保德信金融集團 (PRU) 2025 Q1 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.

女士們、先生們，感謝你們的支持，歡迎參加保誠的季度財報電話會議。（操作員指示）提醒一下，今天的通話正在被錄音。

I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.

現在我將電話轉給鮑伯·麥克勞克林先生。請繼續。

Good morning and thank you for joining our call. Representing Prudential on today's call are Andy Sullivan, CEO; and Yanela Frias, CFO. We will start with prepared comments by Andy and Yanela, and then we will address your questions.

早安，感謝您參加我們的電話會議。代表保誠出席今天電話會議的有執行長 Andy Sullivan；以及財務長 Yanela Frias。我們將首先介紹 Andy 和 Yanela 準備好的評論，然後解答您的問題。

Today's discussion may include forward-looking statements. It is possible that actual results may differ materially from those predictions we make today. In addition, our presentation includes references to non-GAAP measures. For a reconciliation of such measures to the comparable GAAP measures and a discussion of factors that could cause actual results to differ materially from those in the forward-looking statements. Please see the slides titled Forward-Looking Statements and non-GAAP Measures in the appendix to today's presentation, which can be found on our website at investor.prudential.com.

今天的討論可能包括前瞻性陳述。實際結果可能與我們今天所做的預測有重大差異。此外，我們的介紹中也提到了非公認會計準則 (non-GAAP) 指標。將這些指標與可比較的 GAAP 指標進行調節，並討論可能導致實際結果與前瞻性陳述中的結果有重大差異的因素。請參閱今天簡報附錄中題為「前瞻性陳述和非公認會計準則衡量標準」的幻燈片，該投影片可在我們的網站 investor.prudential.com 上找到。

And now I'll turn it over to Andy.

現在我將把話題交給安迪。

Good morning, everyone. I'm incredibly excited to lead Prudential forward at this pivotal moment in our 150-year history. We make promises that last for decades, and we commit every single day to keep those promises to our 50 million customers all over the world. Our work makes a difference, and that is a privilege that I take seriously. Over the past few months, I've been visiting our global offices and meeting with our leadership as I take stock of the state of our business. What is clear to me from this early assessment as CEO, is that we need to sharpen our focus on driving growth and on creating greater value for our stakeholders.

大家早安。我非常高興能夠在保誠 150 年歷史上的這個關鍵時刻帶領保誠繼續前進。我們所做的承諾將持續數十年，並且我們每天都致力於兌現對全球 5000 萬客戶的承諾。我們的工作發揮了作用，這是我非常重視的榮幸。在過去的幾個月裡，我一直在訪問我們的全球辦事處並與我們的領導層會面，以評估我們的業務狀況。作為首席執行官，我從這次早期評估中清楚地認識到，我們需要更加重視推動成長並為利害關係人創造更大的價值。

Beginning on slide 2, I see both significant opportunities and challenges in front of us. With our unique combination of global scale, distribution power, brand and talent, we're well positioned to address the growing protection and retirement needs of customers and clients around the world and to meet increasing investor appetite for a broad range of investment products, including private credit and alternatives.

從第二張投影片開始，我看到我們面前既有重大機遇，也有挑戰。憑藉我們獨特的全球規模、分銷能力、品牌和人才組合，我們能夠很好地滿足全球客戶和客戶日益增長的保護和退休需求，並滿足投資者對包括私人信貸和另類投資產品在內的廣泛投資產品日益增長的興趣。

Over the last several years, we've made tangible progress towards derisking and diversifying the company. Through our divestitures and blocks placed into runoff, we've significantly reduced our exposure to more volatile and market-sensitive products.

在過去的幾年裡，我們在降低公司風險和實現公司多元化方面取得了實際的進展。透過資產剝離和大宗資產的剝離，我們大幅減少了對波動性較大且市場敏感的產品的投資。

We've already reduced our overall exposure to traditional variable annuities and guaranteed universal life products by nearly 60%. And we continue to focus on ways to optimize our balance sheet, capital and cash flows.

我們已經將傳統變額年金和保證型萬能壽險產品的整體風險敞口減少了近 60%。我們將繼續致力於優化資產負債表、資本和現金流。

Our life and annuity products in the US are more diverse than ever. While in Japan, we've increased sales of savings and retirement products by more than 50% over the past three years complementing our core life insurance offering in that market. We're beginning to see the benefits of this more diversified product mix, specifically stronger sales and flows across our retirement and insurance businesses, while PGIM continues to benefit from a broader range of traditional and alternative investment products and expanding distribution platform and strong investment performance.

我們在美國的人壽和年金產品比以往更加多樣化。在日本，過去三年我們的儲蓄和退休產品銷售額成長了 50% 以上，補充了我們在該市場的核心人壽保險產品。我們開始看到這種更多樣化的產品組合帶來的好處，特別是退休和保險業務的強勁銷售和流量，而 PGIM 繼續受益於更廣泛的傳統和另類投資產品、不斷擴大的分銷平台和強勁的投資業績。

In the first quarter, we reported strong sales across our global retirement and insurance businesses as well as strong investment performance and robust flows at PGIM. And while our earnings were higher than in the first quarter of last year, I want to be clear. Our recent results do not meet our expectations, and we will do better. The underlying capabilities distribution strength, brand and product quality of Prudential should deliver more value to our stakeholders. We will deliver to a higher performance standard going forward. That is what our customers our employees and our shareholders expect. My leadership team and I are committed to executing on a strategy to fundamentally improve our financial performance.

第一季度，我們報告全球退休和保險業務銷售強勁，PGIM 的投資業績和資金流也十分穩健。儘管我們的收益高於去年第一季度，但我想明確一點。我們最近的成績沒有達到我們的預期，我們會做得更好。保誠的底層能力、分銷實力、品牌和產品品質應該能為我們的利害關係人帶來更多價值。我們今後將達到更高的績效標準。這正是我們的客戶、員工和股東所期望的。我和我的領導團隊致力於執行一項策略，從根本上改善我們的財務表現。

At the same time, the path to higher earnings growth will not be linear. There are two reasons for this. First, we expect lower earnings growth in our US businesses over the near term as we continue to run off more volatile blocks of our business, comprised of traditional variable annuities and guaranteed universal life products.

同時，實現更高獲利成長的道路並不是直線性的。造成這種情況的原因有二。首先，我們預期短期內美國業務的獲利成長將會下降，因為我們繼續經營業務中波動性較大的部分，包括傳統的變額年金和保證型萬能壽險產品。

Second, we face near-term earnings pressure in our Japan business driven by elevated surrenders of US dollar-denominated products due to a weaker yen, although we're seeing signs that this is beginning to stabilize. Importantly, we believe these earnings headwinds that contribute to an estimated 3- to 4-point drag to EPS growth in 2025 will dissipate over time.

其次，由於日圓貶值導緻美元計價產品的退售量增加，我們在日本業務面臨短期獲利壓力，儘管我們看到跡象顯示這種情況正在開始穩定。重要的是，我們相信這些獲利阻力將隨著時間的推移而消散，這些阻力預計將在 2025 年拖累每股收益成長 3 到 4 個百分點。

We will see the compounding impact of our strong sales and flows drive stronger growth long term. We remain confident in achieving the intermediate-term financial targets we provided to you last quarter.

我們將看到強勁的銷售和流量的複合效應將推動長期更強勁的成長。我們仍然有信心實現上個季度向您提供的中期財務目標。

While we do not plan to provide quarterly updates to these targets, I want to assure you that as the new CEO and despite the current macro uncertainty, we continue to expect 5% to 8% core adjusted operating EPS growth on average through 2027, which is inclusive of the transitory headwinds. We have real work ahead of us to create greater value for our stakeholders. But let me reiterate, we are committed to delivering stronger results over time.

雖然我們不打算每季更新這些目標，但我想向你們保證，作為新任首席執行官，儘管當前宏觀經濟存在不確定性，我們仍然預計到 2027 年核心調整後運營每股收益平均增長 5% 至 8%，其中包括暫時的逆風。我們還有真正的工作要做，為我們的利害關係人創造更大的價值。但請允許我重申，我們致力於隨著時間的推移取得更好的成果。

Turning to slide 3. I want to share with you today how I see us getting there. First, we will evolve and deliver on our strategy. Our world is evolving. We will adapt to meet the opportunity and prioritize the allocation of our capital accordingly. The areas that present the greatest opportunities for profitable growth will get more capital. Those that do not will get less.

翻到幻燈片 3。今天我想與大家分享我所看到我們是如何實現這一目標的。首先，我們將發展並實施我們的策略。我們的世界正在不斷發展。我們將適應機遇，並相應地優先分配我們的資本。那些擁有最大獲利成長機會的領域將獲得更多資本。不這樣做的人得到的就會更少。

Second, we will execute with consistency. We must raise the bar as we execute. Specifically, that means continuing to evolve to a more favorable product and business mix, improving our track record of delivering the expected returns of our inorganic and organic capital deployment and continuing to improve our expense profile across our operations.

第二，我們將堅持執行。我們必須在執行過程中提高標準。具體來說，這意味著繼續發展更有利的產品和業務組合，改善我們提供無機和有機資本部署預期回報的記錄，並繼續改善我們整個營運的費用狀況。

Finally, we will focus on our culture. We benefit from strong talent, expertise and diversity of perspectives. But we must move faster to ensure we capture new opportunities as they emerge and take greater accountability for outcomes.

最後，我們將關注我們的文化。我們受益於強大的人才、專業知識和多樣化的觀點。但我們必須加快步伐，確保抓住出現的新機遇，並對結果承擔更大的責任。

We've already taken action to align incentives even more closely to earnings per share growth. These are my priorities, evolving and delivering on our strategy, improving on our execution and fostering a high-performance culture, coupled with our differentiated position serving 50 million customers and clients, with a diverse range of financial solutions. I have every confidence that we can, and we will evolve our business and drive sustainable, profitable growth in the years ahead.

我們已經採取行動，使激勵措施與每股盈餘成長更加緊密地結合起來。這些是我的首要任務，發展和實施我們的策略，改善我們的執行力並培養高績效文化，再加上我們為 5000 萬客戶和客戶提供多樣化金融解決方案的差異化地位。我完全有信心，我們能夠並且將在未來幾年發展我們的業務並實現可持續的盈利增長。

Moving to slide 4 and before turning it over to Yanela to provide greater detail on our results, let me briefly reflect on how we're positioned in the current macroeconomic and market environment. Prudential has a long history of navigating economic cycles and global events, and we are well positioned to support our customers and capitalize on new opportunities as they emerge.

轉到幻燈片 4，在交給 Yanela 提供有關我們結果的更多細節之前，讓我先簡單回顧一下我們在當前宏觀經濟和市場環境中的定位。保誠在應對經濟週期和全球事件方面有著悠久的歷史，我們有能力為客戶提供支援並抓住新出現的機會。

Our diversified business mix provides stability across a variety of macroeconomic scenarios. Our balance sheet includes nearly $5 billion in highly liquid assets strong statutory solvency ratios and access to significant off-balance sheet resources that support our AA financial strength. In addition, we have a high-quality, well-diversified investment portfolio and disciplined approach to asset liability and risk management, which is designed for times like these to perform through periods of stress, uncertainty and volatility.

我們多元化的業務組合為各種宏觀經濟情境提供了穩定性。我們的資產負債表包括近 50 億美元的高流動性資產、強大的法定償付能力比率以及支持我們 AA 財務實力的大量表外資源。此外，我們擁有高品質、多元化的投資組合以及嚴謹的資產負債和風險管理方法，旨在幫助我們度過壓力、不確定性和波動時期。

And with that, I'll turn it over to Yanela.

現在，我將把發言權交給 Yanela。

Thank you, Andy. I will provide an overview of our financial results and business performance for our PGIM US and international businesses.

謝謝你，安迪。我將概述我們的 PGIM 美國和國際業務的財務表現和業務表現。

I will begin on slide 5 with our financial results. Our pretax adjusted operating income was $1.5 billion or $3.29 per share for the first quarter of 2025, up 8% from the prior year quarter. This reflects favorable variances on underwriting results across our US businesses, including the benefits of our recent derisking transactions and lower expenses. The current quarter also included alternative investment income that was below our expectations by $90 million, driven by lower private equity and real estate returns.

我將從第 5 張投影片開始介紹我們的財務表現。2025 年第一季度，我們的稅前調整後營業收入為 15 億美元，即每股 3.29 美元，比去年同期成長 8%。這反映了我們美國業務核保結果的有利差異，包括我們最近降低風險交易和降低費用的好處。本季還包括另類投資收入，低於我們的預期 9,000 萬美元，原因是私募股權和房地產回報率較低。

Turning to the quarterly operating results from our businesses compared to the year ago quarter. PGIM had lower other related revenues driven by lower seed and co-investment income and incentive fees, which was partially offset by higher asset management fees, net of related expenses.

與去年同期相比，我們的業務季度經營業績有所提升。PGIM 的其他相關收入減少，原因是種子和共同投資收入以及激勵費用減少，但扣除相關費用後資產管理費用增加部分抵消了這一影響。

Results of our US businesses reflected more favorable underwriting results and lower expenses, partially offset by lower fee income from the runoff of our legacy traditional variable annuity block and lower spread income driven by lower alternative investment returns that more than offset the benefit from business growth.

我們美國業務的表現反映了更有利的承保結果和更低的費用，但部分抵消了我們遺留的傳統變額年金塊流失帶來的費用收入降低，以及另類投資收益降低導致的利差收入降低，這些收益超過了業務增長帶來的好處。

Our international businesses have lower spread income, including lower alternative investment returns, lower joint venture earnings driven by less favorable encaje performance in Chile and the net unfavorable impact from foreign currency exchange rates.

我們的國際業務利差收入較低，包括另類投資回報較低、由於智利 encaje 業績不佳導致合資企業收益較低以及外匯匯率的淨不利影響。

Turning to slide 6. PGIM has diversified capabilities in both public and private asset classes across fixed income, equities and alternatives. PGIM's Investment performance remained strong with 81% and 79% of assets under management outperforming their benchmarks over the last 5- and 10-year periods, respectively.

翻到幻燈片 6。PGIM 在固定收益、股票和另類投資等公共和私人資產類別中擁有多元化能力。PGIM 的投資表現依然強勁，過去 5 年和 10 年內，其管理資產的回報率分別超過基準水平，分別為 81% 和 79%。

PGIM's assets under management increased by 3% to $1.4 trillion from the prior year quarter, driven by market appreciation, net flows and strong investment performance. The net flows in the quarter of $4.3 billion included institutional third-party flows of $4.6 billion, driven by mandates across fixed private alternatives and equity which were partially offset by modest retail third-party outflows.

受市場升值、淨流量和強勁投資績效的推動，PGIM 管理的資產較去年同期成長 3%，達到 1.4 兆美元。本季 43 億美元的淨資金流入包括 46 億美元的機構第三方資金流入，這主要受到固定私人替代品和股票的委託所推動，但被適度的零售第三方資金流出部分抵消。

Our diversified PGIM private alternatives platform, which has assets under management of nearly $250 billion experienced over $10 billion in private capital deployment up over 60% compared to the prior year quarter, although deployment was higher across both private credit and real estate, activity slowed towards the end of the quarter due to heightened market uncertainty, which has continued into the second quarter.

我們的多元化 PGIM 私人另類投資平台管理的資產接近 2500 億美元，私人資本部署超過 100 億美元，與去年同期相比增長超過 60%，儘管私人信貸和房地產的部署均有所增加，但由於市場不確定性加劇，本季度末活動有所放緩，這種情況一直持續到第二季​​度。

Turning to slide 7. Our US businesses produced diversified sources of earnings from fees, net investment spread and underwriting income and benefit from our complementary mix of longevity and mortality businesses.

翻到幻燈片 7。我們的美國業務透過費用、淨投資利差和承保收入實現了多元化的收入來源，並受益於我們互補的長壽和死亡業務組合。

Retirement strategies continue to have strong sales momentum, generating over $10 billion in the first quarter across its institutional and individual lines of business. Institutional Retirement sales of $7 billion included two international longevity reinsurance transactions totaling nearly $5 billion. We also experienced our best quarter ever in structured settlements with $600 million in sales. Individual Retirement posted $3.5 billion in sales in the first quarter, up 5% from the year ago quarter.

退休策略持續保持強勁的銷售勢頭，第一季其機構和個人業務線的銷售額超過 100 億美元。70 億美元的機構退休銷售額包括兩筆總額近 50 億美元的國際長壽再保險交易。我們也經歷了結構化結算領域有史以來最好的一個季度，銷售額達到 6 億美元。個人退休金第一季的銷售額為 35 億美元，比去年同期成長 5%。

Our registered index-linked annuities continue to demonstrate the benefits of our product pivot and innovation, while we sustained momentum in our fixed annuity product sales. Additionally, we continue to reduce market sensitivity by running off our legacy variable annuities.

我們的註冊指數掛鉤年金繼續展現出我們產品轉型和創新的優勢，同時我們的固定年金產品銷售保持了強勁勢頭。此外，我們繼續透過運行傳統的變額年金來降低市場敏感度。

Group Insurance sales totaled $400 million in the first quarter, up 6% from the prior year quarter, driven primarily by strength in our group life products. We are executing our strategy of both product and market segment diversification while leveraging technology to increase operating efficiency and enhance the customer experience. The benefit ratio of 81.3% in the first quarter reflects favorable underwriting results in the quarter as well as our strategic actions to improve profitability and performance.

第一季團體保險銷售總額達 4 億美元，較去年同期成長 6%，主要得益於團體壽險產品的強勁成長。我們正在實施產品和市場細分多樣化的策略，同時利用技術來提高營運效率並增強客戶體驗。第一季81.3%的受益率反映了本季良好的核保績效以及我們提高獲利能力和績效的策略行動。

In Individual Life, sales totaled over $200 million in the first quarter, up 26% from the prior year quarter. This growth was driven largely by accumulation-focused variable products, reflective of our pivot to be more capital efficient.

個人人壽保險第一季的銷售總額超過 2 億美元，比去年同期成長 26%。這一成長主要由注重累積的可變產品推動，反映了我們向更高資本效率轉變的趨勢。

Turning to slide 8. 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 targeted high-growth emerging markets.

翻到幻燈片 8。我們的國際業務包括日本人人壽保險公司，我們在日本擁有差異化的多通路分銷模式，以及旨在擴大我們在目標高成長新興市場的影響力的其他業務。

Sales in our international businesses were up 15% compared to the prior year quarter. Sales in Japan are benefiting from our recent retirement and savings product launches which are gaining traction with customers, resulting in an increase of over 20% in sales of these products compared to the prior year quarter. In addition, emerging market sales increased 19% and versus the prior year quarter, driven by record sales in Brazil as we continue to benefit from the strong performance of our Life Planners and group sales.

我們的國際業務銷售額與去年同期相比成長了 15%。日本的銷售受惠於我們最近推出的退休和儲蓄產品，這些產品越來越受到客戶的青睞，與去年同期相比，這些產品的銷售額成長了 20% 以上。此外，新興市場銷售額較去年同期成長 19%，這得益於巴西創紀錄的銷售額，因為我們繼續受益於人壽規劃師和團體銷售的強勁表現。

Turning to slide 9. Our significant capital position and strong regulatory capital ratios continue to support our AA financial strength and our ability to expand our market-leading businesses. Our cash and liquid assets were $4.9 billion, which is above our minimum liquidity target of $3 billion, and we have substantial off-balance sheet resources.

翻到第 9 張投影片。我們雄厚的資本實力和強大的監管資本比率繼續支持我們的 AA 財務實力和拓展市場領先業務的能力。我們的現金和流動資產為 49 億美元，高於 30 億美元的最低流動性目標，我們擁有大量表外資源。

As we look ahead, we are well positioned across our businesses to be a global leader in expanding access to investing, insurance and retirement security. As Andy mentioned, there are near-term headwinds impacting the earnings across several of our businesses, and we're operating in volatile economic conditions, but we have confidence in the intermediate-term targets outlined last quarter.

展望未來，我們的各項業務已做好準備，成為擴大投資、保險和退休保障管道的全球領導者。正如安迪所提到的，近期的不利因素影響著我們多項業務的獲利，而且我們的營運環境也不穩定，但我們對上個季度概述的中期目標充滿信心。

And with that, we will be happy to take your questions.

我們將非常樂意回答您的問題。

(Operator Instructions) Ryan Krueger, KBW.

（操作員指示）Ryan Krueger，KBW。

I had a question for Andy. You touched on this a little bit in your prepared remarks, but I noticed also there was a Bloomberg article last night where I think you mentioned that the changing competitive and economic landscape may call for a review of your capital deployment plans at some point. I was hoping you could expand on what you mean by that. And if that was more about where you're organically allocating capital to grow or if that refers more to things that could involve M&A or divestitures?

我有一個問題想問安迪。您在準備好的發言中稍微提到了這一點，但我還注意到昨晚彭博社的一篇文章，我認為您在其中提到，不斷變化的競爭和經濟格局可能要求您在某個時候重新審查您的資本配置計劃。我希望你能詳細解釋一下你的意思。這是否更多地與您有機分配資本以實現增長有關，或者更多地涉及可能涉及併購或資產剝離的事情？

Ryan, and thanks, first of all, for reading the article. My job as the CEO is to ensure that we deploy capital to the highest and the best uses across the entire enterprise. So we continuously evaluate the various opportunities in front of us, and that obviously includes all various uses, organic, inorganic and their return profile.

Ryan，首先感謝您閱讀這篇文章。作為首席執行官，我的職責是確保我們將資本部署到整個企業的最高和最佳用途。因此，我們不斷評估眼前的各種機會，這顯然包括各種用途、有機、無機及其回報狀況。

As we do that, we're working to optimize our balance sheet, our cash flows and our capital. But my statement really is markets change, business has changed, and we're going to need to evolve with that as things evolve. As we sit here, we like our capital deployment plans, which obviously reflect the current opportunities that we see in the marketplace. But it would certainly be reasonable to expect that uses of capital could evolve over time. So I think the important thing is this is a continuous discipline that we have.

在這樣做的同時，我們正在努力優化我們的資產負債表、現金流量和資本。但我的觀點是，市場確實在變化，業務也已經變化，我們需要隨著事態的發展而隨之發展。我們坐在這裡，喜歡我們的資本配置計劃，這顯然反映了我們在市場上看到的當前機會。但可以合理地預期，資本的用途會隨著時間的推移而演變。所以我認為重要的是這是我們所擁有的一門持續的學科。

Okay. Makes sense. And then on PGIM you had provided a 25% to 30% adjusted margin target over the three-year period last quarter. Is that something that you think you can get into the range this year? Or will it potentially take some time through this three-year period?

好的。有道理。然後，在 PGIM 上，您提供了上個季度三年內 25% 至 30% 的調整後利潤率目標。您認為今年可以實現這個目標嗎？或者這三年可能需要一些時間？

So as we framed last call, this is an intermediate-term target. So we're not going to get into the habit of giving quarterly updates.

因此，正如我們最後提出的，這是一個中期目標。所以我們不會養成每季發布更新的習慣。

Let me just make some comments overall about our margins at PGIM. Obviously, I was disappointed with our Q1 margins. As you know, the first quarter is typically the lowest margin quarter because of the long-term incentive compensation expenses. But this quarter, the volatility affected our seed and co-investments. So volatility creates headwinds here in the near term. Whether that's going to last for months or quarters is very hard to tell. It's been a pretty volatile environment. But long term, our path is clear, and I'm confident in it, which is the path towards 30%.

讓我對 PGIM 的利潤率做一些總體評論。顯然，我對我們的第一季利潤率感到失望。眾所周知，由於長期激勵薪酬費用，第一季通常是利潤率最低的季度。但本季的波動影響了我們的種子投資和共同投資。因此，波動性將在短期內帶來阻力。很難說這種情況是否會持續數月或數個季度。這是一個相當不穩定的環境。但從長遠來看，我們的道路是明確的，我對此充滿信心，這就是邁向 30% 的道路。

And I would mention the three things I've talked about before. First, we've been consistently investing in a whole variety of growth opportunities. We're coming out the other side of the J curve on those, and we're seeing earnings produced from those. So that will give us lift.

我想提一下我之前談到的三件事。首先，我們一直持續投資各種各樣的成長機會。我們正處於 J 曲線的另一端，我們看到了由此產生的收益。這將會為我們帶來幫助。

Second, I think as you're well aware, both the real estate and fixed income markets have had low points here over the last couple of years, and we've been seeing those markets recover. That will obviously also create a tailwind for us.

其次，我想大家也都清楚，過去幾年房地產和固定收益市場都經歷了低谷，而我們已經看到這些市場正在復甦。這顯然也會帶給我們順風。

And then finally, we've made expense discipline part of our DNA across our businesses. We will continue to look for productivity and efficiency opportunities, and that will help us expand our margins. So we're confident in the path towards 30%, as we stated in our intermediate financial targets.

最後，我們已將費用紀律融入我們所有業務的 DNA 中。我們將繼續尋找提高生產力和效率的機會，這將有助於我們擴大利潤率。因此，正如我們在中期財務目標中所述，我們對實現 30% 的目標充滿信心。

Tom Gallagher, Evercore ISI.

湯姆·加拉格爾，Evercore ISI。

Andy, I appreciate your candor in your opening remarks. So thanks for that. I know you flagged the -- some of the headwinds in terms of the VA and SQL runoff, I guess one way to reduce the headwind is to meaningfully shrink the remaining exposure of the in-force free up capital, and then you don't have that as an earnings drag. Is that -- now I know you've already cut -- significantly cut the size of both of those risks. Is that something though that's on the table, a much more dramatic shrink of those, whether that's through a Prismic transaction or a third party. Is that something that's on the table that we should be thinking about?

安迪，我很欣賞你在開場白中的坦率。所以謝謝你。我知道您提到了 VA 和 SQL 流失方面的一些不利因素，我想減少這些不利因素的一種方法是大幅減少剩餘的有效釋放資本敞口，這樣就不會對盈利造成拖累。現在我知道您已經大幅降低了這兩種風險的規模。但這是正在討論的事情嗎？無論是透過 Prismic 交易還是第三方，這些都會大幅縮減。這是我們該考慮的事情嗎？

So Tom, first, thank you for the feedback on my opening remarks. I appreciate that. As you've said, we've made very good progress in derisking the company. And obviously, we've used the two levers. We see selling traditional variable annuities and guaranteed universal life and put them in runoff. And we've done very successful transactions. So those were absolutely the right decisions. We're happy we did it.

所以湯姆，首先，感謝您對我的開場白的回饋。我很感激。正如您所說，我們在降低公司風險方面取得了非常好的進展。顯然，我們使用了這兩個槓桿。我們看到傳統的變額年金和保證萬能壽險正在出售，並被淘汰。我們的交易非常成功。所以這些決定絕對正確。我們很高興我們做到了。

But let me just share with how I think about this. And we've talked about derisking almost like it's an event. It's not an event. Derisking and really managing risk profile of the company is continuous. So I've intentionally chosen the words of continuously optimizing our balance sheet, our capital or cash flows because that is a discipline that we have consistently evaluating opportunities. So I don't see it as something that starts and then we're done. At this point, sitting here today, what I would share is there's nothing in the pipeline that's worthy of talking about with you.

但請容許我分享一下我對此的看法。我們討論降低風險幾乎就像討論一項活動一樣。這不是一個事件。降低風險並真正管理公司的風險狀況是持續的。因此，我特意選擇了「不斷優化我們的資產負債表、資本或現金流」這樣的詞語，因為這是我們一貫評估機會的原則。所以我不認為這是一個開始後就結束的事情。此時此刻，今天坐在這裡，我想說的是，目前還沒有任何值得與你們討論的事情。

Got you. And then for Yanela, just a question on how you're feeling about capital levels in Japan ahead of the ESR implementation set for next year. Would you anticipate having to contribute capital? Or do you feel like you're good enough based on at least preliminary assessment you've done on how that might impact capital.

明白了。然後對於 Yanela，我只想問一下，您對明年實施 ESR 之前日本的資本水準有何看法。您預計需要投入資本嗎？或者，根據您對這可能會如何影響資本所做的初步評估，您是否覺得自己已經足夠好了。

Tom, yes, with regards to ESR, so I'll start with a couple of things. First, as we've said before, we expect capital levels will continue to be above levels that would support AA financial strength ratings post the implementation. Second, we do not expect dividend capacity to the generate result of ESR, implementation, the statutory framework will remain unchanged, and we expect that to continue to be the binding constraint on cash dividends.

湯姆，是的，關於 ESR，我將從幾件事開始。首先，正如我們之前所說，我們預計實施後資本水準將繼續高於支持 AA 財務實力評級的水準。其次，我們並不預期股利發放能力會對ESR的產生結果產生影響，在實施過程中，法定框架將保持不變，我們預期這將繼續成為對現金股利的約束性約束。

And I would add that we are confident in our ability to solve for uneconomic volatility in the ESR framework. We have historically used different tools including reinsurance to manage our capital and liquidity positions, and we expect to continue to leverage these tools.

我想補充一點，我們有信心解決 ESR 框架中的不經濟波動問題。我們過去一直使用包括再保險在內的不同工具來管理我們的資本和流動性狀況，我們希望繼續利用這些工具。

And maybe lastly, I would say that we've had a number of years to plan for this, and we focused on two things. One is the level of ESR capital and, of course, the volatility in the framework. And that has influenced our product strategy. We've launched more products that are ESR friendly but also meet customer needs. And it has influenced our reinsurance strategy. And just maybe as a point of reference, as of the end of 2024, roughly 70% of our US dollar liabilities in Japan are reinsured outside of Japan.

最後，我想說我們已經為此計劃了很多年，並且我們專注於兩件事。一是ESR資本的水平，當然還有框架的波動性。這影響了我們的產品策略。我們推出了更多對 ESR 友善且能滿足客戶需求的產品。它影響了我們的再保險策略。也許可以作為參考，截至 2024 年底，我們在日本的美元負債約有 70% 是在日本境外再保險的。

Bob Huang, Morgan Stanley.

摩根士丹利的 Bob Huang。

Maybe just a follow-up on the questions on Japan and ESR. As you think about reinsurer like liabilities out of Japan, can you maybe help us think about just a broader reinsurance market in there, like is Prismic the most efficient way from a pricing perspective to reinsure business out of Japan? Or are there other reinsurance opportunities that you can evaluate. Is there a way to think about that?

也許只是對日本和 ESR 問題的後續回答。當您考慮日本的再保險公司等負債時，您能否幫助我們考慮那裡更廣泛的再保險市場，例如，從定價角度來看，Prismic 是否是日本再保險業務最有效的方式？或還有其他您可以評估的再保險機會。有沒有辦法考慮這一點？

Yes, Bob. So a couple of things. So let me start by saying that reinsurance is an important tool that we use to optimize capital and to align regulatory reserves and capital requirements to the economics of our products. And we have multiple avenues for where and how we manage risk. So we use our wholly owned entities, Prismic and external reinsurance. So we have multiple tools.

是的，鮑伯。有幾件事。首先我要說的是，再保險是我們用來優化資本、使監理儲備和資本需求與我們產品的經濟效益一致的重要工具。我們有多種途徑來管理風險和如何管理風險。因此，我們使用我們的全資實體 Prismic 和外部再保險。所以我們有多種工具。

In terms of where we decide where to manage the risk, I mean, the decision regarding where to manage it really will be made in the context of our strategy. And also in the context of evaluating the implications of all the things that we think about and care about PFI, capital levels, statutory, GAAP, economic and liquidity lenses. So we really put it through that entire paradigm, and that is how we make the decision as to where to manage the risk. The great thing is that we have multiple tools.

關於我們決定在何處管理風險，我的意思是，關於在何處管理風險的決定實際上將在我們的策略背景下做出。並且在評估我們所考慮和關心的所有事物的影響的背景下，PFI、資本水準、法定、GAAP、經濟和流動性視角。因此，我們確實將其置於整個範式之中，這就是我們如何決定在何處管理風險。最棒的是，我們擁有多種工具。

Got it. And apologies if I missed this, but you did not provide a preliminary ESR ratio at all, right?

知道了。如果我錯過了這一點，請原諒，但您根本沒有提供初步的 ESR 比率，對嗎？

No. We continue to plan on providing that this summer, which is about a year in advance of the required disclosure.

不。我們繼續計劃在今年夏天提供該信息，這比要求的披露提前了大約一年。

Got it. Okay. No, I really appreciate that. Maybe my follow-up is on the variable investment income. Just given how volatile the market was so far, is it possible maybe to kind of provide some color in terms of how we should think about the VII into the second quarter or maybe the rest of the year from a modeling perspective?

知道了。好的。不，我真的很感激。也許我的後續關注點是可變投資收益。考慮到迄今為止市場的波動性，我們是否可以從模型的角度，對第二季或今年剩餘時間的 VII 做出一些展望？

Yes. So definitely, as you mentioned in the first quarter, we did see lower alternative investment income that was driven by lower-than-expected private equity returns and lower real estate returns. With regards to the outlook, I would say that predicting near-term performance in the current environment is challenging due to the heightened uncertainty and volatility. However, it is likely that the decline that we have experienced so far this quarter in equity markets will result in returns below our expected levels at the beginning of the year.

是的。因此，正如您在第一季提到的那樣，我們確實看到另類投資收入下降，這是由於私募股權回報低於預期以及房地產回報較低所致。就前景而言，我想說，由於不確定性和波動性增強，預測當前環境下的近期表現具有挑戰性。然而，本季迄今為止股市的下跌很可能會導致回報率低於年初的預期水平。

And let me share a sensitivity with you. So if we experience an equity market decline of 10%, followed by a 1.25% quarterly recovery. Returns on our alternatives would still be positive, but we could see anywhere between a 200 to 250 basis point decline to our intermediate term expectations of 7% to 9% over a four-quarter period.

讓我與你們分享一種敏感。因此，如果我們經歷股市下跌 10%，隨後季度復甦 1.25%。我們的替代方案的回報仍然會是正數，但我們可以看到，在四個季度內，我們的中期預期（7% 至 9%）可能會下降 200 至 250 個基點。

I would note that this is a more conservative scenario than we have historically observed over the last 25 years, back to 2000. And I'd also be very clear that we are comfortable with our alternatives portfolio and the long-term target returns. And this has proven out over time. On a cumulative basis, these investments have exceeded expectations over the past decade.

我想指出的是，這種情況比我們過去 25 年（2000 年以來）觀察到的情況更為保守。而且我還要非常清楚地表明，我們對我們的另類投資組合和長期目標回報感到滿意。而這一點已經隨著時間的推移而得到了證實。從累計來看，過去十年這些投資已經超出了預期。

Suneet Kamath, Jeffries.

蘇尼特·卡馬斯，杰弗里斯。

Andy, I also appreciate the comments that you made about improving the financial performance of the company. That was good to hear.

安迪，我也很欣賞你關於改善公司財務表現的評論。聽到這個消息真是太好了。

I wanted to follow up on Tom's questioning, but specifically with a focus on the life insurance business. And what I'd like to try to understand is the strategic value of individual life.

我想跟進湯姆的問題，但特別關注人壽保險業務。我想嘗試去理解的是個人生命的戰略價值。

And the reason I ask the question is we did see earlier in the year another company effectively exit Individual Life got a pretty good deal with it. It's about 5% of your earnings. So it's not a huge needle mover. And just based on my experience, it seems like this business maybe more often hurts crew than helps it. So there must be some rationale in terms of why you've decided to keep the business, and I'd like to understand that a little bit more.

我之所以問這個問題，是因為我們在今年早些時候確實看到另一家公司成功退出了個人人壽保險，並獲得了相當不錯的交易。這大約佔你收入的5%。所以它不會帶來巨大的影響。而且根據我的經驗，這種做法對船員的傷害似乎比幫助更大。因此，您決定保留該業務肯定是有一定理由的，我希望進一步了解這一點。

Yes, Suneet, it's Andy. So first, thank you for your very candid question. Let me talk about our life insurance business. And really, when we talk about this, there's two aspects that you should think about when we think about our life business.

是的，Suneet，我是 Andy。首先，感謝您提出這個非常坦率的問題。我先講一下我們的人壽保險業務。實際上，當我們談論這個問題時，當我們考慮我們的生活事務時，有兩個方面你應該考慮。

The first aspect is obviously the legacy guaranteed universal life business that's in runoff. But then the second is the go-forward product set. And we obviously feel differently about the two pieces. We've been working very diligently to reduce our exposure on the guaranteed universal life side, putting it a runoff doing the transactions. And obviously, you've seen the outcomes that we've been able to produce there. What we've done is make sure we've learned from that experience and are applying these learnings.

第一個面向顯然是正在流失的遺留保證型萬能壽險業務。但第二個是前進的產品集。我們對這兩件作品的感受顯然不同。我們一直在努力減少在保證型萬能壽險方面​​的風險敞口，並將其作為交易的流失。顯然，您已經看到了我們在那裡取得的成果。我們所做的就是確保我們從那次經歷中學習並運用這些知識。

But your question about the go-forward business, we like this business obviously, it's a business that's core to Prudential's purpose from a long-run perspective. But there are other reasons I would hit the product portfolio that we're in the market with today is less interest rate-sensitive and more capital efficient than the prior product set, and we're seeing good profitability with that. Obviously, this is a business that also adds to our mortality longevity balance, which is important for the company, given that we're always managing business mix as part of our accountability.

但您關於未來業務的問題，我們顯然喜歡這項業務，從長遠來看，這是保誠的核心業務。但還有其他原因讓我選擇我們目前在市場上的產品組合，它對利率的敏感度比之前的產品組合更低，資本效率更高，而且我們看到了良好的盈利能力。顯然，這項業務也增加了我們的死亡率和壽命平衡，這對公司來說很重要，因為我們始終將管理業務組合作為我們責任的一部分。

And when you look to be in a business or not in a business, you need to look at your strengths and your capabilities. This is a business where we have deep capabilities in our underwriting shop. We're one of the most trusted brands out there with great customer experience. We're seeing a flight to quality. So when well-managed, which is what every intention we have to do, this is a good business and it's an important part of the overall mix. And I think that flight to quality, you saw this quarter with the great sales that we had.

當你考慮從事或不從事某項業務時，你需要考慮自己的優勢和能力。這是我們的承保部門擁有強大能力的業務。我們是最值得信賴的品牌之一，擁有出色的客戶體驗。我們看到了一種追求品質的飛躍。因此，如果管理得當（這也是我們每一個意圖要做的），這就是一項好的業務，也是整體組合的重要組成部分。我認為，這種對品質的追求，正如您在本季度看到的，我們的銷售業績非常出色。

Okay. I appreciate that. And then I guess on the Japan surrenders, it sounds like in your prepared remarks, you had mentioned that maybe the pressure is abating a little bit. I was wondering if you could provide a little bit more information there. How much more of this is sort of in front of PRU? And when these surrenders happen, is there some sort of a surrender fee or reserve release that helps earnings in the short term? Or is it just kind of a negative when these things happen?

好的。我很感激。然後我想關於日本投降，聽起來您在準備好的發言中提到過，壓力可能正在減輕一些。我想知道您是否可以提供更多資訊。還有多少這樣的事情擺在保誠？當這些退保發生時，是否會有某種退保費或儲備金釋放來幫助短期獲利？或者當這些事情發生時，它只是一種負面現象？

Suneet. So -- as Andy noted in his opening remarks, while surrender activity remains a near-term headwind, we are seeing signs that this trend is beginning to stabilize. We've seen improvement in the pace of surrenders through 2024 and continuing through 2025, and we would expect that the trend would continue given current exchange rates.

蘇尼特。因此，正如安迪在開場白中指出的那樣，雖然退保活動在短期內仍是一個阻力，但我們看到這種趨勢開始穩定的跡象。我們看到，到 2024 年，退保速度將會有所改善，而這種改善將持續到 2025 年，我們預計，考慮到目前的匯率，這種趨勢將會持續下去。

But in terms of when it's behind us, it's difficult to predict given that it is a -- it is tied to the exchange rate. Again, but that said, the impact of the surrenders has dissipated. I would say that it remains a headwind to this year.

但至於它何時結束，很難預測，因為它與匯率掛鉤。話雖如此，但投降的影響已經消散。我想說這對今年來說仍然是一個阻力。

And just to give you some quantification, we estimate that the impact to 2025 earnings from the surrenders that we experienced in 2024 will be roughly $100 million. To your question about are there offsetting surrender fees? The majority of these contracts are beyond the surrender charge period. Therefore, there is no offsetting impact of a surrender charge fee.

為了給您一些量化數據，我們估計，2024 年經歷的退保對 2025 年收益的影響將達到約 1 億美元。關於您關於是否有抵銷退保費的問題？這些合約大部分都超出了退保費用期限。因此，退保費用不會產生抵銷影響。

Suneet, I would just add into that, that we've been very proactive in Japan from a business perspective, taking action to mitigate the effects here. So you've heard us talk about broadening and diversifying our product portfolio. The fact that 20% of our sales came from products launched in the last 24 months is evidence of that.

Suneet，我想補充一點，從商業角度來看，我們在日本一直非常積極主動，採取行動減輕其影響。您已經聽到我們談論擴大和多樣化我們的產品組合。我們的銷售額的 20% 來自過去 24 個月推出的產品，這一事實就是證據。

We've doubled our yen offerings in the marketplace. 30% of this quarter's sales were yen-based. And we've added staff, both in the distribution organization and in the customer service organization so that we can work with customers who still have needs for protection, to not just drop their coverage but to find other alternatives. So we're being very proactive in working to mitigate this.

我們在市場上提供的日元數量增加了一倍。本季的銷售額有 30% 是以日圓計算的。我們在分銷組織和客戶服務組織都增加了員工，以便我們能夠與仍然需要保護的客戶合作，不僅取消他們的保險，而且尋找其他替代方案。因此，我們正在積極主動地努力緩解這種情況。

Joel Hurwitz, Dowling Partners.

道林合夥公司的喬爾‧赫爾維茨 (Joel Hurwitz)。

So I wanted to touch on the earnings emergence in the retirement business businesses. We saw individual retirement with a nice pickup this quarter, but institutional retirement earnings have contracted a bit despite the really strong PRT activity last year. Just any color on what's going on in institutional? And when do you expect sort of the earnings to pick up?

所以我想談談退休業務的獲利情況。本季度，我們看到個人退休收入大幅增加，但儘管去年 PRT 活動非常強勁，但機構退休收入卻略有下降。對機構內發生的事情有什麼看法？您預計收益什麼時候會回升？

Joel, so yes, and this is a topic I know we've talked about throughout last year, right, in terms of the fact that we had very strong sales, especially on PRT in 2024 and the fact that the emergence of those earnings happens over several quarters as the timing of the sales is not obviously as of 1/1. And also, we rotate into the portfolio. And the best way to think about this is to look at first quarter 2025 and compare that to first quarter 2024.

喬爾，是的，我知道我們去年一直在討論這個話題，因為我們的銷售非常強勁，尤其是 2024 年的 PRT，而且這些收益的出現發生在幾個季度，因為銷售時間顯然不是 1/1。此外，我們還將其輪換到投資組合中。思考這個問題的最好方法是看看 2025 年第一季度，並將其與 2024 年第一季進行比較。

Now the core earnings in Institutional Retirement in those periods was down by $24 million, but that does reflect the benefit of the sales. So let's walk through that. We did have growth in spread earnings from our strong sales, again, particularly the strong PRT sales that we had in 2024. And the benefit to spread net of the expected runoff of the in-force PRT is a runoff business was approximately $25 million.

現在，機構退休金在這些時期的核心收益下降了 2,400 萬美元，但這確實反映了銷售帶來的好處。讓我們來討論一下。我們的強勁銷售確實帶來了利差收益的成長，尤其是 2024 年強勁的 PRT 銷售。而扣除有效 PRT 預期流失後的利差淨額即流失業務的收益約為 2,500 萬美元。

So that is the benefit of the sales. But that was more than offset by other factors. Primarily, we had the change in the internal expense allocation that we previously announced. There was a shift of $50 million of annual expenses to institutional retirement that nets to zero across the company, but it does impact the business.

這就是銷售的好處。但這被其他因素所抵消。首先，我們對先前宣布的內部費用分配進行了更改。公司每年有 5,000 萬美元的支出轉入機構退休金，這在全公司範圍內為零，但這確實對業務產生了影響。

Second, we had lower spread income on cash balances in the business, and that was due to the reduction in short-term rates of about 100 basis points in the second half of 2024. As you've heard us say, short-term rates don't have a total material impact to the enterprise, but they did impact the business due to cash balances.

其次，我們業務中現金餘額的利差收入較低，這是由於 2024 年下半年短期利率下降了約 100 個基點。正如您聽到我們所說的那樣，短期利率不會對企業產生整體實質影響，但由於現金餘額，它們確實對業務產生了影響。

And lastly, we had a refinement of accounting methodology for certain derivatives, which resulted in a reclassification out of operating income to nonoperating earnings for retirement, no impact to net, but it did impact the core earnings power. So those are the three drivers that offset the fact that we're seeing our earnings in spread. And we feel good about the growth that we're seeing in spread. It's just being masked by these items.

最後，我們對某些衍生性商品的會計方法進行了改進，導致營業收入重新分類為退休非營業收入，這對淨額沒有影響，但確實影響了核心獲利能力。因此，這三個驅動因素抵消了我們的獲利差距。我們對所看到的傳播成長感到滿意。只是被這些物品掩蓋了。

Okay. That was really helpful. Maybe just sticking on PRT. Can you just talk about what you're seeing in the market? And are you seeing any sort of impact just given the legal case out there?

好的。這真的很有幫助。也許只是堅持 PRT。您能談談您在市場上看到的情況嗎？鑑於目前的法律案件，您是否看到了任何影響？

So thanks, Joel, for the question. The market size that we've seen all the way through the first quarter is, I would frame it as expected. So we have not seen an effect of the litigation on the willingness and desire for transactions in the marketplace, nor have we seen any impact, obviously, on our success in that market.

所以，感謝喬爾提出這個問題。我認為，我們在整個第一季看到的市場規模是符合預期的。因此，我們尚未看到訴訟對市場交易意願和願望產生影響，也沒有看到訴訟對我們在該市場的成功產生任何影響。

That being said, I wouldn't be surprised to see 2025 normalize from a market size perspective. 2024 was a pretty robust year. The reason I feel that way is because of the volatility that's currently going on in the environment. Volatility impacts decision-makers in that most business decision-makers slow up on their decision-making. Sometimes they pull up on their decision-making. So that probably will mean a normalization in the near term.

話雖如此，從市場規模的角度來看，2025 年恢復正常我並不會感到驚訝。 2024 年是相當強勁的一年。我之所以會有這種感覺，是因為目前的環境正在動盪。波動性對決策者的影響在於大多數商業決策者會放慢決策速度。有時他們會放棄自己的決策。所以這可能意味著短期內實現正常化。

But look, I think the important thing is, long term, this is a very good growth area. There's $3 trillion in pension plan assets that haven't transacted funded status is at 105%. At the end of the day, volatility creates a higher desire for plan sponsors to want to transact. So we see this as a good long-term growth area. Maybe the last thing I'd say is just remember, this is a more transaction-oriented business, not a flow-oriented business. So transactions will be episodic, and you shouldn't expect to see things at every quarter.

但我認為重要的是，從長遠來看，這是一個非常好的成長領域。有 3 兆美元的退休金計畫資產尚未交易，資金狀況達 105%。最終，波動性會激發計劃發起人進行交易的更高意願。因此我們認為這是一個良好的長期成長領域。也許我要說的最後一件事就是記住，這是一個以交易為導向的業務，而不是以流程為導向的業務。因此交易將是偶發性的，你不應該期望每個季度都能看到交易。

John Barnidge, Piper Sandler.

約翰·巴尼奇、派珀·桑德勒。

My first question is about the comment about sharpening the focus on growth. Where does inorganic sit within that?

我的第一個問題是關於更注重成長的評論。無機物在其中處於什麼位置？

John, thanks for the question. So even though you asked the question that way, I will start with organic growth is job 1, and we're going to stay very focused on that. That is always our highest priority and best thing to do.

約翰，謝謝你的提問。因此，即使你這樣問，我還是會從有機成長開始，這是第一要務，我們將高度關注這一點。這始終是我們最優先考慮的事情，也是最好的做法。

That said, inorganic growth is an important and necessary tool for us to continue to maintain our market leadership and expand our market leadership. So you've seen us do this where like in direct lending as an example, we organically built a business that was very successful. We then complemented that business by the purchase of Deer Path Capital, which was very complementary, but required to continue to build on and maintain market leadership.

話雖如此，無機成長是我們繼續保持市場領導地位和擴大市場領導地位的重要且必要的工具。因此，您已經看到我們這樣做，例如在直接貸款方面，我們有機地建立了一項非常成功的業務。隨後，我們透過收購 Deer Path Capital 來補充該業務，這具有很強的互補性，但需要繼續鞏固並維持市場領導地位。

What I will share, as I always share, is we're going to be very disciplined, have a high bar for inorganic capital deployment. And you should think of we're leaning into higher growth and capital efficient areas as we stated in the past. So no change from that perspective.

正如我一直分享的那樣，我要分享的是，我們將非常自律，對無機資本部署設定高標準。您應該想到，正如我們過去所說的那樣，我們正傾向於更高成長和資本效率的領域。從這個角度來看沒有改變。

And maybe my follow-up question on the organic. A number of life insurers that have sizable asset management operations have started to introduce investment options combining public and private in the same. Where do you sit with the opportunity for interval funds for PGIM?

也許我的後續問題是關於有機的。一些擁有大規模資產管理業務的人壽保險公司已開始推出公募與私募相結合的投資選擇。您認為 PGIM 間隔基金的機會在哪裡？

So thank you for the question. So we actually have been bringing our public and private capabilities together with PGIM and have actually been introducing early days interval funds.

謝謝你的提問。因此，我們實際上已經將我們的公共和私人能力與 PGIM 結合起來，並且實際上已經引入了早期階段的基金。

As you know, we've been leaning into areas that we think are going to be higher growth and higher fee and have been expanding those capabilities, both institutionally and on the retail side. So we definitely think that is an area of opportunity that we've invested in.

如您所知，我們一直傾向於我們認為將會實現更高成長和更高費用的領域，並且一直在擴大這些能力，無論是在機構方面還是在零售方面。因此，我們確實認為這是我們投資的一個機會領域。

As with any of these capabilities, I'd go back to kind of my J-curve comment earlier, it obviously takes a bit of time for the assets to flow in and for the results to show up on the bottom line.

與任何這些能力一樣，我會回到我之前的 J 曲線評論，顯然資產流入和結果顯示在底線上需要一些時間。

Elyse Greenspan, Wells Fargo.

富國銀行的伊莉絲‧格林斯潘。

My first question, I guess, I want to go back sorry, the EPS guide, right? So you guys were talking about 3% to 4% drag this year. So when you think about the 5% to 8% right over the three-year period, should we think about that some of that coming back in '26 of the 3% to 4% and then more in '27. So the earnings growth picks up steam as we go through the three years and kind of get that average growth over the three-year period?

我的第一個問題是，對不起，我想回到 EPS 指南，對嗎？所以你們談論的是今年的拖累幅度是 3% 到 4%。因此，當您考慮三年期間的 5% 到 8% 時，我們是否應該考慮其中的一部分會在 26 年回升至 3% 到 4% 左右，然後在 27 年回升更多。那麼，隨著這三年的發展，獲利成長是否會加快，並實現三年的平均成長率？

Elyse, let me take that. So going back to when we shared the targets last quarter, we said the 5% to 8% is a three-year real intermediate and the growth will not be linear.

伊莉絲，讓我來接手。因此，回到我們上個季度分享目標的時候，我們說 5% 到 8% 是三年的實際中間值，成長不會是線性的。

And as you heard in Andy's opening remarks, we face near-term headwinds. A couple of thoughts. We are seeing the benefit of our strong sales and earnings coming through. However, in the near term, they are being offset by headwinds that we've talked about. So the surrenders in Japan due to the weakening yen, which I just quantified and the impact of the runoff variable annuities.

正如您在安迪的開場白中聽到的那樣，我們面臨著近期的阻力。一些想法。我們正在見證強勁的銷售和獲利帶來的好處。然而，在短期內，它們將被我們談到的不利因素所抵消。因此，由於日圓貶值導致日本出現退保，我剛才對此進行了量化，併計算了可變年金流失的影響。

So I quantify the impact of the weakening yen, I thought it would be helpful to also quantify our expectations on the impact of the runoff of the variable annuity. So as we have previously shared, -- the quarterly runoff is anywhere between $3 billion to $4 billion. Earnings impact will fluctuate with market from quarter-to-quarter, but we estimate that the annual earnings impact on a cumulative basis is anywhere between $100 million to $150 million.

因此，我量化了日圓貶值的影響，我認為量化我們對變額年金流失影響的預期也會有所幫助。正如我們之前所說，季度虧損額在 30 億美元至 40 億美元之間。獲利影響將隨市場每季的變化而波動，但我們估計，年度獲利影響累計將在 1 億美元至 1.5 億美元之間。

So those are the 2025 impacts to earnings. But we do expect these headwinds to dissipate over time. They're embedded in the intermediate-term targets of 5% to 8%. We expect them to dissipate over time as the surrenders stabilize and as the runoff slows down, and of course, as our growth continues to emerge, and we continue to demonstrate further growth.

這些就是 2025 年對收益的影響。但我們確實預期這些不利因素會隨著時間的推移而消散。它們包含在5%至8%的中期目標中。我們預計，隨著退讓額穩定下來、流失速度減緩，當然，隨著我們的成長持續顯現，我們將繼續展現進一步的成長，這些損失將隨著時間的推移而消散。

And then my second question, you guys last quarter, right, we're talking about capital return as a percent of net income, but obviously, that could swing around quarter-to-quarter. And you guys were above 100% last year and again in the Q1. So are you still kind of gearing folks to think about capital return as a percent of net income as opposed to operating? How should we think about that for this year?

然後我的第二個問題是，上個季度，我們討論的是資本回報率佔淨收入的百分比，但顯然，這可能會逐季度波動。去年和第一季度，你們的業績都超過了 100%。那麼，您是否仍鼓勵人們將資本報酬率視為淨收入的百分比，而不是營業收入的百分比？今年我們該如何考慮這個問題？

Yes. Elyse, when I think about the targets that we spoke about, we have the 65% of net income as a free cash flow target that isn't directly linked to capital return. But obviously, it is the capital that is available to be returned. And as you noted, it does fluctuate.

是的。伊莉絲，當我想到我們談到的目標時，我們將 65% 的淨收入作為自由現金流目標，這與資本回報沒有直接聯繫。但顯然，這是可以回饋的資本。正如您所說，它確實會波動。

So when we think about the free cash flow target ratio, it is an overtime measure, not a quarterly view because cash flows to and from the businesses to the Holdco can be lumpy and are not linear. That said, we did have strong cash flows from the businesses this quarter. We had $600 million come up to PFI in addition to other sources and uses. And again, I would just highlight that, that ratio is an overtime measure and will not be linear.

因此，當我們考慮自由現金流目標比率時，這是一個加班衡量指標，而不是季度觀點，因為企業到控股公司的現金流可能是不均勻的，而且不是線性的。也就是說，本季我們的業務確實獲得了強勁的現金流。除了其他來源和用途外，我們還有 6 億美元用於 PFI。我再次強調，該比率是加班衡量的，並不是線性的。

Jimmy Bhullar, J.P. Morgan.

摩根大通的吉米·布拉爾 (Jimmy Bhullar)。

I guess. First, I just had a question for Yanela, following up on your -- the ESR discussion. You didn't obviously give a number, but on what the ESR is -- but what do you think is the normal threshold that you'd want to run your business given your liability profile in Japan?

我猜是的。首先，我只是想問 Yanela 一個問題，跟進你的 ESR 討論。您顯然沒有給出一個數字，但是關於 ESR 是多少——考慮到您在日本的責任狀況，您認為您希望開展業務的正常門檻是多少？

Yes. So I mean, what we would say is we'll share the preliminary ESR views during the summer. We will continue to manage these entities to a level of capital consistent with our AA targets. And we do think that post ESR implementation, we will be at those levels.

是的。所以我的意思是，我們會在夏季分享初步的 ESR 觀點。我們將繼續管理這些實體，使其資本水準與我們的 AA 目標一致。我們確實認為，在實施 ESR 之後，我們將達到這些水準。

Okay. But you're not open to discussing what the level is or what the base is? Not asking what your level is, but what do you think is the appropriate please?

好的。但您不願意討論級別是什麼或基礎是什麼？我不是問你的水平如何，而是問你認為怎樣才合適？

Yes. No, again, we will share where we are and what we think the appropriate level is in the summer.

是的。不，再說一次，我們會分享我們所處的位置以及我們認為夏天的適當水平。

Okay. And then on your flows in PGIM were obviously very strong this quarter. And then annuity flows also benefited from decent growth in the buffer product. How should we assume that both of those businesses are going to hold up in the face of higher market volatility. I'm assuming PGM, obviously is going to see some pressure, but should the annuity business benefit or is it going to be pressured as well given higher volatility and a directionally declining market overall?

好的。然後，本季 PGIM 的流量顯然非常強勁。年金流也受益於緩衝產品的良好成長。面對日益加劇的市場波動，我們該如何假設這兩家企業都能堅持下去？我認為 PGM 顯然會面臨一些壓力，但年金業務是否應該受益，還是會面臨壓力，因為波動性更高且整個市場呈方向性下滑？

So Jimmy, let me take those one at a time, and I'll start with PGIM, and then I'll talk about annuities. So on PGIM, we were quite pleased with our flows in the first quarter, as you mentioned. And we had very strong institutional flows that it was very broad-based. We saw that across many clients, which we're happy to see and also across almost all of our asset classes. So it was very broad-based inflows.

所以，吉米，讓我一次討論一個，我先從 PGIM 開始，然後再討論年金。因此，就 PGIM 而言，正如您所說，我們對第一季的流量感到非常滿意。我們擁有非常強大且基礎廣泛的機構流動。我們在許多客戶身上都看到了這一點，我們很高興看到這一點，而且幾乎所有的資產類別都是如此。因此，這是非常廣泛的資金流入。

We did see, obviously, volatility really kick up in March. And uncertainty in the market causes clients to go risk off. The most immediate effect of that is retail clients react first, and we definitely saw that in March and are seeing that continue into April.

顯然，我們確實看到三月波動確實加劇了。市場的不確定性導致客戶逃避風險。最直接的影響是零售客戶首先做出反應，我們在三月確實看到了這一點，並且看到這種情況持續到四月。

If volatility continues, I would expect to see it have an impact on institutional flows as well. So I would frame this as we are off to a great start in 2025, thanks to all of our hard work and good results, but we're now more cautious. On PGM flows, please also though, keep in mind the affiliated flows which were, in essence, flat this quarter. But over time, thanks to our retirement and insurance capabilities, that will be a good growth opportunity.

如果波動持續下去，我預期它也會對機構流動產生影響。因此，我認為，由於我們所有的努力和良好成績，我們在 2025 年將有一個良好的開端，但我們現在更加謹慎。關於 PGM 流量，也請記住本季附屬流量基本上持平。但隨著時間的推移，由於我們的退休和保險能力，這將是一個很好的成長機會。

On the annuity side, the market is robust. We saw the third record basically quarter at $100 billion in sales. Obviously, as interest rates go up and down, you could have a dampening or enhancing effects.

在年金方面，市場表現強勁。我們看到了第三個季度的銷售額創下 1000 億美元的紀錄。顯然，隨著利率的上升和下降，可能會產生抑製或增強的效果。

But the important thing is there are significant long-term tailwinds that are driving this business. You think of the aging of the population, the real need to search for yield to search for higher yield. The fact is volatility creates a higher desire for protected solutions and certainty. So we expect this to remain a robust market. We are pleased with our $3.5 billion in sales, we've now been very consistent at that. So I believe that this will be a good growth area for us.

但重要的是，有顯著的長期順風推動著這項業務的發展。你想想人口老化，真正需要尋求利益的是尋求更高的利益。事實是，波動性使得人們對受保護的解決方案和確定性的需求更高。因此我們預計該市場仍將保持強勁。我們對 35 億美元的銷售額感到滿意，現在我們的銷售額一直非常穩定。所以我相信這對我們來說將是一個很好的成長領域。

Okay. And if I could just ask one more, Andy, can you talk about like some of the key areas where maybe we'll see a shift in strategy or focus on the part of Prudential. And I think you mentioned something along the lines of like uses of capital might evolve over time, but there maybe be a little bit more specific on where it is that you will be different going forward than maybe in the past few years?

好的。安迪，如果我可以再問一個問題，您能否談談保誠集團在哪些關鍵領域可能會發生策略或重點的轉變？我認為您提到了類似資本用途可能會隨著時間的推移而演變之類的事情，但也許可以更具體地說明未來與過去幾年相比在哪些方面會有所不同？

Yes. So Jimmy, I'll just sort of reiterate what I talked about at the top of the call with Ryan which is we're going to continuously be evaluating the various growth opportunities that we have in front of us and their return profile as we look to optimize things.

是的。所以吉米，我只是想重申我在與瑞安通話時談到的內容，那就是我們將不斷評估我們面前的各種成長機會及其回報狀況，以期優化事情。

As I sit here today, I'm not ready to go deeper. We obviously have a continuous process of assessing the market changes and business changes and how we need to evolve our capital plans. But I think the important takeaway is it's a continuous discipline that we have, and we'll evolve and adjust over time.

今天我坐在這裡，還沒準備好更深入的探討。顯然，我們有一個持續評估市場變化和業務變化的過程，以及我們如何改善資本計劃。但我認為重要的一點是，這是我們擁有的一項持續的紀律，我們會隨著時間的推移而發展和調整。

Jack Matten, BMO Capital Markets.

傑克·馬滕 (Jack Matten)，BMO 資本市場。

Just a follow-up on the individual retirement sales outlook. I mean, any insights on how sales loans are trending so far in April, especially for the [rala] product, given some of the recent market volatility. I think you referenced it's a good environment for sales, but do you think about the $3.5 billion this quarter, a swing that you can sustain throughout the balance of the year?

只是對個人退休銷售前景的後續關注。我的意思是，考慮到最近的一些市場波動，您對 4 月份銷售貸款的趨勢有何見解，尤其是對於 [rala] 產品。我認為您提到了這對銷售來說是一個良好的環境，但您是否認為本季 35 億美元的銷售額能夠在全年保持下去？

Jack, it's Andy. I'm not going to get that specific about what we're seeing in the month of April. And candidly, we look at this business over the long term and what the long-term tailwind trends are going to be for us. And obviously, we feel very, very good and very strong about that.

傑克，我是安迪。我不會具體描述四月份的情況。坦白說，我們會從長遠角度看待這項業務，並考慮長期的順風趨勢對我們意味著什麼。顯然，我們對此感到非常非常好，而且非常堅定。

Got it. And maybe look on the group business, I think premium growth in the quarter was pretty strong, kind of well above like the intermediate term target you've laid out just any color on what drove that result and how you view the outlook for growth in that business this year?

知道了。也許看看集團業務，我認為本季的保費成長相當強勁，遠高於您列出的中期目標，您能具體說明一下推動這一結果的因素以及您如何看待今年該業務的成長前景嗎？

Jack, it's Yanela. So yes, we had strong performance across the boarding group, both in group life and disability. The core earnings in the quarter really highlight our continued momentum and we're executing on our growth strategy and also ensuring that we are maintaining price discipline here. We're making investments in improving our customer experience and claims management capabilities. So a very good story.

傑克，我是亞內拉。是的，我們整個寄宿群體在團體生活和殘疾方面都表現出色。本季的核心收益確實凸顯了我們持續的成長勢頭，我們正在執行成長策略，同時確保我們保持價格紀律。我們正在投資改善客戶體驗和索賠管理能力。這是一個非常好的故事。

And you could see our focus on profitable growth, highlighted really in the overall benefit ratio, which was just over 81% this quarter and right below the target of 83% to 87%. And of course, our segment diversification strategy is also showing up and improving our fundamentals in the business, most notably under the 5,000 lives market where we had over 50% sales growth compared to the year ago quarter. So all this is showing up in the results, and we feel good about the outlook for the business.

您可以看到我們對獲利成長的關注，這在整體獲利率上得到了充分體現，本季整體獲利率略高於 81%，略低於 83% 至 87% 的目標。當然，我們的細分市場多元化策略也正在顯現並改善我們的業務基本面，最明顯的是在 5,000 個生命市場，與去年同期相比，我們的銷售額成長了 50% 以上。所有這些都體現在結果中，我們對業務前景充滿信心。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

I wanted to come back to the EPS discussion real quick. But Andy, you reiterated 5% to 8% on average core EPS growth over the three-year period. Could you just help us with the baseline with which to measure you to? I know there was some change to reported seasonality. But if I look at last quarter's slide deck, core EPS was $13.94. So is that the baseline? Or should we be looking at a different figure?

我想很快回到 EPS 討論。但安迪，您重申了三年內平均核心每股收益成長率為 5% 至 8%。您能否幫助我們確定衡量您的基準？我知道報告的季節性發生了一些變化。但如果我看一下上個季度的幻燈片，核心每股收益為 13.94 美元。這就是底線嗎？或者我們應該看看不同的數字？

Yes, Wes, it's Yanela. So if you recall last quarter when we had in the presentation, the core base that you should be working off of is $13.67. And that's adjusted for all the seasonality and reflecting all those changes.

是的，韋斯，我是亞內拉。因此，如果您還記得我們上個季度的演示，那麼您應該考慮的核心基礎是 13.67 美元。並且根據所有季節性因素進行了調整，反映了所有這些變化。

Okay. No, that's helpful. And maybe just a question on Prisma. I know you announced a $7 billion transaction in January, but want to see if you could provide a little more color on maybe just strategically, if anything's changed with Prisma, if you're focused on more back book deals or if you're looking towards third-party business now?

好的。不，這很有幫助。也許這只是關於 Prisma 的一個問題。我知道您在一月份宣布了一項價值 70 億美元的交易，但您是否可以提供更多細節，也許只是從戰略角度，Prisma 是否有任何變化，您是否更專注於更多的圖書交易，或者您現在是否正在考慮第三方業務？

Yes. So I don't think anything has strategically changed. I mentioned in my answer to the prior question that we really have multiple levers that we look at and multiple avenues for where and how we manage risk, wholly owned entities, Prismic and external reinsurance, and we really leverage all of those.

是的。所以我認為從戰略上來說沒有任何改變。我在回答上一個問題時提到，我們確實有多個可考慮的槓桿和多種途徑來管理風險，包括全資實體、Prismic 和外部再保險，我們確實利用了所有這些。

We have an active pipeline for Prismic, and really that focuses on financing new business growth ongoing balance sheet optimization. You heard Andy say that is a constant. We're constantly looking at how do we optimize the balance sheet.

我們為 Prismic 建立了活躍的管道，其主要目的是為新業務成長和持續的資產負債表優化提供資金。你聽到安迪說這是一個常數。我們一直在研究如何優化資產負債表。

And lastly, third-party blocks. However, these transactions are complex, the bespoke to each situation and require regulatory coordination so they do take time. And again, as you said, we just closed the Japan transaction of $7 billion.

最後是第三方區塊。然而，這些交易很複雜，需要針對每種情況進行定制，並且需要監管協調，因此需要時間。正如您所說，我們剛剛完成了 70 億美元的日本交易。

Alex Scott, Barclays.

巴克萊銀行的亞歷克斯·斯科特。

First one I had is on the yen hedging program just in light of some of the volatility that's been in currency markets. Could you talk about that program? And if you're able to talk at all about how that impacts the potential ESR ratio, I know we don't know what it is, we don't know what the baseline is, but one of your peers had some volatility in their ESR related to this. And just given you guys have a big program as well. I'd just be interested in how that, if it all affects the capitalization in the Japan business.

我首先想到的是日圓對沖計劃，以應對貨幣市場的一些波動。你能談談那個項目嗎？如果你能談談這對潛在的 ESR 比率有何影響，我知道我們不知道它是什麼，我們不知道基線是什麼，但你的一位同行的 ESR 與此相關出現了一些波動。而且考慮到你們也有一個大計畫。我只是想知道這一切是否會對日本業務的資本化產生影響。

Yes. So a couple of thoughts there. So we don't hedge our yen earnings in Japan. So obviously, the percentage of yen earnings in Japan is not significant given that we have a lot of US dollar business and our yen -- our expenses are in yen. We do hedge our equity in Japan, and we feel good about that. It's an active program. It is part of our broader capital management framework so that it all covered there.

是的。這裡有幾點想法。因此我們不會在日本對沖日圓收益。因此，顯然，考慮到我們有大量美元業務，而且我們的支出都是以日圓支付的，因此在日本的日圓收入所佔比例並不大。我們確實對沖了我們在日本的股權，我們對此感到滿意。這是一個活躍的計劃。它是我們更廣泛的資本管理框架的一部分，因此涵蓋了所有內容。

And with regards to ESR, obviously, when we implement ESR and when we look at ESR and capital levels being consistent with AA levels of capital, we're factoring in the hedging program as well.

關於 ESR，顯然，當我們實施 ESR 時，當我們考慮 ESR 和資本水準與 AA 資本水準一致時，我們也會考慮對沖計劃。

Okay. Maybe shifting gears. The Life Insurance segment, you called it out as an area where there's some near-term headwind, and I appreciate the reasons why, but it's at the same time that core earnings power. I know there's a lot of volatility in the actual number, but the core number that you guys kind of pointed us to in your release looked stronger. I mean, I think it was the best number you've put out since like 2021. So just be interested, is that not a sustainable number? Or is there some other nuance to the first quarter number that you produced.

好的。或許正在轉變方向。您稱人壽保險領域在短期內面臨一些阻力，我理解您給出的理由，但同時，這也是核心獲利能力所在。我知道實際數字存在很大的波動，但你們在發布中向我們指出的核心數字看起來更為強勁。我的意思是，我認為這是自 2021 年以來你公佈的最佳成績。所以請有興趣，這不是一個可持續的數字嗎？或者您給出的第一季數字是否存在其他細微差別。

Alex, what I would say is, yes, we did see slight growth in the core earnings power of the Individual Life business. That is reflective of the -- really the good business that we're writing.

亞歷克斯，我想說的是，是的，我們確實看到個人人壽業務的核心獲利能力略有成長。這確實反映了我們正在寫的好生意。

As you heard Andy say, we feel good about the new business we're writing. It's profitable, it's capital efficient. And over time, the benefit to earnings of those sales are coming through. And obviously, it's negatively impacted by the remaining GOL portion that's in that business as well. But that's really what's going on. So if it's in core, it will be sustainable, and it is not a onetime item.

正如安迪所說，我們對正在進行的新業務感到滿意。它有利可圖，而且資本效率高。隨著時間的推移，這些銷售帶來的收益就會顯現出來。顯然，它也受到了 GOL 剩餘業務的負面影響。但事實確實如此。因此，如果它是核心，它將是可持續的，並且它不是一次性項目。

Mike Ward, UBS.

瑞銀集團的麥克沃德。

I was just wondering if -- I appreciate the commentary on the alternative sensitivity, but wondering if you have an updated view of overall sensitivities for to equity market or interest rate shocks just given the reduction in market sensitivities you've been working on?

我只是想知道——我很欣賞對替代敏感性的評論，但考慮到您一直致力於降低市場敏感性，您是否對股票市場或利率衝擊的整體敏感性有了更新的看法？

Yes, we do. So let me share those. You may recall that following our variable annuity derisking transactions, we did specify that our earnings sensitivities had been reduced by approximately 20%.

是的，我們有。所以讓我來分享這些。您可能還記得，在我們的變額年金去風險交易之後，我們確實明確表示我們的獲利敏感度降低了約 20%。

So our earnings sensitivities remain relatively unchanged from those levels, but let me walk through them from an equity market perspective, if we apply the same equity market shock that I spoke about for alternatives, so 10% onetime equity market decline, followed by a 1.25% quarterly recovery we would expect the AOI impact to be a reduction of about $0.30 per share on an annual basis. So that's the equity market shock.

因此，我們的獲利敏感度與這些水準相比保持相對不變，但讓我從股票市場的角度來解釋一下，如果我們應用我之前提到的替代產品的相同股票市場衝擊，即股票市場一次性下跌 10%，然後季度復甦 1.25%，我們預計 AOI 的影響將按年減少約 0.30 美元/股。這就是股市衝擊。

From an interest rate perspective, if we assume a 50-basis-point one-time interest rate decline, we expect the AOI impact to be about a 20% decline in EPS on an annual basis.

從利率角度來看，如果我們假設利率一次下降 50 個基點，我們預計 AOI 的影響將是 EPS 年度下降約 20%。

That's helpful. And then maybe for Andy, just curious how you think about the common dividend in the context of capital priorities? Just it seems like increasingly significant use of capital, and I think double your spend on buybacks. Just curious how that fits into the capital discussion.

這很有幫助。那麼也許對於安迪來說，只是好奇你如何在資本優先的背景下看待共同股息？這看起來就像是資本的使用越來越重要，而且我認為回購的支出將會增加一倍。只是好奇這與資本討論有何關係。

Yes, Mike, I'm going to let Yanela cover how we think about that capital deployment.

是的，麥克，我將讓 Yanela 介紹我們對資本部署的看法。

Yes. So Mike, what I would say there is our capital deployment priorities and how we think about it hasn't changed. We continue to apply a very thoughtful approach to balancing the preservation of financial strength and flexibility, investing in our businesses for long-term growth and supporting shareholder distributions, both in the form of dividends and share repurchases.

是的。所以麥克，我想說的是，我們的資本部署優先事項以及我們對此的看法並沒有改變。我們繼續採取非常周到的方法來平衡保持財務實力和靈活性，投資我們的業務以實現長期增長，並以股息和股票回購的形式支持股東分配。

And I would reiterate that we continue to see valuable organic growth opportunities, and I would double-click on the financial strength aspect of the priorities, given the macro environment that we're seeing. And we continue to confidently navigate the macro environment with our strong balance sheet. So we don't anticipate any changes.

我想重申的是，我們繼續看到寶貴的有機成長機會，考慮到我們所看到的宏觀環境，我會再次強調優先事項中的財務實力方面。我們將繼續憑藉強勁的資產負債表自信地應對宏觀環境。所以我們預計不會有任何變化。

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

我們的問答環節已經結束。我想將發言權交還給安迪，請他發表進一步的評論或結束評論。

Thank you, everyone, for joining us today. And I want to give a special thanks to our employees all around the world for their commitment to our customers and to each other.

感謝大家今天加入我們。我還要特別感謝我們在世界各地的員工對我們的客戶和彼此的承諾。

I see tremendous opportunity ahead for our business and our leadership team is well aligned on the priorities that will get us there, evolving and delivering on our strategy, improving our execution and fostering our high-performance culture. We're confident that we're near an inflection point towards a much stronger company.

我看到我們的業務面臨巨大的機遇，我們的領導團隊對實現這一目標的優先事項達成了一致，不斷發展和實施我們的策略，提高我們的執行力並培養我們的高績效文化。我們相信，我們即將到達一個轉捩點，走向更強大的公司。

I look forward to keeping you updated on the progress along the way. Have a great day.

我期待隨時向您通報進度。祝你有美好的一天。

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路直播到此結束。此時您可以斷開線路並享受美好的一天。我們感謝您今天的參與。