And I would also add that the margins continue to be extremely attractive for this business.
Thomas Gallagher: Interesting. Thank you. And then, Kevin, just on your comment in response to Alex’s question on potential risk transfer, the point you made on efficiency of new business, should we take that to – I mean you’re considering flow reinsurance as one potential option?
Kevin Hogan: Well, that’s one potential option. There are a lot of ways to enhance efficiency of new business and we’re in the process of reviewing those. Our responsibility is to evaluate all options to understand what transaction terms are and to make a decision that is most attractive for shareholder return opportunities as well as the success of the business.
Thomas Gallagher: Got it. And if I could just sneak in one more. Elias, you mentioned you’re done with the – you’ve resolved office maturities for 2023. Can you just remind us, what was the total size of the maturities for 2023? And do you have a split of how much got paid off versus extended? And then when I heard you say only $350 million of office maturities in 2024, which sounds pretty low, that implies to me you didn’t do any one-year extensions on the 2023 maturity wall.
Elias Habayeb: So yes. So Tom, so let me take. So we had about $900 million of maturities in traditional office. All the material loans are done. So from the ones we’re done, that was a total of nine loans, five got paid off, four got extended. The four that extended tend to be bigger dollar amounts. And you’re right, we did not have one-year extensions. Basically, there were longer-term extensions and what was involved were sometimes partial paydowns as well as credit enhancements for our positions in there. When you look at 2024 in traditional office, we have five loans that come down to about $350 million in principle.
Thomas Gallagher: Okay. Thank you.
Operator: Thank you. Our next question comes from Jimmy Bhullar of JPMorgan. Jimmy, your line is open. Please go ahead.
Jimmy Bhullar: Thanks. Good morning. So, Kevin, on your comments on flows, if I look at the index annuity business, that’s showing nice growth both in terms of sales and flows. But the traditional fixed business seems weaker than what your commentary would suggest. So if you look at sales, they have grown, 1Q was very good, 2Q was actually weaker than last year, and 3Q is almost flat. And then if you look at flows, whether by each quarter or in totality, this year is running worse than last year. So I’m just trying to see what sort of – I would have expected with rates going up, fixed annuity sales would be – traditional fixed would be doing a lot better and many of your peers are doing better than what your numbers would suggest as well. So just trying to see why that business isn’t picking up more, and why the draws are actually up even more this year than sales are up, even if you look at them on a year-to-date basis.
Kevin Hogan: Yes. What I would say, Jimmy, is that, I just described the trend throughout the third quarter. Obviously, it was very strong earlier in the year that created some kind of processing issues, I think, for the whole industry, because for the whole industry, the second quarter was lower than the first quarter. And through the third quarter, we actually have seen strength in the fixed annuity business and we do expect that that will continue, assuming conditions stay roughly where they are through the fourth quarter. As we’ve talked about before, we look at the economic value of a surrender versus the economic value of new business and to the extent that, it’s not the right thing necessarily to increase crediting rates and accept the surrenders.
We look at each of those decisions kind of separately. And we also look at the entire general account and the growth in the general accounts and the growth and spreads in the general accounts. So we have the benefit of having multiple products. We feel very comfortable with where the fixed annuity business is right now. The spreads are very attractive and we’ll continue to respond to where the market opportunities are.
