“In the first half of 2024, we currently expect continued yield pickup on fixed maturities over the prior year but less improvement sequentially, given the cessation of Fed interest rate hikes and the current shape of the yield curve.”

In context

“rth quarter of 2022. General Insurance net investment income was 38%, while Life and Retirement was up 15%. Higher new money reinvestment rates in both businesses drove the improvement. Fourth quarter new money rates on fixed maturities and loans averaged 6.5%, about 180 basis points higher than the yield on sales and maturities in the quarter. Fourth quarter new money rates were 160 basis points higher in GI and 190 basis points higher in L&R. With higher reinvestment rates, the yield on General Insurance fixed maturities and loans, excluding calls and prepayments, rose to an annualized yield of 3.8% in the quarter, up from 3.0% in 4Q '22 and up 9 basis points sequentially. L&R's fourth quarter portfolio yield was 5.0% compared to 4.4% in 4Q '22 and up 10 basis points sequentially. In the first half of 2024, we currently expect continued yield pickup on fixed maturities over the prior year but less improvement sequentially, given the cessation of Fed interest rate hikes and the current shape of the yield curve. In contrast, alternative investment returns were weak this year, coming in slightly negative in the fourth quarter and at only 2.4% for the full year. GI alternative income was $41 million in the fourth quarter, down 11% from the prior year quarter for an annualized return of 3.9%. L&R's alternative portfolio generated a loss of $24 million in the quarter for an annualized yield of negative 1.8% compared to income of $16 million last year. Turning to General Insurance. As Peter said, our underwriting results remain very strong. The 4Q '23 calendar year combined ratio was 89.1%, 80 basis points better than the fourth quarter of 2022. And the accident year combined ratio ex cats was 87.9%, 50 basis points better. Global Commercial Lines delivered outstanding fourth quarter results w”