保德信金融集團 (PRU) 2025 Q2 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。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 Yanela and Andy, and then we will address your questions. Today's discussion may include forward-looking statements. It is possible that actual results may differ relief 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 forward-looking statements.

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安迪·沙利文 (Andy Sullivan) 和財務長亞內拉·弗里亞斯 (Yanela Frias)。我們將首先介紹 Yanela 和 Andy 準備好的評論，然後解答您的問題。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所不同。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 指標進行協調，並討論可能導致實際結果與前瞻性陳述有重大差異的因素。

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.

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, and welcome to the call. Let me begin with my perspective on our progress and performance, and then I'll provide details on our priorities and major actions taken during the second quarter. Our pretax adjusted operating income was $1.7 billion or $3.58 per share, up 9% from the prior year quarter, and our year-to-date return on equity was over 14%. These results reflect more favorable underwriting experience and higher spread income across our global insurance businesses as well as higher fee income in PGIM. .

大家早安，歡迎參加電話會議。首先，我將介紹我們所取得的進展和表現，然後詳細介紹我們在第二季採取的優先事項和主要行動。我們的稅前調整後營業收入為 17 億美元，即每股 3.58 美元，較去年同期成長 9%，年初至今的股本回報率超過 14%。這些結果反映了我們全球保險業務中更有利的承保經驗和更高的利差收入以及 PGIM 更高的費用收入。。

Current quarter results included alternative investment income that was $60 million below our expectations, driven by lower private equity and real estate returns and the net unfavorable impact of approximately $50 million from our annual assumption update process. Our performance reflects solid momentum across most of our businesses and geographies. And the actions we have taken to diversify our products, expand our distribution and address evolving market demands. I'll highlight a few examples. Our group insurance business continues to demonstrate strength having one of its best earnings quarters in recent memory. Our efforts to diversify our product and segment mix in this business are clearly paying dividends.

本季業績包括另類投資收入，比我們的預期低 6000 萬美元，原因是私募股權和房地產回報率較低，以及我們年度假設更新流程產生的約 5000 萬美元的淨不利影響。我們的業績反映了我們大多數業務和地區的強勁發展勢頭。我們已採取行動來豐富我們的產品、擴大我們的分銷範圍並滿足不斷變化的市場需求。我將重點舉幾個例子。我們的團體保險業務持續展現強勁勢頭，創下近年來獲利最好的季度。我們為實現該業務的產品和細分市場組合多樣化所做的努力顯然正在獲得回報。

In Individual Life, we produced improved earnings results and grew sales 10% year-over-year with a broader product portfolio. And in institutional retirement, we delivered robust longevity risk transfer transactions leading to $9 billion of sales for the segment.

在個人人壽保險方面，我們透過更廣泛的產品組合實現了盈利增長，銷售額同比增長了 10%。在機構退休方面，我們提供了強勁的長壽風險轉移交易，為該部門帶來了 90 億美元的銷售額。

Turning to our International Insurance businesses. In Japan, where our business has traditionally focused on protection products, we are now consistently capturing the growing demand for retirement and saving solutions through the introduction of new offerings, and we continue to see the stabilization of surrender activity, which has been a significant headwind for us recently. In Brazil, we continue to deliver strong sales with particular strength in our Life Planner channel. We've expanded our agency network by adding seven new agencies over the last year, increasing our Life Planner head count to an all-time high. There were two areas where we are looking for stronger, more consistent results.

轉向我們的國際保險業務。在日本，我們的業務傳統上專注於保護產品，現在我們透過推出新產品不斷滿足日益增長的退休和儲蓄解決方案需求，並且我們繼續看到退保活動的穩定，這對我們來說是一個重大阻力。在巴西，我們的銷售業績持續強勁，尤其是生活規劃師通路。去年，我們增加了 7 家新代理機構，擴大了代理網絡，使我們的人生規劃師人數達到了歷史最高水平。我們希望在兩個領域中取得更強大、更一致的成果。

In PGIM, flows were relatively flat as equity market volatility at the beginning of the quarter resulted in large retail outflows offsetting solid positive institutional inflows. And in individual retirement strategies, we have produced lower core earnings over the last several quarters. Although this was in part due to the expected runoff of our legacy variable annuity block, it was still disappointing. We seek to achieve more consistent results going forward as we lean into our further diversified product offering, and continue to benefit from managing expenses efficiently and our pricing discipline.

在PGIM，資金流入相對平穩，因為本季初股市波動導致大量零售資金流出抵消了穩健的機構資金流入。在個人退休策略方面，過去幾季我們的核心收益有所下降。儘管這在一定程度上是由於我們遺留的變額年金塊預計會流失，但仍然令人失望。我們力求在未來實現更一致的結果，因為我們更傾向於提供多樣化的產品，並繼續受益於有效的費用管理和定價紀律。

Moving to Slide 3. We are making progress against the three priorities I laid out for Prudential in the first quarter call. which will deliver stronger performance and more consistent results over time. First, we are evolving our strategy. This is required due to the changing needs of our customers, the shift in competitive environment and rapid advances in technology. This is about focus. Focusing our management attention and our capital deployment on the areas with the greatest opportunities to deliver profitable and sustainable growth over time. More updates will follow over the next several quarters. Second, we are determined to execute with more consistency and discipline.

移至幻燈片 3。我們正在朝著我在第一季電話會議上為保誠提出的三個優先事項取得進展。隨著時間的推移，這將帶來更強勁的業績和更一致的結果。首先，我們正在改進我們的策略。這是由於客戶需求的變化、競爭環境的轉變以及技術的快速進步而產生的。這是關於焦點的問題。將我們的管理注意力和資本部署集中在最有可能實現長期獲利和永續成長的領域。未來幾季將會有更多更新。第二，我們決心更一致、更有紀律地執行。

This means improving our earnings performance as we refine our mix of businesses and products. We are committed to continuing to improve our cost base and the experience we deliver to our customers. Expanding our use of technology is core to these outcomes. Artificial intelligence is already being used across the company to enhance how we engage with customers and in our operations through automated underwriting, claims processing and risk management and will be further leveraged to more efficiently scale our businesses and support our growth. Third, we are enhancing our culture by leaning into the talent, expertise and diversity of perspectives that define this company while building greater speed, ownership and accountability into how we work. This isn't about future actions. We are acting as a team with urgency to drive change and deliver outcomes each and every quarter.

這意味著隨著我們優化業務和產品組合，我們的獲利表現也會隨之提高。我們致力於持續改善我們的成本基礎和為客戶提供的體驗。擴大我們對科技的使用是實現這些成果的核心。人工智慧已在整個公司範圍內使用，透過自動承保、索賠處理和風險管理來增強我們與客戶的互動方式和運作方式，並將進一步利用人工智慧更有效地擴展我們的業務並支援我們的成長。第三，我們透過依靠人才、專業知識和多元化的觀點來增強我們的文化，同時在我們的工作方式中建立更快的速度、主人翁精神和責任感。這與未來的行動無關。我們作為一個團隊，迫切地推動變革並在每個季度取得成果。

Let me provide a specific example from this quarter. We are fundamentally changing the historical organizational model in PGIM, moving from a multi-manager model with six independent business units to one integrated asset management business. This is a substantive change that will lead to stronger revenues, reduce costs and improve margins over time. Additionally, we are unifying our multiple institutional sales forces in PGIM in one integrated client team. This will lead to a better customer experience and stronger cross-selling results. In this change, we have combined our public fixed income and private credit businesses to create a single global ability with over $1 trillion in credit assets under management.

讓我提供本季的一個具體例子。我們正在從根本上改變 PGIM 的歷史組織模式，從擁有六個獨立業務部門的多經理模式轉變為一個綜合資產管理業務。這是一個實質的變化，隨著時間的推移，它將帶來更高的收入、降低成本並提高利潤率。此外，我們正在將 PGIM 的多個機構銷售隊伍統一為一個綜合客戶團隊。這將帶來更好的客戶體驗和更強的交叉銷售效果。在這次變革中，我們將公共固定收益業務和私人信貸業務結合起來，打造出一個管理超過 1 兆美元信貸資產的全球單一業務。

We are one of the largest credit managers in the industry and this change enables us to provide more value to our clients through a wider range of origination and alpha-generating strategies, allowing us to capitalize on the rapidly growing market for broader private credit solutions. Culturally, this work in PGIM highlights our new focus on speed and accountability. Going forward, you'll see even more from us, greater focus, more follow-through to outcomes, and steady progress in how we operate and create long-term shareholder value.

我們是業內最大的信貸管理公司之一，這一變化使我們能夠透過更廣泛的發起和阿爾法生成策略為客戶提供更多價值，使我們能夠利用快速增長的更廣泛的私人信貸解決方案市場。從文化角度來看，PGIM 的這項工作凸顯了我們對速度和責任的新關注。展望未來，您將看到我們更加努力、更加專注、更加重視成果，並在營運和創造長期股東價值方面取得穩步進展。

With that, I'll turn it over to Yanela to walk through the financials in more detail.

接下來，我將把話題交給 Yanela，讓她更詳細地介紹一下財務狀況。

Thank you, Andy. I will provide an overview of the performance for our PGIM US and international businesses. I will begin on Slide 4 with the quarterly operating results from our businesses compared to the year ago quarter. PGIM delivered higher asset management fees, driven by market appreciation, positive net flows and strong investment performance and margin expansion of 140 basis points despite higher expenses to support business growth. Results of our US businesses reflected an unfavorable impact from our annual assumption update and other refinements relative to the prior year.

謝謝你，安迪。我將概述我們的 PGIM 美國和國際業務的表現。我將從投影片 4 開始介紹我們各業務季度與去年同期相比的經營業績。PGIM 的資產管理費有所上漲，這得益於市場升值、淨流量為正、投資業績強勁以及利潤率擴大 140 個基點，儘管為支持業務成長支出有所增加。我們美國業務的業績反映了我們年度假設更新和其他相對於上一年的改進帶來的不利影響。

Excluding this item, current quarter results were higher, reflecting more favorable underwriting results from individual life, group insurance and institutional retirement strategies. This was partially offset by lower fee income from the runoff of our legacy traditional variable annuity block, which will be a near-term headwind as mentioned on prior calls. Our international businesses demonstrated a favorable impact from our annual assumption update and other refinements relative to the prior year. Excluding this item, current quarter results were up slightly as favorable underwriting and higher net investment spread results were mostly offset by higher expenses to support business growth.

除此項目外，本季業績更高，反映出個人壽險、團體保險和機構退休策略的核保結果更為有利。這被我們遺留的傳統可變年金塊流失帶來的費用收入降低部分抵消，正如先前的電話會議中所提到的，這將是近期的阻力。與前一年相比，我們的國際業務因年度假設更新和其他改進而獲得了有利的影響。除此項目外，本季業績略有上升，因為有利的承保和更高的淨投資利差結果大部分被支持業務成長的更高費用所抵消。

Turning to Slide 5. We PGIM has diversified capabilities in both public and private asset classes across fixed income, equities and alternatives. PGIM's long-term investment performance remains strong, with over 75% of assets under management outperforming their benchmarks over the last five- and 10-year periods. In addition, their three-year track record, which is an important retail metric improved notably with 87% of assets now outperforming benchmarks. PG's assets under management increased by 8% to $1.4 trillion from the prior year quarter, driven by market appreciation, positive net flows and strong investment performance. Total net flows in the quarter of $400 million included institutional third-party net inflows of $2.6 billion comprised of broad-based mandates across fixed income private alternatives and equity and $600 million of affiliated net inflows, which were offset by $2.8 billion of retail third-party outflows and driven by equity market volatility at the beginning of the second quarter.

翻到幻燈片 5。我們 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的能力。PGIM 的長期投資表現依然強勁，過去五年和十年間，其管理的資產中超過 75% 的表現優於基準。此外，他們的三年業績記錄（一項重要的零售指標）顯著改善，目前 87% 的資產表現優於基準。受市場升值、淨流量為正以及投資績效強勁的推動，PG 管理的資產較去年同期成長 8%，達到 1.4 兆美元。本季 4 億美元的總淨流入包括 26 億美元的機構第三方淨流入（包括固定收益私人替代品和股票的廣泛授權）和 6 億美元的關聯淨流入，但被 28 億美元的零售第三方流出所抵消，並受到第二季度初股票市場波動的推動。

In addition, we continue to see momentum in our private credit business, which had a strong fundraising quarter and maintained steady disciplined deployment across direct lending, asset-backed financing and private placement. We are excited by the opportunity to further expand our private credit offerings as we bring our world-class public and private credit capabilities together in PGIM.

此外，我們的私人信貸業務繼續保持成長勢頭，本季融資表現強勁，並在直接貸款、資產支援融資和私募方面保持了穩健的紀律部署。我們很高興有機會進一步擴大我們的私人信貸服務，因為我們將世界一流的公共和私人信貸能力整合到 PGIM。

Turning to Slide 6. 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. Retirement strategies continue to have strong momentum generating $12 billion of sales in the second quarter across its institutional and individual lines of business. Institutional Retirement sales were $9 billion, with over $5 billion of Longevity risk transfer deals, including our second transaction in the Netherlands. Individual Retirement posted $3 billion in sales, driven by continued momentum in fixed annuity product sales, which benefited from expanded distribution as well as solid sales of registered index-linked annuities. Additionally, we continue to reduce market sensitivity by running off our legacy variable annuities.

翻到幻燈片 6。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。退休策略持續保持強勁勢頭，第二季其機構和個人業務線的銷售額達到 120 億美元。機構退休銷售額為 90 億美元，其中長壽風險轉移交易超過 50 億美元，其中包括我們在荷蘭的第二筆交易。個人退休金銷售額達 30 億美元，這得益於固定年金產品銷售的持續成長勢頭，這得益於分銷管道的擴大以及註冊指數掛鉤年金的穩健銷售。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 almost $80 million in the second quarter with year-to-date sales of $477 million, up 13% from a year ago, driven by growth in both group life and disability. 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 improved to 80.9% in the second quarter, excluding the favorable impact from our annual assumption update and other refinements and underscores favorable life underwriting results as well as our strategic initiatives to improve overall profitability and performance. In Individual Life, sales of $223 million in the second quarter, up 10% from the prior year quarter. This growth was driven by higher accumulation-focused variable life and term product sales.

第二季團體保險銷售總額接近 8,000 萬美元，年初至今的銷售額為 4.77 億美元，比去年同期成長 13%，這得益於團體人壽保險和殘障保險的成長。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。扣除年度假設更新和其他改進帶來的有利影響，第二季度的福利比率改善至 80.9%，凸顯了良好的人壽承保業績以及我們提高整體盈利能力和業績的戰略舉措。個人壽險業務第二季銷售額為 2.23 億美元，較去年同期成長 10%。這一增長是由以累積為重點的可變壽險和定期壽險產品銷售額的增加所推動的。

Turning to Slide 7. 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. Sales in our international businesses were up 4% compared to the prior year quarter. mainly driven by our continued expansion of retirement and savings products in Japan as we focus on meeting the evolving needs of customers. While surrender activity has shown signs of stabilization in the second quarter, it will continue to be a near-term headwind that will partially offset new business growth.

翻到幻燈片 7。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。我們的國際業務銷售與去年同期相比成長了 4%，這主要得益於我們在日本持續擴大退休和儲蓄產品，因為我們專注於滿足客戶不斷變化的需求。儘管退保活動在第二季顯示出穩定的跡象，但它仍將是短期內的阻力，並將部分抵消新業務的成長。

Turning to Slide 8. Our capital position and strong regulatory capital ratios continue to support our AA financial strength and our ability to grow our market-leading businesses. This includes our Japan operations, where in April, the JFSA implemented its new economic capital standard with a mandatory reporting date set for March 31, 2026 and the first public disclosure reporting around May of 2026. Our operations continue to remain well capitalized. As of March 31, 2025, the fiscal year-end for Japan we estimate that the unadjusted ratios for Prudential of Japan and Gibraltar Life would be between 180 and 200%, well in excess of levels that support our AA rating. These unadjusted economic solvency ratios are consistent with how we would report to the Japan regulator based on a strict interpretation of the standard specifications.

翻到幻燈片 8。我們的資本狀況和強大的監管資本比率繼續支持我們的 AA 財務實力和發展市場領先業務的能力。這包括我們的日本業務，今年 4 月，日本金融廳實施了新的經濟資本標準，強制報告日期定為 2026 年 3 月 31 日，首次公開披露報告將於 2026 年 5 月左右進行。我們的營運持續保持充足的資本。截至 2025 年 3 月 31 日（日本財政年度末），我們估計日本保誠和直布羅陀人壽的未調整比率將在 180% 至 200% 之間，遠超過支持我們 AA 評級的水平。這些未經調整的經濟償付能力比率與我們根據對標準規範的嚴格解釋向日本監管機構的報告方式一致。

As I have stated previously, we do not anticipate any changes to our cash flow or dividend capacity, financial ratings or business opportunities in Japan as a result of implementing the new standard. Our cash and liquid assets were $3.9 billion, which is above our minimum liquidity target of $3 billion, and we have substantial off-balance sheet resources. In the quarter, our highly liquid asset balance declined as a result of redeeming $1 billion of hybrid securities. 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. And with that, we are happy to take your questions.

正如我之前所說，我們預計實施新標準不會對我們在日本的現金流或股息能力、財務評級或商業機會產生任何變化。我們的現金和流動資產為 39 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。本季度，由於贖回了 10 億美元的混合證券，我們的高流動性資產餘額有所下降。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。我們非常樂意回答您的問題。

Ryan Krueger, KBW.

瑞安·克魯格（Ryan Krueger），KBW。

Hi, good morning. Could you talk a little bit more about the changes you're making at PGIM with the unified structure versus the multi-manager model. I guess -- is it -- it sounds like it's something that you're doing to try to improve margins and expenses, but also growth. So can you give a little bit more perspective on that? And how we should think about the financial benefit coming through?

嗨，早安。您能否詳細談談 PGIM 在統一結構和多經理模式方面所做的改變？我想——聽起來這是你為了提高利潤率和費用以及成長而做的事情。那麼，您能否對此給出更多的看法呢？我們該如何看待由此帶來的經濟利益？

Yeah, good morning. Yes. Ryan, sure. I'm sure, as you know, the asset management industry has been evolving quite rapidly. What we see as institutional customers in specific are wanting to work with fewer and fewer asset managers and do more with those managers and the consolidation continues with the big getting bigger. So more than ever, we believe that scale, breadth of offering and efficiency are really, really important. So we've made this change to improve our competitiveness. We decided to go to market as what I would call on PGIM so that we could deliver seamless experience and integrated solutions.

是的，早安。是的。瑞安，當然。我確信，正如您所知，資產管理行業正在快速發展。我們看到，特別是機構客戶希望與越來越少的資產管理公司合作，並與這些管理公司做更多的事情，而整合將繼續，大公司會變得越來越大。因此，我們比以往任何時候都更相信規模、產品範圍和效率非常非常重要。因此我們做出這項改變來提高我們的競爭力。我們決定以我稱之為 PGIM 的方式進入市場，以便我們能夠提供無縫體驗和整合解決方案。

It really is a pretty sizable step for us to improve our competitiveness we've been in the multi-manager model near about 20 years at this point. On the asset side, the key change to really focus on is really the combination of our public and private credit capability. That's how customers are buying today with integrated solutions. On the distribution side, collapsing from five sales forces to one is key as well. To your point, Ryan, this will have measurable benefits. We still believe that 25% to 30% margin is the right target over the intermediate term. This will help us drive towards the top end of that target at a faster rate.

對於我們提高競爭力來說，這確實是相當大的一步，到目前為止，我們已經採用多經理模式近 20 年了。在資產方面，真正需要關注的關鍵變化是公共和私人信貸能力的結合。這就是當今客戶購買整合解決方案的方式。在分銷方面，將銷售隊伍從五個縮減為一個也很重要。正如你所說，瑞安，這將帶來可衡量的好處。我們仍認為，中期來看，25%至30%的利潤率是正確的目標。這將幫助我們以更快的速度實現這一目標。

A couple of key benefits, and you mentioned them. First is obviously expense efficiency as we run this as one P&L versus six separate P&Ls. But the other very clear opportunity is on the revenue side from a cross-sell perspective. As we sit here today, only 10% of our institutional clients actually buy more than one thing from us in PGIM so there's a clear revenue opportunity as we bring together more of an integrated model. Over time, this is going to strengthen our business, and I'm quite pleased at the speed that the leadership team is attacking this.

您提到了幾個主要的好處。首先顯然是費用效率，因為我們將其作為一份損益表而不是六份單獨的損益表來運作。但從交叉銷售的角度來看，另一個非常明顯的機會是在收入方面。今天，當我們坐在這裡時，只有 10% 的機構客戶實際上從我們這裡購買了 PGIM 的多件商品，因此，當我們整合更多整合模型時，存在明顯的收入機會。隨著時間的推移，這將會加強我們的業務，我對領導團隊處理此事的速度感到非常高興。

Great, thank you. Then follow-up is, can you give an update on the US pension risk transfer market and why you think it slowed down? Is it -- do you think it's more about the losses going on within the industry or the external environment that's causing this?

太好了，謝謝。那麼接下來的問題是，您能否介紹一下美國退休金風險轉移市場的最新情況，以及您認為它放緩的原因是什麼？您認為這更多的是產業內部的損失還是外部環境導致了這種情況？

Yes. Ryan, thank you for the question. We do believe that the market has softened modestly is the way I would frame it. we expect that the market will come in around $30 billion to $40 billion this year, and it's really a tale of two cities. In the smaller end of the market, transaction volume has remained strong. But in the jumbo space, it has definitely been quieter this year. Remember, that is episodic by nature. We believe the key driver still remains the uncertainty and volatility that's happening in the environment.

是的。Ryan，謝謝你的提問。我們確實相信市場已經適度疲軟，這是我的看法。我們預計今年市場規模將達到 300 億美元至 400 億美元左右，這實際上是兩個城市的故事。在較小的市場中，交易量依然保持強勁。但在巨型客機領域，今年的情況肯定更加平靜。請記住，這本質上是偶然發生的。我們認為，關鍵驅動因素仍然是環境中的不確定性和波動性。

Uncertainty always causes business decision-makers to slow down in their decision-making. When you talked about litigation, we think that's potentially having some impact on the industry size. But again, we think the predominant impact is the uncertainty and the volatility. If you take a step back, though, from that, this is a big market, and this will be a big market for years to come. There's $3 trillion in untransacted liabilities, funding levels still sit at 105% and from our interactions with plan sponsors, they still have a high desire to transact. We feel very well positioned. Obviously, we have a great underwriting capabilities, very strong asset management organization and strong servicing. That's why we've done 7 of the 10 largest transactions. We're optimistic that the market conditions will improve over time and when that happens, we'll benefit.

不確定性總是導致商業決策者放慢決策速度。當您談到訴訟時，我們認為這可能會對行業規模產生一些影響。但我們再次認為，主要影響是不確定性和波動性。然而，如果你退一步來看，這是一個巨大的市場，而且在未來幾年內仍將是一個巨大的市場。未交易負債為 3 兆美元，資金水準仍為 105%，從我們與計畫發起人的互動來看，他們仍然有很高的交易意願。我們覺得自己的定位非常有利。顯然，我們擁有強大的承保能力、強大的資產管理組織和強大的服務能力。這就是為什麼我們完成了 10 筆最大交易中的 7 筆。我們樂觀地認為，市場狀況將會隨著時間的推移而改善，而當這種情況發生時，我們將受益。

Suneet Kamath, Jefferies.

蘇尼特‧卡馬斯（Suneet Kamath），傑富瑞集團（Jefferies）。

Great, thanks. I wanted to start on individual retirement and your RILA sales, which I think were down 23% year-over-year. And if we look at industry data, I think the industry was up 20%. So it's a pretty big difference there. Just wondering kind of what you're seeing in the market? Is it competition or new entrants? And then somewhat relatedly, Andy, you talked about improving the earnings mix or the earnings quality of individual retirement. And I guess beyond just new business, are there other things that you're contemplating when you make that statement?

太好了，謝謝。我想從個人退休和 RILA 銷售開始談起，我認為這些銷售年減了 23%。如果我們看一下行業數據，我認為該行業增長了 20%。所以這裡面的差別非常大。只是想知道您在市場上看到了什麼？是競爭還是新進者？然後，安迪，您稍微相關地談到了改善個人退休的收入組合或收入品質。我想，除了新業務之外，您在發表這一聲明時還考慮了其他事情嗎？

So Suneet, thanks for the question. Let me start with the RILA sales. The market for individual retirement sales has been quite healthy. again, the sales this quarter industry-wide, were over $110 billion. We believe that the market will remain strong given the fact that we live with an aging society, that aging society needs protected income. There's $7 trillion sitting on the sidelines and money market funds. Well, it's going to stay strong. We're well positioned, thanks to the work that we've done to broaden the product portfolio and to deepen our distribution and we've been pretty consistently selling above $3 billion each quarter.

所以 Suneet，謝謝你的提問。讓我先從 RILA 的銷售情況開始。個人退休銷售市場一直相當健康。本季全行業的銷售額再次超過 1100 億美元。我們相信，鑑於我們正處於高齡化社會，老齡化社會需要有保障的收入，市場將保持強勁。場外和貨幣市場基金中有 7 兆美元。嗯，它會保持強勁。由於我們為擴大產品組合和深化分銷所做的努力，我們處於有利地位，並且我們每季的銷售額一直穩定在 30 億美元以上。

As to the RILA market specifically, we do believe the market has become more competitive. The fact is, if you look at the market, we've gone from five competitors a few years back to -- as we sit here today, there are 25 active competitors in the marketplace including seeing some reputable broader annuities players that have entered RILA. By definition, if you take a few years back, only five players, the share was very concentrated. So these new entrants are working pretty hard in order to obviously fragment that market share. As it comes to our -- the sales, what you should expect from us is we're going to continue to be disciplined and seek the best returns across this broadened product portfolio. And obviously, we think this is a tailwind environment that we'll be able to participate in.

具體到 RILA 市場，我們確實相信市場競爭變得更加激烈。事實是，如果你看一下市場，你會發現幾年前我們的競爭對手只有 5 個，而今天，市場上活躍的競爭對手已經達到 25 個，其中包括一些進入 RILA 的知名年金保險公司。按照定義，如果你回顧幾年前，只有五名球員，那麼份額就非常集中。因此，這些新進入者正在非常努力地分割市場份額。就我們的銷售而言，您應該期望我們繼續嚴守紀律，並在擴大的產品組合中尋求最佳回報。顯然，我們認為這是一個我們能夠參與的順風環境。

As to the improvement in individual retirement, the predominant effect on our results have been the earnings volatility from our legacy runoff variable annuities block. This is one of the main reasons that we exited that business. The volatility is driven both by the market impacts on fees that we collect but also on the level of surrenders each quarter. We also obviously have experienced assumption and refinement changes in the business overall but the plan remains the same. Obviously, we've made very good progress on pivoting the business and derisking through transactions. We're going to continue as the legacy rolls off to replace that, but with new, less complex products. And as we do that, we know that the earnings results and consistency will improve.

至於個人退休的改善，對我們的績效影響最大的是我們遺留的流失變額年金塊的收益波動。這是我們退出該業務的主要原因之一。波動性既受到市場對我們收取的費用的影響，也受到每季退保水準的影響。顯然，我們也經歷了整個業務的假設和細化變化，但計劃保持不變。顯然，我們在調整業務和透過交易降低風險方面取得了非常好的進展。隨著舊產品的推出，我們將繼續進行替換，但將推出新的、不太複雜的產品。當我們這樣做時，我們知道獲利結果和一致性將會改善。

Got it. That's helpful. And then I guess for Yanela, on the 180% to 200% ESR ratio, you made the comment that you feel that's well above AA standards. But -- how are you calculating that? Or how are you determining that? Because I don't believe the rating agencies have come out with something that kind of gives a standard. So when you say that it's above AA, what -- how are you reaching that conclusion?Thanks.

知道了。這很有幫助。然後我想對於 Yanela 來說，關於 180% 到 200% 的 ESR 比率，您評論說您認為這遠高於 AA 標準。但是──你是如何計算的？或者你如何確定這一點？因為我不相信評級機構已經推出了某種標準。那麼當您說它高於 AA 時，您是如何得出這個結論的？謝謝。

So we developed our view of the AA standard considering multiple factors. We included our internal frameworks as well as rating agency considerations. So they haven't come out with a view, but we understand their considerations, and we have an active dialogue. We will officially request approval of the target from our Board as part of our normal process later this year, so it would be premature to share that. But I would highlight that we intend to maintain strong ESR levels during normal markets, and that provides a cushion that enables us to meet what we believe are AA levels after a cyclical stress.

因此，我們考慮了多種因素，形成了對 AA 標準的看法。我們納入了我們的內部框架以及評級機構的考慮。因此他們還沒有提出意見，但我們理解他們的考慮，並且我們進行了積極的對話。作為我們今年稍後的正常流程的一部分，我們將正式向董事會請求批准該目標，因此現在分享這一消息還為時過早。但我想強調的是，我們打算在正常市場中保持強勁的 ESR 水平，這提供了緩衝，使我們能夠在週期性壓力之後達到我們認為的 AA 水平。

So this considers any potential variability in ESR results under different market stresses and is consistent with how we manage under the current solvency margin framework. And I would just finish by saying, as I said before, the implementation of ESR will not impact our cash flows, our dividend capacity, our ratings or our overall operations in Japan.

因此，這考慮了不同市場壓力下 ESR 結果的任何潛在變化，並且與我們在目前償付能力保證金框架下的管理方式一致。最後我想說的是，正如我之前所說，ESR 的實施不會影響我們的現金流、股息能力、評級或我們在日本的整體營運。

Okay, thank you.

好的，謝謝。

Tom Gallagher, Evercore ISI.

湯姆·加拉格爾，Evercore ISI。

A couple of questions on Japan. One on ESR follow-up, Yanela. The -- so I think Aflac has put out a range of $170 million to $230 million. Does that -- is that like within the ZIP code of the way you're viewing a potential range that you'd want to operate in? Obviously, 190 would be within that range. But curious on that and whether you can talk about where your ESR is most sensitive to potential macro changes? And anything on sensitivity?

關於日本的幾個問題。一個是關於 ESR 後續行動的，Yanela。所以我認為 Aflac 給出的範圍是 1.7 億美元到 2.3 億美元。這是否就像您所查看的想要操作的潛在範圍的郵遞區號範圍內一樣？顯然，190 就在這個範圍內。但對此感到好奇，您是否可以談談您的 ESR 對潛在宏觀變化最敏感的地方是什麼？還有敏感性的內容嗎？

Yes. So Tom, our range, as I mentioned, is 180 to 200 in terms of the -- as of 3/31. It is, as I said, well above our AA what we view as a AA level of capital. So our target, we'll share it once we speak to the Board, but it has not been approved by the Board right now. I would remind you all -- what we're sharing in terms of an ASR level is consistent with how we would report to the Japan regulator based on a strict interpretation of current specifications. So that is important. Our understanding is that ESRs that are currently being disclosed by other companies are on an adjusted basis using internal calculations and economic capital models, which may differ from the specifications, we are following the strict specifications.

是的。所以湯姆，正如我所提到的，截至 3 月 31 日，我們的範圍是 180 到 200。正如我所說，它遠高於我們所認為的 AA 資本水準。因此，一旦我們與董事會溝通，我們就會分享我們的目標，但目前尚未獲得董事會的批准。我想提醒大家——我們所分享的 ASR 等級與我們根據對當前規範的嚴格解釋向日本監管機構報告的方式一致。所以這很重要。我們瞭解，目前其他公司揭露的ESR都是採用內部計算和經濟資本模型進行調整後的，可能與規範有所不同，我們遵循嚴格的規範。

So that's important. In terms of sensitivities, so we've conducted a series of sensitivities on our ESR results in arriving at what we believe is a AA standard. And our ESR level is reflective of that level of variability that we -- so that is important. To just give you a sense of sensitivities, it's kind of premature to go through all the sensitivities, but I would say that our ESR results are most sensitive increases in Japanese interest rates. Our Japanese liabilities are very well ALM match. However, a potential rise in rates could cause lapse risk and some products. So to provide a sense of the sensitivity if Japanese interest rates would to increase by 50 basis points and equity markets would decrease by 10%, we still do not expect ESR to be binding in terms of impact on Japan Capital and cash flows.

這很重要。就敏感度而言，我們對 ESR 結果進行了一系列敏感度分析，以得出我們認為的 AA 標準。我們的 ESR 水準反映了我們的可變性水準 — — 因此這很重要。只是為了讓您了解敏感性，現在討論所有敏感性還為時過早，但我想說，我們的 ESR 結果對日本利率的上升最為敏感。我們的日本負債與ALM匹配得很好。然而，潛在的利率上升可能會導致一些產品失效的風險。因此，為了了解如果日本利率上升 50 個基點且股票市場下跌 10% 時的敏感度，我們仍然不認為 ESR 會對日本資本和現金流產生約束力。

That is helpful. Appreciate it. And then just one quick follow-up. I noticed Japan premiums declined around 10%. And this quarter despite pretty good sales results, and I think you made positive comps on persistency. Was that due to the Prismic reinsurance deal or something else going on there?

這很有幫助。非常感謝。然後只需快速跟進一次。我注意到日本保費下降了約 10%。儘管本季的銷售業績相當不錯，但我認為你們在堅持不懈方面取得了積極的成果。這是因為 Prismic 再保險交易還是其他原因造成的？

Yes, Tom, it wasn't due to the Prismic reinsurance deal. There were really three primary drivers when you look at the year-over-year variance. The first is the impact of the assumption update on premiums. So when you compare year-over-year, the assumption update impact on the premium line had a variance, and that was over half of the change. The second is the continuing impact of surrenders on our results as some of the surrenders are recurring pay products and are reflected in that line. And lastly would be our strong sales of retirement and savings as well as single-pay products, which are generally reflected in policy charges and fee in that line versus premium. So related to that third one, we've added disclosure in the QFS for account balances. So that detail could be more visible.

是的，湯姆，這並不是由於 Prismic 再保險交易造成的。當你觀察同比變化時，實際上有三個主要驅動因素。首先是假設更新對保費的影響。因此，當您與去年同期進行比較時，假設更新對高端產品線的影響存在差異，而且這一差異超過了變化的一半。第二是退保對我們的業績的持續影響，因為一些退保是經常性支付產品，並反映在該產品線中。最後是我們的退休和儲蓄以及單一支付產品的強勁銷售，這通常反映在保單費用和該產品系列的費用與保費上。因此，與第三個相關，我們在 QFS 中加入了帳戶餘額的揭露。這樣細節就會更加明顯。

I guess -- sorry, just one other follow-up to that point, Yanela, that's helpful. Would your view be Japan total top line momentum on an economic basis is shrinking now based on all those factors? Or do you think it's flat or slightly growing? Like it's just hard to interpret direction of travel here.

我想——抱歉，我只想再問一點，Yanela，這很有幫助。基於所有這些因素，您是否認為日本經濟總體收入成長動能正在萎縮？或者您認為它是持平的或略有增長？就像在這裡很難解釋旅行的方向。

Yes. I think if you look at the policyholder account balances on a sequential quarter, they're up by about $2 billion, and that reflects our strong sales of our retirement and savings products, where we have seen a lot of momentum.

是的。我認為，如果你看一下連續季度的保單持有人帳戶餘額，它們增加了約 20 億美元，這反映了我們的退休和儲蓄產品的強勁銷售，我們看到了很大的發展勢頭。

Yes. And Tom, I would just add in, I mean, we've talked about our intentional strategy about broadening the product deepening distribution. And really, what we're seeing is a lot of sales coming from new product introductions in Japan, things that we've introduced over the last two years, both US dollar and yen denominated. Yen is now about 30% of the portfolio. And we've done that work to help us overcome the surrender headwinds, and we're seeing that progress.

是的。湯姆，我想補充一點，我的意思是，我們已經討論了擴大產品深化分銷的有意策略。事實上，我們看到許多銷售額來自日本推出的新產品，這些產品都是我們在過去兩年內推出的，以美元和日圓計價。日圓目前佔投資組合的30%左右。我們已經完成了這項工作，以幫助我們克服投降的阻力，並且我們正在看到進展。

Okay, thanks.

好的，謝謝。

Elyse Greenspan, Wells Fargo.

富國銀行的伊莉絲‧格林斯潘。

Hi, thanks. Good morning. I want to start with, I guess, capital return, right? You guys target 65%. And you obviously -- you had shifted us a couple of quarters ago to looking at that relative to net versus operating income. We looked so far this year, right, that's running almost 119%, obviously because the net income has been lower. So how should we think about, I guess, that ratio like moving forward? And if that continues, I guess, to stay high, will that have an impact on forward capital return?

你好，謝謝。早安.我想先從資本回報開始，對嗎？你們的目標是 65%。顯然，您在幾個季度前就讓我們專注於淨收入與營業收入的關係。我們看今年到目前為止的情況，成長了近 119%，顯然是因為淨收入較低。那麼，我想我們該如何看待這比率的未來發展呢？我想，如果這種情況持續下去，維持高位，會對未來資本回報產生影響嗎？

So there are definitely a number of variables to consider here through a few of them. First of all, the primary driver of cash flows is that for capital. And while we believe that net income is a closer approximation of cash flows, neither net income nor AOI are perfect proxies for cash flow. Now in terms of net income, what we see is that net income from certain items that are excluded from adjusted operating income but that may still influence statutory capital. So for example, realized gains and losses from retained portfolio management activities or mark-to-market on hedging instruments. They're both reflected in both GAAP net income and statutory reporting, but not in AOI.

因此，這裡肯定有許多變數需要考慮。首先，現金流的主要驅動力是資本。雖然我們認為淨收入更接近現金流，但淨收入和 AOI 都不是現金流的完美替代指標。現在就淨收入而言，我們看到某些項目的淨收入被排除在調整後的營業收入之外，但仍可能影響法定資本。例如，保留的投資組合管理活動或避險工具的以市價計價所實現的收益和損失。它們都反映在 GAAP 淨收入和法定報告中，但沒有反映在 AOI 中。

Conversely, there are components of GAAP net income that do not translate directly into cash flow. So there's reconciling items in both directions. This quarter, the difference between net income and after-tax AOI is split roughly evenly between items that impact cash flows and those that do not. And I would remind you that the 65% free cash flow ratio is an overtime measure in cash flows from our operating entities, two PFI may and do fluctuate quarter-over-quarter. And just as an example, this year, we have not taken a dividend from our major domestic entities, yet our holding company cash balances remain strong. We continue to manage capital well above our AA solvency targets and we have continued to make shareholder distribution. So I would just summarize by saying that dividends from our operating entities are not linear across the year and will vary, and the cash flow ratio is an overtime measure.

相反，GAAP 淨收入中有些部分並未直接轉化為現金流。因此，雙方都需要協調專案。本季度，淨收入和稅後 AOI 之間的差額大致平均分配給影響現金流的項目和不影響現金流的項目。我要提醒您，65% 的自由現金流比率是我們經營實體現金流的加班衡量指標，兩個 PFI 可能會且確實會逐季度波動。舉個例子，今年我們還沒有從主要國內實體收取股息，但我們的控股公司現金餘額仍然強勁。我們繼續管理遠高於 AA 償付能力目標的資本，並繼續進行股東分配。因此，我只想總結一下，我們經營實體的股利在全年並不是線性的，而是會變動的，而現金流比率是加班衡量標準。

Thanks. And then my second one, right? You guys outlined like 5% to 8% EPS growth, right, over three years. Through the first half of the year on a core basis, right, you guys are at around like 3%. Obviously, there's some expense movement and then there's business growth and other things that could impact the back half. But -- is that the right way to think about, I guess, where you are for this year? And then with the expectation based on where things sit today, be to get back on or to get within that range job next year? .

謝謝。然後是我的第二個，對嗎？你們概述了三年內每股收益成長率為 5% 至 8%。從核心基礎來看，今年上半年你們的成長率大約是 3%。顯然，有一些費用變動，然後還有業務成長和其他因素可能會影響下半年。但是——我想，這是思考你今年的處境的正確方式嗎？然後根據目前的情況進行預期，明年是否會重新回到原來的工作或進入原來的工作範圍？。

Yes. Elyse, the 5% to 8% target is a three-year target. So if you remember when we share the targets, we also identified some near-term headwinds in the form of a variable annuity runoff and Japan surrenders. Those have been incorporated in the target. But as I said a couple of quarters ago, that does mean that the earlier years, i.e., '25 growth may be lower and that it is not linear. So the growth trajectory is not linear. As we said, as the growth of our ongoing businesses and our new sales will kind of outperform the VA runoff, for example, we will see that growth come through more prominently. And so I would just remind you that it's not linear. And as the headwinds dissipate, we will have stronger growth and the 5% to 8% is an average over the three-year period.

是的。Elyse，5%到8%的目標是三年目標。因此，如果您還記得我們分享目標時的情況，我們也發現了一些近期的阻力，例如可變年金流失和日本投降。這些都已納入目標之中。但正如我幾個季度前所說的那樣，這確實意味著早年，即 25 年的成長可能會較低，而且不是線性的。因此成長軌跡並不是線性的。正如我們所說，由於我們正在進行的業務和新銷售額的成長將超過 VA 的流失，我們將看到成長更加突出。所以我只想提醒你，它不是線性的。隨著逆風消散，我們將實現更強勁的成長，5%至8%是三年的平均成長率。

Thank you.

謝謝。

John Barnidge, Piper Sandler.

約翰·巴尼奇、派珀·桑德勒。

Thank you for the opportunity. How do you view 401(k) retirement reform and proves positioning to benefit from that with the one PGIM unified structure? Thanks.

感謝您提供的機會。您如何看待 401（k）退休改革，並證明其能夠透過一個 PGIM 統一結構從中受益？謝謝。

Thanks, John. We have always been advocates of good retirement reform, and we always work hard to stay actively engaged in the dialogue not only obviously here in the United States, but also globally. And as you noted, there are really two big areas of focus as we see them first is encouraging lifetime income solutions and specifically by making them defaults and defined contribution plans. .

謝謝，約翰。我們一直是良好退休改革的倡導者，我們始終努力積極參與對話，不僅在美國，而且在全球範圍內。正如您所說，我們首先關注的重點領域有兩個，一是鼓勵終身收入解決方案，特別是將其作為預設計劃和固定繳款計劃。。

Second is really an expanding access to alternative and private type investments in retirement plans while you focused on the reform, I would also talk about it's important that we are doing innovation. A prime example of that is the work we've done to pioneer what we call active income, which is where we work with financial advisers to add longevity protection to separately managed accounts without moving their assets by adding an insurance overlay. So this is a new lifetime income category that we've created. It's very early, but we're excited about it.

第二，在您關注改革的同時，退休計畫中另類投資和私人投資的管道確實在擴大，我還想談談進行創新的重要性。一個典型的例子就是我們為開創所謂的主動收入所做的工作，即我們與財務顧問合作，透過添加保險覆蓋，為單獨管理的帳戶添加長壽保護，而無需轉移其資產。這是我們創建的一個新的終身收入類別。雖然還很早，但我們對此感到很興奮。

As far as your question around PGIM and our integration to one model, a big part of this is bringing forth solutions that can integrate across asset classes. Obviously, we think that will be an advantage to us as the retail uptake for lack of a better term, starts to begin to happen in DC plans. Obviously, the other things that we've been doing is on the retail side, expanding the types of vehicles that we can offer to ETFs and SMAs and broadening out our distribution. So between the reform and the changes that we're making in the business, we feel that we're well positioned to capitalize.

至於您關於 PGIM 以及我們對一個模型的整合的問題，其中很大一部分是提出可以跨資產類別整合的解決方案。顯然，我們認為這對我們來說是一個優勢，因為零售業的吸收（缺乏更好的術語）開始在 DC 計劃中發生。顯然，我們一直在做的其他事情是在零售方面，擴大我們可以向 ETF 和 SMA 提供的工具類型並擴大我們的分銷範圍。因此，我們認為，透過改革和業務變革，我們已做好準備，充分利用這些機會。

Speaking with PGIM. My follow-up question on PGIM. I'd say, as you search for greater scale and is this opportunity to present itself, where does inorganic fit within that to leverage that scale even further? Thank you.

與 PGIM 交談。我對 PGIM 有後續問題。我想說，當你尋求更大的規模並且這個機會出現時，無機材料在其中處於什麼位置以進一步利用這種規模？謝謝。

John, probably won't be surprised to hear me say organic growth is always job number one. And we feel we have a lot of opportunity to grow organically. In particular, with these recent changes, we think we're unlocking some additional opportunity. So I would start by saying M&A is not required to meet our intermediate-term financial targets. That being said, as it pertains to M&A, we do feel it's important to consistently consider a range of things from smaller capability bolt-ons to larger, more holistic things that can bring scale. We obviously look to globalize the business and are very interested in building on our leading positions in credit and alternatives and in real assets.

約翰，當我說有機成長永遠是首要任務時，你可能不會感到驚訝。我們覺得我們有很多機會實現有機成長。特別是，透過這些最近的變化，我們認為我們正在釋放一些額外的機會。因此，我首先要說的是，併購對於實現我們的中期財務目標並不是必要的。話雖如此，就併購而言，我們確實認為有必要持續考慮一系列事項，從較小的附加功能到可以帶來規模的更大、更全面的事項。我們顯然希望實現業務全球化，並且非常有興趣鞏固我們在信貸、替代方案和實體資產領域的領先地位。

As we think about that, M&A can be an accelerant to what we want to do, but again, not required to meet the intermediate-term targets. As always, we're going to be disciplined. And what I mean by that is it will absolutely have to align very strong strategically and provide the right returns to the shareholder over time.

當我們思考這一點時，併購可以成為我們想要做的事情的加速器，但同樣，這不是實現中期目標的必要條件。像往常一樣，我們將嚴守紀律。我的意思是，它必須在策略上保持非常強大的一致性，並隨著時間的推移為股東提供正確的回報。

Thank you.

謝謝。

Thanks, John.

謝謝，約翰。

Jack Matten, BMO Capital Markets.

傑克‧馬滕 (Jack Matten)，BMO 資本市場。

Hey, good morning. A question, what has been any update or change to your thoughts around risk transfer, especially for the runoff VA business. We saw a pretty sizable VA deal a couple of months ago that was well received by the market. So just curious about your thoughts there.

嘿，早安。一個問題，您對風險轉移的想法有什麼更新或變化，特別是對於流失 VA 業務。幾個月前，我們看到了一筆規模相當大的 VA 交易，受到了市場的一致好評。所以我只是好奇你的想法。

Jack, good morning. First, I always start by saying we need to recognize, we've made very good progress on derisking between the work we've done to pivot the portfolios and the transactions that you referenced we've reduced the exposure to traditional variable annuities by about 60%. And we don't view this as sort of starting or stopping. We view it as always looking to optimize the balance sheet, the capital, the cash flows. To your point, there is a large market that's available for transactions, which is a good thing. There's plenty of capital, plenty of counterparties that are finding value in these legacy insurance blocks. So we will continue to assess opportunities over time. And if and when we have something to share, we will post you on it.

傑克，早安。首先，我總是先說我們需要認識到，我們在降低風險方面已經取得了非常好的進展，在我們為調整投資組合所做的工作和您提到的交易之間，我們已經將傳統變額年金的風險敞口降低了約 60%。我們並不認為這是開始或停止。我們認為我們總是在尋求優化資產負債表、資本和現金流。正如您所說，現在有一個巨大的可供交易的市場，這是一件好事。有大量資本、大量交易對手發現這些遺留保險板塊的價值。因此，我們將繼續評估未來的機會。如果我們有東西可以分享，我們會將其發布給您。

Got it, thank you. And then just a follow-up on the Japan consistency kind of outlook. It's good to see that things have been stabilizing or improving there. I mean, just look I guess in the past month or so we've seen the yen weaken again and rate have been rising. I know it's not a simple formula, but I guess just curious with that kind of backdrop, are you seeing any, I don't know, shift in kind of those trends and how you're thinking about that for the rest of this year?

知道了，謝謝。然後只是對日本一致性前景的後續關注。很高興看到那裡的情況正在穩定或改善。我的意思是，我想在過去一個月左右的時間裡，我們看到日圓再次貶值，而匯率卻一直在上升。我知道這不是一個簡單的公式，但我只是好奇在這樣的背景下，你是否看到任何，我不知道，這些趨勢的轉變，以及你對今年剩餘時間的看法是什麼？

Sure, Jack. I'll take it. As you know, surrenders remain a near-term headwind for us, but we do see that they're continuing to improve and stabilize. And unless there's a large change in the end. We expect the impact is going to lessen over time. Additionally, we've also taken steps to counteract the effects. First and foremost, we put additional resourcing into our distribution and into our service areas to work with customers to adjust their coverage levels.

當然，傑克。我要買它。如您所知，投降仍然是我們近期面臨的阻力，但我們確實看到它們正在繼續改善和穩定。除非最終發生重大變化。我們預計影響會隨著時間的推移而減弱。此外，我們也採取了措施來抵消其影響。首先，我們在分銷和服務領域投入了額外的資源，以便與客戶合作調整他們的覆蓋水準。

Second, we've expanded our product offerings, doubling our yen offerings and leaning into retirement and savings, all of that is helping us counteract the headwinds that we're feeling. While we're seeing improvement, as we sit here, we still expect about a $100 million impact to 2025 consistent with what we said last quarter.

其次，我們擴大了產品範圍，將日元產品種類增加了一倍，並傾向於退休和儲蓄，所有這些都有助於我們抵消所感受到的阻力。雖然我們看到了改善，但就目前情況而言，我們仍然預計到 2025 年將產生約 1 億美元的影響，與我們上個季度所說的一致。

Good. Thank you.

好的。謝謝。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

Hey, thank you. Good morning. Andy, I think you began in your prepared remarks highlighting group and definitely good underwriting in the period. But if I kind of zoom out a little bit, I think groups maybe 5% or so of the overall enterprise earnings. So I guess, is this a segment that you think can really move the needle? And are you really pushing to grow that contribution overall to prove?

嘿，謝謝你。早安.安迪，我認為你在準備好的發言中首先強調了小組的重要性，並且肯定對這一時期的承保表現良好。但如果我稍微縮小一點，我認為團體收入可能佔企業整體收入的 5% 左右。所以我想，您認為這是一個真正能夠產生影響力的片段嗎？您是否真的在努力增加整體貢獻來證明這一點？

Wes, thanks for the question. And I was hopeful we would get to talk about group insurance. We're really pleased with the results, both in the quarter and year-to-date. As I said in my prepared remarks, this is literally the second best quarter on record with strong life and solid disability. We laid down a strategy several years back to diversify both our product mix and our segment mix, and that's been paying off. We see it in the premium growth with sales up 60% year-to-date and in our persistency at 96%.

韋斯，謝謝你的提問。我希望我們能夠談論團體保險。我們對本季和年初至今的業績都非常滿意。正如我在準備好的演講中所說，這是有史以​​來第二好的季度，人壽保險和殘障保險表現強勁。幾年前，我們制定了一項策略，以實現產品組合和細分市場組合的多樣化，而這項策略已初見成效。我們從保費成長中看到了這一點，今年迄今為止銷售額成長了 60%，持續性達到 96%。

We see it in the underwriting from sitting here with a benefit ratio of 80.9% so this has been a business that we've invested quite steadily in. It has been growing nicely. It's been a consistent performer. So our plans are to continue to stay the course on the strategy within the business. continue investing in the business and to have it become a larger percentage of what we do over time.

我們從承保情況來看，受益率為 80.9%，因此，我們對這項業務進行了相當穩定的投資。它一直生長得很好。它的表現一直很穩定。因此，我們的計劃是繼續堅持業務策略，繼續投資業務，並使其隨著時間的推移成為我們業務的更大比例。

Thanks. That's helpful. And maybe for Yanela, on the assumption review, particularly in individual retirement, I think there's a onetime impact in the quarter, but there's also some ongoing impact of $20 million or so a quarter. Just hoping you could unpack what the driver of the assumption review in that segment was and why there was an ongoing impact.

謝謝。這很有幫助。對於 Yanela 來說，在假設審查中，特別是在個人退休方面，我認為本季會產生一次性影響，但每季也會產生約 2000 萬美元的持續影響。只是希望您能夠解釋該部分假設審查的驅動因素是什麼，以及為什麼會產生持續的影響。

Yes, so the AOI impact in individual retirement of the onetime and ongoing is due to reserve refinements for some fixed annuity products that we've been selling. Now these refinements have no impact on statutory results, capital or cash flows, and they don't impact our expected lifetime economic outcome. However, the change will accelerate the timing of the GAAP reserve recognition, and we're really taking that GAAP reserve closer to when we expect the payments to happen.

是的，因此 AOI 對一次性和持續個人退休的影響是由於我們一直在銷售的一些固定年金產品的儲備細化。現在，這些改進對法定結果、資本或現金流量沒有影響，也不會影響我們預期的終身經濟結果。然而，這項變更將加速 GAAP 儲備確認的時間，我們實際上將 GAAP 儲備確認的時間更接近我們預期的付款時間。

Jimmy Bhullar, JPMorgan.

摩根大通的 Jimmy Bhullar。

So first, just a question on your comments around competition in the RILA market. Is it more that the -- because there are more competitors, you're just having a hard time differentiating yourself? Or is it -- are you seeing companies actually either pay more in commissions or offer more generous terms and conditions that you're not willing to match in terms of just the details on what you meant by increased competition?

首先，我想問一下您對 RILA 市場競爭的評論。是因為競爭對手比較多，所以你們很難脫穎而出？或者是——您是否看到公司實際上要么支付更多的佣金，要么提供更慷慨的條款和條件，而您不願意在細節上與之匹敵，您所說的競爭加劇是什麼意思？

Yes, Jimmy, I guess the way I would frame it is, and the way I think about it is any time you have any marketplace where you go from five people competing for a piece of business to -- by definition, you start to see market share start to get split up. And what I would tell you is with '25 competitors in the market, there's a lot of levers to try and accelerate sales, whether that be leaning in on pricing or leaning in on the commissions that are being paid. So without any specific comments around that, you should expect that all those levers are being utilized by competitors. And that creates just a more competitive environment. And I think it's natural to see that the market will fragment over time, given all that new competition.

是的，吉米，我想我會這樣表述它，我的想法是，任何時候，當你在市場上從五個人競爭一塊生意時——根據定義，你開始看到市場份額開始分割。我想告訴你的是，市場上有 25 個競爭對手，有很多手段可以嘗試加速銷售，無論是依靠定價還是依靠支付的佣金。因此，在沒有任何具體評論的情況下，您應該預料到所有這些槓桿都會被競爭對手利用。這只會創造更激烈的競爭環境。我認為，考慮到所有這些新競爭，市場隨著時間的推移而分化是很自然的。

And then seems like you're comfortable where you are, but should we assume that you would actually, over time, try to get the number higher than 200%? Or is this where you are as consistent with your long-term target as well?

然後看起來你對現在的狀態很滿意，但是我們是否應該假設你實際上會隨著時間的推移嘗試讓這個數字高於 200％？或者這也是與您的長期目標一致的地方嗎？

No. So I would remind you, Jimmy, we intend to maintain an ESR level during normal markets that provides a cushion for cyclical events and stresses. So we are very comfortable with the level with where we are.

不。因此，我要提醒你，吉米，我們打算在正常市場中維持 ESR 水平，為週期性事件和壓力提供緩衝。因此，我們對目前的水平感到非常滿意。

Bob Huang, Morgan Stanley.

摩根士丹利的 Bob Huang。

Hi, good morning. Most of my questions are answered. Maybe just one on Brazil. Obviously, you've had a pretty strong momentum in most of your international markets. But can you maybe help us understand like -- what is the latest trend that you think would be good growth opportunities in Brazil? I mean, how should we think about that market going forward from here?

嗨，早安。我的大部分問題都得到了答案。也許只有一個關於巴西的。顯然，你們在大多數國際市場上都擁有相當強勁的發展動能。但是您能否幫助我們了解—您認為哪些最新趨勢會為巴西帶來良好的成長機會？我的意思是，我們應該如何看待該市場未來的發展？

Yes, Bob, thank you for the question because Brazil has been going quite well for us. and it dominates our EM portfolio. In Brazil, sales were up 10% year-to-date versus the prior year. And really, the story of where you see us accelerating is we're showing particular strength in our Life Planner channel. Obviously, the Life Planner model has served us exceptionally well over decades in Japan. We've been building that capability over a long period of time in Brazil. And we have a lot of geography, I call it room to run, a lot of geography that we can expand that life planner system out into that's why our head count is up 12% year-over-year.

是的，鮑勃，謝謝你的提問，因為巴西對我們來說發展得相當不錯，而且它在我們的新興市場投資組合中占主導地位。在巴西，今年迄今的銷售額比前一年成長了 10%。事實上，您看到我們正在加速發展，因為我們在生活規劃師頻道中展現出了特別的優勢。顯然，幾十年來，生活規劃師模式在日本發揮了極其良好的作用。我們在巴西已經花了很長時間來建立這種能力。我們擁有很大的地理覆蓋範圍，我稱之為運行空間，我們可以將生活規劃系統擴展到許多地區，這就是為什麼我們的員工人數比去年同期成長 12%。

We've added 7 new agencies and 300 life planners in the last 12 months. I would also mention that we're continuing to diversify other aspects of distribution. And as an example, we've done great work with Mercado Libre, and we now are seeing -- we won the ability to do credit life in that relationship. And we're seeing the sales levels and the number of policyholders. We're now serving over 600,000 people. So there's just a number of different elements around distribution, in particular, that's enabling this pace of growth and we would expect to have the ability to keep going.

在過去的 12 個月中，我們增加了 7 個新機構和 300 名生活規劃師。我還要提到，我們正在繼續實現分銷其他方面的多樣化。舉個例子，我們與 Mercado Libre 合作非常成功，現在我們看到，在這種合作關係中，我們贏得了信用生活的能力。我們正在關注銷售水平和保單持有人的數量。我們現在為超過 60 萬人提供服務。因此，特別是在分銷方面，有許多不同的因素促成了這種成長速度，我們預計有能力繼續維持下去。

Okay, thank you very much. That's all I got.

好的，非常感謝。這就是我所得到的全部。

Michael Ward, UBS.

瑞銀集團的麥可沃德。

Thanks guys. Good morning. Andy, I'm just thinking through your comments last quarter about the evolution of capital uses. And now that we have a manageable range on the ESR. I'm just wondering how you might -- if you're able to sort of rank your priorities on the capital use front?

謝謝大家。早安.安迪，我正在思考你上個季度關於資本用途演變的評論。現在我們對 ESR 有一個可控的範圍。我只是想知道您如何——您是否能夠在資本使用方面對優先事項進行排序？

Yes. Mike, let me start with that. So our capital deployment priorities haven't changed because our capital plan hasn't been impacted by the implementation of ESR. So back to -- I think I've been saying for three quarters, we don't expect the ESR implementation to impact our dividend capacity, our cash flows. And we've had a long time to plan for ESR. So when we developed our capital plans, we had ESR in mind and our capital allocation prioritization still continues to be -- the way we think about it is that we are balancing the preservation of financial strength and flexibility with investment in our businesses for long-term growth and supporting shareholder distributions. And we like the way we've been approaching that allocation, and it will not change due to the implementation of ESR.

是的。麥克，讓我從這個開始。因此，我們的資本部署重點並沒有改變，因為我們的資本計畫沒有受到 ESR 實施的影響。所以回到——我想我已經說了三個季度了，我們預計 ESR 的實施不會影響我們的股息能力和現金流。我們已經為 ESR 規劃了很長一段時間。因此，當我們制定資本計劃時，我們考慮到了 ESR，並且我們的資本配置優先級仍然是 - 我們的想法是，我們要在保持財務實力和靈活性與對業務的長期增長和支持股東分配的投資之間取得平衡。我們喜歡我們一直以來的分配方式，而且它不會因為 ESR 的實施而改變。

Okay. And then maybe on longevity risk transfer, it seems like you guys have had ongoing success there. I'm just wondering if you could help us understand how to think about that versus pension risk transfer and how you think about sort of the evolution of longevity with medical advancements and whatnot?

好的。然後也許在長壽風險轉移方面，看起來你們已經取得了持續的成功。我只是想知道您是否可以幫助我們理解如何看待這一點與退休金風險轉移，以及您如何看待隨著醫學進步而導致的壽命演變等等？

Yes, Mike, let me start. And longevity risk transfer is a very good opportunity for us. If you look globally, pension plans are very well funded. We participate in two core markets, the UK and the Netherlands. The UK, the pension transfer market is somewhere between $50 million and $55 billion a year quite reliably with about 80% of those transactions seeking reinsurance. In the Netherlands, given the DC reform and the transition from DB to DC, many of those plans, and there's about $300 billion of market opportunity sitting there, we'll seek pension risk transfer and seek longevity reinsurance. .

是的，麥克，讓我開始吧。長壽風險轉移對我們來說是一個非常好的機會。從全球來看，退休金計畫的資金非常充足。我們參與兩個核心市場，英國和荷蘭。英國的退休金轉移市場規模每年穩定在 5,000 萬至 550 億美元之間，其中約 80% 的交易尋求再保險。在荷蘭，考慮到 DC 改革以及從 DB 到 DC 的過渡，其中許多計劃以及約 3000 億美元的市場機會，我們將尋求退休金風險轉移並尋求長壽再保險。。

So it's an area that is a very good growth area where we're a leader in. That's why you saw us do three transactions for $5.6 billion this quarter. It gives us healthy returns and gives us a lot of room to grow. So maybe Yanela could jump in and talk about kind of how the financials look versus PRT.

因此，這是一個非常好的成長領域，我們處於領先地位。這就是為什麼您看到我們本季進行了三筆價值 56 億美元的交易。它為我們帶來了豐厚的回報，並為我們帶來了巨大的成長空間。因此，Yanela 或許可以加入進來，談談與 PRT 相比，財務狀況如何。

Yes. So a couple of things. From a medical advances, perspective, we track medical advances very closely as we have large longevity and mortality businesses. I would remind you that our mix of businesses provides a natural offset between mortality and longevity. And I would highlight that our risk and capital framework includes stress testing for mortality improvement under severe scenarios that reflect conditions changing for many reasons. So we're monitoring all trends that influence mortality, and we'll continue to update our actuarial assumptions each year as we review emerging internal experience and industry studies.

是的。有幾件事。從醫學進步的角度來看，我們密切關注醫學進步，因為我們擁有龐大的長壽和死亡業務。我想提醒大家的是，我們的業務組合在死亡率和長壽之間提供了自然的補償。我想強調的是，我們的風險和資本框架包括在反映由於多種原因而變化的條件的嚴峻情況下對死亡率改善進行壓力測試。因此，我們正在監測影響死亡率的所有趨勢，並且在審查新興的內部經驗和產業研究時，我們將每年繼續更新我們的精算假設。

Thank. I guess just I meant like on the -- how did the earnings -- are the margins compare on LRT versus PRT?

感謝。我想我只是想問一下——收益如何——LRT 和 PRT 的利潤率相比如何？

Yes. So LRT and PRT are different businesses. Obviously, we're reinsuring longevity on both. But LRT is essentially a longevity swap that is fee-based and PRT is pad-based earnings that not only has longevity risk but also asset risk. So LRT has fee-based but also has lower capital requirements so earnings on both are consistent with our targeted return.

是的。因此 LRT 和 PRT 是不同的業務。顯然，我們正在為兩者的長壽提供保障。但LRT本質上是一種基於費用的長壽掉期，而PRT是基於墊基的收益，不僅具有長壽風險，還具有資產風險。因此，LRT 收費且資本要求較低，因此兩者的收益都與我們的目標回報一致。

Alex Scott, Barclays.

巴克萊銀行的亞歷克斯·斯科特。

As mentioned earlier that you're expanding distribution and as part of your strategy to begin growing in a bigger way organically. And just wanted to see if you could run us through that. I think you commented more on like the PGIM and some of the things you're doing there with transformation. But maybe just thinking more broadly across your businesses, are there any important spots where we should be aware of things that you're actively doing on distribution?

正如前面提到的，您正在擴大分銷，並將其作為您開始以更大規模有機成長策略的一部分。我只是想看看您是否可以為我們講解一下。我認為您更多地評論了 PGIM 以及您在那裡進行的轉型工作。但也許只是從您的業務角度更廣泛地思考，是否有一些重要的地方值得我們注意，您在分銷方面正在積極做的事情？

Yes, Alex. And I've already mentioned several of these. So maybe let me just start with on the international side. We think it's very important to have a mix of distribution capabilities. And whenever I think about that, I think of having captive which obviously in international would be things like our Life Planner or Life Consultant to have bank distribution in these international markets and then other third parties working with independent agencies and agents.

是的，亞歷克斯。我已經提到過其中的幾個。因此，我先從國際方面開始吧。我們認為，擁有多種分銷能力非常重要。每當我想到這一點時，我就會想到擁有專屬機構，這在國際上顯然是指我們的人生規劃師或人生顧問，在這些國際市場上擁有銀行分銷權，然後其他第三方與獨立機構和代理商合作。

So as you think about that, that work is about consistently trying to expand your geographic reach and the number of captive agents that you have trying to work more with more banks in the market, not just the nationals, but the regionals. So from an international perspective, it's very consistent, methodical work to build that and make it broader and make sure you're covering the entire market opportunity similar depending on which business you're talking about in the US, we're doing the work to make sure that we have distribution leadership and resources in all the right places and all the right spots whether that's expanding our captive capability with Prudential advisers or working through the intermediaries that we work with in our group insurance business or in our retirement business.

因此，當您想到這一點時，這項工作就是不斷嘗試擴大您的地理覆蓋範圍和專屬代理商的數量，嘗試與市場上的更多銀行合作，不僅是全國性的，還有地區性的。因此，從國際角度來看，建立並擴大這一範圍並確保覆蓋整個市場機會是一項非常一致、有條不紊的工作，這取決於您在美國談論的業務，我們正在開展工作以確保我們在所有正確的地方和正確的地點擁有分銷領導力和資源，無論是通過與保誠顧問合作擴大我們的自保能力，還是通過我們在團體保險業務或退休業務中開展的工作。

And then yes, obviously, we talked about PGIM and specifically focusing on Europe and Asia as areas that we are putting more feet on the street and looking to access more intermediaries but it takes consistent effort and energy every single day to build it out. The great news is once you have it built out, it really is differentiating and it's hard to replicate.

是的，顯然，我們談到了 PGIM，並特別關注歐洲和亞洲，因為我們正在這些地區投入更多人力並尋求接觸更多的中介機構，但要建立它需要每天持續不斷的努力和精力。好消息是，一旦你將它建成，它就會真正與眾不同並且很難複製。

Got it. That's helpful. Follow-up question I had is just if you could provide some comments on the sort of transactional environment for real estate and where you see that heading as you look out over the next year?

知道了。這很有幫助。我的後續問題是，您能否對房地產交易環境發表一些評論，以及您如何看待未來一年房地產交易環境的發展方向？

Yes. So obviously, the real estate business is a business that we're quite proud of. We're number 3 worldwide by assets under management. We have strength in equity and debt and it's been something for decades that we've delivered strong returns. The industry clearly hit a rough patch back in 2023 due to the change in the interest rate environment. We did see, and I said this on previous calls, that the space was starting to recover, starting to come out of the trough. But then candidly, that recovery has been delayed due to the uncertainties that's in the environment specifically around, obviously, all the conversations around tariffs.

是的。顯然，房地產業務是我們引以為傲的業務。我們的資產管理規模位居全球第三。我們在股權和債務方面實力雄厚，幾十年來一直保持著強勁的回報。由於利率環境的變化，該行業在 2023 年顯然遇到了困難。我們確實看到，而且我在之前的電話中也說過，這個領域正在開始復甦，開始走出低谷。但坦白說，由於環境的不確定性，特別是圍繞關稅的所有討論，復甦已經被推遲。

That said, we are seeing signs of life. So the bid-ask spread between buyers and sellers has narrowed substantially. We are increasingly able to sell assets at acceptable prices. And a big part of that is valuations have improved modestly from the trough. So we expect a slow recovery to be in front of us. and we know we're well positioned to capitalize on that. And that's obviously another key reason as that market recovers, that will help contribute to our improving margins in PGIM as well.

也就是說，我們看到了生命的跡象。因此，買家和賣家之間的買賣價差大幅縮減。我們越來越有能力以可接受的價格出售資產。其中很大一部分原因是估值已從低谷小幅回升。因此，我們預計未來將會出現緩慢的復甦，我們知道我們已準備好利用這一復甦。這顯然是市場復甦的另一個關鍵原因，也將有助於我們提高 PGIM 的利潤率。

Got it. Thank you.

知道了。謝謝。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

Hey, thank you for taking the follow up. Just hoping if you have any, could you provide any color on the PGIM flow pipeline in the second half of the year, particularly on third party?

嘿，感謝您的跟進。只是希望您能提供一些關於下半年 PGIM 流程管道的詳細信息，特別是第三方資訊嗎？

Sure. Yes, absolutely. When it comes to flows, we always assess our success by looking at total flows that's affiliated and third party, and we look over a longer time frame. And the way I frame that is 12 months. From that lens, we clearly see a successful picture over the last 12 months. We've had nearly $25 billion in flows, $16 million on the affiliated side and 9 on the third-party side. As Yanela said in her opening commentary, we've seen consistent success on the institutional side. So we're -- and that's across asset classes.

當然。是的，絕對是。當談到流量時，我們總是透過查看附屬和第三方的總流量來評估我們的成功，並且我們會專注於更長的時間範圍。我將其定義為 12 個月。從這個角度來看，我們清楚地看到了過去 12 個月的成功景象。我們的資金流入已接近 250 億美元，其中關聯方資金流入 1,600 萬美元，第三方資金流入 900 萬美元。正如 Yanela 在開場白中所說，我們看到了機構持續的成功。所以我們 — — 這是跨資產類別的。

Retail has absolutely been more pressured given the market uncertainty and volatility. As we look forward, we're optimistic the track record on institutional will continue. We're more cautious on the retail side. given there's a lot of money on the sidelines, we're not yet seeing it really come back into fixed income. And as long as there's uncertainty around the interest rate environment, that's going to continue to be true. What we do know is if you look over longer time frames, 12 months or even longer with the capabilities that we have and the changes that the leadership team are making will be a net winner over time.

鑑於市場的不確定性和波動性，零售業無疑面臨更大的壓力。展望未來，我們樂觀地認為機構的業績記錄將會持續下去。我們對零售方面更加謹慎。鑑於場外有大量資金，我們尚未看到它們真正回歸固定收益領域。只要利率環境存在不確定性，這種情況就會持續下去。我們確實知道的是，如果從更長的時間範圍來看，12 個月甚至更長時間，憑藉我們擁有的能力以及領導團隊正在進行的變革，從長遠來看，我們將獲得淨贏家。

And Wes, this is Bob. I just wanted to jump in and clarify your prior comment regarding group sales. I think Andy may have stated year-to-date group sales are up 60%. That's actually the current quarter over last year second quarter. Year-to-date sales are actually up 13%.

韋斯，這是鮑伯。我只是想澄清一下您之前關於團體銷售的評論。我認為安迪可能已經說過今年迄今為止集團銷售額成長了 60%。這實際上是本季與去年第二季的比較。今年迄今的銷售額實際上成長了 13%。

Actually up 13%. Yeah, thanks for clarifying that, Bob.

實際上漲了13%。是的，謝謝你澄清這一點，鮑伯。

Got it, thanks Bob. And maybe sneaking one more in just on I guess, on Slide 7 for the international businesses, one of the key priority bullets as optimized capital. And I guess I just wanted to maybe get a little bit more color about what you're thinking. I don't know if that relates to ESR or not, but in terms of any recent reinsurance activity affiliated or what are you kind of contemplating as you think about optimizing capital for international?

明白了，謝謝鮑伯。我猜，也許在投影片 7 上可以再偷偷地多加一點，關於國際業務，其中一個關鍵的優先事項是優化資本。我想我只是想更詳細地了解你的想法。我不知道這是否與 ESR 有關，但就最近的任何再保險活動而言，或者您在考慮優化國際資本時有何考慮？

Yes. So I mean, look, I would say that, that is that is always important in all of our businesses, like we seek to optimize capital, I think for international, given the fact that we've been in this period of assessing ESR, preparing for ESR, optimizing capital has been really important. As you've heard me say before, we've reinsured about 70% of our US dollar business out of Japan. We've been utilizing reinsurance for a long time and the optimization of capital also plays into the products that we sell. So it's just good housekeeping to make sure that we're optimizing capital in all our businesses, especially in Japan. And yet that had obviously, line of sight into the ESR implementation.

是的。所以我的意思是，看，我想說，這對我們所有的業務來說始終是很重要的，例如我們尋求優化資本，我認為對於國際而言，考慮到我們一直處於評估 ESR、準備 ESR 的時期，優化資本確實非常重要。正如您之前聽我說過的那樣，我們已經為日本約 70% 的美元業務進行了再保險。我們長期以來一直在利用再保險，資本優化也影響著我們銷售的產品。因此，這只是良好的管理措施，以確保我們優化所有業務的資本，特別是在日本。然而，這顯然已經進入了 ESR 實施的視線。

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

我們的問答環節已經結束。我想把發言權交還給安迪，請他發表進一步的結論。

Thank you all for joining us today and for your very thoughtful questions. We appreciate it. I also, as always, want to extend my sincere appreciation to our employees around the world for their dedication and their commitment that they show every single day to our customers. Looking ahead, I'm confident in the opportunities that lie before us, and our leadership team remains very focused on evolving our strategy, executing with consistency and discipline and fostering our high-performance culture so that we deliver the long-term value for all of our stakeholders. We appreciate your continued support, and we look forward to keeping you updated on our progress. Have a great day.

感謝大家今天的參與以及提出非常有見地的問題。我們對此表示感謝。我還一如既往地向我們遍布全球的員工表達最誠摯的感謝，感謝他們每天為客戶所展現的奉獻精神和承諾。展望未來，我對我們面臨的機會充滿信心，我們的領導團隊將繼續專注於發展我們的策略，以一致性和紀律性執行，並培養我們的高績效文化，以便為所有利益相關者提供長期價值。我們感謝您一直以來的支持，並期待向您通報我們的進展。祝你有美好的一天。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line 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。