“Based on the forward currency curve, the US dollar is expected to further strengthen, which creates a headwind to adjusted earnings growth of approximately $150 to $175 million in 2025.”

In context

“d by approximately $500 million year-over-year, primarily driven by impacts of the reinsurance transaction in November 2023, and lower net investment income partially offset by favorable underwriting. On page nine, this chart shows the final tally in beating our five-year financial commitments under Next Horizon. Our full-year 2024 adjusted ROE of 15.2% was above our original 12% to 14% commitment made in 2019, and above our 13% to 15% guidance for 2024. For the years 2020 through 2024, we generated distributable cash of $20.7 billion, above our $20 billion commitment, and created $1.2 billion of additional operating leverage capacity to accelerate growth above our $1 billion commitment. Now let's turn to page eleven for further details on our near-term outlook starting with the overview. Based on the forward currency curve, the US dollar is expected to further strengthen, which creates a headwind to adjusted earnings growth of approximately $150 to $175 million in 2025. This impact is embedded in the non-US segment outlooks I will discuss in a moment. The forward interest rate curve projects long-term interest rates to be stable, and the yield curve to steepen, a positive development. We use an assumption of a 5% annual return for the S&P 500. For our near-term targets, these are consistent with our New Frontier commitments that we announced at investor day. We expect to achieve double-digit adjusted EPS growth. We expect adjusted ROE to be in the range of 15% to 17%. We expect to maintain our two-year average free cash flow ratio of 65% to 75% of adjusted earnings, which supports our five-year commitment to generate $25 billion plus of free cash flow. Also, given our continued focus on expense discipline, we target reducing our expense ratio down 100 ba”