Prudential Financial, Inc. Announces Second Quarter 2024 Results
Prudential Financial (NYSE: PRU) reported strong Q2 2024 results, with net income of $1.198 billion ($3.28 per share), up from $511 million in Q2 2023. After-tax adjusted operating income rose to $1.234 billion ($3.39 per share) from $1.142 billion last year. The company saw positive momentum across its businesses, with robust sales in U.S. and International segments, and strong investment performance in PGIM. Assets under management increased to $1.482 trillion, up from $1.415 trillion in Q2 2023. Prudential returned $725 million to shareholders through dividends and share repurchases. The company's CEO, Charles Lowrey, highlighted Prudential's strong fundamentals and market-leading position in addressing customer needs globally.
Prudential Financial (NYSE: PRU) ha riportato risultati solidi per il secondo trimestre del 2024, con un utile netto di 1,198 miliardi di dollari (3,28 dollari per azione), in aumento rispetto ai 511 milioni di dollari del secondo trimestre del 2023. L'utile operativo rettificato dopo le imposte è salito a 1,234 miliardi di dollari (3,39 dollari per azione), rispetto a 1,142 miliardi di dollari dell'anno precedente. L'azienda ha registrato un momento positivo in tutte le sue attività, con vendite robuste nei segmenti statunitensi e internazionali e un forte rendimento degli investimenti in PGIM. Le attività in gestione sono aumentate a 1,482 trilioni di dollari, rispetto agli 1,415 trilioni di dollari del secondo trimestre del 2023. Prudential ha restituito 725 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni. Il CEO dell'azienda, Charles Lowrey, ha sottolineato i solidi fondamentali di Prudential e la sua posizione di leadership nel mercato nell'affrontare le esigenze dei clienti a livello globale.
Prudential Financial (NYSE: PRU) reportó sólidos resultados para el segundo trimestre de 2024, con un ingreso neto de 1.198 millones de dólares (3.28 dólares por acción), en comparación con los 511 millones de dólares del segundo trimestre de 2023. El ingreso operativo ajustado después de impuestos aumentó a 1.234 millones de dólares (3.39 dólares por acción) desde 1.142 millones de dólares del año pasado. La empresa vio un impulso positivo en sus negocios, con ventas robustas en los segmentos de EE. UU. e Internacional, y un fuerte rendimiento en inversiones en PGIM. Los activos bajo gestión aumentaron a 1.482 billones de dólares, frente a 1.415 billones de dólares en el segundo trimestre de 2023. Prudential devolvió 725 millones de dólares a los accionistas a través de dividendos y recompra de acciones. El CEO de la compañía, Charles Lowrey, destacó los sólidos fundamentos de Prudential y su posición de liderazgo en el mercado para atender las necesidades de los clientes a nivel global.
프루덴셜 파이낸셜(뉴욕증권거래소: PRU)은 2024년 2분기 실적을 발표하며 순이익 11억 9,800만 달러 (주당 3.28 달러)를 기록했으며, 이는 2023년 2분기 5억 1,100만 달러에서 증가한 수치입니다. 세후 조정 운영 수익은 12억 3,400만 달러 (주당 3.39 달러)로 지난해 11억 4,200만 달러에서 증가했습니다. 회사는 모든 사업 부문에서 긍정적인 모멘텀을 보였습니다, 미국 및 국제 부문에서의 강력한 판매 및 PGIM에서의 뛰어난 투자 성과가 있었습니다. 운용 자산이 14조 8,200억 달러로 증가했습니다, 이는 2023년 2분기 14조 1,500억 달러에서 증가한 것입니다. 프루덴셜은 주주에게 7억 2,500만 달러를 배당금 및 자사주 매입을 통해 환원했습니다. 회사의 CEO인 찰스 로리(Charles Lowrey)는 프루덴셜의 강력한 기초와 세계적으로 고객의 필요를 충족시키는 시장 리더의 위치를 강조했습니다.
Prudential Financial (NYSE: PRU) a annoncé de bons résultats pour le deuxième trimestre 2024, avec un revenu net de 1,198 milliard de dollars (3,28 dollars par action), en hausse par rapport aux 511 millions de dollars du deuxième trimestre 2023. Le revenu opérationnel ajusté après impôts a augmenté à 1,234 milliard de dollars (3,39 dollars par action) contre 1,142 milliard de dollars l'année dernière. La société a constaté un élan positif dans toutes ses activités, avec de solides ventes dans les segments américain et international, ainsi qu'une performance d'investissement forte au sein de PGIM. Les actifs sous gestion ont augmenté à 1,482 trillion de dollars, contre 1,415 trillion de dollars au deuxième trimestre 2023. Prudential a restitué 725 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions. Le PDG de l'entreprise, Charles Lowrey, a souligné les solides fondamentaux de Prudential et sa position de leader sur le marché pour répondre aux besoins des clients à l'échelle mondiale.
Prudential Financial (NYSE: PRU) hat für das zweite Quartal 2024 starke Ergebnisse gemeldet, mit einem Nettoergebnis von 1,198 Milliarden Dollar (3,28 Dollar pro Aktie), im Vergleich zu 511 Millionen Dollar im zweiten Quartal 2023. Das nach Steuern angepasste Betriebsergebnis stieg auf 1,234 Milliarden Dollar (3,39 Dollar pro Aktie) von 1,142 Milliarden Dollar im Vorjahr. Das Unternehmen verzeichnete einen positiven Schwung in seinen Geschäftsbereichen, mit robusten Verkaufszahlen in den US-amerikanischen und internationalen Segmenten sowie einer starken Investitionsleistung bei PGIM. Die verwalteten Vermögenswerte stiegen auf 1.482 Billionen Dollar, im Vergleich zu 1.415 Billionen Dollar im zweiten Quartal 2023. Prudential gab 725 Millionen Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück. Der CEO des Unternehmens, Charles Lowrey, betonte die starken Fundamentaldaten von Prudential und die marktführende Position des Unternehmens bei der Erfüllung der globalen Kundenbedürfnisse.
- Net income increased significantly to $1.198 billion from $511 million year-over-year
- After-tax adjusted operating income rose to $1.234 billion from $1.142 billion
- Assets under management grew to $1.482 trillion, up 4.7% year-over-year
- Robust sales growth in U.S. and International Businesses
- Strong investment performance and capital deployment in PGIM
- Returned $725 million to shareholders through dividends and share repurchases
- PGIM experienced third-party net outflows of $9.5 billion in the current quarter
- Individual Life segment reported a loss of $87 million, higher than the $59 million loss in the year-ago quarter
- International Businesses saw a decrease in adjusted operating income to $702 million from $784 million year-over-year
Insights
Prudential Financial's Q2 2024 results demonstrate a significant improvement in financial performance compared to the previous year. The company reported a
Key highlights include:
- After-tax adjusted operating income rose to
$1.234 billion ($3.39 per share) from$1.142 billion ($3.09 per share) year-over-year. - Assets under management grew to
$1.482 trillion , a4.7% increase from Q2 2023. - Capital returned to shareholders totaled
$725 million , including$250 million in share repurchases and$475 million in dividends.
The company's U.S. Businesses segment showed strong performance, with adjusted operating income increasing to
However, the International Businesses segment experienced a slight decline, reporting adjusted operating income of
Overall, Prudential's Q2 2024 results indicate a robust financial position and positive momentum across its core businesses, positioning the company well for future growth and value creation for stakeholders.
Prudential's Q2 2024 results reveal several interesting market trends and strategic moves:
- Retirement Solutions Demand: The company's Institutional Retirement Strategies saw a significant increase in sales, with year-to-date sales up
58% from the prior year. This suggests a growing demand for pension risk transfer and longevity risk transfer solutions in the market. - Annuity Product Innovation: Individual Retirement Strategies sales surged by
83% , driven by the success of FlexGuard products and increased fixed annuity sales. This indicates a shift in consumer preferences towards more flexible and guaranteed income products in the current economic environment. - International Expansion: Despite challenges, Prudential's international businesses showed growth in constant dollar basis sales, with Life Planner sales up
9% and Gibraltar Life & Other sales increasing by13% . This highlights the company's successful expansion in markets like Japan and Brazil. - Asset Management Growth: PGIM's assets under management grew by
5% year-over-year, reaching$1.328 trillion . This growth, despite net outflows, underscores the importance of investment performance and market appreciation in the asset management industry. - Capital Efficiency Focus: The pivot towards more capital-efficient products in the Individual Life segment, as evidenced by the increase in term and variable life sales, reflects a broader industry trend towards optimizing capital allocation.
These trends suggest that Prudential is adapting its product offerings and geographical focus to align with changing market dynamics and customer needs, positioning itself for sustainable growth in a competitive financial services landscape.
-
Net income attributable to Prudential Financial, Inc. of
$1.19 8 billion$3.28 $511 million $1.38 $679 million $1.86 $314 million $0.85 -
After-tax adjusted operating income of
$1.23 4 billion$3.39 $1.14 2 billion$3.09 $5 million $0.01 $21 million $0.06 -
Book value per Common share of
$77.51 $77.65 $98.42 $97.38 -
Parent company highly liquid assets(1) of
$4.4 billion $4.5 billion -
Assets under management(2) of
$1.48 2 trillion$1.41 5 trillion -
Capital returned to shareholders of
$725 million $250 million $475 million $713 million $1.30 5% yield on adjusted book value.
“We are growing our market leading businesses and becoming more capital efficient to deliver long-term value for our stakeholders. In the second quarter, we continued to see positive momentum across our businesses, driven by robust sales in our
“Our fundamentals are strong, supported by our financial strength and our integrated investment, insurance, and retirement capabilities that fuel our growth. Prudential is well positioned to address the growing needs of our customers around the world with solutions and products that help them protect their life’s work and live better lives, longer.”
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
$550 million $428 million $126 million -
Account values of
$265 billion 3% from the year-ago quarter, reflecting the benefits of business growth and market appreciation, partially offset by the reinsurance of a block of structured settlements. Sales in the current quarter of$4 billion $1.4 billion $1.2 billion $15.0 billion 58% from prior year-to-date.
Individual Retirement Strategies:
-
Reported adjusted operating income of
$486 million $448 million $8 million -
Account values of
$124 billion 8% from the year-ago quarter, driven by market appreciation. Sales of$3.5 billion 83% from the year-ago quarter, reflecting continued momentum of our FlexGuard products and increased sales of fixed annuity products.
Group Insurance:
-
Reported adjusted operating income of
$121 million $139 million $11 million -
Year-to-date sales of
$424 million 13% from prior year-to-date, driven by growth in group life, disability, and supplemental health.
Individual Life:
-
Reported a loss, on an adjusted operating basis, of
$87 million $59 million $72 million -
Sales of
$203 million 3% from the year-ago quarter, driven by term and variable life sales, reflecting our pivot to more capital efficient 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
$400 million $487 million $51 million -
Constant dollar basis sales(3) of
$257 million 9% from the year-ago quarter, driven by growth in bothJapan andBrazil .
Gibraltar Life & Other:
-
Reported adjusted operating income of
$302 million $297 million $17 million -
Constant dollar basis sales(3) of
$275 million 13% from the year-ago quarter, primarily driven by higher USD product sales 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 income for the year-ago quarter included
EARNINGS CONFERENCE CALL
Members of Prudential’s senior management will host a conference call on Friday, August 2, 2024, at 11:00 a.m. ET to discuss with the investment community the Company’s second 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 August 16. To access a replay via phone starting at 3:00 p.m. ET on August 2 through August 16, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13742769.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including those regarding our strategy to become more capital efficient and deliver long-term value for our stakeholders, 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 capital and other factors.
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. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes impact of annual assumption updates and other refinements included in the above items.
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) |
|
Highly liquid assets predominantly include cash, short-term investments, |
|
|
|
(2) |
|
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. |
|
|
|
(3) |
|
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 |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Adjusted operating income (loss) before income taxes (1): |
|
|
|
|
|
|
|
||||||||
PGIM |
$ |
206 |
|
|
$ |
179 |
|
|
$ |
375 |
|
|
$ |
330 |
|
|
|
1,070 |
|
|
|
956 |
|
|
|
1,909 |
|
|
|
1,716 |
|
International Businesses |
|
702 |
|
|
|
784 |
|
|
|
1,598 |
|
|
|
1,624 |
|
Corporate and Other |
|
(371 |
) |
|
|
(472 |
) |
|
|
(806 |
) |
|
|
(943 |
) |
Total adjusted operating income before income taxes |
$ |
1,607 |
|
|
$ |
1,447 |
|
|
$ |
3,076 |
|
|
$ |
2,727 |
|
Reconciling Items: |
|
|
|
|
|
|
|
||||||||
Realized investment gains (losses), net, and related charges and adjustments |
$ |
128 |
|
|
$ |
(757 |
) |
|
$ |
31 |
|
|
$ |
(388 |
) |
Change in value of market risk benefits, net of related hedging gains (losses) |
|
(297 |
) |
|
|
16 |
|
|
|
(174 |
) |
|
|
91 |
|
Market experience updates |
|
47 |
|
|
|
(3 |
) |
|
|
15 |
|
|
|
45 |
|
Divested and Run-off Businesses: |
|
|
|
|
|
|
|
||||||||
Closed Block division |
|
(60 |
) |
|
|
(48 |
) |
|
|
(63 |
) |
|
|
(52 |
) |
Other Divested and Run-off Businesses |
|
38 |
|
|
|
(1 |
) |
|
|
3 |
|
|
|
91 |
|
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests |
|
(43 |
) |
|
|
(26 |
) |
|
|
(70 |
) |
|
|
(31 |
) |
Other adjustments (2) |
|
(5 |
) |
|
|
(7 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
Total reconciling items, before income taxes |
|
(192 |
) |
|
|
(826 |
) |
|
|
(271 |
) |
|
|
(259 |
) |
Income before income taxes and equity in earnings of joint ventures and other operating entities |
$ |
1,415 |
|
|
$ |
621 |
|
|
$ |
2,805 |
|
|
$ |
2,468 |
|
Income Statement Data: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Prudential Financial, Inc. |
$ |
1,198 |
|
|
$ |
511 |
|
|
$ |
2,336 |
|
|
$ |
1,973 |
|
Income (loss) attributable to noncontrolling interests |
|
(27 |
) |
|
|
(15 |
) |
|
|
(14 |
) |
|
|
— |
|
Net income |
|
1,171 |
|
|
|
496 |
|
|
|
2,322 |
|
|
|
1,973 |
|
Less: Earnings attributable to noncontrolling interests |
|
(27 |
) |
|
|
(15 |
) |
|
|
(14 |
) |
|
|
— |
|
Income attributable to Prudential Financial, Inc. |
|
1,198 |
|
|
|
511 |
|
|
|
2,336 |
|
|
|
1,973 |
|
Less: Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests |
|
47 |
|
|
|
13 |
|
|
|
84 |
|
|
|
10 |
|
Income (after-tax) before equity in earnings of joint ventures and other operating entities |
|
1,151 |
|
|
|
498 |
|
|
|
2,252 |
|
|
|
1,963 |
|
Less: Total reconciling items, before income taxes |
|
(192 |
) |
|
|
(826 |
) |
|
|
(271 |
) |
|
|
(259 |
) |
Less: Income taxes, not applicable to adjusted operating income |
|
(109 |
) |
|
|
(182 |
) |
|
|
(148 |
) |
|
|
(76 |
) |
Total reconciling items, after income taxes |
|
(83 |
) |
|
|
(644 |
) |
|
|
(123 |
) |
|
|
(183 |
) |
After-tax adjusted operating income (1) |
|
1,234 |
|
|
|
1,142 |
|
|
|
2,375 |
|
|
|
2,146 |
|
Income taxes, applicable to adjusted operating income |
|
373 |
|
|
|
305 |
|
|
|
701 |
|
|
|
581 |
|
Adjusted operating income before income taxes (1) |
$ |
1,607 |
|
|
$ |
1,447 |
|
|
$ |
3,076 |
|
|
$ |
2,727 |
|
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
||||||||
Financial Highlights |
|
|
|
|
|
|
|
||||||||
(in millions, except per share data, unaudited) |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Earnings per share of Common Stock: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Prudential Financial, Inc. |
$ |
3.28 |
|
|
$ |
1.38 |
|
|
$ |
6.40 |
|
|
$ |
5.31 |
|
Less: Reconciling Items: |
|
|
|
|
|
|
|
||||||||
Realized investment gains (losses), net, and related charges and adjustments |
|
0.36 |
|
|
|
(2.07 |
) |
|
|
0.09 |
|
|
|
(1.06 |
) |
Change in value of market risk benefits, net of related hedging gains (losses) |
|
(0.82 |
) |
|
|
0.04 |
|
|
|
(0.48 |
) |
|
|
0.25 |
|
Market experience updates |
|
0.13 |
|
|
|
(0.01 |
) |
|
|
0.04 |
|
|
|
0.12 |
|
Divested and Run-off Businesses: |
|
|
|
|
|
|
|
||||||||
Closed Block division |
|
(0.17 |
) |
|
|
(0.13 |
) |
|
|
(0.17 |
) |
|
|
(0.14 |
) |
Other Divested and Run-off Businesses |
|
0.11 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.25 |
|
Difference in earnings allocated to participating unvested share-based payment awards |
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Other adjustments (2) |
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
Total reconciling items, before income taxes |
|
(0.40 |
) |
|
|
(2.17 |
) |
|
|
(0.55 |
) |
|
|
(0.62 |
) |
Less: Income taxes, not applicable to adjusted operating income |
|
(0.29 |
) |
|
|
(0.46 |
) |
|
|
(0.44 |
) |
|
|
(0.15 |
) |
Total reconciling items, after income taxes |
|
(0.11 |
) |
|
|
(1.71 |
) |
|
|
(0.11 |
) |
|
|
(0.47 |
) |
After-tax adjusted operating income |
$ |
3.39 |
|
|
$ |
3.09 |
|
|
$ |
6.51 |
|
|
$ |
5.78 |
|
Weighted average number of outstanding common shares - basic |
|
358.8 |
|
|
|
364.8 |
|
|
|
358.9 |
|
|
|
365.7 |
|
Weighted average number of outstanding common shares - diluted |
|
360.5 |
|
|
|
366.1 |
|
|
|
360.5 |
|
|
|
366.9 |
|
For earnings per share of Common Stock calculation: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Prudential Financial, Inc. |
$ |
1,198 |
|
|
$ |
511 |
|
|
$ |
2,336 |
|
|
$ |
1,973 |
|
Less: Earnings allocated to participating unvested share-based payment awards |
|
14 |
|
|
|
6 |
|
|
|
29 |
|
|
|
24 |
|
Net income attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation |
$ |
1,184 |
|
|
$ |
505 |
|
|
$ |
2,307 |
|
|
$ |
1,949 |
|
After-tax adjusted operating income (1) |
$ |
1,234 |
|
|
$ |
1,142 |
|
|
$ |
2,375 |
|
|
$ |
2,146 |
|
Less: Earnings allocated to participating unvested share-based payment awards |
|
13 |
|
|
|
12 |
|
|
|
29 |
|
|
|
25 |
|
After-tax adjusted operating income for earnings per share of Common Stock calculation (1) |
$ |
1,221 |
|
|
$ |
1,130 |
|
|
$ |
2,346 |
|
|
$ |
2,121 |
|
Prudential Financial, Inc. Equity (as of end of period): |
|
|
|
|
|
|
|
||||||||
GAAP book value (total PFI equity) at end of period |
$ |
28,013 |
|
|
$ |
28,434 |
|
|
|
|
|
||||
Less: Accumulated other comprehensive income (AOCI) |
|
(7,444 |
) |
|
|
(6,649 |
) |
|
|
|
|
||||
GAAP book value excluding AOCI |
|
35,457 |
|
|
|
35,083 |
|
|
|
|
|
||||
Less: Cumulative change in fair value of funds withheld embedded derivatives |
|
178 |
|
|
|
— |
|
|
|
|
|
||||
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) |
|
(291 |
) |
|
|
(578 |
) |
|
|
|
|
||||
Adjusted book value |
$ |
35,570 |
|
|
$ |
35,661 |
|
|
|
|
|
||||
End of period number of common shares - diluted |
|
361.4 |
|
|
|
366.2 |
|
|
|
|
|
||||
GAAP book value per common share - diluted |
|
77.51 |
|
|
|
77.65 |
|
|
|
|
|
||||
GAAP book value excluding AOCI per share - diluted |
|
98.11 |
|
|
|
95.80 |
|
|
|
|
|
||||
Adjusted book value per common share - diluted |
|
98.42 |
|
|
|
97.38 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
||||||||
Financial Highlights |
|
|
|
|
|
|
|
||||||||
(in millions, or as otherwise noted, unaudited) |
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
PGIM: |
|
|
|
|
|
|
|
||||||||
PGIM: |
|
|
|
|
|
|
|
||||||||
Assets Managed by PGIM (in billions, as of end of period): |
|
|
|
|
|
|
|
||||||||
Institutional customers |
$ |
604.4 |
|
|
$ |
556.7 |
|
|
|
|
|
||||
Retail customers |
|
349.9 |
|
|
|
324.1 |
|
|
|
|
|
||||
General account |
|
373.8 |
|
|
|
385.0 |
|
|
|
|
|
||||
Total PGIM |
$ |
1,328.1 |
|
|
$ |
1,265.8 |
|
|
|
|
|
||||
Institutional Customers - Assets Under Management (in billions): |
|
|
|
|
|
|
|
||||||||
Gross additions, excluding money market |
$ |
16.9 |
|
|
$ |
18.9 |
|
|
$ |
62.1 |
|
|
$ |
32.8 |
|
Net additions (withdrawals), excluding money market |
$ |
(8.9 |
) |
|
$ |
(3.0 |
) |
|
$ |
17.2 |
|
|
$ |
(13.2 |
) |
Retail Customers - Assets Under Management (in billions): |
|
|
|
|
|
|
|
||||||||
Gross additions, excluding money market |
$ |
14.5 |
|
|
$ |
12.6 |
|
|
$ |
30.2 |
|
|
$ |
25.2 |
|
Net withdrawals, excluding money market |
$ |
(0.6 |
) |
|
$ |
(2.2 |
) |
|
$ |
(0.1 |
) |
|
$ |
(6.0 |
) |
|
|
|
|
|
|
|
|
||||||||
Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Institutional Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Gross additions |
$ |
4,011 |
|
|
$ |
5,686 |
|
|
$ |
15,001 |
|
|
$ |
9,514 |
|
Net additions (withdrawals) |
$ |
(2,153 |
) |
|
$ |
(179 |
) |
|
$ |
2,420 |
|
|
$ |
(1,825 |
) |
Total account value at end of period, net |
$ |
264,999 |
|
|
$ |
258,533 |
|
|
|
|
|
||||
Individual Retirement Strategies: |
|
|
|
|
|
|
|
||||||||
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits: |
|
|
|
|
|
|
|
||||||||
Gross sales (3) |
$ |
3,479 |
|
|
$ |
1,892 |
|
|
$ |
6,784 |
|
|
$ |
3,559 |
|
Sales, net of full surrenders and death benefits |
$ |
697 |
|
|
$ |
250 |
|
|
$ |
1,446 |
|
|
$ |
437 |
|
Total account value at end of period, net |
$ |
123,899 |
|
|
$ |
114,713 |
|
|
|
|
|
||||
Group Insurance: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4): |
|
|
|
|
|
|
|
||||||||
Group life |
$ |
27 |
|
|
$ |
32 |
|
|
$ |
216 |
|
|
$ |
194 |
|
Group disability |
|
19 |
|
|
|
25 |
|
|
|
208 |
|
|
|
182 |
|
Total |
$ |
46 |
|
|
$ |
57 |
|
|
$ |
424 |
|
|
$ |
376 |
|
Individual Life: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4): |
|
|
|
|
|
|
|
||||||||
Term life |
$ |
34 |
|
|
$ |
31 |
|
|
$ |
65 |
|
|
$ |
54 |
|
Universal life |
|
22 |
|
|
|
20 |
|
|
|
42 |
|
|
|
37 |
|
Variable life |
|
147 |
|
|
|
146 |
|
|
|
263 |
|
|
|
255 |
|
Total |
$ |
203 |
|
|
$ |
197 |
|
|
$ |
370 |
|
|
$ |
346 |
|
International Businesses: |
|
|
|
|
|
|
|
||||||||
International Businesses: |
|
|
|
|
|
|
|
||||||||
Annualized New Business Premiums (4)(5): |
|
|
|
|
|
|
|
||||||||
Actual exchange rate basis |
$ |
519 |
|
|
$ |
490 |
|
|
$ |
1,036 |
|
|
$ |
998 |
|
Constant exchange rate basis |
$ |
532 |
|
|
$ |
478 |
|
|
$ |
1,052 |
|
|
$ |
975 |
|
|
|
|
|
|
|
|
|
||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
||||||||
Financial Highlights |
|
|
|
||
(in billions, as of end of period, unaudited) |
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
June 30, |
||||
|
2024 |
|
2023 |
||
Assets and Assets Under Management and Administration: |
|
|
|
||
Total assets |
$ |
715.2 |
|
$ |
697.3 |
Assets under management (at fair market value): |
|
|
|
||
PGIM |
$ |
1,328.1 |
|
$ |
1,265.8 |
|
|
124.6 |
|
|
123.6 |
International Businesses |
|
17.9 |
|
|
15.7 |
Corporate and Other |
|
11.4 |
|
|
9.5 |
Total assets under management |
|
1,482.0 |
|
|
1,414.6 |
Assets under administration |
|
183.9 |
|
|
166.6 |
Total assets under management and administration |
$ |
1,665.9 |
|
$ |
1,581.2 |
|
|
|
|
||
|
|
|
|
||
(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 certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods. |
||||||
|
|
|
|
|
|
|
|
(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 |
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801615519/en/
MEDIA CONTACT: YeaJin Kim, YeaJin.Kim@prudential.com
Source: Prudential Financial, Inc.
FAQ
What was Prudential Financial's net income for Q2 2024?
How much did Prudential's assets under management grow in Q2 2024 compared to Q2 2023?
How much capital did Prudential return to shareholders in Q2 2024?
What was the performance of Prudential's U.S. Businesses in Q2 2024?
