“And then as you mentioned, the new ESR comes into effect April 1, 2025. We'll report on that for the first time, March 31, 2026.”

In context

“g on Japan for a second, but with the SMR ratio around 670% in the quarter, could you maybe just give us an update regarding the transition to ESR in Japan, if there's been any material changes in how you're feeling about implementation at this point? John McCallion: Wes, it's John. Good morning. So as you mentioned, 670% is our estimate for the quarter. We'll file that in a few weeks. I'd just like to start out by saying no concerns around capital generation or dividends, right? And that ratio tends to have some asymmetrical impacts when rates rise. But as we know, the overall economic value of businesses improved. So the other thing we saw in this quarter is it's generally a heavier cash out quarter for us. We have higher dividends. We pay taxes. So there's a little bit of timing there. And then as you mentioned, the new ESR comes into effect April 1, 2025. We'll report on that for the first time, March 31, 2026. And that is more of an economic framework, one of which that we have typically managed this business. We've used economic as well as stat as we think about like product pricing and development and things like that. So that's kind of a good place to start from. In addition, I'd say implementation is going well. We don't see any big issues. There are some -- a few items that we're just continuing to work through with the regulator. But even if those don't come to fruition, we can certainly manage, but we're hopeful to make some improvements to the kind of the current situation. All in, we're comfortable. And I'd say -- I'd say, supportive of moving from the SMR to the ESR. Wes Carmichael: Thanks, John. And just maybe switching to the commercial mortgage loan portfolio. I think the loan-to-v”