“Our corporate and other adjusted loss is expected to be between $500 million and $700 million after tax.”

In context

“o 17%. 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. Specifically for 2026, given asset management businesses tend to have higher expense ratios, the acquisition of PineBridge will add 50 basis points to our direct expense ratio in 2026, with our 2026 target being 12.1%. However, with the considerable progress we've made in the first year under New Frontier, towards achieving 100 basis point improvement over the five years, we intend to maintain our 2029 target of 11.3%, despite the higher expense ratios associated with accelerating growth in our asset management business. Favorable investment income is expected to be approximately $1.6 billion pretax. Our corporate and other adjusted loss is expected to be between $500 million and $700 million after tax. We are maintaining our expected effective tax rate range of 24% to 26%. And we expect our 2026 share repurchases to be in line with 2025. At the bottom of the page, you will see certain interest rate sensitivities relative to our base case, reflecting a relatively modest impact on adjusted earnings over the near term. Page 11 provides our outlook for VII. We expect the average asset balances for private equities to decline in 2026 and over the near term as we continue to strategically reposition the portfolio to higher-yielding fixed income securities, consistent with the higher interest rate environment. We are assuming annual returns for private equity to be 9%, real estate and other funds to be 7% over the near term. Finally, as a reminder, we include prepayment fees on fixed maturitie”