Kevin Hogan: Yes. Thank, Tom. We consider all options. We understand that, that is our opportunity as well as our obligation as management to look for opportunities to optimize the portfolio and create shareholder value. As I mentioned earlier, we have a Bermuda entity, and it is capitalized. We are working on essentially expanding its license to be able to support part of our new business. But there are other opportunities that we have relative to the Bermuda entity over time. But in addition to that, we are currently aware of market conditions with external parties relative to potential transactions and evaluating those opportunities. And we will continue to do so. And as I pointed out earlier, we have nothing to report at this time.
Thomas Gallagher: Great. That’s helpful color, Kevin. The — my follow-up is just on the investment side. So one observation and question is, I noticed your commercial mortgage loan reserves for office actually declined from 3Q. I think it was 5.9% last quarter, down to 5.2% this quarter. Just curious what drove that. Was that from maturities or from closures? And then a broader question on multifamily. I know that’s your biggest exposure on the commercial mortgage loan side, there’s been some new market concerns in that asset class. Just if you could give a little perspective on how you’re feeling about multifamily. Thanks.
Elias Habayeb: Tom, it’s Elias. We have no foreclosures in the book. So the reduction in our allowance for offices more having to do with resolution loans, but there’s no foreclosures in our portfolio. And we continue to believe our allowance for loan loss in total and specifically on office continues to be pretty robust from there. With respect to multifamily, yes, it is our largest exposure, and we participate in it both on the debt and the equity side, and we feel comfortable with our portfolio. It’s high-quality. Cash flow to the property levels are strong. LTVs, debt service coverage ratios are strong. With respect to kind of concerns about rent control specifically in New York, our exposure to rent control is de minimis in our portfolio. So that’s not something we’re worried about.
Thomas Gallagher: Great. Thanks, Elias.
Operator: Next question is from Elyse Greenspan from Wells Fargo. Please go ahead.
Elyse Greenspan: Hi. Thanks. Good morning. My first question, just on capital return. You guys started right buying back shares in the open market. How should we think about, in 2024, the balance of buying back shares in the open market and then wanting to participate as there is future secondaries from AIG?
Elias Habayeb: Elyse, it’s Elias. Listen, I think our outlook is, we’re going to buy back shares in open market. And if there’s opportunities to participate in AIG sell-downs, we will consider it and do it. But our game plan, we’re not dependent on AIG to do a secondary for us to deliver on our capital return.
Elyse Greenspan: Okay. Thanks. And then my second question, we saw PRT activity picked up in the fourth quarter. My sense is we’re not seeing as much of the same seasonality with Q4 being the highest as we used to in the past. If you can you just give us a sense of the outlook that you have on the PRT side? And if you expect or don’t expect to see seasonality with transactions in 2024?
Kevin Hogan: Yes. Thanks, Elyse. What we see in pension risk transfer is a very strong pipeline continuing for the market segments that we’re focused on, which is full plan terminations. Full plan terminations are somewhat more structured and complex than some of the longevity-focused transactions. And the pipeline for those is a little bit longer term. I think there has been a bit of a change in calendarization with the change in the external market. But both for the U.S. and for the U.K., which are the two markets where we participate, we see a very robust pipeline coming into 2024.
Elyse Greenspan: Thank you.
Operator: Our next question is from John Barnidge at Piper Sandler. Please go ahead.
John Barnidge: Thank you very much. Good morning. With the expense saves fully earning in by the end of 2024 and a focus on continuous improvement, how should we be thinking about the operating expense growth as you would think — as you would look towards 2025?
Kevin Hogan: Yes, thanks. So we are very happy with the progress on Corebridge Forward so far. We’ve achieved about $350 million of the target there, and we expect about half of that to earn into our run rate this year. And we still have the continuing outcomes from Corebridge Forward to deliver. As we look beyond and adoption of a sense of continuous improvement, I think this is where we’ll benefit from the investments that we’ve made in our operating platform, and we’ll continue to respond to growth opportunities as they emerge. And so we would expect an incremental improvement in operational efficiency as we benefit from the work that we’ve done so far and continue to focus from that.
John Barnidge: Thank you very much. And then a question on the higher frequency and smaller claims in the life portfolio. Some have talked about infectious disease season being earlier this year, more 4Q than 1Q. Does that experience line up with that thought process as well?
Kevin Hogan: Actually, in our case, we haven’t observed this particular dynamic. And as I pointed out earlier, as we look into the data, we haven’t seen anything to suggest other than just an anomalous quarter. And mortality, while in many respects, is very predictable, the actual timing of mortality is not so predictable. And that’s why we do continue to expect them to see some volatility quarter-to-quarter, and we need to look at mortality over a longer time frame.
John Barnidge: Thank you very much.
Operator: Our next question is from Suneet Kamath from Jefferies. Please go ahead.
Suneet Kamath: Thank you. Listening to your prepared remarks, I had thought that the commentary that you made about optimization of the business mix was in your discussion on the Life Insurance business. So is that really where we should think about your focus being? Or is it broader than that?
