“As always, we manage the business assuming a normalized level of VII over time and remain comfortable with our full year outlook.”

In context

“e first quarter of 2026, which was $518 million. The higher than implied quarterly run rate in Q1 was driven by private equities, which had an average return of 2.9%, while real estate and other funds had an average return of 0.8%. As a reminder, PE and real estate and other funds are reported on a one quarter lag and accounted for on a mark-to-market basis. On Page 6, we provide VII post-tax by segment and Corporate and Other for the 4 quarters of 2025 and Q1 of '26. Most of the VII assets are concentrated in Asia, RIS and Corporate and Other, consistent with the long-term nature of these obligations. As of March 31, 2026, total VII assets stood at $18.2 billion. Asia represented nearly half of these assets, while RIS and Corporate and Other accounted for about 30% and 20%, respectively. As always, we manage the business assuming a normalized level of VII over time and remain comfortable with our full year outlook. Now let's discuss our private fixed income portfolio on Page 7. We've been investing in private assets, including private fixed income for decades with a proven track record of disciplined underwriting, strong governance and alignment with our liability profile. This chart shows our private fixed income portfolio, valued at approximately $85 billion as of March 31. The majority of these investments are in traditional private placement and infrastructure. Like our general account, this portfolio is high quality, around 95% is investment grade. It's well diversified and built to perform across market cycles. We also have limited exposure to segments generating the greatest attention in today's market. We have no exposure to business development companies, or BDCs, and our middle market loan”