Andrew Sullivan: So Jimmy, it’s Andy. I’ll take your question. So this quarter, we experienced third-party outflows of $5.7 billion. On the retail end, outflows were $1.9 billion. That was predominantly an equity story. We’ve seen clients rebound for a variety of reasons, including to recognize gains as the funds have performed well. We have produced strong equity performance with 89% of our equity asset performing benchmark in the last year. On institutional side, outflows were $3.8 billion. Net outflows were primarily fixed income. We are seeing a lower level of gross inflows into this asset class. Investors are hesitant to come back in until it’s clear rates have stabilized. We also saw 1 large low fee rate mandate lapse in institutional.
As to your question, industry or specific, these are consistent with the industry. And in particular, the fixed income headwinds are consistent. As far as our outlook looking forward, a stable higher rate environment will be good for our flow. So we know that once rates stabilize, we expect to benefit flow-wise. Your question around fees, obviously, it depends very much on the mix of assets, but we’re being very successful in bringing inflows into higher fee rate strategies, in particular, into the private alts areas of our business.
Jimmy Bhullar: Okay. And then on Individual Life, that’s a business where the results have been weak the past several quarters, but this quarter was actually a good quarter. I think you mentioned in the presentation, there’s a benefit from lower expenses and a legal reserve release. Can you quantify how much each was so that one gets an idea on sort of the underlying earnings in the business? And what your outlook is for individual Life earnings? .
Caroline Feeney: Yes. So Jimmy, it’s Caroline, and I’ll take your question. So as you mentioned, this quarter, Individual Life did see favorable expense experience and that includes a number of onetime items, but it also, as you mentioned, does include the release of a legal reserve. So Jimmy, it’s our practice to regularly review our legal reserves and then make appropriate adjustments reflecting activity within the quarter. And the release this quarter reflects the results of that review. In terms of the outlook for life overall, I would say, in addition to what you saw in favorable expenses on the life side, we also saw strong investment results and also underwriting results that were largely aligned to our expectations and overall fundamentals of the business continue to remain very solid, and we’re very optimistic about the growth there.
Jimmy Bhullar: And just any color on the size of the legal reserve because that I view that more as sort of a onetime versus expenses tend to move around. .
Caroline Feeney: Jimmy, I would not comment on the specific size of a particular legal reserve, as I said. We saw favorable expenses overall and part of that was the release of a league overserved, but we do not comment on the specific size of a case.
Operator: Next question is coming from Tracy Benguigui from Barclays.
Tracy Benguigui: I know it’s early, but I was wondering if you could just share your thoughts on DOL and the impact on your FIA business.
Caroline Feeney: Sure, Tracy, it’s Caroline, and I’ll take your question. So I’ll first start off by saying, Tracy, we’ve been a long-time support of regulations that provide consumer protections while ensuring that all Americans continue to have access to quality advice and the solutions they need for a secure retirement. So the proposal was just released 2 days ago, and so we’re very much still in the midst of thoroughly reviewing and analyzing it so we can assess any potential impact on our customers and specifically their ability to access critical retirement products. And you specifically strike you about. So we do realize that in the proposal, there appears to be a focus on fixed indexed annuities, which today, for us, accounts for less than 20% of our total annuity sales, but are also part of a well diversified suite of annuity solutions as we continue to focus on delivering valuable solutions to help our customers meet their retirement savings needs — that being said, I will just reiterate that we’re still in the process of reviewing the proposed rule.
