Good morning, welcome to Phoenix Group's 2022 year results presentation. I'll now hand over to Andy Briggs, Group Chief Executive Officer, to introduce the session. Andy, over to you. Thank you, Claire. Good morning, everybody, welcome to Phoenix Group's 2022 full year results presentation. Thank you for coming, welcome to those of you joining us on our live webinar. Phoenix continues to deliver across all areas of our strategy, despite the challenging economic backdrop. We have, once again, delivered a strong set of financial results, underpinned by the clear progress we've made across our wider strategic priorities and our key ESG themes. We continue to grow organically across both our retirement solutions and fee-based businesses. We've also announced our first ever cash-funded acquisition of Sun Life of Canada UK. All of which is enabling us to grow our dividend, both organically and inorganically, with a 5% dividend increase recommended by the board. We therefore retain all of Phoenix's long-standing strengths, delivering dependable cash, a resilient balance sheet, and executing M&A. We've now added sustainable organic growth to our business model too. Phoenix is now truly a growing, sustainable business. Our strategic progress means that, as ever, we've delivered a strong financial performance across cash, resilience, and growth. Rakesh will cover this in more detail shortly, but in terms of the highlights, we've delivered just over GBP 1.5 billion of cash generation during the year, outperforming our target range of GBP 1.3 billion-GBP 1.4 billion. Our balance sheet remains as resilient as ever, with our solvency surplus at GBP 4.4 billion, and a shareholder capital coverage ratio of 189%. This ratio is above our target range, providing significant capacity for us to invest into growth. Finally, we've delivered record incremental new business long-term cash generation of over GBP 1.2 billion as we deliver on our organic growth strategy. As well as growing organically, we're delighted to be growing through M&A as well, where we announced the GBP 248 million cash-funded acquisition of Sun Life of Canada UK. We look forward to welcoming their customers and colleagues to the group, who bring around GBP 10 billion of assets and around half a million policies. The transaction is expected to complete in April, with the regulatory approval having now been received. The financial benefits of this acquisition are clear. We expect to generate GBP 470 million of incremental long-term cash generation, and we are targeting GBP 125 million of net synergies, which equates to 50% of the consideration paid. This transaction is therefore proof of concept that smaller cash-funded M&A can add significant shareholder value, and we expect further M&A opportunities of all sizes over time. It's particularly pleasing that this strong performance has enabled the board to recommend a 5% dividend increase for 2022. This comprises a 2.5% organic dividend increase that reflects our strategic progress and organic growth, and a 2.5% inorganic dividend increase, reflecting the value from the Sun Life of Canada UK acquisition. Importantly, our increased level of dividend remains every bit as sustainable over the very long-term because we've grown our group in-force long-term free cash. Rakesh will cover this in more detail later. We're now building a track record of delivering growth alongside our long track record of in-force management. Together, these mean that Phoenix is well-positioned to continue paying a dividend that is sustainable and grows over time. At the center of everything we do at Phoenix is our core social purpose: helping people secure a life of possibilities. Our three strategic priorities deliver our purpose and strategy. Optimizing our in-force business is the bedrock of what we do. This is about leveraging our scale to enhance our competitive advantage of capital efficiency and to deliver higher returns. As I've just covered, we're also growing organically and through M&A as we engage our existing customers to enable us to meet more of their evolving needs and by acquiring new customers. Here, we can leverage and enhance our competitive advantage of customer access to all 12 million of them. Underpinning both of these, we are enhancing our operating model and culture. This will maintain and enhance our competitive advantage of cost efficiency by completing our planned migrations and through driving simplification to a single best way of doing things. I'll cover our progress against all three of these shortly. First, I want to explain how sustainability is deeply embedded throughout as we focus on the key ESG themes where we can make the most difference to both the planet and to people. If we are really going to help people secure a life of possibilities, we need to play our part in tackling the climate crisis. This means managing the financial risks that climate change poses to our customers, as well as maximizing the opportunities it creates. We've set clear targets for our journey to net zero across our investment portfolio, supply chain, and operations. With an estimated 24 million tons of CO2 emissions from our investment portfolio, we really can make a difference. We have made clear progress during the year, with examples including the GBP 15 billion of assets we transitioned to our Sustainable Multi Asset default fund as we decarbonize our portfolios at scale. The development of our active stewardship engagement approach, where we're engaging directly with 25 high-emitting companies that account for nearly a third of our total financed emissions. With the GBP 340 million of policyholder assets we're investing into an innovative climate solutions mandate. I'm also delighted with the progress we are making to decarbonize our supply chain and operations. With 82% of our key suppliers committed to science-based targets or race-to-zero-based targets. We've achieved an 80% reduction in the emissions intensity of our own operations since 2019. As the U.K.'s largest long-term savings and retirement business, we have a critical role to play in tackling the growing pension savings gap. We are focused on four key levers to help drive change. First is raising awareness of the issue. With our t hink tank, Phoenix Insights, publishing important research that has played a key role in the public debate this year. Second is helping customers on their journey to and through retirement. Here, we're uniquely placed to help millions of customers by developing innovative products and services that support their evolving needs. Third is promoting the role of good work and skills, as people can only save if they are earning, and for this, they need to stay in good work for longer. We are therefore advocating strongly for change in working practices and lifelong learning. As an employer, Phoenix is committed to being an exemplar age-friendly workplace. Finally, we must advocate for and support societal change. Phoenix Insights active across a range of issues during the year, such as the reform of the state pension and the debate on economic inactivity. Delivering the scale on our key ESG themes is embedded into our strategic priorities, which you will see as I turn to our progress across each of these. Starting with optimizing our in-force business. I'm pleased that we have delivered a further GBP 700 million of management actions during the period, as we continue to deliver a range of balance sheet efficiencies, which remains a differentiating capability for us, and also delivered further ReAssure integration synergies. Our comprehensive risk management approach means we remain as resilient as ever with both our long-term cash and solvency surplus protected. We are continuing to broaden our asset management capabilities, enabling higher returns and investing in a sustainable future. We're also growing organically and through M&A. With the ongoing development of innovative products and services supporting the growth of our retirement solutions business. Our capital-light, fee-based workplace business continues to go from strength to strength. With GBP 2.4 billion of net fund flows in 2022, an 11-fold increase year-over-year. The Standard Life brand is firmly back in the market, and I'm delighted that we're not only retaining our existing schemes, but winning new schemes of all sizes. We're also executing on M&A, with the Sun Life of Canada UK acquisition expected to complete in April, and the ongoing assessment of further M&A opportunities. We continue to engage people in better financial futures, with examples including the launch of our financial inclusion strategy and the introduction of Phoenix Insights Longer Lives Index. Underpinning all of this is the work we're doing to enhance our operating model and culture. Further progress made on our Standard Life migration and the recent announcement that we will transfer all three million ReAssure customers from the Alpha platform to TCS BaNCS, which will improve the customer experience and deliver a further GBP 180 million of net cost synergies. Our work on talent and culture also continues apace, and it is pleasing that we now have gender balance on both our group board and executive committee. We continue to lead as a responsible business with a comprehensive cost of living support package for our colleagues, and 42% of our colleagues actively engaged in supporting local communities. Clear progress across all three of our strategic priorities. With that, I will now hand you over to Rakesh, who will cover the financials in more detail. Thanks, Andy, good morning, everybody. While there is a lot to cover today, there are two key messages that I want you to take away from our results. First is that our group in-force long-term free cash is growing with a GBP 300 million year-on-year increase to GBP 12.1 billion, which enables us to pay a dividend that is sustainable and grows over time. The second is that despite the unprecedented economic volatility last year, our capital position remains highly resilient. With our shareholder capital coverage ratio having increased to 189%, which provides us with significant capacity to invest into growth. Returning to the financial results. As Andy said, Phoenix has delivered a strong financial performance in 2022. We delivered another year of resilient cash generation, maintained our strong solvency balance sheet, and delivered record incremental new business long-term cash generation. This has enabled the board to recommend a 5% dividend increase for the year. Our IFRS operating profit also remains strong at GBP 1.2 billion. We have reported an IFRS loss after tax. This has increased our Fitch leverage ratio to 30%. I will cover this in more detail later. Starting with cash. We have delivered just over GBP 1.5 billion of cash generation in 2022, which exceeded our target range of GBP 1.3 billion-GBP 1.4 billion for the year. This included around GBP 600 million of management actions. Importantly, the free surplus in our life companies has remained strong at GBP 2.3 billion. Phoenix's business model is designed to deliver high levels of predictable cash generation, which enables us to set very clear targets. We are again setting a one-year target of GBP 1.3 billion-GBP 1.4 billion in 2023 from our current in-force business. We are now including future new business in our three-year cash generation target, given our sustainable organic growth, with an increased target of GBP 4.1 billion. Our confidence in the future organic growth is clearly demonstrated by our first ever incremental new business long-term cash generation target of GBP 1.5 billion per annum by 2025. I wanted to repeat this chart that I showed at the half year results to reiterate how cash generative our business is relative to our other companies in the FTSE 100 index. Cash is easily comparable across industry, and so it's a good metric for investors. Over the next three years, we expect to generate GBP 3.1 billion of free cash flow, which translates into an impressive three years average free cash flow yield of 16%. Double the FTSE 100 average. This slide sets out the expected sources and uses of cash generation over the next three years, assuming we refinance our debt on the call date or at maturity. This includes our planned integration costs and the cash-funded acquisition of Sun Life of Canada UK, which we expect to complete in April. It shows that we expect to generate about GBP 1.5 billion of surplus cash over that period. This is a significant amount of cash that is available to invest into our range of growth opportunities. Group in-force long-term free cash is a measure of the cash that will be available to our shareholders over time from the business we have on our books today. It is calculated net of the cash needed to service and redeem all outstanding debts, and after deducting committed integration costs. Not only is this cash balance huge, at GBP 12.1 billion, it is growing. This means that we can sustainably fund our increased annual dividend cost over the very long-term. The key drivers of the GBP 300 million growth in Group's long-term free cash are shown on this slide. This demonstrates that our new business and own funds management actions more than offset our annual uses of cash, which includes investment into growth. A growing business supports our policy of paying a dividend that is sustainable and grows over time. Turning now to resilience. Our Solvency II capital position remains strong with a surplus of GBP 4.4 billion, which, as ever, reflects the accrual of our recommended final dividend. We have also seen an increase in our shareholder capital coverage ratio to 189%. This is currently above our target range of 140%-180%, which means we have plenty of capacity to invest into both organic growth and M&A. Looking next at the moving parts in the year. We've continued to generate high levels of surplus emerging from our in-force business and have reported another year of management actions over delivery. Our strong capital position enabled us to repay the GBP 450 million tier-three bond that matured in July and invest nearly GBP 300 million of capital into DPA. Given the market volatility experienced last year, our economic variance was relatively small at just GBP 0.4 billion. Importantly, this was in line with our published sensitivities, which demonstrates that our hedging worked as we expected it to despite the unprecedented economic turbulence. As I explained previously, our hedging approach does result in own fund volatility. This is a trade-off we accept to deliver sustainable and resilient dividend over the very long-term. We manage GBP 259 billion of assets on behalf of our customers and shareholders. Importantly, we hedge our annual management charge fee, which means our revenue is broadly unaffected by the recent market movements and fall in asset values. We maintain a prudent, diversified GBP 31 billion shareholder credit portfolio comprising both of liquid and illiquid credit with a triple B exposure of just 19%. We also remain conservative in the sector positioning with only 3% of our credit portfolio exposed to cyclical sectors, which have an average credit rating of A-. We retain a small commercial real estate lending exposure, but have no equity investment and therefore no exposure to the decline in these indices seen last year. The ongoing development of our asset management function also enables us to deliver another year of strong illiquid asset origination in competitive markets. Turning now to management actions. Our ability to deliver value-accretive management actions is a key differentiator for Phoenix, and optimizing our in-force business is one of our key strategic priorities. We continue to demonstrate our capabilities here with GBP 739 million of management actions delivered in the year. The majority were from recurring business as usual actions, which are not reliant on integrations. This included a range of ongoing balance sheet efficiency actions that is unique capabilities of Phoenix. As well as further illiquid asset origination and optimization of our liquid credit portfolio. We also delivered a further GBP 169 million of M&A integration synergies from ReAssure. We continue to simplify our business through our integrations. We have made good progress with the Standard Life migration to TCS BaNCS, and we also recently announced that we will be transferring all three million ReAssure customers from our in-house Alpha platform to TCS BaNCS as well. This will improve the customer experience, enhance the long-term cost efficiency with a further GBP 118 million of net cost synergies now expected from the ReAssure acquisition. Moving next to growth. I am delighted that we have delivered record incremental new business long-term cash generation of over GBP 1.2 billion in 2022. Retirement solution remains the largest contributor at GBP 934 million with another strong year. The contribution from our fee-based businesses increased 28% year-over-year to GBP 299 million, primarily due to a strong performance in workplace. The investment we have made into our capabilities is now delivering sustainable organic growth, and we are confident of continuing this going forward. Having firmly established ourselves as a key player in the DPA market in 2021, we have since been executing on our strategy to optimize our capital and deliver stronger returns. I'm therefore pleased that we've been able to maintain a stable level of new business long-term cash generation with 20% less capital invested, which has supported us in driving improved cash multiple of 3.4x and a mid-teen IRR. This equates to a capital strain of 5.8% on a post-capital management policy basis, down from 6.5% last year, with a pre-CMP strain of 3.2% that positions us competitively in the market. Looking forward, we are quoting on a significant pipeline of opportunities. We continue to target the deployment of around GBP 300 million of capital per annum into DPA, and we will maintain our pricing discipline through prioritizing value over volume. I was particularly pleased to see the significant increase in net fund flows in our workplace business. We delivered a net inflow of GBP 2.4 billion in the period, compared with a GBP 0.2 billion last year, as we retained our existing schemes and benefited from new joiners. Importantly, this improvement in net fund flows is also translating into increased long-term cash generation with a 53% year-on-year increase to GBP 212 million. We also won 76 new schemes during the year, totaling GBP two billion of assets that will transfer to us in the next 12-24 months. The momentum in this business is clear, and I'm confident that we will deliver strong growth in both net fund flows and new business long-term cash generation over the coming years. Turning to our IFRS results. We delivered operating profit of over GBP 1.2 billion in 2022, marginally up on the prior year. Other non-operating items include our integration costs, further IFRS 17 implementation costs, and the planned investment into projects to support our organic growth strategy. We experienced sizable adverse investment variances under IFRS due to the significant rise in yields. This is caused by the accounting volatility from our hedging approach of protecting the solvency balance sheet surplus, and also an accounting mismatch related to the buy-ins of our own group pension schemes. Which have driven a significant IFRS loss after tax. This, in turn, increased our fixed leverage ratio to 30%. We remain within our target operating range, with our level of outstanding debt appropriate for our highly cash generative business. Turning now to IFRS 17. As we have said many times before, IFRS is not our primary reporting framework. Instead, we run our business for solvency and cash, which is what delivers our sustainable dividend. Therefore, the IFRS 17 accounting change is not going to impact our business strategy, our financial framework KPIs. It does not change the underlying economics of our business, and it has no impact on our dividend-paying capacity either. We currently expect the move to IFRS 17 to have a broadly neutral impact on our shareholder equity as at 1st of January 2022. With an increase in equity due to the accelerated profits in our with-profits business, broadly offset by the deferral of annuity profits and the derecognition of our acquired value in-force assets. We also expect to establish a contractual service margin of at least GBP 2 billion at transition, which primarily reflects our growing annuity business. We expect this to run off at 6%-8% a year, but it will grow as we write new business. We plan to report our 2023 half year results on September 18th, which will be our first formal reporting under the new standard. To conclude, we have delivered strong financial results in 2022 across our financial framework of cash, resilience, and growth. Our group in-force long-term free cash increased to GBP 12.1 billion, which is proof Phoenix is growing sustainable business. We have set clear targets for 2023 and beyond. This will support us in delivering on our dividend policy, which is to pay a dividend that is sustainable and grows over time. With that, I will now hand you back to Andy for the outlook. Thank you, Rakesh. Phoenix has a simple, clear, and differentiated strategy which is focused on the UK long-term savings and retirement market. Our in-force business is the GBP 260 billion of assets that we look after for our 12 million existing customers. It provides us with three unique competitive advantages. First is capital efficiency, where we get greater diversification from our breadth of in-force products. Second, we have an unrivaled level of customer access with around one in five UK adults being a Phoenix Group customer. This provides us with a clear organic growth opportunity, and that's embedded in our business. Thirdly, we have a significant cost efficiency advantage enabled through our customer administration and IT partnership with TCS and our focus on delivering a simplified operating model. Our scale in-force business is also highly cash generative and provides surplus cash that we can reinvest into growth. Organic growth comes primarily from meeting more of our existing customers' needs as they save for, transition to, and secure an income in retirement. We will also acquire new customers who we can then help through their life cycles. We have attractive M&A growth opportunities too, where we acquire customers at scale and deliver better outcomes for them. In the process, we transform the acquired businesses to deliver significant cost and capital synergies. If delivering our purpose is all about helping customers journey to and through retirement, then our starting point is customer needs. This chart illustrates a typical customer's life cycle, showing the long-term savings and retirement products they are likely to need. Our competitive advantage here is our existing customer base. With one in five adults who will journey through this life cycle already Phoenix Group customers, there's a huge opportunity for us to meet more of their evolving needs as we build and enhance our capabilities, particularly in retail savings, pension consolidation, and drawdown markets. This slide demonstrates the sheer size of the growth opportunities that stem from those customer needs across both the long-term savings and retirement markets. Looking at the savings side, defined contribution workplace pensions are the single largest long-term savings product in the U.K., with annual flows of around GBP 40 billion-GBP 50 billion. With the U.K. having near full employment and higher inflation driving higher salary increases, we would expect stronger workplace contributions going forward. There's also a huge retail market, which spans individual savings, pension consolidation, and income drawdown, with a further GBP 80 billion-GBP 100 billion of annual flows. We operate across most of these markets today through our Standard Life-branded pensions and savings business with GBP 82 billion of assets. This is an area where we're building capability to take an increased share of flows over time. On the retirement side, we continue to see defined benefit pension scheme de-risking through BPAs as a sustainable growth opportunity over the medium- term, with annual flows of GBP 30 billion-GBP 60 billion expected. This is a market where growth is being accelerated with higher interest rates, improving the funding positions of many schemes, enabling them to consider a buy-in or buyout earlier than expected. We have scale in this market too, again, through our Standard Life brand with GBP 33 billion of assets. These markets are structurally growing and the opportunity for a scale player like us is clear. We set out our strategies across all of these markets in detail at our capital markets event in December. We are now focused on executing to drive sustainable organic growth. M&A, both large and small, also remains a core part of our growth strategy. With GBP 470 billion of U.K. heritage assets potentially available over time. I continue to have my regular cups of tea with my fellow insurance CEOs. The message from the majority of them remains very much one of when, not if. We stand ready to consider our next deal enabled by the scalable TCS BaNCS platform, which can seamlessly manage multiple migrations concurrently. We believe that the drivers of back book consolidation have been accelerated in the current economic environment. With the owners of these back books getting lower revenues due to lower assets under management fees, who are struggling with higher costs due to the impact of inflation. We will also consider small bolt-on capability based M&A if it has a strategic fit and where it can help accelerate our new business growth. I'm expecting 2023 to be another exciting year of progress for Phoenix as we execute against our three strategic priorities. We will optimize our in-force business by continuing to deliver value-accretive management actions, by diversifying our asset portfolio, and by staying true to our risk management approach that delivers our resilience. We'll also continue to grow organically across our retirement solutions and fee-based businesses, and inorganically with the completion of the Sun Life of Canada UK acquisition and through actively assessing further M&A opportunities. All of which is underpinned by the work we do to enhance our operating model and culture as we deliver our ongoing migrations, develop our internal talent pool, and execute on our regulatory change agenda, including IFRS 17 and Solvency II reform. Sustainability is embedded throughout with our strategic priorities informed by and in support of the key ESG themes where we can make the most difference to both the planet and to people. Here, we will publish our net zero transition plan in May, which will set out the specific actions we'll be taking across our investments, operations, and supply chain to manage the risk of climate change to our customers and deliver on our net zero targets. While continuing to engage people in better financial futures with a target of reaching four million people with an awareness campaign on longer life and under saving for retirement. We will lead as a responsible business with meaningful progress towards delivering our sustainability targets, including for DE&I. In summary, Phoenix is a growing business. Our chosen markets are huge and structurally growing. We have three unique competitive advantages of capital efficiency, customer access, and cost efficiency that come from our in-force business and are hard to replicate. Which means that we are confident that we can and will win in our chosen markets. This will support us in continuing to deliver on our financial framework of cash, resilience, and growth. That means our dividend, which offers an attractive 8.5% yield today, can be sustainably funded with the resilient cash from our current in-force business over the very long-term. It is now growing both organically and through M&A. With that, we will now move to questions. We're gonna start with questions in the room. If you can raise your hand if you have a question. We'll get you one of the roaming mics to you. If you can state your name and institution, maybe one of you will be brave and ask two or four questions rather than three. We'll see. For anyone watching on the webinar, please use the Oh, you go on, Rakesh. You use the Q&A facility, and we'll come to your questions after we've answered the questions in the room. Rakesh will take a seat as well. I did promise everyone at the last capital markets event that this was gonna be the Rakesh show. Most to go in that way, yeah. Right. Where are we? Should we start at the front here, Andy? Thanks. It's Andy Sinclair from Bank of America. I'll just stick with my usual three, thank you. Thanks. First, just on new business contribution to the midterm cash target. First can you just confirm how much did new business include? Actually, now that you are including that in your targets, what would it take to include it in your dividend policy to include that new business over the next few years to give a progressive policy? Secondly, IFRS, you said it didn't really affect your business planning, but it does affect your leverage calculation, your fixed leverage ratio. It looks to me like your leverage ratio might actually look a bit better on an IFRS 17 basis. Does that change how you think at all about debt issuance or, basically how does IFRS 17 change your thinking on debt? Third was just on M&A. It feels to me like the last few years have maybe been a bit more tilted towards talking about small bolt-on M&A. It feels to me like it's maybe a bit more balanced, including kind of larger M&A in the discussion again. We haven't seen many smaller bolt-on acquisitions. You said when rather than if, but, what is it taking to bring some more of those to the table? Sure. Rakesh, you wanna take the first two then I'll take the third? Yeah. Starting with the cash target. You know, we announced a three-year cash target of GBP 4.1 billion. You know, that's a huge amount of cash, you know, to deliver. You know, last year, our three-year rolling was GBP 4 billion. That, as you know, gives us a free cash flow yield of 16%. We have included new business within that GBP 4.1 billion of... and that represents roughly about GBP 0.2 billion. Because the new business that we write will be run off over the period and during that three-year period, it will be roughly GBP 0.2 billion. As you know, that, certainly, you know, we do have a new business long-term, incremental long-term cash generation out there. By 2025, we expect to get GBP 1.5 billion, and we're really confident on delivering that. In terms of the dividend, you know, we currently have a policy that is sustainable and grows over time. That is appropriate for Phoenix. You know, certainly when the boards sit down, we'll review that dividend every March, to see how the company has performed in terms of its growth ambitions. Certainly where I sit here today, I'm, you know, I'm confident in the future on that. Second, your IFRS, you know, question. Currently our Fitch leverage ratio is at 30%. What we have heard from Fitch, and this is yet to be, you know, confirmed absolutely, but what we have is that certainly there'll be no rating impact from the move to IFRS 17 because the changing in accounting standard should have no impact on the underlying business. They said they will include the CSM at least as a minimum into their calculation. When you actually play all that through, it ends up being that if you looked at the numbers we provided on IFRS 17 and we perform the leverage calculation, we probably end up at broadly the same on IFRS 17. Certainly, ultimately, IFRS 17 is not our primary reporting framework. Our focus is on cash and resilience and therefore, you know, the amount of cash that we have, the fact that we grew our long-term free cash in force to GBP 12.1 billion means that I'm comfortable with the leverage that we have today. Thanks, Rakesh. On M&A, yeah, absolutely right, Andy. We are interested in smaller bolt-ons or in larger M&A, but both would be part of the strategy. We're kind of ready and keen and enthusiastic to look at the next M&A opportunity. Obviously, you know, focused also on getting Sun Life Canada, U.K. completed early next month. I think it probably is fair to say when you've just, you know, done the Standard Life deal and the ReAssure deal, there's a period where you probably want to bite the fact of getting those integrations done before you took something larger again. We're, you know, we're pretty much through most of the main effort of those big integrations. We've now got the ability with TCS BaNCS to run multiple migrations concurrently. We're definitely sat here keen and enthusiastic. I mean, just a little bit more color on the drivers I talked about in my presentation. We definitely feel optimistic in terms of the outlook for M&A. And that's because, as I say, when I go and have my cups of tea on a regular basis with the CEOs of the groups that own these back books, large or small, they always talk about liking the predictable, steady cash flow. It gives them cash they can invest into growth. Recognizing being a closed book, that runs down at, you know, typically 6% a year. Ultimately, you've got to get 6% out your cost base a year just to stand still. If you don't, you'll be capitalizing a higher level expense reserves and won't get the cash flow and dividend out of that business. There's sort of two challenges to that going on at the moment. One is it's harder to cut your costs by 6% a year with inflation at 10%. That becomes more challenging. Secondly, as you know, we hedge out the impact of markets on our assets under management and our asset under management fees. If you don't do that, and your asset management assets under management have come down with these market conditions, then the revenue side of that cash flow is going to be lower as well. We are optimistic and confident on the outlook, but there are a finite number of these books out there. What we can't do is predict, which deal might happen and when it might happen. We're, you know, but we're absolutely sat here keen and enthusiastic and ready to go when opportunities come along. We come along to Rhea here. I'm gonna go across the front row, and then we'll zigzag back. Thank you. Rhea Shah, Deutsche Bank. Three questions from me. How should we think about management actions going forward? Within that GBP 4.1 billion, what level of management actions are you building in for 2024, 2025? How should we think about that going forward as well after that? The 5.8% new business strain, is that a level that you want to hold around or better that number going forward as well? Should we continue to build in around 6% instead? Thirdly, the non-operating cash outflows that you had of GBP 395 million, what was in that number? Was it mostly restructuring costs or was there something else going on within that number? Okay. We're hitting a balance here with two Rakesh's and one Andy so far on both of these. I'll take the second of those in terms of the BPA new business strain. Delighted that we've the work we've been doing on that to kind of leverage our capital efficiency advantage we have from our scale and breadth of in-force business. Has got the strain last year, post capital management policy down from 6.5% to 5.8%. Our target is to get down to 5%. Yeah, you know, it can vary a bit from year to year. We're, you know, we're really pleased by getting a mid-teens return on capital on the BPA business last year. Over time, we're looking to get that post capital management policy strain down to around 5% from the 5.8% currently. I think in particular, given the scale of pipeline in the market, I mean, we always focus here on value over volume, and we'll be disciplined. I think, you know, with more and more demand coming into the market and a finite number of direct writers, I think, you know, generally for the market as a whole, the outlook for margins should be fairly attractive. Yes, do you want to take the first and third? Starting with the management action. I think generally, I would say, certainly, you know, in these targets here and as a rule of thumb going forward, I would expect about 30% of our annual cash generation to be made up from management actions. If you actually look at our past, you know, since we became listed and just added up all the management actions that we've delivered, you can just see that's a substantial amount. We have an ongoing, you know, the fact that we've delivered these on an ongoing basis, going forward, you know, 30% seems an appropriate number to use. Then on your third question about non-operating cash flows, you're absolutely right. It's a lot of project recharges, which includes the transformation, transition that we integration that we're doing on moving, the Standard Life policies to Diligenta. Also costs on IFRS 17 and investment of growth. Over to Fred. Thanks very much. Probably three for Rakesh, but we'll see. Tell me first one, just going to Rhea's question on the 4.1 and the management actions. Can you remind us of the really big blue sky things that are not included, generally in your management actions, but you've spoken about before as longer term opportunities, and what that could mean, you know, qualitatively or quantitatively? Secondly, you know, looking at your cash position, obviously that's dropped because of the debt call, GBP 450 million. Going back to your question of leverage. Are you happy that from that GBP 1.5 billion that you're going to generate, I mean, do you feel that you need to reduce more debt? Are you happy that you'd have the cash to do that, given that your whole code position has dropped quite a lot? The last one was on, you mentioned capability-based M&A. Actually, that's probably more of Rakesh's question. Could you talk us through what that means? You know, to you and me, that doesn't mean capability in bulk. Yeah. I'll deal with the last one, and Rakesh will take the first two. What we're focused on there is are there areas where we could just accelerate our organic growth strategy through a capability-based M&A? We clearly don't need to. All the things we want to do in organic strategy we could do ourselves. I think it's unlikely to be anything in the BPA space because I think we've got strong capability there. We're already a top three player in that market. Just to be clear, I think we're unlikely to be buying big troops of advisors, or we're unlikely to be paying out for a platform. It will be more whether there's, you know, very small capability base that might enable us to, you know, get better CRM systems around our existing customers or propositions to engage our 12 million customers. That then helps us on that, on that, you know, to get more of them on that engaged with us on that journey to and through retirement. It'll be very modest capability base. We don't need to, but we're open-minded to that. If there are opportunities available that would accelerate and speed up the organic growth strategy. Okay, let me take, I'll take the first two. Let me start with, you know, management actions, probably just worth putting into context. You know, the GBP 739 million that we actually delivered this year. You know, GBP 295 million of that was, you know, normal balance sheet, you know, what Phoenix is well known for. That it will continue. The fact that we, you know, we are getting these businesses together, we put them on our platform. As we then drive efficiencies, the single best way of doing things, I can see that continuing, you know, going forward. As you know, you know, we are, you know, invested in building our asset management function. You know, Nike can visit doing a job in delivering on that. If you actually look at the other management actions that we delivered, it's on optimizing our liquid credit portfolio. You know, not only, you know, on the liquid side, and we're all aware of the liquid and the 70 basis points uplift that we get on that. And we're trying to get to a level, you know, at least at 40% in terms of matching our back book annuities. If you then think about the potential on the corporate credit side and the liquid, they're huge. That was GBP 141 million this year. There's a lot there to go after. Plus, we'll get the ongoing, you know, future benefit in terms of the savings on the fact that we are moving the Alpha platform onto BaNCS. Which will come as cash, you know, the savings will come over time as well because there's a number of areas there that we still, you know, lots to do. On the second one about the debt. If you think about, you know, we repaid GBP 450 million this year. That's debt's dropped from GBP 4.6 billion to about GBP 4.1 billion. In force, long-term free cash has gone up from GBP 11.8 billion to GBP 12 billion. Just see the total cash in the business going up, debt is going down. I'm more than comfortable with that. Clearly going forward, we will, you know, look at that. As you're a growing business, you still need to, you know, operate within that 25%-30% Fitch leverage, which is the intention to do. Therefore that will mean refinancing some of that debt. That's true. The key is the amount of cash in the business which is growing. Please. Hi, thanks. It's Abid from Panmure. Two questions for me if I can. One on BPAs. I'm just wondering what's your appetite here for large or mega deals that potentially might come to market this year or next year? The second question is on TCS. You've migrated the ReAssure policies. I'm just wondering, is there another batch that you could potentially migrate to, TCS? Is there another meaningful batch that might come down the road to generate some more cost saves and cost efficiencies? Okay. I think that's both for me, actually. just on the BPAs. kind of plan A for us is to invest around GBP 300 million of capital into BPA business, which would, you know, 5% strain mean us writing about GBP billion. We have developed the ability and did some quota share reinsurance last year. We've also established a reinsurance entity, Phoenix Re, in Bermuda, which gives us some optionality around reinsurance and third-party capital. We would explore some of those areas. 300 is not hard and fast number. In 2021, we invested GBP 360 million. The opportunities were there. It's very much driven by value, not volume, and the returns we can get on capital. I love the way you said you've migrated the Alpha policies. We've announced the plan to migrate them over the next three years. The hard work starts here. Sort of think about, you know, I mean, three kind of groups of customers, not that dissimilar in size to each other. Phoenix Life, Standard Life, ReAssure, yeah? Phoenix Life mostly is already on TCS BaNCS, but there are a couple of areas we're still moving customers across, and that's in train. Standard Life, we've moved the first 400,000 across last year, which is fantastic. The first migration off that old Standard Life mainframe, so delighted to have done that successfully. The rest of it will come over the next two or three years, and then we're starting the program of work on the ReAssure side. In reality, that's all going to keep us pretty busy, with TCS for a period of time. The Sun Life UK deal, the half a million customers there, the vast majority of those are already on the TCS BaNCS platform. That was kind of quite handy really. It makes that stage of it very, very straightforward for us. Thomas. Hi, good morning. Thomas Bateman from Berenberg. Just one question for me. Just on Workplace, GBP 2 billion of net inflows. You talked about winning, I think 770-odd new schemes. What does that number look like in terms of kind of recurring amount? Should that be up? Is that a high number, GBP 2 billion, or should we expect that to grow pretty strongly? Okay. The GBP 2.4 billion net fund flows is basically made up of the kind of in-force premiums that are ongoing. The new business in the year offset by the outflows, yes. You've kind of got three components building that up. Last year, we both reduced the outflows, basically because we've invested in the proposition, the proposition is much stronger. Our existing clients want to stay, they don't want to go, and then we're winning lots of new clients in the market. Last year, in terms of the new schemes we won last year, with about GBP 2 billion of assets, we expect that to fund over the next 12-24 months. So that, you know, hardly any of that's already in that GBP 2 billion, in that GBP 2.4 billion net fund flows for last year. That's still to come. I wouldn't want to put a specific number around that new scheme wins going forward. I mean, the guys had a particularly successful year last year. Again, we'd be focused on value, not volume. We set a target by 2025 of getting the net fund flows up to GBP 5 billion in Workplace. We're at GBP 2.4 billion last year. I'd say we sit here very confident that we will deliver on that target. Hence, that part of the business' contribution to the GBP 1.5 billion new business long-term cash generation target for 2025. The outlook on organic growth, really pleased with the progress last year and very optimistic, the outlook going forward. We'll go back to, or along to Ashik at the end, and then we'll come to you, Gordon, yeah. Yeah. Thank you and good morning. Just a few questions I have. First of all, I mean, if I look at the GBP 4.1 billion number, okay, she mentioned 30% is management action, so that's GBP 1.2 billion. It's kind of organic, you're saying is GBP 2.9 billion, whereas your back book is GBP 800 million a year, so that's GBP 2.4 billion. What is this GBP 500 million? I mean, organic growth over three, four years of GBP 500 million is 25%. That's quite a lot. Would be good to get some color about this GBP 500 million. The second is, I mean, you showed a slide where you mentioned that the firepower of growth is about GBP 1.45 billion. I guess we need to strip off GBP 900 million for annuities into that. That leaves the holding company cash of about GBP 0.5 billion at the end of 2025. Which I would kind of assume that you would need to hold to maintain, make sure that the dividend is sustainable in the long run. How do we think about M&A budget within that? I mean, would you say that at least at the moment, there is not much of M&A budget left, or how do you think about that? Thirdly is, can we just get some color about the revenue margin for workplace pension and retail savings that you're winning these days? Just revenue margin would be great. Thank you. Okay. I think they're probably all for you, Rakesh. I mean, we, I can pick up revenue margin if you don't want to. It's up to you. We don't quote revenue margin. I guess it's yours. Yeah. All right. Let me start with the 4.1. Yes, I'm broadly, I said, you know, 30% is a rule of thumb on management actions. If you do the math, you know, GBP 800 organic. What we do, you would expect is as you then continue to write some new business that will add on to the GBP 800. Broadly, yes, you know, there is a difference, and we expect that difference to either come from outperformance. 'Cause if you actually looked at the what we've done previously, we've, we aim to outperform. You know, Andy sets me those stretching targets. I, you know, aim to outperform. Also, you know, we will. You know, we've got the GBP 2.3 billion surplus sitting in the live companies that we will slowly start, taking to. Mm-hmm. for us to use for various reasons, of which, delivering cash generation and M&A, for example, may be one. That's. Hopefully gives you a better insight into that. Second, on the firepower, I think, you know, GBP 1.5 billion is a lot of cash. Probably the first thing, you know, can sit back as a CFO and say, you know, you've got GBP 1.5 billion to spend on various growth opportunities. Admittedly, you know, we're saying we want to invest about GBP 900 million over three years into BPA. Certainly, as we've always said, we will always allocate capital to which, you know, maximizes the returns. That may mean we may decide to invest a little bit more, a little bit less on BPAs or M&As, depending on the outcome. Again, similar from the point about outperformance as well, to the extent, you know, we do outperform our targets, that will come and increase that number as well. Then generally, in the context of M&A, you know, you've seen previously, you know, the fact that in 2016, the AXA deal, you know, we've got cash out of that acquisition within six months. Where you've got targets where you can see the synergy, you can see the repayment profile, I'm happy to lever up to more than 30% if I can see a clear plan to get back down. You know, taking ReAssure as another example, you know, we knew when we acquired that business was cash generative. You know, we've pretty much got all the consideration out as cash. Again, you know, you could structure a deal such that you lever up in the short term and come back down. I'm happy to do that as long as there's a plan to get back to that 25% and to 30%. Finally, on the revenue margin, we don't quote that. Clearly the fact that we're, you know, we're doing really well, and then the team, Colin and the team are doing a fantastic job on the workplace and retail side. You've heard the guidance that we've put out there for 2025. I'm really pleased on what they're doing, and long may it continue. Gordon? Thanks very much. Gordon Aitken from RBC. Three questions, please. First, on the budget on Wednesday, a bit of talk in the press at the weekend about annual allowance and lifetime allowance being pushed up. What impact would that have on your business? Second question on synergies. The Sun Life of Canada synergies you said were 50% of the consideration. That's a significant proportion. Just maybe provide a wee bit more detail here. How does that relate to the average in terms of the deals you've done in the past? Where'd you get the biggest gain here? Maybe just talk about with profit, non-profit, and annuities. The final question is on your in-force long-term free cash of GBP 12.1 billion. Just how different is that number to embedded value? Yeah. I'll let Rakesh take the third of those, and I'll take the first two. On the budget and the annual allowance, what's going on here is that we think there's reasonable evidence that when people in some professions, say doctors, for example, get to their annual allowance, they then think, "Okay, I can't pay into the pension any more. I may as well retire." What I'm keen, actually more with my other job, my Government Older Worker Business Champion job on, it's key part of what we want to do here at Phoenix. We want to create an environment where those that choose to can work for longer. Rather than automatically think, "I've hit the lifetime allowance, I should retire," we would like people to stop and think, "Well, you know, I don't have to actually. Do I want to carry on working? Do I want to have more income in retirement? Do I enjoy what I do? Should I work more flexibly?" That's more the angle on it. I mean, if we ended up seeing the lifetime allowance increase, it would have a positive impact on our business. We are a pretty broad church of customers, so not that many of our customers are up at the lifetime allowance limit. We've kind of got, you know, more mass affluent rather than particularly just high-net-worth customers. On the SLOC synergies, so the 50% is not untypical. If you take the Standard Life deal, we paid GBP 2.9 billion to buy that. We delivered GBP 1.6 billion of synergies. If you take the ReAssure deal, we paid GBP 3.2 billion to buy it. The current synergy target is around GBP 1.3 billion, I think, isn't it? GBP 1.3 billion, yeah. Yeah. You know, and the earlier deals were, you know, 50%-ish. That's not unusual. The gains basically come from a combination of cost efficiencies, as we move things to one single best way of doing things. Then capital efficiencies as we apply our capability in managing the balance sheet to drive out the capital synergies as we bring things onto our internal model, as we consolidate the legal entities through a Part VII transfer. You know, a range of other actions of that nature. Ultimately, that it's what is, you know, particularly unique about Phoenix is this ability and discipline to migrate to a single best way of doing things. Which means we are more capital efficient and we are more cost efficient than others. That is hugely beneficial in terms of synergies on M&A. It also means that, you know, Andy, Simon, Colin, and the guys basically get the benefit of that cost and capital efficiency as they go out trying to drive organic growth, which is why our margins are strong there, and we're delivering strong new business long-term cash generation. It benefits all aspects of the one. Yeah. Yeah. Third, your question was the difference between the long-term free cash and for long-term cash and embedded value. There are probably a number of areas where they're different, but I'll just highlight the few big ones. First of all, it's undiscounted. You know, that's a big difference. Second, you know, we take a reasonable look at, you know, where the cash will emerge from, and we do believe, you know, as I've said previously, that, you know, something like own funds is not a. It's probably more prudent. We've, you know, for example, again, undiscounted cash flows and long-term free cash will include the release of the fundamental spread in the numbers as well as, you know, the risk margin over time net of TMTP. It also includes real world returns, allowing for our hedging that we do as well. Just to give you what is more of a realistic number that's undiscounted. Steve? Thanks. Steve Almond from UBS. First question on the GBP 2.3 billion of free surplus in the life COEs: How much of that is liquid, if you can give us a percentage or a number, as at full year 2022 or as at now? Second question on ratings: Would you consider getting a second rating? What are the costs and benefits of doing that? I can think of one benefit. You could raise debt at a lower coupon for M&A. Thirdly, on TCS contract: Is that inflation protected? I know it's evergreen, but what inflation clauses do you have in? Okay. I'll take the third of those, and Rakesh take the first two, yeah. Yeah. Just on the first one, I didn't quite get the question. It was about the long, the pre-surplus in life, the GBP 2.3. How much of that is liquid versus future profits, as of full year 2022? Liquid versus future profits. Yeah. Yeah. This number is essentially the amount of cash on top of its capital management policy. What is in each of the entities that we have, regulated entities that we have within the group, the amount of surplus above its capital management. It's surplus that is essentially available. Yeah. Yeah. No. Sorry. I think the GBP 2.3 billion excess of our capital management policy, some of it will be cash, some of it will be future risk. Yeah, we don't disclose the distinction between the two, but you know, you probably couldn't take all GBP 2.3 billion out tomorrow because some of it's cash, but some is this. Yeah. Yeah. I mean, it's a normal balance sheet, you know, as you do in the... It's excess over SCR, plus the CMP, that's the surplus number. They're made up of a range of different. The key point is that the GBP 1.45 billion we've just been talking about is holdco cash. Yeah. Yeah. You know, we've got GBP 2.3 billion in the life COEs beyond that, you know, which obviously gives us additional flexibility, yeah. The second question then on the rating. We've looked at this, a number of times, and we continue to look at it on an ongoing basis. You know, certainly the debt that we've raised previously and what we expect to raise going forward, you know, having just the one rating from Fitch hasn't hindered us at all. You know, as it stands currently, we're comfortable with one, but we'll keep an ongoing review on the ratings. In terms of the TCS contract. We kind of don't give out the details of this because it's really good evergreen contract that we can take other business onto. It does contain a significant element of inflation protection for us. It's attractive to us from an inflation perspective. Any residual inflation risk we then hedge anyway, yeah. We're kind of protected against inflation with that hedging anyway. Andrew. Hi. Thank you. Andrew Baker at Citi. Three from me as well, please. First, are there any comments you can make on the intent of your strategic shareholders, specifically Aberdeen, but then also MassMutual, if there's anything to note there? Secondly, are there any fee differences between the Sustainable Multi Asset default fund and what the default fund was previously? Then finally, I think it was this time last year, you made the comment that you were more likely than not to do a deal in 2022. Are you able to say anything on your likelihood in 2023? Thank you. I'd surprise you succeeded in getting me to make that comment a year ago actually. I don't recall saying it. I mean, on the final one, I would say, you know, we are optimistic about the outlook for the reasons I've stated in terms of drivers. There are a finite number of these books that make up this GBP 470 billion of closed book assets in the U.K., I can't sit here and predict which deals and what timing. You know, over time, we are confident there will be deals, and we're confident that we can drive significant value from doing those deals. On the first question, MS&AD have a conscious strategy of diversifying their earnings from Japanese GI business by taking stakes in overseas insurers. That's a conscious strategy they've had for a long period of time. They originally took the stake in ReAssure alongside Swiss Re when it was owned, majority was owned by Swiss Re, and effectively transferred that stake across into Phoenix Group. They look at the dividend yield they're getting compared to alternatives in Japan, and they love it, basically, yeah. I think they're happy long-term holders. In terms of Aberdeen, I mean, the position here is this is very much a decision for them. They ended up with a stake as a result of the consideration for buying the Standard Life life and pensions business. You know, you're as au fait with the media commentary around this as I am. What I would say is, you know, we have a strong strategic relationship with Aberdeen that we expect will continue into the long-term. They have a strategic relationship agreement as a result of having the 10% stake, and it basically gives them a seat on the board, and it gives them effectively preferential access to new business assets going forward. If they didn't have that 10% stake, they wouldn't have the seat on the board, they wouldn't have that preferential access, but they still would remain a core strategic asset management partner. Effectively, where they're the best at something, they would still get the business. Where someone else is the best at something, then we'd be using that for someone else. At the moment, it works more in practice that if they're good at something, they get it, but we're free to use others where they're not good at something. That, that benchmark would basically change as a result of that. Then I've got Colin in my eye line to correct me if I get this wrong. I believe as we move from the previous default fund to the Sustainable Multi Asset fund, not only has it got the beneficial tilting from a sustainability perspective, but I think it is slightly lower price for customers, and we obviously pass that price entirely on to our customers, yeah. Colin's nodding at me, so that's good. Wouldn't wanna mislead. Right. We'll keep coming along. Alan, and then Dom, and then go to you, Andrew, yeah. Okay, thanks. Alan Devlin from Goldman Sachs. I think both of these for Rakesh. First of all, on the hedging, can you remind us what your hedging policy is? Do you hedge SCR, home funds, surplus cash? When you started hedging, you know, a number of years ago, if your capital position was much weaker than now, your, you know, record capital levels, you know, do you change your hedging? Do you think you'd change your hedging strategy at some point? 'Cause I'm guessing you do have to give away some economics. These hedges aren't free. Secondly, on the Solvency II reform, can you remind us, you know, what do you think the benefit will be to the Phoenix balance sheet if the rules go through as they are? Again, will it change any, you know, any of your policies in, you know, retaining more longevity risk, or is it low risk margin or will it change anything? Thanks. Go for it. All right, starting with the hedging. Just a reminder, we hedge out all the unrewarded on the balance sheet. That includes equities, interest rates, currency, inflation. Certainly, you know, from a, in terms of what we hedge, you know, I think when you look at currency and equities, you're effectively hedging the economics. That's an economic hedge to do. In terms of interest rates and inflation, but more probably interest rates, we actually hedge to protect our surplus position. Surplus over SCR and somewhere between SCR and CMP, depending on the balance sheet. We continue to review our hedging. Where I am today, it's still right to, you know, take hedge those unrewarded risks. You just see how volatile the market is, you know, what it has been in 2022. Again, you know, just seeing what's happening this morning, it's just volatile out there. Certainly, I think for Phoenix's balance sheet to have that resilient cash generation today and reduce the volatility on that long-term free cash in the future is absolutely right, from my perspective, to hedge interest rates. That'll be the first question. Second question on Solvency II reform. Clearly the reforms are looking at a number of areas. One is the risk margin, one is effectively the amount of fundamental spread you need to hold, and then if that is the eligibility of it. Generally, I would say, you know, in terms of overall balance sheet and capital benefit, it's not gonna be anything like you've heard previously, because most of it gets offset by margin. I don't believe a 65% reduction in risk margin is big enough to change our view on longevity risk to hold any of that. What it does do in terms of the MA ability, the fact that we now have a wider, potentially subject to how the rules land, have a wider portfolio of assets to invest in, including sustainable assets. It helps us, Phoenix, in delivering its ambitions for net zero and also get a high proportion of our assets being sustainable and in getting our increase to illiquid assets as I spoke about earlier. It's only from a capital benefit, not seeing it, not going to change our view on longevity either. The reduction of the TMTP, does that help your forward cash generation 'cause you no longer have to amortize as much of that going forward or is that not material? No. What will happen is if it does happen, so on day one, you'll get a reduction in the risk margin, but you also get a reduction in the TMTP. As we then write new business, that will be beneficial. In terms of the fee-based business, the risk margin is not that big. For the BPA, I mean, it's primarily the longevity risk, but as I said. Dom. Dominic O'Mahony from BNP Paribas. Just two, if that's all right. One is just picking up on the regulatory change topic. The regulators made some comments that suggest that they're looking at the use of offshore reinsurance in the annuity market. I wonder if you could give us some sense of how important a change there might be for yourselves, whether, for instance, do you think the market will be able to absorb a need to bring longevity risk onshore or indeed to stop using quota share for annuities or use less quota share. The second question is about coming back to leverage. One thing I've always struggled a bit with is trying to understand whether your plans envisage systematic debt reduction over time or whether actually the growth means that the business can sort of maintain its debt position. I think the question comes down to whether on an organic basis you folks expect leverage to reduce or not. Can you just give us some insight into whether on an organic basis you think that actually the development of the IFRS balance sheet, I guess under IFRS 17, means that actually leverage goes up or down over time? I hope that makes sense. I'll take the first and Rakesh will take the second. In terms of the first, I mean, the sense I get from interactions with the regulator is. I mean, ultimately if we originate business or any insurer reinsures business and then reinsures it to someone else, ultimately you're still on the hook, you know, if there's a problem with that reinsurance. They just. I think their focus is just making sure that there's the right strength and capability oversighting that reinsurance capability that's sat behind, because ultimately you're still the primary writer. You haven't sold the business, you're just reinsuring it. I mean, my own view on this is that reinsurance has a really constructive role to play in insurance because it leads to the spreading of risks and diversification of risks around different participants within the market. That's got to be a good thing in the pooling of risks in the world of insurance. You know, we would envisage reinsurance remaining a core part of the market. You know, it's entirely appropriate that the regulator wants to have confidence over the strength of oversight you've got and the strength of the reinsurance counterparties that you're dealing with. I'll pick up the leverage point. Yeah, yeah, sure. I mean, starting back, you know, I think about this in terms of the capital of capital liquidity and leverage. You know, if you look at those three things in the round, and that's how I think about it, and our aim is to operate within the 25%-30% of... Trying to look at all three things and operate within that is ultimately the answer here. Just let me give you a few scenarios. If we weren't growing at all, you'd see the absolute debt levels coming down because over time. If we were growing, you know, you could see that absolute levels could be going up. I try to operate within the range rather than, you know, be at the top of the range, which doesn't concern me because the overall free cash is growing. I like to be operating at the, in the middle of that range. I'll be looking at what the capital position is and what the liquidity position is before, you know, looking at everything in the round. Generally that would be the direction. Andrew, I'm really conscious, Andrew, you tend to sit towards the back and I tend to start the front, so you always come late in the day. I promise next time I'm going to start towards the back and get you early on. Yeah. Don't worry. It matters not. Three questions, Rick. Firstly, the GBP 4.1 billion of cash remittances which you're forecasting over the next three years. Could you tell me how much of those are really just the juggling of cash between life company and holdco as it is to be sort of cash generation? Second question. You've talked a lot about the GBP 1.5 billion. It's slide 19. The GBP 1.5 billion available cash remittances. What you don't put in there is what Ria was talking about. There's been GBP 395 million, what used to be called non-recurring negatives. Now it's called non-operating. Over the last six years, that's averaged minus GBP 200 million. Are you confident there's not going to be further negative non-operating, which will reduce the GBP 1.5 billion? The third question is you talk a lot about GBP 12.1 billion of cash in the future and GBP 1.2 billion of cash generated on the new business last year. These are undiscounted figures, and you're comparing them to the present value of the dividend. Is it not a better look to actually use discounted figures, particularly with the rising interest rates? If that's so, could you give us the discounted figure for GBP 12.1 billion and one point. All for you, Rakesh. Let me start with the first one. The GBP 4.1 billion. The question was is this just a toggle between LifeCo and group? I mean, the way we think about it, Andrew, is, you know, we do have underlying surplus that's generated. See that in the free surplus walk as well as the overall group walk. What would happen is, you know, all other things being equal, if there was no cash coming out of LifeCo, this is just giving you the example, is that we will be generating organic surplus from that. That GBP 2.3 will be going up for three years of organic surplus, plus any management actions that we do as well. We'll look to, you know, distribute that to the whole co fund. It is what we're generating underlying being pushed up to Group, but admittedly, some of it is utilizing the free surplus that we have. We do generate GBP 800 million, and I've said, you know, management actions of 30% a year should be what you're assuming. That is in excess of, you know, GBP 1.1 billion-GBP 1.2 billion in total. That just gives you a sense that is mostly underlying, but there is a small release that will happen over time. Second is about the GBP 1.5 million in non-operating. As you've seen, to derive that GBP 1.5, we've actually allowed for GBP 0.4 billion of that number. Looked at that. It doesn't include the long track of non-operating losses. No, no, agreed, but it's got the, what we, what we expect. Clearly as we do, you know, as we look forward, and certainly, you know, there will be projects that we want to invest in, such as, you know, potentially could improve our performance in new business that we may not get this year or in the future. You know, projects, to, you know, support our growth business, you know, potentially would help us in the future and increase that GBP 12.1 billion. You know, certainly. There are areas where we'd look to invest that would help in organic growth. Also areas that would look to invest that would help in inorganic growth as well. You know, looking at opportunities in Andy's cups of tea, et cetera, can help with that as well. You know, we have had 200 movements in the past. Some of that's also collateral movement from the hedging that we do within the group. It's not all expenditure. We hedge the group debt, to ensure that our cash, it remains robust, we know exactly what we're paying out. Some of that also is in relation to. I, you know, I get the point, but the fact is, you know, there will be costs that come up through that, you know, will improve the business going forward. A lot of the committed integration costs are in that number already. Then the third one about the discounting. Yeah, that's absolutely right. You know, the GBP 12.1 billion and GBP 1.2 billion is an undiscounted number. We know the dividend is also you know, is you know, we've got enough cash to date to pay the dividend in our in-force business. As we write new business, any growth in that dividend is covered by, you know, the future cash that will emerge from the business that we're writing. That does match. We are looking at whether, you know, our KPIs and our framework, whether it may be appropriate to show a different metric, we will re-reflect on that. Have the numbers now. I don't have the numbers now. Larissa? Thank you. Larissa from Van Deventer from Barclays. Three, the first one on IFRS 17, you comment on the neutral impact you expect on the balance sheet, but can you give us some insight to the earnings impact, please? Second, the second and the third kind of go together. Admirable position to be in to have too much cash. At what point would you consider returning that cash if an appropriate M&A or bulk annuity opportunity has not presented itself? Related to that, how flexible is the GBP 300 million that you've allocated to bulk? Take the first, and I'll take two and three. Starting with IFRS 17. We saw broadly neutral impact on equity as at the transition date and establishment of a GBP 2 billion CSM. You know, going forward, if you think about the drivers of that, you know, one of the areas, as I said, is well known is the annuity profits are deferred. Certainly, you'd expect that any annuity profits that we write will be deferred over that period, and that's consistent with what you've heard. Second element is the fact that within our total P&L, you know, we amortize our insurance elements of the AVIF over time. Given that we're writing that off on day one as well. That will be a positive to the overall earnings result. In summary, it's difficult to say because we have ups and downs. Operating profit, I'd probably expect to be down because you're not capturing new business profits. Overall P&L, I think we just wait till we've seen how those elements offset. The with profits bit is probably not that big in the context of everything. Second and third question. In terms of considering returning cash, we have a rigorous capital allocation framework. We treat every pound of capital very carefully. I mean, to Andrew's question, anything we're doing, we are looking at discounted cash flows. We know the numbers. As Rakesh said, over time we consider what we disclose, but we kind of keep it simple to date with the framework we've published externally. We're looking at the return on capital on every pound of capital really rigorously. Ultimately, you know, the position at the moment is we think the opportunities for both organic growth and inorganic growth at attractive returns on capital are more attractive than the alternative of returning that capital. We've still got lots of good ideas that will create more value for shareholders. While that's the case, that's what we'll do. If that wasn't the case, we, you know, we wouldn't rule out a return of capital. You know, it would only be because we didn't have higher earning opportunities for that capital. On the how flexible is the BPA amount of capital. As I say, plan A for us is around the GBP 300 million a year. And the reason is, as we talked about the strategy, we want our organic growth to be balanced between the BPA business and the fee-based capital light business. We want a balance of those. We want to maintain a very resilient balance sheet and diversified balance sheet. Not be any, particularly too exposed for any one risk, so that we're super resilient. Of course, we also want to balance our growth with inorganic growth as well, which comes with, you know, different profiles and diversifies us further still. That's kind of plan A, but ultimately, going back to what I said on the capital allocation framework, if we were in a position as we were in 2021, where there were opportunities to deploy more than GBP 300 million of capital at attractive returns, then we chose to take that opportunity at that point in time. It certainly isn't hard and fast. You know, in the context of the overall strategy that the plan would be around GBP 300 million a year. I wouldn't rule out doing more than that, in particular circumstances at a point in time. Steven. Thank you. Steven Haywood from HSBC. Two questions. You've got half a billion at the holdco company. Can you give us an idea or indication of what your buffer capital level is you want to have at holdco? I assume, for me personally, I assume it's one times the dividend cover. Secondly, have you seen any concerns or changes in lapses recently? Obviously with the cost of living crisis happening, has there been any real change to lapses on any portfolio policies? Thank you. Sure. I'll take the second and Rakesh, take the first. In terms of the second, it's something we're looking at really closely, 'cause obviously the cost of living crisis is kind of real and present for people in the U.K. and is quite a concern. Actually so far we have seen no material changes in consumer behavior at all across our book. I think probably one of the key reasons for that is that workplace pensions are deducted from gross pay before you get to net pay. I think most consumers tend to look at their net pay and then look at the direct debits and whatever else, Netflix and Sky and everything else, as to decide what to do. In many ways, that's probably not a bad thing because, you know, ultimately it is important people keep saving for their later life, yeah. To date, we haven't seen any material shifts in consumer behavior. It's actually been more of a focus from our colleagues. We did offer all our colleagues, all of our 100 most senior managers, a GBP 1,000 net payment in August last year. Over the winter period, we were offering free meals in our major sites together with support with travel. That's, you know, been, you know, really helpful in, I mean, our current engagement score, as you saw in the slides, the net promoter score is up at +30 from +23 a year ago. Having the best talent, highly motivated about what we're doing is, you know, is what's, you know, the fundamental thing behind the results that we're presenting today. That's very important to us. I'll take the first question, Rakesh. This is on the cash and probably just tell you about our liquidity policy. Part of the capital framework of capital liquidity and leverage. In terms of liquidity, we have a framework that tries to operate a one in 200 scenario. We look at cash that's needed overnight or in a two weeks period or potentially in a 12-month period, you know. By looking at that, taking into account the inflows, you know, because you get, you know, we get cash from our underlying companies two times a year. We pay dividend two times a year, there's also ins and outs. By looking at all that together with the fact that we do have access to the GBP 1.25 RCF as well. When we're looking at all that in the round, we then set our liquidity to make sure we're maintaining that at all times. Are there any final questions in the room here? Seeing no hands. Andrew, any questions on the webinar? Nothing on the webinar. I think we're good to close up if there's nothing else in the room. Okay. Well, look, thanks very much indeed for coming. Great to see so many of you in person. It's been a treat after the Covid time when we were all doing it by video. Also conscious for all of you, we, as you know, those who are brokers, companies, you kind of walk across normally the night before. If the results are on a Monday, you tend to walk across on a Friday evening. When we spoke to Andy and Stephen on Friday evening, they both looked shattered after a week of results. Hopefully you had a good weekend, but nonetheless, we'll let you get on and do what you have to do. I know it's a very busy time of year for you all. We'll be around for another 10, 15 minutes probably here, if there's any final questions that you wanna pick up. Otherwise, thank you very much indeed and catch up soon. Thank you. Thank you.