Anil Wadhwani: And Kailesh, just to add to that comment, when Ben was talking about the sustainability of margins in Hong Kong, while the policy count is about 60% HMP, we believe we have a runway in Hong Kong for HMP to contribute more to new business profit mix. And that gives us the confidence that we should be able to sustain, if not grow our margins in Hong Kong going forward.
Patrick Bowes: Thank you, Sebastian. Let’s go back to another caller on the line and then we’ll come back to Michelle in the room.
Operator: Thank you. The next question is from Andrew Sinclair, Bank of America. Please go ahead.
Andrew Sinclair: Thank you, everyone. A few from me. So first, just looking at $3.5 billion of hold-co cash, that’s about 13% of your market cap. Remittance sounds like it’s going to be pretty decent going forward. Just really how much cash do you really feel you need at holding company and what are the plans for that with the shares where there are clearly the inorganic expenditure has a pretty high hurdle. Second point was just related to that. I mean, shares are trading at about 60% of published embedded value. What are your plans and timescale for giving a TEE number consistent with your Asian peers? And the third question was just you injected some cash into Mainland China to accelerate growth there. Are there any other markets you’re looking at where you see any need to inject cash to facilitate growth plans that can’t be funded organically by those countries? Thank you very much.
Anil Wadhwani: Thanks, Andrew. Thanks for those questions. I’m going to ask Ben to tee up and then I’ll add my set of comments specifically on the cash infusion piece. But Ben, you want to first take the $3.5 billion and the TEE question.
Ben Bulmer: Yeah, thanks. Maybe I’ll start with and hi, Andy. Thanks. Thanks for those questions. Maybe I’ll start with TEEV. as I think I said, back in back in August, our focus has been very much on delivering IFRS17. We’ve now done that. So we are actively considering TEEV, whether we give that as an additional metric or an alternative. We need some time to do that work. So in the meantime, please bear with us. And I point you to, of course, our adjusted IFRS17 equity, if anyone wants to look at a risk neutral lens and of course, our EEV sensitivities. In terms of use of capital and hold-co, you’re right, Andy, three and a half billion. I think we’ve been quite clear that we want to build financial flexibility in terms of the uses of capital.
Really, it remains entirely consistent with the principles we set out back in August. We’re looking to grow organically, looking to deploy in terms of our investment in capabilities and then, looking at strategic options to sort of widen that potential universe for reinvestment. As I think Anil referred to, there’s a very active pipeline of potential opportunities. We talked about distribution partnerships, health being a couple of good examples. And as we’ve said in our speech, we’ll be disciplined about that. we’ll compare the economics of that versus, returns of capital to shareholders. But from where we sit now, very much valuing that flexibility that we have to be able to grow the business. Capital infusion. Capital infusion into, I think your question, Andy, was anywhere else?
I think, the majority of our businesses are self-funded, right? They’re capital generative. They remit to center. It’s really the smaller businesses, if you like, the sort of Lao, Myanmar, Africa, that continue to require support from center. Of course, that can change depending on how we deploy capital to grow the business and what opportunities there are to sort of widen distribution.
Anil Wadhwani: So, Andrew, just a couple of comments from my side to supplement Ben’s response. So firstly, on the TEV question, clearly we hear the ask. Our focus was on IFRS17. We are very pleased that we’ve landed that quite well. We also reiterated the fact that we are focused on execution, on delivering on our two strategic and on our two financial objectives that we announced in August last year. And that obviously requires, financial resources as well as ensuring that we are stacking up the right quality of talent to drive that execution. So we have to kind of weigh some of the work that will be required as well as the spend of capital that will be required to generate the TV financials. But we hear the ask. And as Ben said, we are actively considering that.
To your capital infusion, just one point. We like the capital flexibility and the strength. It allows us to grow and gives us optionalities to grow organic as well as look at opportunities across our geographies and across the geographies of greater China, of ASEAN, of India and Africa. And I just wanted to reiterate that that allows us to grow all the markets and don’t have to necessarily suck out the growth from one market to grow the other.
Patrick Bowes: Just a point on the hold-co cash usage; Bank Assurance, there’s some payments made in Bank Assurance out of hold-co cash as well. So that would be when it’s a strategic transaction in the past. You’ve contributed central cash to facilitate that as well. Just to clarify that. Okay, let’s go back into the room. Michelle, you’ve been extremely patient. The floor is yours. You’re probably allowed a long, slightly longer question for being indulgent with us. And we get your microphone.
Michelle Ma: Thank you, Patrick. Thank you, management, for taking my question. My first question is about Singapore. Singapore is a very important region for us. And the MPP growth was a bit soft last year, but I understand that’s primarily because of the first half and we are seeing some improvement in the second half. But just wonder about the future growth driver for this market. And I would like to do some brainstorming with the management team, given the increasingly important role of an offshore wealth management hub internationally. And given the huge success we’ve achieved in Hong Kong, is it possible that we replicate the success in the Hong Kong MCV business to Singapore? And what kind of the hurdle you are seeing deterring us from doing so?
