We’ve been with our JV partner for 10 years. It’s performed incredibly well, and that opportunity in China is a phenomenal one. It’s a $3.8 trillion market, basically opportunity with incredibly low penetration rates. And it’s a market that’s grown at a CAGR of 20% over the last 10 years. So that obviously is very exciting for us. We did the JV with Mahindra in India. Again, we think that’s a tremendous opportunity, given the growth and scale of the India market. We started our bank partnership with VietinBank in Q1 of ’22, which, again, gives us access to 14 million customers. So we’re feeling pretty good about the capital that we’ve deployed. We do believe that there may be more opportunities that may emerge, and our strong capital position will actually equip us with the opportunity to possibly opportunistically look at those.
And we recently filed for a new NCIB for 2023 with the TSX. So again, capital strength, I think, is something that’s been forte for our company, and it’s allowed us to create shareholder value. And quite frankly, we’ll continue to allow us to create shareholder value in ’23.
Operator: The next question is from Mario Mendonca from TD Securities.
Mario Mendonca : First, we could go to the CSM balance. That balance, can you give us an indication of how — you’re clear that the balance grows at 8% to 10%. Would it be fair to say that the amortization would also grow by 8% to 10%? And sort of related to that, how quickly does that CSM amortize? Is it over 10 years, 20 years? Can you give us an outlook on those 2?
Phil Witherington: Sure. Mario, thanks for the question. This is Phil. Your hypothesis is right there. We expect the amortization of the CSM to be about 8% to 10% per year. So over a 12-year period, it would emerge into income based on that math. But the reality is that we expect the CSM balance to not only remain stable as a result of the new business generation but grow by a similar magnitude at 8% to 10%. And that really reflects the growth opportunity in our global franchise, in particular, in Asia.
Mario Mendonca : Okay. So the 8% to 10% you said in your opening comments, that was the 12 years you were referring to. I thought you said that was the growth in the balance?
Phil Witherington: It’s both. So 8% to 10% of growth in the balance, but also 8% to 10% amortization of that balance per year.
Mario Mendonca : I understand. Okay. And then my second question, and this might be more appropriate for Steve. Looking at the changes in assumptions, and I’m not talking about the noneconomics, I’m talking about the economic assumptions. Changes in assumptions for public equities and all of the — going forward. Under IFRS 4, that would have been immediately reflected in your LICAT, would have been immediately reflected in net income, maybe taken out of core. It would have been reflected immediately in book value and book value excluding OCI. But under IFRS 17, my understanding is that changes in things like public equity assumptions and ALDA will flow through all of those things, net income, core, book value, LICAT. First, do I have that right?
Steven Finch: Mario, yes, you have that right. Under IFRS 4, we capitalized the full present value of all the future impacts as — if we change in ALDA assumption. Under IFRS 17 because of the delinking between the assets and the liabilities, it does not impact the valuation. And if the assumption has changed, presumably that reflects what will actually occur, that will come in over time.
Mario Mendonca : And now because it’s going to come in overtime in all areas, core earnings, net income, book value, LICAT, does that change your perspective on making changes to assumptions because it was such a — it could have such a dramatic effect under IFRS 4, it’s much more, I’m going to call it, sensible under IFRS 17, does that change your perspective on making changes to those assumptions?
