Operator: Next question today is coming from Suneet Kamath from Jefferies.
Suneet Kamath: Great. I wanted to go to Prismic again. Charlie, I think in your prepared remarks, you talked about further optimization of your in-force block. And I think you specifically referred to life and annuity blocks. Is that sort of the extent to where we should be thinking about in terms of where you’d optimize? I guess where I’m going with this is there an opportunity for something like a long-term care in terms of your in-force and reinsuring that to Prismic?
Charles Lowrey: Sure. Let me take a step back and just tell you generally how we’re thinking about this. This makes really an example of our open architecture solutions and is a very important additional component of our strategy to become a higher growth, less market-sensitive and more nimble company. We formed Prismic with Warburg Pincus and other global investors because we see significant opportunities that exist at the intersection, as Rob said, of asset management and insurance. And we’re perfectly positioned to take advantage of those opportunities in the business which we have. And we’re excited about our ability to leverage third-party capital and reinsurance to drive the incremental growth in our insurance, retirement and asset management businesses.
And Prismic, to get, to your point, really reinforces and enhances our mutually reinforcing business system in 3 ways. First, we can reinsure portions of our in-force business like the structural settlements transaction we just completed and have PGIM continue to manage the majority of assets locking up capital to become less market sensitive. And to your point, we’ll look to our retirement and life businesses for those assets. Secondly, we can write new business that could be reinsured to Prismic, so forward flow. And since Prismic is mainly supported by third-party capital, we can write additional retirement and insurance business to further accelerate our growth and at the same time, increase PGIM’s assets under management. And finally, Prismic can reinsure third-party blocks, which would again increased PGIM’s AUM.
So there’s a lot of potential we see for Prismic, and we’re being thoughtful about how we execute against these opportunities and have recently reallocated resources to further optimize and cap our will further optimize our capabilities since Prismic is such an important component of our mutually reinforcing business system. So it’s going to be in the life and retirement businesses mainly that we think about reinsuring other blocks, but we could think about others as we go forward.
Robert Falzon: Suneet, it’s Robert. I’d sort of add as sort of a general market observation to Charlie’s remarks is that we’ve seen investors that are behind many of the reinsurance vehicles in partnership and otherwise, having an increasingly higher appetite for a variety of different products. So this started out very much if you look at the early reinsurance transactions in the sort of very vanilla insurance space and in the very vanilla annuity space of fixed annuities. And over time, what you’ve seen on our own transactions as well as others is that now is expanded into variable annuities. It’s expanded into GUL, and we do see that that’s a trend that’s likely to continue. There’s a robust appetite and that appetite as it gets — as investors get more comfortable with the dynamics of the insurance marketplace and business model that their appetite will continue to grow.
So we see interesting opportunities, both domestically and importantly internationally as well.
Suneet Kamath: Okay. Got it. And then I guess on the VA deal, the proceeds from that transaction still in PICA and is the expectation that they’ll just sort of stay there and be used to support organic growth? Or would you expect to take those proceeds up to holdco for other uses?
