Tracy Benguigui: Thank you. Have a very basic question. So you could do a US PRT transaction jointly with an insurer partner or you could do some type of PRT reinsurance. I’m wondering which path has greater earnings potential?
Tony Cheng: It would be the path that we’ve pursued. So the side-by-side partnership with PRT insurers.
Tracy Benguigui: Okay. Perfect And because you also have a presence in Bermuda, I’m wondering if you had any early views on the consultation paper that’s out there, particularly on the scenario-based analysis.
Todd Larson: Yes. Tracy, it’s Todd. Yes, we have been monitoring that. You’re correct, we do have a company or companies in Bermuda. Based on our analysis for RGA, we don’t expect a material impact. We actually do not use the scenario-based approach. So that those — the changes to that will not impact us directly.
Operator: The next question comes from Suneet Kamath with Jefferies. Please go ahead.
Suneet Kamath: Thanks. Good morning. Your interest rate leverage seems like it’s coming in much stronger than I think we expected. Is there a way to help us think through how much of that is due to sort of the long end of the curve versus the short end of the curve?
Leslie Barbi: Hi. It’s Leslie. I would say the beat the numbers I was quoting for the change quarter-over-quarter are really, I would say, half and half, sort of the short end of the curve still and then we have done a nice job over this period of higher interest rates and doing some extension trades and locking the entire yields for longer. So it’s kind of half and half.
Suneet Kamath: Okay. That’s helpful. And then I guess for Tony, I think you had mentioned in your prepared comments embedded value or value of new business is much higher on the stuff that you’ve added recently. Is there a way to think about that from an ROE perspective? In other words, what are the returns that you’re getting on sort of the new business that you’ve been adding relative to that, I guess, 11% to 13% ROE target that you always talk about.
Tony Cheng: Thanks for the question. Yes. As you mentioned, I mean, the new business is coming in strong, the breadth, the quality and the volume. To add further to that, we’re very pleased with the returns on the new business. And that’s why we’ve mentioned a few times the exclusivity is because when you are able to sort of grow the pie for you and your partner, then both partners benefit from that. So 11% to 13%, our pricing targets are higher than that. And once again, we’re just very pleased with the returns we’re seeing on the new business.
Operator: The next question comes from Mike Ward with UBS. Please go ahead.
Michael Ward: Thanks. Good morning and congratulations, Anna, maybe just to expand on Wes’ question on the GLP-1s. A number of years ago, you guys sort of shared this high-level hypothetical type of sensitivity to a one-year extension of life expectancies. I was just wondering if you could help us think through that hypothetical again, just given your mix and whatnot.
Jonathan Porter: Yes. Mike, it’s Jonathan. Yes, I don’t have sort of a number at the top of my head to be able to provide you. But I mean, I guess you can think of it maybe in the context of, again, this super high level. If you were to push out everyone’s death by one more year, we basically would collect an extra year of premium. So that’s maybe some way to give you a very high-level context for that but let me take that away and see if there’s kind of a different way to think about it, and maybe we can look to provide some further information at Investor Day next year or something.
Michael Ward: Awesome. That sounds great. And then I was just wondering if there’s any sort of update on the third-party capital vehicle strategies, specifically the revamped Langhorne.
Todd Larson: This is Todd. Alternative capital remains important strategically for us. Before I answer your specific Langhorne question. We have been active in alternative capital around things like embedded value securitization, surplus notes and some strategic retro session. So it’s not just the third-party capital elements that we include in sort of our alternative capital considerations. But as far as the successor to Langhorne, we did — we have taken the lessons that we’ve learned from Langhorne and have been developing sort of the next-generation version of your lower structure. We’re pretty far along on execution and hopefully, we’ll execute here in the near future as far as closing that one out.
Operator: The next question comes from Alex Scott with Goldman Sachs. Please go ahead.
Alex Scott: Hi. First question for you is just a follow-up on the Bermuda regulatory changes. I wanted to, I guess, ask if you if what you’re seeing in some of those regulations and how it’s impacting the market there, would actually go as far as to impact the competitive environment. Certainly, you guys aren’t necessarily competing directly with the private equity-backed companies on every deal. But where you do overlap with them? Are you seeing any signs of an easing competitive environment related to this?
Tony Cheng: Yes. Thank you. No, obviously, it’s anecdotal, we look at every deal. But now, we have started seeing some signs in the Bermuda regulator changes or speaks of changes, then the competitive environment does change. And as Todd mentioned, given our practices, that’s only favorable for us.
Alex Scott: Second question I had is a little more broad for you, Tony. I wanted to ask, as we think through 24′ first full year as CEO, what are the — what’s the short list of things that you’re most focused on? And I know that’s broad, and this has been in the works for a while, but I was just interested in hearing your part on that.
Tony Cheng: Yes. Thanks for the question. Look, our strategy is only two years old and really the focus is very much on execution. We feel we’ve got, obviously, incredibly many, many opportunities across the globe. We’re firing on all cylinders right now. The past 12 months has been really the only period post COVID when the world has fully opened up. So it’s all about focus and execution and delivery. And teams are energized and excited, strong balance sheet, incredible brand, all the positives there. And it’s now up to us to continue to focus and execute and deliver.
Operator: The next question comes from Wes Carmichael with Wells Fargo. Please go ahead.
