“And so we think the best way to think about the spreads for the year is relatively flat to what you saw for the full year of 2023.”

In context

“23 and what that looks like in 2024 as they roll off? Should we think about the improvement in VII as essentially like those two kind of net as a wash? Or is one kind of greater than the other? I just want to get some additional color on that if we could. John McCallion: Yes, it’s a great question. I think what you just said at the end around in terms of them being a wash is a pretty good way of thinking about it. So, we had 125 basis points last year, all-in for 2023. We gave a range of 115 basis points to 140 basis points for next year. I think the midpoint is a little above. It’s at 127 basis points, I guess if you did the math. And our view is the interest rate caps will roll off throughout the year and then VII will emerge throughout the year and essentially offset the decline there. And so we think the best way to think about the spreads for the year is relatively flat to what you saw for the full year of 2023. It will give and take here and there. As we point out on the slide, we think VII in the first quarter will continue to be pressured. Obviously, the caps haven’t fully rolled off yet, so we’ll still have income from them. And then as VII merges, you’ll see the caps roll off and they’ll essentially offset. Suneet Kamath: Okay, that’s helpful. Thanks. Operator: Next, we have a question from Tom Gallagher with Evercore ISI. Please go ahead. Tom Gallagher: Hi. So your assumed alternative returns are now around 7.5% for 2024. And I think the RBC risk charge, if I was to do a weighted average, would be 15% to 20% on most of that portfolio. Have you considered pivoting some of the portfolio into assets with comparable, let’s say, 7% yields, like private credit or just other fixed income, but much”