“With first quarter 2024 debt reduction, leverage is likely to be at the low end of our 20% to 25% range upon deconsolidation.”

In context

“is, AIG's fourth quarter adjusted after-tax income rose 21% to $1.3 billion driven by 19% growth in General Insurance APTI. The annualized adjusted return on common equity was 9.4% for the quarter, almost 2 points higher than the fourth quarter of 2022. Moving to the balance sheet. Book value per common share ended the year at $65.14, up 18% from year-end 2022 and up 16% from September 30, primarily due to the impact of lower interest rates. Adjusted book value per share was $76.65 at year-end, up 1% from year-end 2022 and down 2% for September 30, reflecting the net impact of income, dividends, share repurchases and Corebridge secondary sales. At December 31, AIG's consolidated debt and preferred stock to total capital, excluding AOCI, was 24.3%, down 1.3 points from year-end 2022. With first quarter 2024 debt reduction, leverage is likely to be at the low end of our 20% to 25% range upon deconsolidation. As Peter noted, we made substantial progress towards our 10%-plus ROCE goal this year. 2023 full year adjusted ROCE for AIG was 9.0% compared to 7.1% in 2022 and was 12.5% in General Insurance and 11.5% in L&R. The actions to reach 10% or greater will be driven by the 4 levers we have discussed before, including AIG Next. We are confident in our ability to achieve this goal, subject to market conditions and look forward to updating you on our progress. With that, I will turn the call back over to Peter. Peter Zaffino;Chairman and CEO: Thank you, Sabra. Michelle, we're ready for questions. Operator: [Operator Instructions] Our first question comes from Michael Zaremski with BMO Capital Markets. Michael Zaremski: Maybe first on the expense ratio. I appreciate the color, Peter, you”