And if you look at our recent — most recent four transactions, which include ICEA LION, Montana Capital Partners, Custom Harvest Asset Management, and most recently, Alexforbes, these are all examples of this approach of acquiring more established companies and are consistent with what we have done and what we will do going forward.
Suneet Kamath: Got it. Thank you.
Operator: Thank you. Next question is coming from Alex Scott from Goldman Sachs. Your line is now live.
Alex Scott: Hi. First one I had is on just sort of sources of cash flow as we think about 2023. You’ve talked about $1 billion of share repurchases, potentially some debt reduction. Could you talk about how that will be funded between PGIM cash flows, PICA in the US businesses versus Japan. And specifically, I’m interested in particular in PICA, if you plan to take dividends out this year?
Ken Tanji: Yes. Alex, it’s Ken. Our businesses are generating free cash flow to maintain our shareholder distributions, but — and also to support the growth of the business. And we do have diverse sources of cash flow to the parent company. That’s provided by our business mix across our US insurance and retirement PGIM and Japan businesses. And they’re all expected to contribute over time, I think the way to think about our free cash flow ratio is it’s been about 65% given our — of our after-tax AOI, given our mix of business and growth. And we think that’s about right. And we would expect, again, to receive capital from all of our businesses, including the PICA legal entity.
Alex Scott: Got it. Second question I had is on Japan. Sales have picked up recently and looked pretty good. I guess, the premium growth is still a bit weaker on year-over-year comps and so forth. So I was just interested in what you expect from that, what kind of top line growth can we expect from that business?
Andy Sullivan: So Alex, it’s Andy. I’ll take your question. Yes, you sort of mentioned some of the effects as we look back from the COVID pandemic that obviously resulted in some headwinds from a sales perspective. But thankfully, as we sit here, those pandemic challenges have subsided quite a bit. We’re exceptionally proud of our Japanese businesses. We’ve steadily increased our market share over time, and we’ve consistently ranked in the top three for new business face amounts every year of the last decade, that’s generated significant earnings and cash flows for Prudential. Our strategy to grow the business is threefold. First, we’re very focused on continuing to strengthen and expand both our captive and our third-party distribution; Second, we’re going to continue to innovate and expand on the solutions that we deliver to our customers; and finally, and importantly, we remain laser-focused on delivering an outstanding customer experience with a particular emphasis on our digital capabilities.
We’re very, very proud and good at that. In fact, we’re consistently ranked by J.D. Power’s in the top three and often number one in policy issuance, policy service and claims. The market remains highly attractive to us, and we intend to grow our position in the low-single digits over time.
Alex Scott: Got it. Thank you.
Operator: Thank you. Next question is coming from Ryan Krueger from KBW. Your line is now live.
Ryan Krueger: Hey, good morning. I had a follow-up on Japan. Have you seen any change in policyholder behavior in terms that may be driven by the weaker and volatile yen that we’ve seen over the last year regarding the FX products? Thanks.
