Prismic Reinsurance Outlook
Q: Will more in-force blocks be reinsured to Prismic in 2024?
A: Management is working on an active pipeline for Prismic beyond the initial $10 billion transaction last year. " They see significant growth opportunities at the intersection of asset management and insurance, with Prismic being key to expanding their platform. "

Fixed Annuity Sales Strategy
Q: What's the plan to grow in fixed annuities?
A: Fixed annuities represented almost half of sales last quarter, driven by portfolio expansion, brand strength, and proactive pricing. " They see fixed annuities as a core product that contributes to diversification and favorable returns. "

Pension Risk Transfer Growth
Q: What's your outlook for PRT business growth?
A: Achieved the strongest first quarter ever in PRT with nearly $9 billion in sales from Shell and Verizon deals. " Expect the healthy pipeline to continue, leveraging expertise in large, complex transactions. "

Capital Impact of PRT Growth
Q: How do you balance capital strain from PRT growth?
A: Large PRT transactions consume capital but are an effective way to deploy it with favorable returns. " They expect to continue opportunistically deploying capital in PRT, feeling good about the returns and benefits. "

PGIM Large Mandate and Outlook
Q: Can you clarify the jumbo PGIM inflow and pipeline outlook?
A: Secured a significant portion of the $26 billion in institutional net flows from a large pension client. " Despite lower fees due to the fixed-income mandate, they see improving fundamentals and expect to be net winners over time. "

Regulatory Environment in Bermuda
Q: Has the regulatory environment in Bermuda changed?
A: Updates may lead to more conservative capital requirements. " However, Bermuda remains attractive due to its economically driven regime and reciprocal jurisdiction status. "

Assurance IQ Wind-down
Q: Are you shutting down Assurance IQ?
A: They've begun the wind-down process for Assurance IQ. " It's not material to earnings, and they'll assess any incremental value to monetize assets during the process. "

Japan ESR Transition
Q: What's the update on Japan's ESR transition and impacts?
A: Japan businesses are well-capitalized, adapting to new regulations by reinsuring business internally. " Reinsured $3 billion of dollar-denominated whole life products to a Bermuda affiliate for better capital management. "

CRE Portfolio Health
Q: How is the CRE loan portfolio performing?
A: The $51 billion portfolio remains resilient with an LTV of 58% and debt service coverage of 2.5x. " Office sector LTV increased to 74%, but they're comfortable with quality despite expected valuation declines. "

M&A Strategy Post-Assurance IQ
Q: How does exiting Assurance IQ impact future M&A?
A: They'll focus on acquiring established businesses to expand capabilities and scale in existing markets, being thoughtful and disciplined to create shareholder value. "

G&A Expenses Outlook
Q: Why did G&A expenses increase, and what's the outlook?
A: G&A rose due to growth support expenses and one-time costs like the GUL transaction. " Committed to keeping expenses flat while investing in businesses; strong sales will benefit earnings over time. "

Group Insurance Results
Q: How did group insurance, especially disability, perform?
A: Disability earned premiums up nearly 15% year-over-year. " Benefit ratio was just under 85%, the best first-quarter ratio ever and within the target range. "

Individual Retirement Sales Sources
Q: Where is individual retirement sales growth coming from?
A: Driven by increasing consumer focus on retirement needs, with many seeking protected income and savings. " On track for a third consecutive record year in annuities. "

Insurance Margins Monetization
Q: What are the $48 billion in insurance margins, and can they be monetized?
A: It represents the present value of future profits under LDTI accounting. " They can accelerate realization through reinsurance, especially in Japan. "

HoldCo Liquidity and Capital Plans
Q: Any big movements expected in capital structure?
A: No major issuances expected; HoldCo cash increased to $4.2 billion, within their liquidity objective. "

Competition Levels in Annuity and Life
Q: How is competition affecting annuity and life products?
A: Despite rising competition, they've achieved strong sales through product innovation, distribution strength, and pricing discipline. "

Emerging Markets and Acquisitions
Q: Which regions are you scaling after exiting Argentina?
A: Focused on select high-growth geographies; currently in desired markets. " Committed to Latin America and open to disciplined bolt-on acquisitions. "