“We anticipate the Japan solvency margin ratio to be around 770% as of December 31, pending the final statutory filings in the coming weeks.”

In context

“ion to $4 billion. The acquisition of PineBridge, which closed in the quarter, was the main driver of the reduction in Holdco cash sequentially. In addition, total cash returned to shareholders in the fourth quarter was about $800 million, including approximately $430 million of share repurchases. An additional roughly $200 million of shares were repurchased in January. For the two-year period, 2024 and 2025, our average free cash flow ratio, excluding total notable items, was 81%, exceeding our 65% to 75% target range. In terms of statutory capital, for our US companies, our combined 2025 NAIC RBC ratio is expected to be above our 360% target. Our estimated US statutory adjusted capital on an NAIC basis stood at approximately $17.2 billion as of December 31, up 1% from the third quarter. We anticipate the Japan solvency margin ratio to be around 770% as of December 31, pending the final statutory filings in the coming weeks. As a reminder, this will be the last stat filing in Japan based on the SMR, which will be transitioning to an economic solvency ratio or ESR. As we have previously disclosed, we expect to report an initial ESR within a range of 170% to 190% from March 2026. Now let's discuss our outlook starting with the overview on page 10. Based on the forward currency curve, we expect the US dollar to be stable in 2026 relative to 2025. The forward interest rate curve projects long-term interest rates to be modestly higher and the yield curve expected to steepen—a positive development. And we use an assumption of 5% annual return for the S&P 500. For our near-term targets, we expect to achieve double-digit adjusted EPS growth. We expect adjusted ROE to be in the range of 15% to 17%. Expect to maintain”