Don Templin: Yes, Alex, this is Don. Let me maybe start with 2022 and then we can get into 2023. So we indicated that we generated over $600 million of capital or cash generation this year. So if you think about our adjusted operating earnings, they were in the $835 million range. I guess, they were $835 million. And then in there, included in there, was unlocking related to Wealth. So if you deduct that, that happened earlier in the year, a reserve release related to health that happened earlier in the year and then we have the tax benefit, the foreign tax credit benefit that we talked about in the fourth quarter, that gets you from the $835 million to, I’ll say, $700 million-ish and then you multiply that $700 million by the 90% conversion, 90% to 100%, you get yourself into the 600 — over $600 million range.
So that’s the walk from 2022. I would expect that we would have a similar conversion ratio in 2023. Obviously, there will be things that come in and things that come out. But broadly, we’ve been able to deliver that in the past, and I’m confident that we can deliver that in the future.
Operator: Our final questions come from the line of Jimmy Bhullar with JPMorgan.
Jimmy Bhullar: Most of my questions were answered. But just on your point on spreads being flat from 4Q to 1Q. How should we think about just competition in the market and also your outlook for spreads? Assuming interest rates don’t move up any further, should you assume fairly stable spreads beyond 1Q as you’re going through 2023?
Rob Grubka: Yes, Jimmy, look, I’ll hit it, and then I don’t know if others want to talk about more of the macro view on rates at all. But look, the spread point, as I alluded to before, we’re going to be balanced and sort of follow the ball where it goes and what the portfolio is doing, how we see competition in market. Given how the yield curve has moved around so quickly on the short end versus how the long end is trading, it’s going to be dynamic, it may be the easy word to put around it. But look, we get paid to make those hard calls and try to find the right balance between what we’re seeing in our book, what we’re putting on and selling obviously influences things, how reinvestment is playing itself out and pushing on the rate from a gross perspective and then figuring out what it’s going to take to strike the right balance on the crediting side.
So I’m not being overly specific here, on purpose because we’ll be very much data-driven on what we’re seeing in the portfolio and what we’re seeing in market to continue to compete to both win but also retain business and strike that good balance.
Christine Hurtsellers: Yes. And Jimmy, this is Christine. Just to add a little bit too from more of a macro context and how to think about the investable yield on the portfolio from that standpoint. So the new money rate or the investment opportunities, given where credit spreads are and interest rates, is above sort of our in-house, if you will, or existing portfolio yield. Plus, when we look out at maturities, things will be rolling off over the year that are below. So I think that interest rates from that standpoint are still a tailwind for the overall company.
Jimmy Bhullar: Okay. And then on the warrants are coming due in a few months, should we assume most of your buyback activity is just going to be normal stock? And given the ownership structure of the warrants, there’s not much that you could do to maybe eliminate those before they’re due?
