為 IBM PRT 交易的管理員，我們引入了新技術功能來加快 100,000 名 IBM 養老金領取者的入職體驗，並且作為我們不斷努力改善客戶體驗的一部分，我們實施了一項全公司的計劃，以更好地了解不斷發展的全球所有客戶的需求，進而提供最有效的產品和解決方案來滿足他們的需求。移動到幻燈片 4。

We achieved $820 million of annual run rate cost savings, exceeding our target of $750 million, 1 year ahead of schedule. We reached this milestone by streamlining and automating the way in which we operate while improving the customer and employee experience. We leverage new systems and technologies to enhance our digital underwriting, claims and fund processing capabilities, improving efficiency while reducing customer wait times. For example, for many of our individual life customers, we reduced the underwriting time from 22 days to 22 seconds. Our group insurance claims processing is now 3x faster. And fund verification to process new annuity sales now takes 2 to 3 days, down from 2 to 3 weeks.

我們實現了 8.2 億美元的年度運行成本節約，超過了我們 7.5 億美元的目標，比計劃提前了一年。我們通過簡化和自動化我們的運營方式，同時改善客戶和員工體驗，達到了這一里程碑。我們利用新系統和技術來增強我們的數字承保、理賠和資金處理能力，在提高效率的同時減少客戶等待時間。例如，對於我們的許多個人壽險客戶，我們將承保時間從 22 天減少到 22 秒。我們的團體保險索賠處理速度現在快了 3 倍。處理新年金銷售的資金驗證現在需要 2 到 3 天，從 2 到 3 週縮短。

We also implemented a hybrid work model for our employees that reduced our U.S. real estate footprint by 50%, equating to approximately $50 million in annual run rate savings. And finally, we adopted a continuous improvement mindset that helps us proactively identify and execute on cost savings opportunities that enhance customer and employee experiences and continue to improve our competitiveness going forward. Turning now to Slide 5, our rock solid balance sheet and disciplined approach to capital deployment have helped Prudential navigate financial and macroeconomic challenges for nearly 150 years. and 2022 was no exception.

我們還為我們的員工實施了混合工作模式，將我們在美國的房地產足跡減少了 50%，相當於每年節省大約 5000 萬美元的運行費用。最後，我們採用了持續改進的心態，幫助我們主動發現並執行成本節約機會，從而增強客戶和員工體驗並繼續提高我們未來的競爭力。現在轉到幻燈片 5，近 150 年來，我們堅如磐石的資產負債表和嚴格的資本配置方法已幫助保誠應對金融和宏觀經濟挑戰。 2022 年也不例外。

Our financial strength, including our AA ratings is supported by $4.5 billion in highly liquid assets at the end of the fourth quarter as well as a high-quality, well-diversified investment portfolio. We continue to balance investments in the growth of our businesses with returning capital to our shareholders. During the fourth quarter, we returned more than $800 million to shareholders through dividends and share repurchases for a total of over $7.5 billion since the beginning of 2021. For 2023, our board has authorized up to $1 billion in share repurchases as well as a 4% dividend increase beginning in the first quarter. This represents our 15th consecutive annual dividend increase.

我們的財務實力（包括我們的 AA 評級）得到第四季度末 45 億美元的高流動性資產以及高質量、多元化的投資組合的支持。我們繼續平衡對業務增長的投資與向股東返還資本。在第四季度，我們通過股息和股票回購向股東返還了超過 8 億美元，自 2021 年初以來總計超過 75 億美元。到 2023 年，我們的董事會已授權高達 10 億美元的股票回購以及 4從第一季度開始的股息增長百分比。這是我們連續第 15 年增加年度股息。

Looking ahead, our strategic progress, financial strength and self-reinforcing business system, coupled with the higher interest rate environment, position us well to be a leader in expanding access to investing, insurance and retirement for our customers across the globe. Now before turning it over to Rob, I'd like to extend a special thank you to all our employees for their dedication to our customers and our communities. Together, we have made significant progress on our transformation and are fulfilling our purpose of making lives better by solving the financial challenges of our changing world. And now over to Rob to talk about the fourth quarter financial results and to provide an update on our business performance.

展望未來，我們的戰略進展、財務實力和自我強化的業務系統，再加上更高的利率環境，將使我們成為為全球客戶擴大投資、保險和退休機會的領導者。現在，在將它交給 Rob 之前，我想特別感謝我們所有的員工，感謝他們為我們的客戶和社區所做的貢獻。我們一起在轉型方面取得了重大進展，並正在實現我們的目標，即通過解決不斷變化的世界所帶來的金融挑戰來改善生活。現在讓 Rob 談談第四季度的財務業績，並提供我們業務績效的最新情況。

Thank you, Charlie. I'll provide an overview of our financial results and business performance for our PGIM U.S. and international businesses. them was $4.7 billion or $9.46 per share for 2022 and $1.2 billion or $2.42 per share in the fourth quarter. These results reflect lower variable investment and fee income, partially offset by improved mortality as COVID has transitioned to an endemic phase, an increase in spread income due to rising interest rates and underlying business growth. In addition, full year results include the strengthening of reserves from our annual assumption update and the gain on the sale of the PALAC legacy variable annuity block.

謝謝你，查理。我將概述我們 PGIM 美國和國際業務的財務業績和業務績效。 2022 年為 47 億美元或每股 9.46 美元，第四季度為 12 億美元或每股 2.42 美元。這些結果反映了較低的可變投資和費用收入，部分被 COVID 過渡到流行階段導致的死亡率提高、利率上升和潛在業務增長導致的利差收入增加所抵消。此外，全年業績包括通過我們的年度假設更新加強準備金和出售 PALAC 遺留可變年金塊的收益。

Our GAAP net loss for the quarter was $1.53 per share and included net realized investment losses and related charges and adjustments of $800 million, largely reflecting the impacts of rising interest rates. This loss also included a $700 million goodwill impairment due to the reduction in the estimated fair value of Assurance. While Assurance is making good progress in many areas and had a profitable fourth quarter, the impairment reflects lower growth expectations, a higher discount rate applied to future cash flows, reflecting macroeconomic conditions and lower publicly traded peer valuations.

我們本季度的 GAAP 淨虧損為每股 1.53 美元，其中包括淨已實現投資虧損和相關費用以及 8 億美元的調整，這在很大程度上反映了利率上升的影響。由於 Assurance 的估計公允價值減少，該損失還包括 7 億美元的商譽減值。儘管 Assurance 在許多領域取得了良好進展並在第四季度實現了盈利，但減值反映了較低的增長預期、適用於未來現金流量的較高貼現率、反映宏觀經濟狀況以及較低的公開交易同行估值。

Turning to the operating results from our businesses compared to the year ago quarter. PGIM, our global investment manager reported lower fees primarily due to lower assets under management, resulting from higher rates and equity market declines. Results of our U.S. businesses primarily reflected less favorable variable investment income, partially offset by the impact of higher rates on spread income and more favorable underwriting. The decrease in earnings in our international businesses primarily reflected lower spread income largely due to less favorable variable investment income and less favorable underwriting, including elevated surrenders in Japan due to the depreciation of the yen.

與去年同期相比，轉向我們業務的經營業績。我們的全球投資經理 PGIM 報告稱費用減少主要是由於利率上升和股市下跌導致管理資產減少。我們美國業務的業績主要反映了不太有利的可變投資收入，部分被較高的利差收入和更有利的承保的影響所抵消。我們國際業務收益的下降主要反映了較低的利差收入，這主要是由於可變投資收入和承保條件較差，包括日元貶值導致的日本退保增加。

Turning to Slide 7. PGIM, our global investment manager, has diversified capabilities in both public and private asset classes across fixed income, equities and alternatives, including real estate and private credit. PGIM's investment performance remains attractive with more than 79% of assets under management outperforming their benchmarks over the last 3-, 5- and 10-year periods. For 2022, PGIM experienced positive institutional net flows that were more than offset by retail outflows, primarily in fixed income, consistent with industry trends due to the rising rate environment. In the fourth quarter, PGIM experienced third-party net outflows of $11.7 billion, driven by public fixed income strategies across institutional and retail clients.

轉到幻燈片 7。我們的全球投資經理 PGIM 在固定收益、股票和另類投資（包括房地產和私人信貸）的公共和私人資產類別方面擁有多元化的能力。 PGIM 的投資業績仍然具有吸引力，在過去 3 年、5 年和 10 年期間，超過 79% 的管理資產的表現優於基準。 2022 年，PGIM 經歷了正的機構淨流量，但被零售流出所抵消，主要是固定收益，這與利率上升環境下的行業趨勢一致。在第四季度，PGIM 經歷了 117 億美元的第三方淨流出，這是受機構和零售客戶的公共固定收益策略的推動。

Institutional net outflows were driven by a few large client redemptions while retail net outflows reflected the impact of the rising interest rate environment on retail flows across the industry. As the investment engine of Prudential, the success and growth of PGIM and of our U.S. and international insurance and retirement businesses are mutually reinforcing. PGIM's asset origination capabilities, investment management expertise and access to institutional and other sources of private capital are a competitive advantage, helping our businesses bring enhanced solutions and create more value for our customers.

機構淨流出是由一些大客戶贖回推動的，而零售淨流出反映了利率上升環境對整個行業零售流量的影響。作為保誠的投資引擎，PGIM 與我們的美國和國際保險及退休業務的成功和增長是相輔相成的。 PGIM 的資產發起能力、投資管理專業知識以及獲得機構和其他私人資本來源的機會是一項競爭優勢，可幫助我們的企業帶來更好的解決方案並為我們的客戶創造更多價值。

Our insurance and retirement businesses, in turn, provide a source of growth for PGIM through affiliated flows that totaled $13 billion during 2022 as well as unique access to insurance liabilities. In addition, we continue to grow our alternatives business, which has assets in excess of $230 billion across private credit and real estate equity and debt and benefits from our global scale of market-leading positions. Notably, PGIM's private businesses deployed nearly $43 billion of gross capital in 2022. Turning to Slide 8. Our U.S. businesses produced diversified earnings from fees, net investment spread and underwriting income and benefit from our complementary mix of longevity and mortality businesses.

反過來，我們的保險和退休業務通過 2022 年總計 130 億美元的附屬流量以及獲得保險負債的獨特渠道，為 PGIM 提供了增長來源。此外，我們繼續發展我們的替代業務，該業務在私人信貸和房地產股權和債務方面擁有超過 2300 億美元的資產，並受益於我們在全球範圍內的市場領先地位。值得注意的是，PGIM 的私營企業在 2022 年部署了近 430 億美元的總資本。轉到幻燈片 8。我們的美國企業從費用、淨投資利差和承保收入中產生多元化收益，並受益於我們的長壽和死亡率業務的互補組合。

We continue to shift towards higher growth and less market-sensitive products and markets, enhance our customer experience while reducing costs by amplifying the use of e-capabilities and self-service tools and further expand our addressable markets. Retirement strategies achieved robust sales in fourth quarter and full year 2022 across its institutional and individual lines of business. Our Institutional Retirement business has market-leading capabilities with full year sales of almost $32 billion, driving record account values at the end of the year. This includes being selected for a 50% participation in a $16 billion pension risk transfer transaction and our fourth largest international reinsurance transaction of $8 billion in the fourth quarter.

我們繼續轉向更高增長和市場敏感度較低的產品和市場，增強我們的客戶體驗，同時通過擴大電子功能和自助服務工具的使用來降低成本，並進一步擴大我們的潛在市場。退休策略在第四季度和 2022 年全年在其機構和個人業務領域實現了強勁的銷售。我們的機構退休業務擁有市場領先的能力，全年銷售額接近 320 億美元，在年底創造了創紀錄的賬戶價值。這包括被選中參與價值 160 億美元的養老金風險轉移交易和第四季度 80 億美元的第四大國際再保險交易的 50%。

In Individual Retirement, product pivots have resulted in continued strong sales of more simplified solutions like FlexGuard and FlexGuard income, representing over $12 billion of sales since inception as well as increased fixed annuity sales. Our individual life sales were consistent through the year and reflect our earlier product pivot strategy with variable life products representing approximately 70% of sales for the year. And our group insurance benefits ratio has improved during the year from lower COVID mortality. Turning to Slide 9. Our international businesses include our Japanese life insurance companies, where we have a differentiated multichannel distribution model as well as other businesses aimed at expanding our presence in high-growth emerging markets.

在 Individual Retirement 中，產品轉嚮導致 FlexGuard 和 FlexGuard income 等更簡化的解決方案的銷售持續強勁，代表了自成立以來超過 120 億美元的銷售額以及固定年金銷售額的增長。我們的個人壽險銷售額全年保持一致，反映了我們早期的產品樞紐戰略，可變壽險產品約佔當年銷售額的 70%。由於 COVID 死亡率較低，我們的團體保險福利比率在這一年中有所提高。轉到幻燈片 9。我們的國際業務包括我們的日本人壽保險公司，我們在那裡擁有差異化的多渠道分銷模式，以及其他旨在擴大我們在高增長新興市場的影響力的業務。

In Japan, we are focused on providing high-quality service and expanding our geographic coverage and product offerings. Our needs-based approach and protection product focus continue to provide important value to our customers as we expand our product offerings to meet their evolving needs. In emerging markets, we are focused on creating a carefully selected portfolio of businesses in regions where customers' needs are growing, where there are compelling opportunities to build market-leading businesses and where the Prudential enterprise can add value. Our international businesses experienced their highest sales since the third quarter of 2020, including record sales in Brazil.

在日本，我們專注於提供高質量的服務並擴大我們的地理覆蓋範圍和產品種類。隨著我們擴展產品範圍以滿足客戶不斷變化的需求，我們基於需求的方法和保護產品重點繼續為我們的客戶提供重要價值。在新興市場，我們專注於在客戶需求不斷增長的地區創建精心挑選的業務組合，這些地區有建立市場領先業務的絕佳機會，而且保誠企業可以增加價值。我們的國際業務經歷了自 2020 年第三季度以來的最高銷售額，包括在巴西創紀錄的銷售額。

Compared to the prior year quarter, Gibraltar sales were up 20%, mainly driven by the life consultant channel, primarily from higher U.S. dollar sales. Life Planner sales were also up 17%, driven by continued momentum in Brazil's third-party distribution channel as well as higher sales in Japan. As we look ahead, we're well positioned across our businesses to be a global leader in expanding access to investing, insurance and retirement security. We continue to focus on investing in growth businesses and markets, delivering industry-leading customer experiences and creating the next generation of financial solutions to better serve the diverse needs of a broad range of customers. And with that, I'll now hand it over to Ken.

與去年同期相比，直布羅陀的銷售額增長了 20%，主要受生活顧問佢道的推動，主要是美元銷售額的增加。 Life Planner 的銷售額也增長了 17%，這主要得益於巴西第三方分銷渠道的持續增長勢頭以及日本銷售額的增長。展望未來，我們在我們的業務中處於有利地位，可以成為擴大投資、保險和退休保障渠道的全球領導者。我們繼續專注於投資於成長型企業和市場，提供行業領先的客戶體驗，並打造下一代金融解決方案，以更好地滿足廣大客戶的多樣化需求。有了這個，我現在將它交給 Ken。

Thanks, Rob. I'll begin on Slide 10, which provides insight into earnings for the first quarter of 2023 relative to our fourth quarter results. As noted, pretax adjusted operating income in the fourth quarter was $1.2 billion and resulted in earnings per share of $2.42 on an after-tax basis. To get a sense of how our first quarter results might develop, we suggest adjustments for the following items: First, variable investment income was below expectations in the fourth quarter by $125 million. Next, we adjust underwriting experience by a net $60 million as we normalize for fourth quarter experience and expect seasonality in the first quarter. And last, we expect other items to increase adjusted operating income by $91 million, primarily due to seasonally elevated expenses in the fourth quarter.

謝謝，羅布。我將從幻燈片 10 開始，它提供了與我們第四季度業績相關的 2023 年第一季度收益的洞察。如前所述，第四季度稅前調整後營業收入為 12 億美元，稅後每股收益為 2.42 美元。為了了解我們第一季度的業績可能如何發展，我們建議對以下項目進行調整：首先，可變投資收入在第四季度低於預期 1.25 億美元。接下來，我們將承保經驗淨調整 6000 萬美元，因為我們對第四季度的經驗進行了標準化，並預計第一季度會出現季節性。最後，我們預計其他項目將增加 9100 萬美元的調整後營業收入，這主要是由於第四季度的季節性支出增加。

If these items combined get us to a baseline of $3.01 per share for the first quarter. I'll note that if you exclude items specific to the first quarter, earnings per share would be $3.07. The key takeaway is that our underlying earnings power has improved due to business growth and the benefit of higher interest rates. While we have provided these items to consider, please note that there may be other factors that affect earnings per share in the first quarter. As we look forward, we have included other considerations for 2023 in the appendix. Turning to Slide 11. I'll now provide an update on the adoption of the new accounting standard for long-duration insurance contracts, which went into effect on January 1. The new standard applies to our GAAP financial statements and will have no direct effect on our statutory financial statements, cash flows or dividend capacity.

如果將這些項目加在一起，我們將在第一季度達到每股 3.01 美元的基線。我會注意到，如果您排除第一季度的特定項目，每股收益將為 3.07 美元。關鍵要點是，由於業務增長和更高利率的好處，我們的潛在盈利能力有所提高。雖然我們提供了這些要考慮的項目，但請注意，可能還有其他因素會影響第一季度的每股收益。展望未來，我們在附錄中包含了 2023 年的其他考慮因素。轉到幻燈片 11。我現在將提供關於採用新的長期保險合同會計準則的最新情況，該準則於 1 月 1 日生效。新準則適用於我們的 GAAP 財務報表，不會產生直接影響我們的法定財務報表、現金流量或股息能力。

We estimate that as of September 30, 2022, GAAP equity will increase by approximately $15 billion comprised of 2 components. Accumulated other comprehensive income, or AOCI, will increase by approximately $17 billion, primarily due to the remeasurement of long-duration liabilities with higher discount rates in our Japan business. Retained earnings will be reduced by approximately $2 billion, reflecting the reclassification of nonperformance risk gains from retained earnings to AOCI and other changes in reserves. Also of note, GAAP equity will continue to exclude certain unrealized insurance margins from products subject to LDTI. As of September 30, 2022, the estimated after-tax unrealized insurance margins related to those products are approximately $50 billion, primarily in our Japan business. These margins are an important factor in determining financial strength and assessing profitability.

我們估計，截至 2022 年 9 月 30 日，GAAP 股本將增加約 150 億美元，包括兩個部分。累計其他綜合收益 (AOCI) 將增加約 170 億美元，這主要是由於重新衡量了我們日本業務中貼現率較高的長期負債。留存收益將減少約 20 億美元，反映了從留存收益到 AOCI 的不良風險收益重新分類以及準備金的其他變化。同樣值得注意的是，GAAP 權益將繼續從受 LDTI 約束的產品中排除某些未實現的保險利潤。截至 2022 年 9 月 30 日，與這些產品相關的稅後未實現保險利潤率估計約為 500 億美元，主要在我們的日本業務中。這些利潤率是確定財務實力和評估盈利能力的重要因素。

And finally, we do not expect significant impacts from LDTI on our total underlying earnings power as impacts across our businesses will largely offset.

最後，我們預計 LDTI 不會對我們的總體潛在盈利能力產生重大影響，因為我們業務的影響將在很大程度上被抵消。

Turning to Slide 12. Our capital position continues to support our AA financial strength rating. Our cash and liquid assets were $4.5 billion at the high end of our liquidity target range. We have substantial off-balance sheet resources, including contingent capital and liquidity facilities. We remain thoughtful in our capital deployment, balancing the preservation of financial strength, investment in our businesses and shareholder distributions.

轉到幻燈片 12。我們的資本狀況繼續支持我們的 AA 財務實力評級。我們的現金和流動資產為 45 億美元，處於流動性目標範圍的高端。我們擁有大量資產負債表外資源，包括或有資本和流動性便利。我們在資本配置方面保持謹慎，平衡保持財務實力、業務投資和股東分配。

Turning to Slide 13 and in summary. We are transforming our businesses for sustainable growth. We exceeded our targeted cost savings 1 year ahead of plan and will maintain our discipline and continuous improvement mindset going forward. We continue to navigate the current macro environment with the financial strength of our rock solid balance sheet.

轉到幻燈片 13 進行總結。我們正在轉變我們的業務以實現可持續增長。我們比計劃提前 1 年超出了目標成本節約，並將在未來保持我們的紀律和持續改進的心態。我們繼續憑藉堅如磐石的資產負債表的財務實力應對當前的宏觀環境。

Now I'll turn it to the operator for your questions.

現在我會把它轉給接線員來回答你的問題。

(Operator Instructions) Our first question today is coming from Erik Bass from Autonomous Research.

（操作員說明）我們今天的第一個問題來自 Autonomous Research 的 Erik Bass。

Just hoping you could talk a bit more about how you're viewing excess capital. If we look at the pieces you provide, the pike RBC ratio is below the 400% level where it's run historically, think the SMR ratio looks in line and Holdco liquidity is within your target range, but at the low end, if we adjust for the planned debt call that you talked about on the last call. So if this suggests a little excess capital, but are there other pieces or sources that we should be considering?

只是希望你能多談談你是如何看待過剩資本的。如果我們查看您提供的數據，派克 RBC 比率低於歷史運行的 400% 水平，認為 SMR 比率看起來符合要求並且 Holdco 流動性在您的目標範圍內，但在低端，如果我們調整你在上次電話會議上談到的計劃中的債務電話會議。因此，如果這表明資本有點過剩，但我們是否應該考慮其他部分或來源？

Yes. Erik, it's Ken. Overall, we do feel good about our overall capital picture in multiple parts, as you suggest, but I thought it might be helpful to give it a little bit of an overall context for our capital management. We've had a very well-established and consistent approach. And which served us very well particularly last year as we look to shift our business to be less market-sensitive and grow while also maintaining financial strength and flexibility.

是的。埃里克，是肯。總體而言，正如您所建議的那樣，我們確實對多個部分的整體資本狀況感覺良好，但我認為為我們的資本管理提供一些整體背景可能會有所幫助。我們有一個非常完善和一致的方法。這對我們非常有用，尤其是在去年，因為我們希望將我們的業務轉變為對市場不那麼敏感和增長，同時保持財務實力和靈活性。

We closed the sales of our full service business and the PALAC variable annuity block last year, that released capital at attractive terms. And we also deployed capital to the second largest PRT transaction with IBM. We also, as we mentioned and discussed on our last call, absorbed the capital impact of the assumption update in our life insurance business and the noneconomic impact of higher rates on staffed capital.

去年，我們關閉了我們的全方位服務業務和 PALAC 可變年金塊的銷售，以有吸引力的條款釋放了資本。我們還為與 IBM 的第二大 PRT 交易部署了資金。正如我們在上次電話會議上提到和討論的那樣，我們還吸收了人壽保險業務假設更新的資本影響以及更高利率對員工資本的非經濟影響。

Again, that was expected. It's manageable, and we've appropriately addressed those capital implications. When you put that all together, we ended 2022 in a solid capital position. Our RBC ratios were above our AA objectives and our target there is to be above 3.75%. Our Japan solvency margin ratios are above their AA objectives. We have an HLA balance of $4.5 billion at the Holdco. And as you mentioned, that's at the high end of our target range. And we have a healthy outlook for our businesses with sustained profitability and free cash flow, so that led our Board to authorize $1 billion of share repurchases for next year -- or this year, actually, 2023, and that's reflective of our capital position as we end 2022. That also considers the free cash flow outlook for our businesses. and our opportunities to deploy capital and also the macro environment, whether that's the potential for another recession or other stress events.

同樣，這是預期的。這是可控的，我們已經適當地解決了這些資本問題。當你把所有這些放在一起時，我們在 2022 年結束時擁有穩固的資本狀況。我們的 RBC 比率高於我們的 AA 目標，我們的目標是高於 3.75%。我們的日本償付能力充足率高於其 AA 目標。我們在 Holdco 的 HLA 餘額為 45 億美元。正如你提到的，這是我們目標範圍的高端。我們對我們的業務有一個健康的前景，具有持續的盈利能力和自由現金流，因此我們的董事會授權在明年 - 或者今年，實際上是 2023 年，進行 10 億美元的股票回購，這反映了我們的資本狀況我們到 2022 年結束。這也考慮了我們業務的自由現金流前景。以及我們部署資本的機會以及宏觀環境，無論是再次衰退還是其他壓力事件的可能性。

So again, when we put that all together, we feel good that we're consistent with our AA objectives. We have a level of flexibility, and that's what our board considered when they issued where they authorized $1 billion in share repurchases for this year and increased our dividend 4%, which, again, is the 15th straight year of dividend increases. So hopefully, I gave you a much broader answer there, but I hope that's helpful context.

因此，當我們將所有這些放在一起時，我們再次感到很好，因為我們與我們的 AA 目標保持一致。我們有一定程度的靈活性，這就是我們的董事會在發行股票時考慮的問題，他們授權今年進行 10 億美元的股票回購，並將我們的股息增加 4%，這也是連續第 15 年增加股息。所以希望我在那裡給了你一個更廣泛的答案，但我希望這是有用的背景。

Yes. And then my second question was just hoping you could provide a bit more color on the company's sensitivity to short-term interest rates, which it seems like has been a big uplift, particularly in the individual retirement business. Hoping to get a little bit of the sensitivity there. And then just wondering if it were to reverse and the Fed were to cut interest rates would then you'd see kind of the earnings pattern for individual retirement move back lower?

是的。然後我的第二個問題只是希望你能提供更多關於公司對短期利率的敏感性的顏色，這似乎是一個很大的提升，特別是在個人退休業務中。希望在那裡獲得一點敏感性。然後只是想知道它是否會逆轉並且美聯儲會降息然後你會看到個人退休的收入模式回落嗎？

Erik, I'll start and then turn it over to Caroline to give a broader business context. But just from a sheer sensitivity to short-term rates, yes, we are benefiting from short-term rates. And generally, overall, our variable annuity business is sensitive to rates, both long term and short term. So a rise in both is actually helping us. In terms of short-term rates, we did see a pickup in earnings because we're earning a higher return from collateral, that's posted on our hedging positions, and that's driven by the uptick in short-term rates. But there's more dynamics going on broadly for the business. So maybe Caroline, I'll turn it over to you for that.

埃里克，我將開始，然後將其轉交給卡羅琳，以提供更廣泛的業務背景。但僅從對短期利率的絕對敏感性來看，是的，我們正從短期利率中受益。一般來說，總體而言，我們的可變年金業務對長期和短期利率都很敏感。所以兩者的增加實際上都在幫助我們。就短期利率而言，我們確實看到了收益的回升，因為我們從抵押品中獲得了更高的回報，這體現在我們的對沖頭寸上，這是由短期利率上升推動的。但是，業務範圍內還有更多動態。所以也許卡羅琳，我會把它交給你。

Yes, of course, Ken. So Erik, first, I should point out that the individual annuities market had a record year last year with over $300 billion of sales and our own individual retirement strategies business delivered strong sales and earnings, and our sales success continues to be driven by our FlexGuard suite of index variable annuities where we now have over $12 billion in sales clearly reinforcing our leadership position as a top 5 player in this market.

是的，當然，肯。所以埃里克，首先，我要指出的是，去年個人年金市場的銷售額創下歷史新高，銷售額超過 3000 億美元，我們自己的個人退休策略業務實現了強勁的銷售額和收益，我們的銷售成功繼續由我們的 FlexGuard 推動我們現在擁有超過 120 億美元的銷售額的指數可變年金套件，清楚地鞏固了我們作為該市場前 5 名參與者的領導地位。

We also saw, Erik, some strong growth in our fixed indexed and fixed annuity solutions with fourth quarter results twice that. of what we saw in the third quarter. Actually, in fact, more than 25% of our sales for the quarter came from these products. So ultimately, we're pleased with the progress we've made in this space. And we like the diversification these products bring to our overall business mix and the role they can play as a strong complement to our FlexGuard suite of solutions.

埃里克，我們還看到我們的固定指數和固定年金解決方案實現了強勁增長，第四季度的業績是其兩倍。我們在第三季度看到的情況。事實上，事實上，我們本季度超過 25% 的銷售額來自這些產品。所以最終，我們對我們在這個領域取得的進展感到滿意。我們喜歡這些產品為我們的整體業務組合帶來的多樣化，以及它們作為我們 FlexGuard 解決方案套件的有力補充所發揮的作用。

Next question today is coming from Tom Gallagher from Evercore ISI.

今天的下一個問題來自 Evercore ISI 的 Tom Gallagher。

Ken, should we think about that reduction being a planned use of the $4.5 billion of Holdco cash in 2023. I think you have a callable instrument in the middle part of the year of $1.5 billion. Should we assume your planning on calling that? Or you still expect -- should we expect that to remain outstanding?

肯，我們是否應該考慮在 2023 年計劃使用 45 億美元的 Holdco 現金。我認為你在今年年中有一個 15 億美元的可贖回工具。我們是否應該假設您計劃調用它？或者你仍然期望 - 我們應該期望它保持出色嗎？

Yes. generally our -- and again, I think I mentioned this on the last call, our overall level of debt has been pretty consistent over the last few years. And we do have the ability to call about $1.5 billion of debt this year in June. But that's up to us. We're not obligated to do so. It is our practice to prefund upcoming maturities and calls and we've factored that into our debt issuance plans last year.

是的。總的來說，我們的——我想我在上次電話會議上再次提到了這一點，我們的整體債務水平在過去幾年中一直非常穩定。我們確實有能力在今年 6 月份收回約 15 億美元的債務。但這取決於我們。我們沒有義務這樣做。我們的做法是預先為即將到期的債券和贖回債券提供資金，我們已將其納入去年的債券發行計劃。

Having said that, we're going to continue to evaluate the market conditions in our liquidity position and factor that into the decision to -- and the timing to call the debt or not. And we're also going to look at our overall funding needs going forward. And again, our discipline is to prefund upcoming plan. So it's really an ongoing cycle is the best way you should think of it.

話雖如此，我們將繼續評估我們流動性頭寸的市場狀況，並將其納入決定——以及是否收回債務的時機。我們還將研究未來的整體資金需求。再一次，我們的紀律是預先為即將到來的計劃提供資金。所以這真的是一個持續的循環是你應該想到的最好方式。

Okay. And then can you -- just for my follow-up, can you talk about how big of a GUL charge you took at -- for the -- at PICA for year-end? And any other, we'll call it, adjustments that we consider that occurred on a statutory basis at year-end between I assume there might have been AAT reserve releases or any other ins and outs that you can provide on the statutory impacts?

好的。然後你能不能——只是為了我的後續行動，你能談談你在年終的 PICA 上收取了多少 GUL 費用嗎？還有任何其他我們稱之為我們認為在年末法定基礎上發生的調整我假設可能有 AAT 儲備釋放或您可以提供的任何其他細節對法定影響？

Sure, Tom. We -- as we described, when we updated our assumptions for GAAP, we would be making those same assumption updates for stat and that -- for statutory purposes occurs in the fourth quarter. So that was -- our GAAP impact was about $1.4 billion. It is larger on a STAT basis. STAT tends to be more conservative, and that's what occurred in the fourth quarter. That was generally what led to the -- our RBC ratio in the fourth quarter going from above 400% to below it, but still, again, above our AA objective of 3.75. And we didn't make a capital contribution into PICA to achieve that again as we expected. So just a reminder of the moving parts there.

當然，湯姆。我們 - 正如我們所描述的那樣，當我們更新我們對 GAAP 的假設時，我們將對統計數據進行相同的假設更新 - 出於法定目的發生在第四季度。那就是——我們的 GAAP 影響約為 14 億美元。它在 STAT 基礎上更大。 STAT 往往更保守，這就是第四季度發生的情況。這通常是導致我們第四季度的 RBC 比率從高於 400% 下降到低於它的原因，但仍然再次高於我們 3.75 的 AA 目標。而且我們沒有像我們預期的那樣向 PICA 出資再次實現這一目標。所以只是提醒一下那裡的活動部件。

Next question today is coming from Suneet Kamath from Jefferies.

今天的下一個問題來自 Jefferies 的 Suneet Kamath。

I guess for Ken. Just curious, have you used Lotus Re yet and if and when you use it should we expect sort of the freed resources to be somewhere in that neighborhood of the $800 million capital contribution that you originally made?

我想肯。只是好奇，您是否使用過 Lotus Re，如果您使用它以及何時使用它，我們是否應該期望某種釋放的資源位於您最初提供的 8 億美元出資附近的某個地方？

Yes, thanks for bringing that up. We do have a company in Bermuda called Lotus Re, which is a reinsurer. And it does give us the capability to reinsure business to that entity, and we did so in 2022. As you mentioned, we initially capitalized it and then we reinsured a block of variable life business to that business -- to that entity in 2022, and that was a source of capital release. And all that was factored into our PICA outcomes for the year, which, again, we continue to be above 375.

是的，謝謝你提出來。我們在百慕大確實有一家名為 Lotus Re 的公司，它是一家再保險公司。它確實讓我們有能力為該實體的業務再保險，我們在 2022 年就這樣做了。正如你提到的，我們最初將其資本化，然後我們在 2022 年為該企業再保險了一部分可變壽險業務——對該實體，這是資本釋放的來源。所有這些都計入了我們今年的 PICA 結果，同樣，我們繼續保持在 375 以上。

And can you size that capital release?

你能確定資本釋放的規模嗎？

I don't think we want to put a precise number on it. It's an internal reinsurance transaction, but it does improve our flexibility.

我認為我們不想給出一個精確的數字。這是一項內部再保險交易，但它確實提高了我們的靈活性。

Got it. And then I guess my follow-up for Charlie. I guess, overnight, we saw some headlines that came out about -- I don't know if they were quoting you are referring to some comments that you made about Prudential's M&A strategy. and perhaps a change post I'm assuming the goodwill write-downs for Assurance IQ. So I just wanted to give you a chance to comment on that and kind of how you're thinking about M&A, especially as you think about that strategy around improving the earnings contribution from growth businesses that you talked about, I guess, 2 years ago?

知道了。然後我想我對查理的後續行動。我想，一夜之間，我們看到了一些頭條新聞——我不知道他們是否在引用你的話，指的是你對保誠的併購戰略發表的一些評論。也許是我假設商譽減記 Assurance IQ 的更改帖子。所以我只是想給你一個機會來評論一下你是如何考慮併購的，尤其是當你考慮提高成長型企業的盈利貢獻的戰略時，我想，我想，2 年前？

Sure, Suneet. Thanks for the question and our ability to clarify. Yes, we saw the headlines too, and we're slightly surprised -- the -- our strategy remains consistent with exactly what we have been doing. So what we've said is that we won't be investing in early-stage companies with less proven track records. What we're focusing on is developing a portfolio programmatic acquisitions, concentrating on more established businesses where we can expand the capabilities and scale of our existing businesses.

當然，蘇尼特。感謝您的提問和我們的澄清能力。是的，我們也看到了頭條新聞，我們有點驚訝——我們的戰略與我們一直在做的完全一致。因此，我們所說的是，我們不會投資於業績記錄不佳的早期公司。我們的重點是開發組合程序化收購，專注於更成熟的業務，我們可以在這些業務中擴展現有業務的能力和規模。

And this approach supports what you said, which is our strategy of growing PGIM and emerging markets and really focusing on asset management and high-growth international markets that will help increase our fee earnings and growth profile. And if you look at our recent -- most recent 4 transactions, which include ICEA, LION, Montana Capital Partners, custom Harvest Asset Management and most recently, Alexforbes. These are all examples of this approach of acquiring more established companies and are consistent with what we have done and what we will do going forward.

這種方法支持你所說的，這是我們發展 PGIM 和新興市場並真正專注於資產管理和高增長國際市場的戰略，這將有助於增加我們的費用收入和增長狀況。如果你看看我們最近的——最近的 4 筆交易，其中包括 ICEA、LION、Montana Capital Partners、custom Harvest Asset Management 以及最近的 Alexforbes。這些都是這種收購更成熟公司的方法的例子，並且與我們所做的和未來將要做的是一致的。

Next question is coming from Alex Scott from Goldman Sachs.

下一個問題來自高盛的 Alex Scott。

First one I had is on just sort of sources of cash flow as we think about 2023. You've talked about $1 billion of share repurchases, potentially some debt reduction. Could you talk about how that will be funded between PGIM cash flows, PICA in the U.S. businesses versus Japan. And specifically, I'm interested in particular in PICA, if you plan to take dividends out this year?

我的第一個問題是我們考慮到 2023 年時的現金流來源。你談到了 10 億美元的股票回購，可能會減少一些債務。你能談談這將如何在 PGIM 現金流、美國企業與日本的 PICA 之間提供資金嗎？具體來說，我對 PICA 特別感興趣，如果你計劃今年分紅？

Yes. Alex, it's Ken. Our businesses are generating free cash flow to maintain our shareholder distributions, but -- and also to support the growth of the business. And we do have diverse sources of cash flow to the parent company. That's provided by our business mix across our U.S. insurance and retirement PGIM and Japan businesses. And they're all expected to contribute over time, I think the way to think about our free cash flow ratio is it's been about 65% given our -- of our after-tax AOI, given our mix of business and growth. And we think that's about right. And we would expect, again, to receive capital from all of our businesses, including the PICA legal entity.

是的。亞歷克斯，是肯。我們的業務正在產生自由現金流以維持我們的股東分配，同時也支持業務的增長。我們確實有多種流向母公司的現金流來源。這是由我們在美國保險和退休 PGIM 和日本業務的業務組合提供的。而且他們都預計會隨著時間的推移做出貢獻，我認為考慮我們的自由現金流比率的方式是考慮到我們的稅後 AOI，考慮到我們的業務和增長組合，它大約是 65%。我們認為這是正確的。我們希望再次從我們所有的業務中獲得資金，包括 PICA 法人實體。

Got it. Second question I had is on Japan. Sales have picked up recently and looked pretty good. I guess, the premium growth is still a bit weaker on year-over-year comps and so forth. So I was just interested in what you expect from that, what kind of top line growth can we expect from that business?

知道了。我的第二個問題是關於日本的。最近銷量回升，看起來還不錯。我想，保費增長在同比補償等方面仍然有點疲軟。所以我只是對您的期望感興趣，我們可以從該業務中獲得什麼樣的收入增長？

So Alex, it's Andy. I'll take your question. Yes, you sort of mentioned some of the effects as we look back from the COVID pandemic. that obviously resulted in some headwinds from a sales perspective. But thankfully, as we sit here, those pandemic challenges have subsided quite a bit. we're exceptionally proud of our Japanese businesses. We've steadily increased our market share over time, and we've consistently ranked in the top 3 for new business face amounts every year of the last decade, that's generated significant earnings and cash flows for Prudential.

所以亞歷克斯，是安迪。我會回答你的問題。是的，當我們回顧 COVID 大流行時，您提到了一些影響。從銷售的角度來看，這顯然導致了一些不利因素。但值得慶幸的是，當我們坐在這裡時，那些大流行病的挑戰已經平息了很多。我們為我們的日本業務感到特別自豪。隨著時間的推移，我們的市場份額穩步增加，在過去十年中，我們每年的新業務面額一直位居前三，這為保誠帶來了可觀的收益和現金流。

Our strategy to grow the business is threefold. First, we're very focused on continuing to strengthen and expand both our captive and our third-party distribution; Second, we're going to continue to innovate and expand on the solutions that we deliver to our customers; and finally, and importantly, we remain laser-focused on delivering an outstanding customer experience with a particular emphasis under our digital capabilities. We're very, very proud and good at that. In fact, we're consistently ranked by J.D. Power's in the top 3 and often #1 in policy issuance, policy service and claims. The market remains highly attractive to us, and we intend to grow our position in the low single digits over time.

我們發展業務的戰略有三個方面。首先，我們非常專注於繼續加強和擴大我們的自保和第三方分銷；其次，我們將繼續創新並擴展我們為客戶提供的解決方案；最後，也是重要的是，我們仍然專注於提供卓越的客戶體驗，特別強調我們的數字能力。我們非常非常自豪並且擅長於此。事實上，我們一直被 J.D. Power 評為前 3 名，並且在保單簽發、保單服務和理賠方面經常排名第一。市場對我們仍然極具吸引力，我們打算隨著時間的推移在低個位數增長我們的地位。

Next question is coming from Ryan Krueger from KBW.

下一個問題來自 KBW 的 Ryan Krueger。

I had a follow-up on Japan. Have you seen any change in policyholder behavior in terms that may be driven by the weaker and volatile yen that we've seen over the last year regarding the FX products.

我對日本進行了跟進。您是否看到保單持有人的行為發生任何變化，這些變化可能是由我們去年在外匯產品方面看到的疲軟和波動的日元所驅動的。

Yes, Ryan, it's Andy again. I'll take the question. So given the rise in the U.S. dollar and the weakening of the Yen, we have seen an elevated level of surrenders in the business. The effect there is really some customers are looking to monetize their gains out of their non-yen products in yen terms. That being said, we saw this effect begin to decelerate in the month of December, and that deceleration has continued here in the month of January as the yen appreciated. So we would expect as the yen starts to stabilize, this effect will stabilize in the business.

是的，瑞安，又是安迪。我來回答這個問題。因此，鑑於美元升值和日元走弱，我們看到該業務的退保水平有所提高。結果確實有些客戶希望以日元計價從非日元產品中獲利。話雖如此，我們看到這種影響在 12 月份開始減速，並且隨著日元升值，這種減速在 1 月份繼續。所以我們預計隨著日元開始穩定，這種影響將在業務中穩定下來。

Got it. And then on the [SUL] charge, is there a chance that some of that could reverse from the AAT subtest from higher interest rates when you do the look back in '23?

知道了。然後在 [SUL] 費用上，當您回顧 23 年時，是否有可能從較高利率的 AAT 子測試中逆轉某些費用？

Ryan, it's Ken. I think you're referring to our asset adequacy testing. We're not expecting any significant change in our AAT reserves in light of the higher rate environment.

瑞恩，是肯。我認為你指的是我們的資產充足性測試。鑑於較高的利率環境，我們預計我們的 AAT 儲備不會有任何重大變化。

(Operator Instructions) Our next question is coming from Tracy Benguigui from Barclays.

（操作員說明）我們的下一個問題來自巴克萊銀行的 Tracy Benguigui。

A follow-up on your statutory reserve charge for your assumption update. Last quarter, Ken, you mentioned it would be absorbed within PICA's excess capital position. Has that changed in the quarter where the ultimate size ended up being higher than your expectations and also on like GAAP reserve charges, I understand that funding for a statutory reserve charge does not have to come in all at once in 4Q. So can you share if you booked a portion of it before 4Q?

跟進您的假設更新的法定準備金費用。上個季度，Ken，你提到它會被 PICA 的過剩資本頭寸吸收。在最終規模最終高於你的預期的那個季度，這種情況是否發生了變化，而且像 GAAP 準備金費用一樣，我知道法定準備金費用的資金不必在第四季度一次性全部到位。那麼可以分享下如果4Q前訂了一部分嗎？

Stacy, no, in terms of the assumption update, that is recorded in -- that was recorded in the fourth quarter, again, consistent with established practice for statutory reporting. And nothing new there to report came in as expected, and we did not -- we did not need to fund PICA with capital from Holdco as -- also as expected. So nothing really new there.

Stacy，不，就假設更新而言，記錄在 - 記錄在第四季度，再次與法定報告的既定做法一致。沒有什麼新的報告如預期的那樣出現，我們也沒有——我們不需要用 Holdco 的資金為 PICA 提供資金——也如預期的那樣。所以那裡沒有什麼新鮮事。

Okay. And your latest buyback authorization levels suggest you're not meeting your objective over 3 years of $11 billion of capital returns. So I'm just -- if you could walk us through what has changed since you set that objective. Was it just the reserve charge? Or is it something else like PBR? I guess my broader question is from this experience, are you rethinking the idea of coming up with a multiyear plan versus a singular year plan?

好的。你最新的回購授權水平表明你沒有達到 3 年 110 億美元資本回報的目標。所以我只是 - 如果你能帶領我們了解自你設定該目標以來發生的變化。只是預留費用嗎？還是像 PBR 之類的東西？我想我的更廣泛的問題是從這次經歷中得出的，你是否正在重新考慮提出多年計劃與單一年度計劃的想法？

Yes. Tracy, it's Ken. Just looking back here and as a reminder, we set that a 3-year objective in 2021 and the target was initially $10 billion over the 3-year period. Later in 2021, we increased that objective as cash flow for 2021 was very strong. And as I kind of highlighted earlier in the call, in 2022, last year, we managed through a number of significant items, which was our assumption update in our life insurance business, the jumping rates and the noneconomic impact on stat accounting and then we had the major PRT transactions.

是的。特蕾西，是肯。回顧一下，提醒一下，我們在 2021 年設定了 3 年目標，最初的目標是在 3 年期間達到 100 億美元。 2021 年晚些時候，我們提高了該目標，因為 2021 年的現金流非常強勁。正如我早些時候在電話會議中強調的那樣，在去年的 2022 年，我們管理了一些重要項目，這是我們對人壽保險業務的假設更新、跳躍率和對統計會計的非經濟影響，然後我們進行了主要的 PRT 交易。

And again, when we put that all together, we think we end up at the end of 2022 in a very competitive position from a capital standpoint and a healthy outlook for our businesses with sustained cash flow going forward. So yes, that's what got factored into the decision along with the outlook of the economy with the recession uncertainty. So the $1 billion will put us a little shy of the $11 billion, but it will only take about another quarter to achieve that.

再一次，當我們把所有這些放在一起時，我們認為從資本的角度來看，我們最終將在 2022 年底處於非常有競爭力的地位，並且我們的業務前景健康，現金流持續向前。所以是的，這就是決策中考慮的因素以及經濟前景和經濟衰退的不確定性。因此，10 億美元將使我們略低於 110 億美元，但只需要大約四分之一的時間就能實現這一目標。

Your next question is coming from Jimmy Bhullar from JPMorgan.

你的下一個問題來自摩根大通的 Jimmy Bhullar。

First, just could you talk about your sales pipeline in PGIM in both the retail and the institutional side and how that's looking?

首先，你能談談你在 PGIM 中零售和機構方面的銷售渠道嗎？它看起來如何？

Sure, Jimmy, it's Andy. We have a high degree of confidence in our approach in PGIM. As you've heard me say before, flows are an outcome of really 3 things: having a broad and diversified product portfolio great long-term investment results and great distribution. The bottom line is we've stayed very focused on those elements because we know they work. It has resulted in our strong track record over -- with positive flows in 18 of the last 20 years.

當然，吉米，是安迪。我們對我們在 PGIM 中的方法充滿信心。正如你之前聽我說過的那樣，流量實際上是三件事的結果：擁有廣泛和多樣化的產品組合、良好的長期投資成果和良好的分銷。底線是我們一直非常關注這些元素，因為我們知道它們有效。這導致我們在過去 20 年中的 18 年中取得了良好的業績記錄。

So we're continuing to expand our product range in vehicles. Just as an example, our ultrashort bond ETF ranked #2 in terms of net flow rate in its category. Second, we're continuing to invest in distribution on both the retail and institutional side. In retail, we're maintaining our high activity, high visibility approach with advisers. And in institutional, we added a significant number of new clients this year.

因此，我們將繼續擴大我們在汽車領域的產品範圍。舉個例子，我們的超短債 ETF 在其類別中的淨流動率排名第二。其次，我們將繼續投資於零售和機構方面的分銷。在零售業，我們與顧問保持著高活躍度、高知名度的方法。在機構方面，我們今年增加了大量新客戶。

And then obviously, finally, our long-term investment track record speaks for itself over 3, 5 and 10 years.

然後顯然，最後，我們在 3、5 和 10 年的長期投資記錄不言自明。

The predominant impact that we've seen has been a fixed income impact. And in particular, we believe that sustained higher rates are really good for the fixed income business. So we're going to keep doing what we know works, and we're confident that we're going to be a net grower over time.

我們看到的主要影響是固定收益影響。特別是，我們認為持續較高的利率確實對固定收益業務有利。所以我們將繼續做我們知道行之有效的事情，並且我們有信心隨著時間的推移我們將成為一個淨增長者。

Do you have enough visibility to sort of assume that you'll have positive flows on an overall basis at PGIM for 2023 or too early to say?

您是否有足夠的知名度來假設 2023 年您將在 PGIM 總體上獲得正流量，或者現在說還為時過早？

So as I've said in the past, flows are a very good bit quarter-to-quarter, especially on the institutional side, they're chunky. So we wouldn't provide a forecast on that. Over the long run, we know that we're going to grow.

因此，正如我過去所說的那樣，每個季度的流量都非常好，尤其是在機構方面，流量很大。所以我們不會對此提供預測。從長遠來看，我們知道我們會成長。

Next question is coming from John Barnidge from Piper Sandler.

下一個問題來自 Piper Sandler 的 John Barnidge。

My question is around agents. As I look at the agent count, they've declined overall in international. Is there anything being done to drive greater agent recruitment? Or with productivity improved? Are you taking assurance lessons on the tax side to the agent force more generally?

我的問題是關於代理商的。當我查看代理商數量時，他們在國際上總體上有所下降。是否正在採取任何措施來推動更多的代理人招聘？還是隨著生產力的提高？您是否正在更廣泛地向代理人隊伍學習稅務方面的保證課程？

So John, it's Andy. I'll take your question. So really, the impact you saw near term, COVID kept pressure on our recruiting efforts and retention efforts. Fact is, throughout the last couple of years, it was a harder environment to recruit and establish culture with new agents. That impacted our life consultant accounts more so than our Life Planner accounts but it did affect both. As we've started to transition to more of an endemic, we are seeing an improvement and expect to see an improvement over time. We'll remain focused on 2 areas: first, strengthening our existing people's performance, and we're exceptionally proud of our talent.

約翰，是安迪。我會回答你的問題。所以說真的，你在近期看到的影響，COVID 給我們的招聘工作和保留工作帶來了壓力。事實上，在過去的幾年裡，招聘新代理人和建立新代理人文化的環境更加艱難。這對我們的生活顧問賬戶的影響比對我們的生活規劃師賬戶的影響更大，但它確實影響了兩者。隨著我們開始過渡到更多的流行病，我們看到了改善，並期望隨著時間的推移會有所改善。我們將繼續專注於兩個領域：首先，加強我們現有人員的績效，我們為我們的人才感到非常自豪。

We have the highest number of million dollar roundtable members who really deliver every single day for our customers. And second, we are continuing to lean in to attract, land and develop new agents, which as we come out of the COVID pandemic, we believe will be easier for us. So this is a model that has worked for us very consistently over a long period of time, and we expect to keep seeing steady performance.

我們擁有數量最多的百萬美元圓桌會議成員，他們每天都真正為我們的客戶提供服務。其次，我們將繼續努力吸引、尋找和開發新的代理人，我們相信隨著我們擺脫 COVID 大流行，這對我們來說會更容易。所以這是一個在很長一段時間內一直為我們工作的模型，我們希望繼續看到穩定的表現。

And then my follow-up question. Can you talk about the decline in group new annualized premium in both Group Life and Group disability? Is this from renewals selective exits or job cuts at the large and jumbo end of the market?

然後是我的後續問題。您能談談團體人壽和團體傷殘的團體新年化保費下降情況嗎？這是來自大型市場的續約選擇性退出或裁員嗎？

Sure. John, it's Caroline. So I'll take your question. So first of all, just let me say, we're very pleased with the momentum that we've seen in our group insurance business. And as you're aware, the fourth quarter does tend to be a little lighter in terms of sales quarter, with the first quarter being our largest, as the majority of our cases do have January 1 inception dates. So the lower sales that you're noticing on a year-over-year basis is largely due to just a large case buyout last year that drove up sales volumes. And these do occur periodically and certainly can produce some variability in sales volumes, particularly in those lighter sales quarters.

當然。約翰，是卡羅琳。所以我會回答你的問題。所以首先，讓我說，我們對我們在團體保險業務中看到的勢頭感到非常滿意。正如您所知，第四季度的銷售季度確實要輕一些，第一季度是我們最大的季度，因為我們的大多數案例確實有 1 月 1 日的開始日期。因此，您注意到的銷售額同比下降主要是由於去年的大宗收購推動了銷量的增長。這些確實會定期發生，並且肯定會在銷量上產生一些變化，尤其是在那些較輕的銷售季度。

So John, if you were to normalize for last year's onetime buyout that we saw sales are actually up about 7%. And obviously, this is on the disability side.

所以約翰，如果你將去年的一次性收購正常化，我們看到銷售額實際上增長了大約 7%。顯然，這是在殘疾方面。

On the life side, it was just a matter of timing of premiums driven by changes in when some customers do enrollment in the year. So I would just say, overall, we feel very good as well about our existing pipeline as we continue with our strong sales momentum.

在生活方面，這只是保費時間的問題，因為一些客戶在當年投保的時間發生了變化。所以我只想說，總的來說，隨著我們繼續保持強勁的銷售勢頭，我們對現有的管道也感覺非常好。

Your next question today is coming from Elyse Greenspan from Wells Fargo.

您今天的下一個問題來自富國銀行的 Elyse Greenspan。

My first question, can you talk about the impact that you've seen on your RBC ratio from the IMR getting forward at 0. And do you think that, that issue is solvable via either NAIC changes or by getting a permitted practice from New Jersey?

我的第一個問題，你能談談你看到的 IMR 為 0 對你的 RBC 比率的影響嗎？你認為這個問題可以通過改變 NAIC 或從新澤西州獲得許可的做法來解決嗎？

Yes. Elyse, the impact on our PICA RBC ratio was about 35 basis points, maybe a little bit more. And that occurred with the rise in rates from 2Q through 4Q. And you'll be able to see that in our Blue Book and Green Book combined. So, and we'll be reporting that at the end of the month. We have been with very active discussions with regulators, and I know many others have across the industry have been as well. There seems to be a good understanding of the issue and a lot of careful consideration being given on how to best address it. So more to come. But rest assured, we're working with our regulators and many others are as well to see what -- how best to address this issue.

是的。 Elyse，對我們的 PICA RBC 比率的影響約為 35 個基點，可能更多一點。這發生在從第二季度到第四季度的利率上升時。您將能夠在我們的藍皮書和綠皮書中看到這一點。所以，我們將在月底報告。我們一直在與監管機構進行非常積極的討論，我知道整個行業的許多其他人也是如此。似乎對這個問題有很好的理解，並且正在仔細考慮如何最好地解決它。所以還有更多。但請放心，我們正在與我們的監管機構和許多其他監管機構合作，看看如何最好地解決這個問題。

And then, Rob, I think you had mentioned that the Board was looking at capital deployment in the context of a recession and severe credit cycle potential, can you talk about what kind of credit outlook factored into the board's decision on the '23 buyback plan? And what is your budget for downgrades and impairments if we enter into a recession?

然後，Rob，我想你提到過董事會正在考慮在經濟衰退和嚴重的信貸週期潛力的背景下的資本部署，你能談談董事會對 23 年回購計劃的決定考慮了什麼樣的信貸前景嗎？ ？如果我們陷入衰退，您對降級和減值的預算是多少？

Thanks, Elyse. We -- as Ken articulated earlier, the decision with regard to the buybacks factored in a number of considerations, including in that the possibility of a recession and obviously, a recession that might be accompanied by a credit cycle, which could affect the portfolio. A couple of thoughts on that. First, while we do scenarios, which would anticipate the potential for both negative migration and credit losses, we also take some comfort, as our Board did from the strength that we have in portfolio management. We think we're incredibly well positioned in the event of any deterioration in the economy that might lead to a credit cycle.

謝謝，愛麗絲。我們——正如 Ken 早些時候闡明的那樣，關於回購的決定考慮了許多因素，包括經濟衰退的可能性，顯然，經濟衰退可能伴隨著信貸週期，這可能會影響投資組合。對此有幾點想法。首先，雖然我們會預測可能出現負遷移和信貸損失的情景，但我們也感到一些安慰，就像我們的董事會從我們在投資組合管理方面的實力所做的那樣。我們認為，在經濟出現任何可能導致信貸週期惡化的情況下，我們處於非常有利的位置。

We're not yet seeing any of that, I'll note at least. If you look at our net credit migration in the fourth quarter and for the full year 2022, it was actually positive. So we haven't seen any imminent signs of distress sort of percolating within the portfolio that would lead us to be overly concerned about that. But as we established the buyback amount that was authorized, we did anticipate that such a thing could occur and that we would want to be able to both anticipate that level of buyback and have the strength to be able to absorb anything that might happen from a negative migration or default standpoint.

我們還沒有看到任何這些，我至少會注意到。如果你看看我們在第四季度和 2022 年全年的淨信貸遷移，它實際上是積極的。因此，我們還沒有看到任何迫在眉睫的跡象表明投資組合中正在滲透某種壓力，這會導致我們過度關注這一點。但是當我們確定授權的回購金額時，我們確實預計會發生這樣的事情，並且我們希望能夠預測回購水平並有能力吸收可能發生的任何事情負遷移或默認立場。

Maybe I'll just add just to remind people, we do have contingent sources of funding, in particular, our [PCAPs] which is $3 billion is a guaranteed source of funding. So that's an important source of funding in the event of a variety of reasons, including stress.

也許我只是想提醒人們，我們確實有或有資金來源，特別是我們的 30 億美元 [PCAP] 是有保證的資金來源。因此，在出現各種原因（包括壓力）時，這是一個重要的資金來源。

Your next question is coming from Andrew Kligerman from Credit Suisse.

你的下一個問題來自瑞士信貸的 Andrew Kligerman。

I know there's been a number of capital questions and the IMR was impacted this quarter due to derivative losses given rising interest rates, now we've got rates coming off a bit in 1Q '23. So I'm wondering if you could give us a little sensitivity on rates and how we can think about that impact on capital, particularly with regard to these derivatives?

我知道存在許多資本問題，由於利率上升導致衍生品損失，本季度 IMR 受到影響，現在我們的利率在 23 年第一季度略有下降。所以我想知道你是否可以讓我們了解一下利率的敏感性，以及我們如何考慮這種對資本的影響，尤其是在這些衍生品方面？

Yes. Again, rising rates is generally a good thing economically. But for this one item called IMR, a decline in rates would help. But it's a pretty complicated and complex item and will also vary depending upon the activity level. So I can't give you a precise sensitivity as a result. But we factored into our overall capital position in order to make sure we can deal with the volatility.

是的。同樣，從經濟角度來看，利率上升通常是一件好事。但是對於這個叫做 IMR 的項目，利率下降會有所幫助。但這是一個非常複雜的項目，並且還會根據活動水平而有所不同。因此，我無法為您提供精確的靈敏度。但我們考慮了我們的整體資本狀況，以確保我們能夠應對波動。

Okay. Okay. And maybe help us on the expenses. So you've got this terrific $820 million run rate savings. But as I look at results, I'm unable to kind of find those benefits falling to the bottom line. So maybe like a little color geographically, is all of it hitting the bottom line? Like just a little color as to how we could think about that $820 million going forward?

好的。好的。也許可以幫助我們支付費用。因此，您已經節省了 8.2 億美元的運行率。但是當我查看結果時，我無法找到那些落在底線的好處。所以也許就像地理上的一點顏色，所有這些都觸及底線了嗎？關於我們如何考慮未來的 8.2 億美元，就像一點顏色一樣？

Yes. It has been a company-wide objective. So the impact is across all of our businesses and the contribution that our corporate centers make towards that. And it does hit the bottom line. Having said that, we are investing to grow certain business lines, particularly PGIM and International. And so they just want to add that dynamic in there as well.

是的。這一直是全公司的目標。因此，影響遍及我們所有的業務以及我們的企業中心為此做出的貢獻。它確實觸及了底線。話雖如此，我們正在投資發展某些業務線，尤其是 PGIM 和國際業務。因此，他們也只想在其中添加這種動態。

Got it. And just a real quick technical question. Are you planning to deploy capital into Assurance IQ going forward? Or will it -- now that It's generating a little profit? Can it be self-funding?

知道了。只是一個真正的快速技術問題。您是否計劃在未來將資金投入 Assurance IQ？還是會——現在它產生了一點利潤？可以自費嗎？

Yes. We've maintained Assurance well capitalized and funded its losses as they've been incurred. Profitability continues to improve, and we'll continue to keep it well capitalized going forward.

是的。我們一直保持 Assurance 的資本充足，並在損失發生時為其提供資金。盈利能力繼續提高，我們將繼續保持良好的資本狀況。

Next question is coming from Michael Ward from Citi.

下一個問題來自花旗銀行的 Michael Ward。

Just a high-level question. I was wondering if The capital pressures, reserve charge, maybe earnings pressure in certain lines over the last 12 months or so. I'm wondering if that has changed specifically how you think about your business mix at all? And I know you've taken a few solid steps so far, but it seems like some incremental divestment or derisking could help reduce some of these pressures going forward. So I'm just wondering how you think about that prospect.

只是一個高級問題。我想知道在過去 12 個月左右的時間裡，某些行業是否存在資本壓力、準備金費用以及盈利壓力。我想知道這是否完全改變了您對業務組合的看法？而且我知道你到目前為止已經採取了一些堅實的步驟，但似乎一些漸進的撤資或降低風險可能有助於減少未來的一些壓力。所以我只是想知道你如何看待這個前景。

Sure, Mike. It's Charlie. I'll take that. So as you know, we've made significant progress in our transformation so far, but we would also note we still have more work to do to become a higher growth and less market-sensitive company. And as we look ahead, we're going to focus on our financial performance. We're going to focus on advancing our transformation, including the customer and employee experience, and we're going to focus on continuing to thoughtfully deploy capital. All of that with a goal of creating long-term sustainable value for all our stakeholders.

當然，邁克。是查理。我會接受的。如您所知，到目前為止，我們在轉型方面取得了重大進展，但我們也注意到，要成為一家增長更快、市場敏感性更低的公司，我們還有更多工作要做。展望未來，我們將專注於我們的財務業績。我們將專注於推進我們的轉型，包括客戶和員工體驗，我們將專注於繼續深思熟慮地部署資本。所有這一切的目標是為我們所有的利益相關者創造長期可持續的價值。

And we think we're well positioned across our businesses to be a global leader in expanding access to investment -- investing insurance and retirement security. And we'll do that in 3 ways. We'll continue to invest in our growth businesses and markets as we go forward; we'll deliver industry-leading customer experiencing, leveraging our broad capabilities and scope of diversified businesses and which we'll continue to invest as well; and we'll create the next generation of financial solutions to better serve the diverse needs of a broad range of customers. So what I'd say in summary is that we're definitely committed to becoming a higher growth, less market-sensitive company. And our progress will obviously be dependent upon opportunities that arise and the macroeconomic conditions we face, but we're laser-focused on what we need to do, and we'll accomplish that.

我們認為我們在我們的業務中處於有利地位，可以成為擴大投資渠道的全球領導者 - 投資保險和退休保障。我們將通過 3 種方式做到這一點。隨著我們的前進，我們將繼續投資於我們的成長型業務和市場；我們將提供行業領先的客戶體驗，利用我們多元化業務的廣泛能力和範圍，我們也將繼續投資；我們將創建下一代金融解決方案，以更好地滿足廣大客戶的多樣化需求。因此，我要總結的是，我們絕對致力於成為一家增長更快、市場敏感性更低的公司。我們的進步顯然取決於出現的機會和我們面臨的宏觀經濟條件，但我們非常專注於我們需要做的事情，我們會完成的。

Okay. Great. And most of my questions were asked, but I was curious, just sort of nail in the coffin, making sure you're not liable for the earnout with Assurance IQ?

好的。偉大的。我的大部分問題都被問到了，但我很好奇，只是棺材上的釘子，確保你不對 Assurance IQ 的收益負責？

Yes, I'll cover that. Actually, one of the things that we disclosed for GAAP is the fair value of that earn-out -- and we've been disclosing that as 0. So I think that would give you a good indication.

是的，我會講的。實際上，我們為 GAAP 披露的其中一件事是該盈利的公允價值——我們一直將其披露為 0。所以我認為這會給你一個很好的指示。

Your next question is a follow-up from Suneet Kamath from Jefferies.

你的下一個問題是 Jefferies 的 Suneet Kamath 的後續問題。

Great. Maybe just 2 quick ones. Just for Ken, I was curious about your comment about no change to AAT reserves even with the move up in rates. Can you just talk about why that would be the case?

偉大的。也許只有 2 個快速的。就肯而言，我很好奇你關於即使利率上升也不會改變 AAT 儲備的評論。你能談談為什麼會這樣嗎？

Yes, because AAT, I mean it looks at a number of scenarios, and it also looks at not just the level of ending surplus but also interim periods. And with derivatives, we have some interim periods that kind of offset the impact of -- the impact of higher rates on the ultimate period. So it's a little technical question. but overall, little changes there.

是的，因為 AAT，我的意思是它著眼於許多情景，它不僅著眼於期末盈餘水平，還著眼於中期。對於衍生品，我們有一些過渡期可以抵消高利率對最終期的影響。所以這是一個小技術問題。但總的來說，那裡幾乎沒有變化。

Got it. And then just curious on LDTI. I know you said that the AO impacts offset across businesses. But can you just give us a sense of maybe which businesses benefits and which businesses saw some pressure?

知道了。然後只是對 LDTI 感到好奇。我知道你說過 AO 的影響會在企業之間抵消。但是您能否讓我們了解一下哪些企業可能受益，哪些企業面臨一些壓力？

Yes. Sure. So yes, again, overall, we don't expect an overall change to the run rate level of the earnings. And actually, some of the businesses will have no or little impact, which would be, as you would expect, PGIM Assurance and Group Insurance. The earnings from our international and institutional retirement businesses, are expected to increase on a run rate basis, and that's really due to the earlier recognition of the unrealized insurance margins, which are quite sizable. On the other hand, earnings from individual retirement and life insurance in the U.S. are expected to be lower, and that's primarily due to the slower recognition of revenue for those businesses. Again, kind of some pluses and minuses that offset but that's sort of the segment level information. We, like others, will be providing a lot more information prior to our first quarter earnings when we restate under the new standard. So you can expect to get a lot more.

是的。當然。所以，是的，總體而言，我們預計收益的運行率水平不會發生整體變化。實際上，一些業務將沒有或幾乎沒有影響，正如您所期望的那樣，PGIM Assurance 和 Group Insurance。我們的國際和機構退休業務的收益預計將按運行率增長，這實際上是由於較早確認了相當可觀的未實現保險利潤率。另一方面，美國個人退休和人壽保險的收益預計會降低，這主要是因為這些業務的收入確認速度較慢。同樣，有些優點和缺點可以抵消，但這是細分級別的信息。當我們根據新準則重申時，我們和其他人一樣，將在第一季度收益之前提供更多信息。所以你可以期望得到更多。

We reached the end of our question-and-answer session. I'd like to turn the floor back over to Mr. Lowrey for any further or closing comments.

我們的問答環節結束了。我想將發言權轉回給 Lowrey 先生，聽取任何進一步意見或結束意見。

Okay. Thank you, and thank you, everyone, for joining us today. I hope we demonstrated the progress we are making to transform Prudential to deliver sustainable, long-term growth and meet the evolving needs of our customers. Looking ahead, we remain confident in our strategy and the strength of our company. For nearly 150 years, Prudential is focused on creating value for our customers and other stakeholders who we will continue to serve as we strive to be the global leader in expanding access to investing, insurance and retirement security. Thank you again for your time today.

好的。謝謝大家，謝謝大家今天加入我們。我希望我們展示了我們在轉型保德信方面取得的進展，以實現可持續的長期增長並滿足客戶不斷變化的需求。展望未來，我們對我們的戰略和公司實力充滿信心。近 150 年來，保誠一直致力於為我們的客戶和其他利益相關者創造價值，我們將繼續為他們服務，因為我們努力成為擴大投資、保險和退休保障渠道的全球領導者。再次感謝您今天的時間。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網絡廣播到此結束。此時您可以斷開線路，度過美好的一天。感謝您今天的參與。