Prudential Financial, Inc. Announces 2023 Results(1)
- None.
- None.
Insights
The reported net income for Prudential Financial, Inc. represents a substantial recovery from the previous year's net loss, indicating a positive shift in the company's financial performance. This turnaround is particularly noteworthy given the net loss reported in 2022 and could be attributed to various strategic decisions and operational improvements. Investors may interpret this as a sign of effective management and a potentially stronger position in the competitive landscape.
The increase in after-tax adjusted operating income suggests a robust underlying business performance, which is a key metric for assessing the company's operational efficiency. The reported growth in assets under management signifies potential for increased revenue from management fees, which is a critical aspect of Prudential's investment management business, PGIM. However, the decrease in book value per share could raise questions about asset valuation and shareholder equity, which may require further analysis to understand the underlying causes.
Capital returned to shareholders through dividends and share repurchases reflects a shareholder-friendly capital allocation policy. The increase in the quarterly dividend and the authorization of a new share repurchase program demonstrate confidence in the company's financial stability and its commitment to delivering shareholder value. This approach can also be seen as a strategy to support the stock price by reducing share count and providing a direct return to shareholders.
The launch of Prismic, a life and annuity reinsurance company, is a strategic move that could enable Prudential to capitalize on growth opportunities and diversify its revenue streams. By leveraging reinsurance, Prudential may be able to manage its risk profile more effectively and potentially improve its capital efficiency. The emphasis on expanded distribution and enhanced technology indicates an adaptation to current market demands and could position the company to better compete in a rapidly evolving insurance and financial services industry.
It is also important to note the company's strategic transactions aimed at reducing market sensitivity and increasing capital flexibility. This suggests a proactive approach to risk management, which could be reassuring to investors concerned about market volatility. The reported sales growth across insurance and retirement businesses could signify strong market demand for Prudential's products, which is a positive indicator for future revenue potential.
The financial results of Prudential Financial, Inc. must be contextualized within the broader economic environment. The recovery in net income and operational performance could be reflective of the macroeconomic conditions, such as interest rate trends that may have favored the company's investment portfolio. Additionally, the strategic focus on becoming a more nimble and capital-efficient company is likely a response to the economic uncertainties and competitive pressures within the financial services sector.
From an economic perspective, the company's ability to navigate interest rate changes and market dynamics, as evidenced by the net realized investment gains, is crucial. The shift towards less market-sensitive products suggests a strategic adaptation to potential economic headwinds. Moreover, the international reinsurance transactions, including longevity risk transfers, indicate a sophisticated approach to global financial risk management that can have implications for the company's long-term financial health and resilience.
-
2023 net income attributable to Prudential Financial, Inc. of
$2.48 8 billion$6.74 $1.64 7 billion$4.49 -
2023 after-tax adjusted operating income of
$4.28 6 billion$11.62 $3.91 4 billion$10.31 -
Fourth quarter 2023 net income attributable to Prudential Financial, Inc. of
$1.31 7 billion$3.61 $52 million $0.16 -
Fourth quarter 2023 after-tax adjusted operating income of
$943 million $2.58 $932 million $2.49 -
Book value per Common share of
$76.77 $82.48 $96.64 $94.69 -
Parent company highly liquid assets(2) of
$4.1 billion $4.5 billion -
Assets under management(3) of
$1.45 0 trillion$1.37 7 trillion -
Capital returned to shareholders of
$708 million $250 million $458 million $824 million $1.25 5% yield on adjusted book value. -
The Company’s Board of Directors has authorized the repurchase of up to
$1.0 billion $1.30 4% over the prior year dividend level, the 16th consecutive year the dividend has been increased.
Charles Lowrey, Chairman and CEO, commented on results:
“Our 2023 results reflect continued strong sales across our insurance and retirement businesses and solid underlying earnings growth.
We are proud of the significant progress we made to become a higher growth, more capital efficient, and more nimble company.
In 2023, we successfully reduced our market sensitivity and increased capital flexibility through multiple strategic transactions. We reached more people around the world with our leading life, retirement, and investment products through expanded distribution and enhanced technology. We launched Prismic, a life and annuity reinsurance company, to drive future growth and unlock value for all stakeholders. And finally, we adopted a new operating model to ensure we meet our customers’ evolving needs while driving efficiency to maintain our competitive market position.
Looking ahead, we are confident that our strategy and mutually reinforcing business system position us well to deliver long-term, sustainable growth, and to continue to be a global leader in expanding access to investing, insurance, and retirement security.”
Net income attributable to Prudential Financial, Inc. was
Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this press release under “Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.
RESULTS OF ONGOING OPERATIONS
The Company’s ongoing operations include PGIM,
PGIM
PGIM, the Company’s global investment management business, reported adjusted operating income of
PGIM assets under management of
Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of
Institutional Retirement Strategies:
-
Reported adjusted operating income of
$432 million $332 million
-
Account values of
$258 billion 3% from the year-ago quarter, reflecting the benefits of business growth, favorable foreign exchange impacts, and market appreciation, partially offset by the reinsurance of a block of structured settlements. Sales in the current quarter of$14.3 billion $13.0 billion $9.2 billion the Netherlands .
Individual Retirement Strategies:
-
Reported adjusted operating income of
$482 million $415 million
-
Account values of
$118 billion 1% from the year-ago quarter, reflecting the reinsurance of a block of legacy variable annuities and net outflows, partially offset by market appreciation. Sales of$2.1 billion 41% from the year-ago quarter, reflecting continued momentum from our FlexGuard products and increased sales of fixed annuity products.
Group Insurance:
-
Reported adjusted operating income of
$66 million $15 million
-
Reported earned premiums, policy charges, and fees of
$1.4 billion 1% from the year-ago quarter.
Individual Life:
-
Reported adjusted operating income of
$8 million $52 million
-
Sales of
$205 million 33% from the year-ago quarter, driven by Variable Life and Term sales, reflecting our pivot to less market sensitive products.
International Businesses
International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of
Life Planner:
-
Reported adjusted operating income of
$464 million $493 million
-
Constant dollar basis sales(4) of
$306 million 21% from the year-ago quarter, driven by higher sales in bothJapan andBrazil .
Gibraltar Life & Other:
-
Reported adjusted operating income of
$284 million $321 million
-
Constant dollar basis sales(4) of
$320 million 27% from the year-ago quarter, driven by growth in the Independent Agency and Bank channels.
Corporate & Other
Corporate & Other reported a loss, on an adjusted operating income basis, of
NET INCOME
Net Income in the current quarter included
Net loss for the year-ago quarter included
EARNINGS CONFERENCE CALL
Members of Prudential’s senior management will host a conference call on Wednesday, February 7, 2024, at 11:00 a.m. ET to discuss with the investment community the Company’s fourth quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts, and other interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will also be available on the Investor Relations website through February 21. To access a replay via phone starting at 3:00 p.m. ET on February 7 through February 21, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13742767.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including those regarding planned dividends and share repurchases, our expectation that Prismic will drive future growth, our strategy to deliver long-term, sustainable growth and to be a global leader in expanding access to investing, insurance, and retirement security, and other business strategies, constitute forward-looking statements within the meaning of the
NON-GAAP MEASURES
Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.
We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com.
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments”. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Additionally, adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income.
Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.
Adjusted operating income does not equate to “Net income” as determined in accordance with
Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.
FOOTNOTES
(1) |
|
On January 1, 2023, the Company adopted Accounting Standard Update 2018-12 for Targeted Improvements to the Accounting for Long-Duration Contracts, which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. Prior-year amounts have been adjusted to reflect this guidance. |
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(2) |
|
Highly liquid assets predominantly include cash, short-term investments, |
|
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(3) |
|
For more information about assets under management, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. |
|
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(4) |
|
For more information about constant dollar basis sales, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations by Segment – International Businesses” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. |
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately
Financial Highlights |
|
|
|
|
|
|
|
||||||||
(in millions, unaudited) |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Adjusted operating income (loss) before income taxes (1): |
|
|
|
|
|
|
|
||||||||
PGIM |
$ |
172 |
|
|
$ |
230 |
|
|
$ |
713 |
|
|
$ |
843 |
|
|
|
988 |
|
|
|
710 |
|
|
|
3,792 |
|
|
|
2,711 |
|
International Businesses |
|
748 |
|
|
|
814 |
|
|
|
3,183 |
|
|
|
3,205 |
|
Corporate and Other |
|
(656 |
) |
|
|
(525 |
) |
|
|
(2,172 |
) |
|
|
(1,677 |
) |
Total adjusted operating income before income taxes |
$ |
1,252 |
|
|
$ |
1,229 |
|
|
$ |
5,516 |
|
|
$ |
5,082 |
|
Reconciling Items: |
|
|
|
|
|
|
|
||||||||
Realized investment gains (losses), net, and related charges and adjustments |
$ |
314 |
|
|
$ |
(924 |
) |
|
$ |
(2,573 |
) |
|
$ |
(6,326 |
) |
Change in value of market risk benefits, net of related hedging gains (losses) |
|
216 |
|
|
|
629 |
|
|
|
56 |
|
|
|
(443 |
) |
Market experience updates |
|
(78 |
) |
|
|
25 |
|
|
|
110 |
|
|
|
642 |
|
Divested and Run-off Businesses: |
|
|
|
|
|
|
|
||||||||
Closed Block division |
|
(50 |
) |
|
|
(40 |
) |
|
|
(100 |
) |
|
|
(18 |
) |
Other Divested and Run-off Businesses |
|
224 |
|
|
|
(29 |
) |
|
|
349 |
|
|
|
146 |
|
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests |
|
(26 |
) |
|
|
(18 |
) |
|
|
(68 |
) |
|
|
(36 |
) |
Other adjustments (2) |
|
(190 |
) |
|
|
(912 |
) |
|
|
(218 |
) |
|
|
(939 |
) |
Total reconciling items, before income taxes |
|
410 |
|
|
|
(1,269 |
) |
|
|
(2,444 |
) |
|
|
(6,974 |
) |
Income (loss) before income taxes and equity in earnings of operating joint ventures |
$ |
1,662 |
|
|
$ |
(40 |
) |
|
$ |
3,072 |
|
|
$ |
(1,892 |
) |
Income Statement Data: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Prudential Financial, Inc. |
$ |
1,317 |
|
|
$ |
(52 |
) |
|
$ |
2,488 |
|
|
$ |
(1,647 |
) |
Income (loss) attributable to noncontrolling interests |
|
9 |
|
|
|
8 |
|
|
|
20 |
|
|
|
(28 |
) |
Net income (loss) |
|
1,326 |
|
|
|
(44 |
) |
|
|
2,508 |
|
|
|
(1,675 |
) |
Less: Earnings attributable to noncontrolling interests |
|
9 |
|
|
|
8 |
|
|
|
20 |
|
|
|
(28 |
) |
Income (loss) attributable to Prudential Financial, Inc. |
|
1,317 |
|
|
|
(52 |
) |
|
|
2,488 |
|
|
|
(1,647 |
) |
Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests |
|
14 |
|
|
|
(17 |
) |
|
|
29 |
|
|
|
(34 |
) |
Income (loss) (after-tax) before equity in earnings of operating joint ventures |
|
1,303 |
|
|
|
(35 |
) |
|
|
2,459 |
|
|
|
(1,613 |
) |
Less: Total reconciling items, before income taxes |
|
410 |
|
|
|
(1,269 |
) |
|
|
(2,444 |
) |
|
|
(6,974 |
) |
Less: Income taxes, not applicable to adjusted operating income |
|
50 |
|
|
|
(302 |
) |
|
|
(617 |
) |
|
|
(1,447 |
) |
Total reconciling items, after income taxes |
|
360 |
|
|
|
(967 |
) |
|
|
(1,827 |
) |
|
|
(5,527 |
) |
After-tax adjusted operating income (1) |
|
943 |
|
|
|
932 |
|
|
|
4,286 |
|
|
|
3,914 |
|
Income taxes, applicable to adjusted operating income |
|
309 |
|
|
|
297 |
|
|
|
1,230 |
|
|
|
1,168 |
|
Adjusted operating income before income taxes (1) |
$ |
1,252 |
|
|
$ |
1,229 |
|
|
$ |
5,516 |
|
|
$ |
5,082 |
|
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
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Financial Highlights |
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(in millions, except per share data, unaudited) |
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Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
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|
2023 |
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|
|
2022 |
|
Earnings per share of Common Stock: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Prudential Financial, Inc. |
$ |
3.61 |
|
|
$ |
(0.16 |
) |
|
$ |
6.74 |
|
|
$ |
(4.49 |
) |
Less: Reconciling Items: |
|
|
|
|
|
|
|
||||||||
Realized investment gains (losses), net, and related charges and adjustments |
|
0.87 |
|
|
|
(2.50 |
) |
|
|
(7.06 |
) |
|
|
(16.88 |
) |
Change in value of market risk benefits, net of related hedging gains (losses) |
|
0.60 |
|
|
|
1.70 |
|
|
|
0.15 |
|
|
|
(1.18 |
) |
Market experience updates |
|
(0.22 |
) |
|
|
0.07 |
|
|
|
0.30 |
|
|
|
1.71 |
|
Divested and Run-off Businesses: |
|
|
|
|
|
|
|
||||||||
Closed Block division |
|
(0.14 |
) |
|
|
(0.11 |
) |
|
|
(0.27 |
) |
|
|
(0.05 |
) |
Other Divested and Run-off Businesses |
|
0.62 |
|
|
|
(0.08 |
) |
|
|
0.96 |
|
|
|
0.39 |
|
Difference in earnings allocated to participating unvested share-based payment awards |
|
(0.01 |
) |
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.07 |
|
Other adjustments (2) |
|
(0.53 |
) |
|
|
(2.47 |
) |
|
|
(0.60 |
) |
|
|
(2.51 |
) |
Total reconciling items, before income taxes |
|
1.19 |
|
|
|
(3.37 |
) |
|
|
(6.47 |
) |
|
|
(18.45 |
) |
Less: Income taxes, not applicable to adjusted operating income |
|
0.16 |
|
|
|
(0.72 |
) |
|
|
(1.59 |
) |
|
|
(3.65 |
) |
Total reconciling items, after income taxes |
|
1.03 |
|
|
|
(2.65 |
) |
|
|
(4.88 |
) |
|
|
(14.80 |
) |
After-tax adjusted operating income |
$ |
2.58 |
|
|
$ |
2.49 |
|
|
$ |
11.62 |
|
|
$ |
10.31 |
|
Weighted average number of outstanding common shares - basic |
|
360.3 |
|
|
|
367.6 |
|
|
|
363.5 |
|
|
|
372.3 |
|
Weighted average number of outstanding common shares - diluted |
|
361.0 |
|
|
|
369.4 |
|
|
|
364.6 |
|
|
|
374.7 |
|
For earnings per share of Common Stock calculation: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Prudential Financial, Inc. |
$ |
1,317 |
|
|
$ |
(52 |
) |
|
$ |
2,488 |
|
|
$ |
(1,647 |
) |
Less: Earnings allocated to participating unvested share-based payment awards |
|
14 |
|
|
|
6 |
|
|
|
29 |
|
|
|
25 |
|
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation |
$ |
1,303 |
|
|
$ |
(58 |
) |
|
$ |
2,459 |
|
|
$ |
(1,672 |
) |
After-tax adjusted operating income (1) |
$ |
943 |
|
|
$ |
932 |
|
|
$ |
4,286 |
|
|
$ |
3,914 |
|
Less: Earnings allocated to participating unvested share-based payment awards |
|
10 |
|
|
|
12 |
|
|
|
49 |
|
|
|
52 |
|
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) |
$ |
933 |
|
|
$ |
920 |
|
|
$ |
4,237 |
|
|
$ |
3,862 |
|
Prudential Financial, Inc. Equity (as of end of period): |
|
|
|
|
|
|
|
||||||||
GAAP book value (total PFI equity) at end of period |
$ |
27,820 |
|
|
$ |
30,593 |
|
|
|
|
|
||||
Less: Accumulated other comprehensive income (AOCI) |
|
(6,504 |
) |
|
|
(3,806 |
) |
|
|
|
|
||||
GAAP book value excluding AOCI |
|
34,324 |
|
|
|
34,399 |
|
|
|
|
|
||||
Less: Cumulative change in fair value of funds withheld embedded derivatives |
|
(181 |
) |
|
|
— |
|
|
|
|
|
||||
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) |
|
(518 |
) |
|
|
(723 |
) |
|
|
|
|
||||
Adjusted book value |
$ |
35,023 |
|
|
$ |
35,122 |
|
|
|
|
|
||||
End of period number of common shares - diluted |
|
362.4 |
|
|
|
370.9 |
|
|
|
|
|
||||
GAAP book value per common share - diluted |
|
76.77 |
|
|
|
82.48 |
|
|
|
|
|
||||
GAAP book value excluding AOCI per share - diluted |
|
94.71 |
|
|
|
92.74 |
|
|
|
|
|
||||
Adjusted book value per common share - diluted |
|
96.64 |
|
|
|
94.69 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
||||||||
Financial Highlights |
|
|
|
|
|
|
|
||||||||
(in millions, or as otherwise noted, unaudited) |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
PGIM: |
|
|
|
|
|
|
|
||||||||
PGIM: |
|
|
|
|
|
|
|
||||||||
Assets Managed by PGIM (in billions, as of end of period): |
|
|
|
|
|
|
|
||||||||
Institutional customers |
$ |
582.6 |
|
|
$ |
549.2 |
|
|
|
|
|
||||
Retail customers |
|
330.3 |
|
|
|
299.6 |
|
|
|
|
|
||||
General account |
|
385.2 |
|
|
|
379.6 |
|
|
|
|
|
||||
Total PGIM |
$ |
1,298.1 |
|
|
$ |
1,228.4 |
|
|
|
|
|
||||
Institutional Customers - Assets Under Management (in billions): |
|
|
|
|
|
|
|
||||||||
Gross additions, excluding money market |
$ |
20.5 |
|
|
$ |
13.8 |
|
|
$ |
67.7 |
|
|
$ |
71.6 |
|
Net additions (withdrawals), excluding money market |
$ |
(6.3 |
) |
|
$ |
(6.0 |
) |
|
$ |
(23.3 |
) |
|
$ |
3.0 |
|
Retail Customers - Assets Under Management (in billions): |
|
|
|
|
|
|
|
||||||||
Gross additions, excluding money market |
$ |
14.8 |
|
|
$ |
16.5 |
|
|
$ |
51.9 |
|
|
$ |
66.3 |
|
Net withdrawals, excluding money market |
$ |
(7.2 |
) |
|
$ |
(5.7 |
) |
|
$ |
(15.1 |
) |
|
$ |
(23.2 |
) |
|
|
|
|
|
|
|
|
||||||||
Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Institutional Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Gross additions |
$ |
14,287 |
|
|
$ |
12,277 |
|
|
$ |
28,498 |
|
|
$ |
31,773 |
|
Net additions |
$ |
8,124 |
|
|
$ |
8,029 |
|
|
$ |
3,215 |
|
|
$ |
15,375 |
|
Total account value at end of period, net |
$ |
258,417 |
|
|
$ |
251,818 |
|
|
|
|
|
||||
Individual Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits: |
|
|
|
|
|
|
|
||||||||
Gross sales (3) |
$ |
2,102 |
|
|
$ |
1,490 |
|
|
$ |
7,604 |
|
|
$ |
5,964 |
|
Sales, net of full surrenders and death benefits |
$ |
234 |
|
|
$ |
355 |
|
|
$ |
869 |
|
|
$ |
(88 |
) |
Total account value at end of period, net |
$ |
117,911 |
|
|
$ |
119,205 |
|
|
|
|
|
||||
Group Insurance: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4): |
|
|
|
|
|
|
|
||||||||
Group life |
$ |
41 |
|
|
$ |
10 |
|
|
$ |
296 |
|
|
$ |
283 |
|
Group disability |
|
19 |
|
|
|
13 |
|
|
|
235 |
|
|
|
196 |
|
Total |
$ |
60 |
|
|
$ |
23 |
|
|
$ |
531 |
|
|
$ |
479 |
|
Individual Life: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4): |
|
|
|
|
|
|
|
||||||||
Term life |
$ |
33 |
|
|
$ |
22 |
|
|
$ |
120 |
|
|
$ |
93 |
|
Universal life |
|
27 |
|
|
|
25 |
|
|
|
81 |
|
|
|
92 |
|
Variable life |
|
145 |
|
|
|
107 |
|
|
|
536 |
|
|
|
424 |
|
Total |
$ |
205 |
|
|
$ |
154 |
|
|
$ |
737 |
|
|
$ |
609 |
|
International Businesses: |
|
|
|
|
|
|
|
||||||||
International Businesses: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4)(5): |
|
|
|
|
|
|
|
||||||||
Actual exchange rate basis |
$ |
598 |
|
|
$ |
488 |
|
|
$ |
2,087 |
|
|
$ |
1,819 |
|
Constant exchange rate basis |
$ |
626 |
|
|
$ |
505 |
|
|
$ |
2,153 |
|
|
$ |
1,846 |
|
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
||||||||
Financial Highlights |
|
|
|
||
(in billions, as of end of period, unaudited) |
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
December 31, |
||||
|
|
2023 |
|
|
2022 |
Assets and Assets Under Management and Administration: |
|
|
|
||
Total assets |
$ |
721.1 |
|
$ |
689.0 |
Assets under management (at fair market value): |
|
|
|
||
PGIM |
$ |
1,298.1 |
|
$ |
1,228.4 |
|
|
123.9 |
|
|
124.1 |
International Businesses |
|
17.9 |
|
|
16.1 |
Corporate and Other (6) |
|
9.7 |
|
|
8.7 |
Total assets under management |
|
1,449.6 |
|
|
1,377.3 |
Assets under administration |
|
181.5 |
|
|
157.4 |
Total assets under management and administration |
$ |
1,631.1 |
|
$ |
1,534.7 |
|
|
|
|
||
|
|
|
|
||
(1) |
Adjusted operating income is a non-GAAP measure of performance. See NON-GAAP MEASURES within the earnings release for additional information. Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional |
|
|
||
(2) |
Represents adjustments not included in the above reconciling items, including goodwill impairments related to Assurance IQ that resulted in charges of |
|
|
|
|
(3) |
Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock, Private Placement Variable Annuity and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits. |
|
|
|
|
(4) |
Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a |
|
|
|
|
(5) |
Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to |
|
|
|
|
(6) |
Prior period amounts have been reclassified to conform to current period presentation. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206789085/en/
MEDIA: Laura Edling, laura.edling@prudential.com
Source: Prudential Financial, Inc.
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