Ken Tanji: Sure, Tom. We — as we described, when we updated our assumptions for GAAP, we would be making those same assumption updates for stat and that — for statutory purposes occurs in the fourth quarter. So that was — our GAAP impact was about $1.4 billion. It is larger on a stat basis. Stat tends to be more conservative, and that’s what occurred in the fourth quarter. That was generally what led to the — our RBC ratio in the fourth quarter going from above 400% to below it, but still, again, above our AA objective of 375. And we didn’t make a capital contribution into PICA to achieve that again as we expected. So, just a reminder of the moving parts there.
Operator: Thank you. Next question today is coming from Suneet Kamath from Jefferies. Your line is now live.
Suneet Kamath: Thanks. I guess for Ken. Just curious, have you used Lotus Re yet and if and when you use it, should we expect sort of the freed resources to be somewhere in that neighborhood of the $800 million capital contribution that you originally made?
Ken Tanji: Yes, thanks for bringing that up. We do have a company in Bermuda called Lotus Re, which is a reinsurer. And it does give us the capability to reinsure business to that entity, and we did so in 2022. As you mentioned, we initially capitalized it and then we reinsured a block of variable life business to that business — to that entity in 2022, and that was a source of capital release. And all that was factored into our PICA outcomes for the year, which, again, we continue to be above 375.
Suneet Kamath: And can you size that capital release?
Ken Tanji: I don’t think we want to put a precise number on it. It’s an internal reinsurance transaction, but it does improve our flexibility.
Suneet Kamath: Got it. And then I guess my follow-up for Charlie. I guess, overnight, we saw some headlines that came out about — I don’t know if they were quoting you are referring to some comments that you made about Prudential’s M&A strategy and perhaps a change post I’m assuming the goodwill write-downs for Assurance IQ. So, I just wanted to give you a chance to comment on that and kind of how you’re thinking about M&A, especially as you think about that strategy around improving the earnings contribution from growth businesses that you talked about, I guess, two years ago?
Charlie Lowrey: Sure, Suneet. Thanks for the question and our ability to clarify. Yes, we saw the headlines too and we’re slightly surprised. The — our strategy remains consistent with exactly what we have been doing. So, what we’ve said is that we won’t be investing in early-stage companies with less proven track records. What we’re focusing on is developing a portfolio programmatic acquisitions, concentrating on more established businesses where we can expand the capabilities and scale of our existing businesses. And this approach supports what you said, which is our strategy of growing PGIM and emerging markets and really focusing on asset management and high-growth international markets that will help increase our fee earnings and growth profile.
