Dan Houston: Follow up, Tracy.
Tracy Benguigui: Yes. And just sticking with the macro, and you may touch upon this on your 2023 Outlook Call, if we enter recession this year, even a shallow one what type of credit risk and impairment scenarios are you thinking about? I remember back at the onset of the pandemic, you thought about $400 million to $800 million of losses that didn’t end up materializing.
Dan Houston: Yes, you’re correct. Deanna, you want to frame that for us in terms of our outlook?
Deanna Strable: Yes. A couple things I’ll put into perspective there, Tracy. The first thing I would say is our balance sheet is different than it was when we went into the pandemic. So, the first thing you’d saw is we did reinsure $20 billion to $25 billion away. And so just on a dollar amount perspective, the credit losses that we would see in the drift impact would be lessened relative to that. I’d also say and point you to our investment portfolio that we gave a highlight of in our slides today. And if you look across that you can continue to see that we have a very high quality balance sheet that is also very well fit with our liabilities that we sit here today. We ended full year 2022 with actually positive impacts of drift and very little net income or capital gains and losses and so a very modest impact.
We’ll give more color on the dollar amount for 2023. But as we sit here today, we do think it’ll go back to more of a normal level thinking that $100 million range but obviously very, very manageable when you think about capital. And we’ll continue to make sure we update you on that as we go forward.
Dan Houston: Thanks for the questions, Tracy. We really do feel good about the quality of that portfolio. Even in a challenging time it is truly been positioned to weather this sort of challenging environment. So appreciate the question. Next question please.
Operator: Our next question comes from Erik Bass with Autonomous Research. Please proceed with your question.
Erik Bass: Hi. Thank you. So we’ve seen a number of companies announced layoffs recently and it seems like more of this is coming from large employers. I was hoping you could talk about what you’re seeing in terms of employment trends from your clients? And how this affects your outlook for both retirement recurring deposits as well as specialty benefits premiums?
Dan Houston: Yes, I’ll try to make a couple of high level comments then throw it over to Amy to provide it. And you may have already seen Erik, I picked up in the Wall Street Journal a couple of weeks ago and it was January 26, but they had actually gone back to February of 2020. And in that period of time since February of 2020, SMBs under 250 employees had actually hired 3.67 million individuals and that was net of layoffs and quits. Likewise on employers more than 250 employees the large businesses if you will, they had cut net 800,000 jobs. Our focus is not on hospitality, it’s not on retail, it is really around the professional businesses. And Amy is really truly one of our experts around the SMB. So Amy, how’s it impacting our business? And then maybe we’ll get Chris to make a couple of comments on the retirement side as well.
