Matt Rider: Yes. So, I guess the first answer is pretty easy. We have been seeing low persistency and part of it we think due to COVID. In fact — and now it does not have any implications for reserving today. I think everyone knows that we do our review of assumptions in the US in the second quarter of each year. We did so last quarter. So, there’s no need to adjust anything at this point. With regard to the liquidity issue that you raised, yes, so within — I’d say within the first nine months of the year, we actually had to fund about €8 billion worth of liquidity needs for collateral reasons. We do this through asset sales in part. This is all part of our liquidity management strategy. So, despite the fact that we had to fund a lot of liquidity during the first nine months, we maintained very high cash liquidity buffers in the companies and that’s there to maintain our quite strong liquidity management policy, which we always try to remain — always try to maintain at a level where we can withstand a 300 basis point increase in interest rates of that 1.5% immediate shock and then the other 1.5% over the course of one year.
So, this is — although it has not been business as usual obviously given a rising rate environment that’s come up so quickly, we do have plans for this and we have dealt with it I think remarkably well.
David Barma: Thank you.
Operator: Thank you for your question. We are now taking our next question. The next question from Michael Huttner for Berenberg.
Michael Huttner: Thank you. And I had three I’m really sorry. The first one is I think somewhere, but I’m not precise on this there’s an implication that half of the VA to be expected capital generation, I think is right, it’s to come the next five years. And I don’t know what the figure is? I think it’s about 400? And then the other question — the part of that is how much of the capital will still be there in the next five years? If €1.1 billion you add €300 million, so €1.4 billion. Will you also have the amount of capital allocated by — in the next five years is it going step, or does it kind of become a less attractive asset as it kind of matures? And secondly, what is the cost of the reinsurance transaction with Bermuda?
So, is there a benefit loss in Bermuda which I’m — I now have to kind of deduct? In other words, you’re getting €50 million extra capital generation from this kind of move in the VA business, but is there a loss lot somewhere else which I should account for? And the last one is a question asking for reinsurance. So, last week, I think one of your peers had a €2.1 billion kind of for me surprised announcement maybe not for others. And I think a big reduction in solvency due to lapses, which I think was a previous question. And I just wanted to kind of dumbly confirm that I am correct that there’s no risk like that at Aegon that your lapse assumptions are near zero? Thank you.
Lard Friese: Thank you very much Michael. The first two will be done by Duncan, that’s about the VA piece. And then I think the TLB and the last point you had will be done by Matt. Matt, maybe it’s good if you start with those two last ones. Or you want to do the first — okay. Duncan start with the VA piece first and then the €“
