We’ll see how that obviously plays out quarter-to-quarter and continue to guide and give you the best view in the underwriting margin, which we put in the modeling considerations to help bridge that gap. But as you think about where we’re at today versus where we were a year ago, you’ve got two cohorts of business that are much tighter aligned from a loss ratio expectation perspective. Now again, ’24, we’re just getting started. As we get into the third and fourth quarters, obviously, you’ve got much more experience to look at versus reserving. And so that dynamic of how the credibility builds versus reserving that plays out at the back half of the year. But as we do the step back, things like lapse rates on the renewal activity we drove, the guidance that we set around renewal targets, and then the new business pricing was at win rates that were consistent to the prior few years, a little bit better than last year, but consistent with the years before that.
So, with that, I’ll pause and say…
Heather Lavallee: Yeah. I think just the one thing I would build — emphasize the examples that Rob was highlighting there is we have a disciplined approach to how we price this business over the long term. And as you saw in the materials, we also have a very strong track record of growing this business while effectively managing the loss ratios over a long period of time, and we plan to continue to do that in the ’24 book and going forward.
Ryan Krueger: Thanks. That was helpful. Shifting to Wealth, are you still seeing the same type of trends on somewhat elevated participant withdrawals? And then, if it’s so, are there any actions you’re trying to take to retain more of those assets within Voya?
Rob Grubka: Yeah, sure. So, from a participant behavior piece of it, I think consistent to how we guided at the end of last year, how we have seen things play out at the start of this year, our views really most come to light when you think about both net flow perspective and the guidance that we’re giving you there, that’s incorporated. And then also from a general account perspective and guiding you on the spread income, that’s the most meaningful area to look for outcomes or the impact of that. As we think about what we’re trying to do, again, last quarter, we talked about new product introductions. So, both general account and stable value product introductions are going to be happening or are happening. Those will build and help over time.
As we think about the decision and the actions that consumers are taking, obviously, it’s a complex point in time when they’re making those choices and decisions. We want to be there to provide thoughtful education, guidance and potentially advice depending on who they’re working with within the Voya team. And again, I’ll turn it over to Heather here to talk a little bit about retail and what we’re doing and how we’re thinking about that moving forward.
Heather Lavallee: Yeah, let me just add on that is that the real point is, we’ve got a strong retail wealth management business inside Wealth. And today, we’ve got a combination of ways that we’re going to deliver education and advice for our participants. We do take a holistic view of participant needs and we’ve got a breadth of solutions to serve them both in plan and out of plan. We are — this is one of the areas when you hear Don talk about our investments in growth. We are continuing to invest in our capabilities to serve customers’ needs out of plan and it really links back to our purposes to help our clients to and through retirement. So, I would say on this one is stay tuned. We’ll continue to provide updates on how we are continuing to expand our out of plan capabilities in support as well of our strong in plan capabilities within Wealth.
Operator: Our next question is from Wes Carmichael with Autonomous Research. Please proceed.
Wes Carmichael: Hey, good morning. I had another one just on stop-loss. I think you mentioned being able to go down-market and price some smaller employers. I’m just curious if you think that business is kind of accretive to margin on a relative basis, do you kind of price those to a lower loss ratio or is it kind of similar to the in-force book?
Rob Grubka: No, I think about them being similar. At the end of the day, as we think about this, it’s just an important opportunity to continue to expand from a capability standpoint, we’ve got the foundation. We did do some deliberate things from just an underwriting talent experience perspective in that space. You get into lower deductible levels. And so, you get into a different set of drivers of claims and claim severity that we wanted to make sure we had the right people in play. So, this is really a build of the capability over really three to four years and we’re starting to see — excuse me, starting to see the benefits of that come in and start to be a more material piece of the overall sales story, which I would think of as roughly 10% of the sales for stop-loss coming from that expansion.
We think that will continue to build over time, but I would not think about it as something that’s going to drive our margin in a material way to be anything different than what we’ve historically experienced.
Wes Carmichael: Great, thanks. And then, on Investment Management, I think you pointed last quarter to the $10 billion pipeline. I think you highlighted that kind of remains in place. And I heard your comments, Matt, but just thinking about if Fed cuts do move out to 2025, do you think the funding and some of that pipeline kind of moves towards the back half of ’24 or even later? Just curious to your perspective there.
