Elias Habayeb: And the other thing I would add to that is the reason we provided this data is VA is a shrinking component of our balance sheet and a shrinking component of our results. So I just want to – we haven’t given that transparency before, and we want to give it now.
Operator: Our next question comes from Tom Gallagher with Evercore ISI.
Tom Gallagher: Yes. Just a follow-up on the risk transfer. Just considering and isolating the MetLife deal, they got a 15x multiple, doing a combination of individual life and legacy fixed annuities. Now obviously, Corebridge has both of those. But I know you’ve already done the Fortitude Re deal. So there was already, we’ll say, some optimization of more balance sheet intensive life insurance businesses that occurred already. Is that something that you’d consider from an optimization standpoint, those types of individual life and maybe even legacy fixed annuities? Is that something under consideration?
Elias Habayeb: Tom, it’s Elias. So as Kevin said earlier, we’re regularly looking at our balance sheet to find ways to optimize the balance sheet and unlock shareholder value. And if you take just the example of the Laya transaction, given the price we quoted that’s been agreed to with the earnings that it contributes, I think we’ve got a great multiple on that transaction, and we’ve unlocked significant value with lower execution risk. So nothing is off the table for us. We are always looking at ways to unlock value for shareholders. Right now, we’ve prioritized the sales of Laya in the U.K. because, one, they’re not core to us, and we believe they’ll unlock significant value for our shareholders there. But we’re always looking for ways to optimize.
Tom Gallagher: Okay. And then just a follow-up on the Group Retirement business. Elias, I know you had mentioned you expected lapses to increase in Q3 in that business. Can you unpack that a little bit? What’s going on in the market now? Or is it the same competitors where that business is going? Competitively, what is happening in that market that’s driving that? And I think you had mentioned that it’s maybe large assets, but not large economics, and maybe further expansion on that.
Kevin Hogan: Yes. Thanks, Tom. The increase in the lapses really is related to the dynamic of large group wins and/or losses. And year-over-year, the large group wins and losses are not linear. In the second quarter, we didn’t have any large group wins. In the first quarter, we did. In the second quarter of last year, we did. And at the same time, some of the large case surrenders actually contractually took effect in the second quarter. If you look at the outside of the large group wins and losses, we actually see incremental growth in the deposits in both the periodic and the nonperiodic areas. So there is sustained growth there, and that’s important. But when we don’t have wins and when we do have losses, that impacts the level of the net flows, and that’s why we have to look beyond the net flows for the sources of earnings.
There’s no change per se, I don’t think, in the competitive dynamic. We continue to be focused on plans that value the role of the adviser. We take a little more holistic approach. But there is more planned remarketing right now than there was, say, a year or 2 ago because a lot of the remarketing was restrained during the pandemic. And now we’re seeing kind of a return to regular levels. But large wins and large losses are never going to be linear. So that’s why it’s important to look at the periodic and nonperiodic deposits.
Operator: Those are all the questions we have time for today. So I’ll turn the call back to the management team for any closing remarks.
Kevin Hogan: Okay. Thanks, everybody. Appreciate the questions. I hope you have a great day.
Operator: Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.
