“Given the vast majority of interest caps have expired and based on the current forward interest rate curve, we expect fourth quarter spreads, excluding variable investment income, to now stabilize and be flat to up 1 to 2 basis points.”

In context

“ble notable item related to disability in 3Q of '23. Turning to the top line. Group Benefits adjusted PFOs were up 5% year-over-year and at the midpoint of our 2024 target growth range of 4% to 6%. Group Benefits year-to-date sales were up 9% driven by strong growth in national accounts. RIS adjusted earnings were $368 million, down 10% versus the prior year. Lower recurring interest margins were partially offset by strong volume growth and favorable underwriting margins. RIS total investment spreads were 106 basis points, down 15 basis points sequentially mainly due to the continued expiration of interest rate caps and lower variable investment income. As we highlighted in the Q2 earnings call, the continued roll-off of the interest rate caps drove the majority of the sequential decline. Given the vast majority of interest caps have expired and based on the current forward interest rate curve, we expect fourth quarter spreads, excluding variable investment income, to now stabilize and be flat to up 1 to 2 basis points. RIS adjusted PFOs, excluding pension risk transfers, were up 3% year-over-year primarily driven by strong sales in U.K. longevity reinsurance. With regards to PRT, we continue to see an active market. We had premiums of approximately $500 million in the third quarter, and we have already seen a strong start to Q4 with over $1.5 billion in PRT wins in the past month alone. Moving to Asia. Adjusted earnings were $347 million, down 6% and 5% on a constant currency basis primarily due to market-related items in the quarter, partially offset by favorable underwriting margins. For Asia's growth metrics, general account assets under management on an amortized cost basis were up 6% year-over-year on a constant currency basis. Asia sales were down 1% on a constant currency basis. Lower Japan sales”