“I think taken all together, our expectation for Q2 is that core spreads will remain close to where we are in Q1, maybe slightly above, modest improvement in Q2. And total spreads will continue to track to our full year range.”

In context

“h reflected, obviously, our strong private equity performance. And so if you exclude VII, core spreads were 95 basis points. And that 4 basis points of sequential decline was largely in line with expectations we discussed in February. As we had guided, there was -- obviously, we had a large volume of new flows in 4Q, primarily from the PRT mandates. That created a bit of a headwind in Q1, as we continue to rotate that portion of the -- or a portion of the portfolio. And so as we look ahead into 2Q, we do expect some improvement from lower asset rotations, but we're also operating in an environment where the yield curve remains persistently flat with the short end higher than maybe relative to our outlook expectation of the curve steepening. So that actually puts a bit of a headwind on us. I think taken all together, our expectation for Q2 is that core spreads will remain close to where we are in Q1, maybe slightly above, modest improvement in Q2. And total spreads will continue to track to our full year range. Wesley Carmichael: Got it. And second, I guess, Sun Life issued a press release last week that they're settling a class action lawsuit with policyholders. In their release, I guess, they noted that they can seek recourse from MetLife for, I guess, around CAD 200 million on a gross basis. So -- I realize that's small, but just wanted to see if that's something that we should be thinking about as a near-term impact on MetLife. Michel Khalaf: Wes, it's Michel. Thanks for the question. So I think I believe you're referring to the April 30 press release by Sun Life. The claims made by Sun Life can best be characterized as baseless and misleading. MetLife was not named a defendant in the reference class action suit. And Sun Life has taken no legal action to enforce the alleged indemnity claim a”