“Now when we did sort of establish the 12 3 target, obviously, it was also in a different environment if you consider the inflationary pressures that everyone is feeling at the moment. Yet, I mean -- and again, I think this is credit to the sort of efficiency mindset that we've built here. We continue to be committed to achieving 12 3 for the year.”

In context

“expect to get over time? Michel Khalaf: Alex, it's Michel. So let me just maybe remind why we anchored on the 12 3 and we talked about building an efficiency mindset as part of our DNA and we're seeing excellent traction on this front. And the idea here is that we wanted to -- we want to continue to free up capacity to make important investments in our business. And we've been able to do so over the last few years and I think this is playing out very nicely. If you think about, I referenced voluntary benefits and some of the capabilities that we've introduced there, Japan in terms of digitizing our business and speed to market in terms of introducing new products. So we believe it's important to continue to make those types of investments to drive our competitive advantage going forward. Now when we did sort of establish the 12 3 target, obviously, it was also in a different environment if you consider the inflationary pressures that everyone is feeling at the moment. Yet, I mean -- and again, I think this is credit to the sort of efficiency mindset that we've built here. We continue to be committed to achieving 12 3 for the year. And the last thing I would point to is that whereas we're having a record year when it comes to PRT, over $12 billion in new PRT deals, PRT premiums does not factor into our direct expense ratio, does not sort of help us from that standpoint yet. There are obviously expenses associated with winning this business. So for all those reasons, we continue to believe that 12 3 is the right target for us. Alex Scott: Got it. That's really helpful. And then maybe just a follow-up on the capital deployment and the value of new business disclosure you all gave. You show in that disclosure that the margins that you're making on new business are seemingly getting materially better. Does it make sense to deploy more capital? I mean I noticed you deployed a little bit less at better margins. Does it ma”