Gary Bhojwani: Hey, Mark. This is Gary. We feel pretty good about the way the Med Supp product has been received by the market. The feedback from the agents has been good. I would tell you that, there is the potential for some further tweaks, but probably on a state by state basis. In other words, at the present time, we’re not aware of major tweaks that need to be made nationwide. Now, all that said, the AEP just ended and we’re still collecting feedback and we’ll work with our agents if we see something we’ll certainly keep our options open, but I would expect it to be more in the range of tweaks as opposed to wholesale changes. One last observation, remember that Med Supp is the product that we manufacture and therefore the one that’s most susceptible to these types of tweaks and changes.
We’re also pretty pleased with the performance of our Med Advantage business and remember that’s products where we distribute the product and we continue to get better frankly at our online platform and bringing customers there and working with our agents and so on and so forth. So we expect to continue to see growth there. And again those are products we distribute and manufacturer.
Mark Dwelle: Okay, I appreciate the thoughts and I’m sure we’ll get more insights on all of that at Investor Day in a few weeks.
Gary Bhojwani: Absolutely. Thanks for the questions.
Operator: Thank you, Mark. We have a follow-up question from Zach Byer from Autonomous. Zach, your line is now open.
Zach Byer: Hey. Thanks for taking my follow-up. Just kind of curious on the benefits of higher interest rates. So obviously, they’ve been rising and that’s been a positive earnings, but how should we think about any uplift going forward? Should NII allocated to the products to be on an upward trajectory and is there still some upside to earnings spreads in your FHLB lending business?
Paul McDonough: Sure. So, Zach, I’ll offer some comments and then I’ll invite Eric, you to provide some perspective on those two programs. So absolutely, directionally higher rates are good for us, good for the industry. They’ve already contributed to a meaningful inflection point with the portfolio yield increasing sequentially in both the third quarter and fourth quarter. We haven’t gotten yet to a point where it’s increasing year-over-year, but I think we’re approaching that, and as long as rates stay where they are and perhaps a little bit higher. We should reach that point over the next few quarters and so all good. Eric, maybe I’ll turn it, turn it over to you to comment on FHLB and FABN
Eric Johnson: Sure and thanks for the question. And to follow-up on something Paul said a couple of times will — at Investor Day, we will have some comments around the trajectory of NII and some ways. I believe that there could be some good guys there on a sustained basis going forward. One of them is obviously depending on market conditions. Higher new money rate feeding into higher book yield, feeding into more NII. A second one, as we continue to expand the institutional funding, a programs be it FHLB or FABN not only will hopefully over time. We’ll see the AUM from those programs expand, hence more money. But we will recycle some of the existing inventory in the existing AUM expanding spread and so. And then, thirdly, we — and as long as circumstances makes sense.
We have some floating rate exposure on the books side, benefits from — has benefited from the shape of the yield curve and that’s played through well also. So at Investor Day, you can expect that I’ll have some comments around this and put some dimensions around it, but I do think there is opportunity there for something that can really impact the bottom line.
