“For RIS, we are maintaining our 2% to 4% expected annual growth for total liability exposures across our general account spread and fee-based businesses.”

In context

“rn of 12%, which I previously discussed, we expect 6.5% return for hedge funds and a 7% return for real estate and other funds. So now I will discuss our near-term outlook for our business segments. Our comments will be anchored our full year 2021 reported results in our QFS, unless otherwise noted. Let’s start with the U.S. on Page 13. For Group Benefits, excluding the excess premium from participating Group Life contracts of $1.1 billion in 2021, adjusted PFOs are expected to resume their historical target range of 4% to 6% annually, albeit from a higher base. Regarding underwriting, we expect the annual Group Life mortality ratio to be between 85% to 90% excluding COVID impacts. We are also maintaining the expected group non-medical health interest adjusted benefit ratio at 70% to 75%. For RIS, we are maintaining our 2% to 4% expected annual growth for total liability exposures across our general account spread and fee-based businesses. However, we are increasing our expected annual RIS investment spread by 5 basis points to 95 to 120 basis points in 2022, consistent with our higher VII range. Overall, we would expect a significant decline in RIS adjusted earnings in 2022, given the exceptional private equity returns in 2021 as well as 2021 benefiting from higher mortgage pay-downs and excess mortality gains, we believe were likely due to COVID. For MetLife Holdings, we are expecting adjusted PFOs to decline between 6% to 8% annually higher than our prior guidance of 5% to 7%. We are lowering the life interest adjusted benefit ratio to 45% to 50% in 2022 from the prior 50% to 55% in 2021 to reflect the impact of lowering the policyholder dividend levels. Finally, we are maintaining the adjusted earnings guidance of $1 bi”