Likewise, Solmaz gives you a lot of color in terms of health. We are looking at opportunities to be able to drive health partnerships. We are also looking at opportunities, for example, in a market like India, where we can establish a health business outside the joint venture. So there are opportunities, and when we look at some of those hurdles, we keep the bar really high. Again, just to reiterate, every dollar of investment that we put in does generate three to four dollars back. And that is something that, as I said, is going to be our ongoing focus. But I do want to reiterate that returning shareholder back to our investors is always an option in front of the board.
Patrick Bowes: Thank you. Okay, let’s go to the next question. I think there’s a couple more. William Hawkins?
Operator: Of course, William Hawkins, please go ahead.
William Hawkins: Hello, thank you for taking my question to, I hope, brief. Can you tell us in the growth markets, what’s happened in Taiwan and what’s the outlook there? That seems to have been quite a success in the second half of the year. Maybe if you could tell us what the new business profit was in ’23 versus ’22, please. Thank you. And then secondly, in the narrative around slide 29, you make reference to medical reimbursement issues, which we know is an issue in the region. Could you just tell us a little bit about the scale and the outlook for that comment? So, yeah, for slide 29. Thank you.
Anil Wadhwani: Thanks, William. Thanks for those questions. I’ll be really quick. Well, pleased with the Taiwan performance. It was largely predicated on a differentiated value proposition that we had on our power offering. As both Ben and I mentioned earlier, we have significant experience on crafting and on developing power products. And that is something that came to the fore in Taiwan. We believe that continues to be an opportunity, but we at the same time are also looking at diversifying our product mix, which Lilian and team are again actively working in the Taiwan market. In terms of medical reimbursement, I’m going to turn to Ben to respond to that question. But suffice to say, this is one of our big focus areas, as Solmaz mentioned. We are looking at claims. We are looking at adopting technology. We are looking at being much more disciplined on repricing. And we’ve again demonstrated that in our two larger health markets of Malaysia as well as Indonesia. Ben?
Ben Bulmer: Yeah, thanks. I’ll talk with a few numbers if I may, William. So, very briefly, mortality is a risk for us. It’s been good. We’ve had continuously small positive variances for many years, and we look to retain more and more of that risk going forwards. On the morbidity side, pre-COVID, typically small positives versus assumptions for us. They grew during COVID as people deferred non-medically necessary treatment. Post-pandemic, we’re seeing much higher utilization rates of medical reimbursement products. This is across our four major medical markets. We’re seeing higher medical inflation. We’ve got a strong US dollar to contend with at the moment. A lot of health goods are effectively priced in US dollars. All four markets have taken actions to re-price.
Of course, we annually re-price these products, and particularly in Malaysia and Indonesia leading the way in that regard. There’s a lot of claims management actions that have been put into swing. We’ve been prudent. We set up a provision for around $200 million, and my expectation is that that $200 million caps the negative experience variances that we’ve seen.
Patrick Bowes: Okay, thank you. I think we’re going to squeeze in one more, and then we’ll pass over to Arnold to close off. Sebastian, if you keep going.
Operator: The next question is from Dominic O’Mahony from BNP Paribas Exane. Please go ahead.
Dominic O’Mahony: Thank you, folks. I appreciate you squeezing me in. Let me stick to one question. It’s really for Ben. On slide 36, I’m just looking at the OFSG trajectory, and I suppose I’m just trying to work out how you can get to the $4.4 billion. Because it looks like it could be quite tight. Just to run through some numbers on this, you’ve already disclosed as of 2023, you’ve got $2.3 billion expected emergence in 2027. On my back of the envelope, if you keep growing your new business through service generation, you can add $800-ish to that. You might get about $300 million expected return. Let’s say asset management does $300 million to $400 million. That’s $3.7 to $3.8. Which bit of the equation am I missing? Are you going to really massively increase the new business contribution in the next three vintages, or is it action from the investment plan which is going to revise the baseline?
Or are you expecting operating variances to come back and be positive by 2027?
Anil Wadhwani: Thanks, Tom. It’s a great question. I think a couple of things. One, in terms of business experience, yeah, absolutely. Getting back to in line with assumptions or better than. And just to remind everybody, if you look back to 2010, our operating experience and assumption changes have added some $2.8 billion to our embedded value. So, yes, we absolutely need to tackle that. In addition, Dom, I think we’re at the very early days, of course, of our strategy, a couple of quarters in. I think there’s a lot more we can and will do in terms of agency productivity. I think that’s going to help sort of velocity of cash flows. Equally, I think there’s a lot more to be done on the health side. That will help. In terms of the 2023 new business cohort, I think a bit more normalization in country mix versus past years will also assist. So I think they’re the points for me, perhaps, to factor in.
Patrick Bowes: Thank you very much, Sebastian. We’re going to turn back to Anil just to close off for a few seconds before we can close the call, Sebastian. So Anil first.
