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Prudential Financial, Inc. Announces Third Quarter 2024 Results

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Prudential Financial reported Q3 2024 net income of $448 million ($1.24 per share), compared to a net loss of $802 million in Q3 2023. After-tax adjusted operating income was $1.260 billion ($3.48 per share), slightly down from $1.332 billion year-ago. Assets under management grew to $1.558 trillion, up from $1.361 trillion. The company returned $721 million to shareholders through $250 million in share repurchases and $471 million in dividends. Notable highlights include robust sales across U.S. and international insurance businesses, strong investment performance in PGIM, and an $11 billion Guaranteed Universal Life reinsurance transaction.

Prudential Financial ha riportato un reddito netto nel terzo trimestre del 2024 di 448 milioni di dollari (1,24 dollari per azione), rispetto a una perdita netta di 802 milioni di dollari nel terzo trimestre del 2023. Il reddito operativo rettificato dopo le tasse è stato di 1,260 miliardi di dollari (3,48 dollari per azione), leggermente in calo rispetto a 1,332 miliardi di dollari dell'anno precedente. Le attività sotto gestione sono cresciute a 1,558 trilioni di dollari, in aumento rispetto a 1,361 trilioni di dollari. L'azienda ha restituito 721 milioni di dollari agli azionisti attraverso 250 milioni di dollari in riacquisti di azioni e 471 milioni di dollari in dividendi. Tra i punti salienti ci sono vendite solide nelle attività assicurative negli Stati Uniti e a livello internazionale, una forte performance di investimento in PGIM, e una transazione di riassicurazione di 11 miliardi di dollari nel settore della vita universale garantita.

Prudential Financial reportó un ingreso neto de $448 millones ($1.24 por acción) en el tercer trimestre de 2024, en comparación con una pérdida neta de $802 millones en el tercer trimestre de 2023. El ingreso operativo ajustado después de impuestos fue de $1.260 mil millones ($3.48 por acción), ligeramente por debajo de $1.332 mil millones del año anterior. Los activos bajo gestión crecieron a $1.558 billones, frente a $1.361 billones. La empresa devolvió $721 millones a los accionistas a través de $250 millones en recompra de acciones y $471 millones en dividendos. Entre los aspectos destacados se incluyen sólidas ventas en los negocios de seguros de EE. UU. e internacionales, un fuerte desempeño de inversión en PGIM, y una transacción de reaseguro de $11 mil millones en vida universal garantizada.

프루덴셜 파이낸셜은 2024년 3분기 순이익이 4억 4,800만 달러(주당 1.24달러)라고 보고했으며, 이는 2023년 3분기 순손실 8억 2,000만 달러에 비해 증가한 수치입니다. 세후 조정 운영 수익은 12억 6천만 달러(주당 3.48달러)로, 작년의 13억 3천 2백만 달러에 비해 소폭 감소했습니다. 운용 자산은 15억 5,800억 달러로 증가했으며, 이는 13억 6,100억 달러에서 상승한 것입니다. 회사는 2억 5천만 달러의 자기주식 매입 및 4억 7천 100만 달러의 배당금을 통해 주주에게 7억 2,100만 달러를 환원했습니다. 주목할 만한 하이라이트는 미국 및 국제 보험 사업에서의 강력한 판매, PGIM의 강한 투자 성과, 110억 달러 규모의 보장형 유니버설 생명 재보험 거래를 포함하고 있습니다.

Prudential Financial a annoncé un revenu net au troisième trimestre 2024 de 448 millions de dollars (1,24 $ par action), contre une perte nette de 802 millions de dollars au troisième trimestre 2023. Le revenu opérationnel ajusté après impôts était de 1,260 milliard de dollars (3,48 $ par action), légèrement en baisse par rapport à 1,332 milliard de dollars l'année précédente. Les actifs sous gestion ont atteint 1,558 trillion de dollars, en hausse par rapport à 1,361 trillion de dollars. L'entreprise a restitué 721 millions de dollars aux actionnaires par le biais de rachats d'actions de 250 millions de dollars et de dividendes de 471 millions de dollars. Parmi les points saillants, on note des ventes solides dans les activités d'assurance aux États-Unis et à l'international, une performance d'investissement robuste dans PGIM, et une transaction de réassurance de 11 milliards de dollars pour une assurance vie universelle garantie.

Prudential Financial berichtete für das 3. Quartal 2024 von einem Nettogewinn von 448 Millionen Dollar (1,24 Dollar pro Aktie), verglichen mit einem Nettoverlust von 802 Millionen Dollar im 3. Quartal 2023. Der nach Steuern angepasste Betriebsertrag betrug 1,260 Milliarden Dollar (3,48 Dollar pro Aktie), was einen leichten Rückgang gegenüber 1,332 Milliarden Dollar im Vorjahr darstellt. Das verwaltete Vermögen wuchs auf 1,558 Billionen Dollar, im Vergleich zu 1,361 Billionen Dollar. Das Unternehmen gab 721 Millionen Dollar an die Aktionäre zurück, darunter 250 Millionen Dollar durch Aktienrückkäufe und 471 Millionen Dollar in Dividenden. Bemerkenswerte Highlights sind solide Verkäufe in den US-amerikanischen und internationalen Versicherungsbereichen, starke Investmentperformance bei PGIM sowie eine Rückversicherungstransaktion über 11 Milliarden Dollar für garantierte universelle Lebensversicherungen.

Positive
  • Net income turned positive to $448M from previous year's loss of $802M
  • Assets under management increased 14.5% YoY to $1.558 trillion
  • Strong capital return to shareholders totaling $721M in Q3
  • Record high net account values of $279B in Institutional Retirement Strategies, up 13%
  • Sales increased 86% YoY in Individual Retirement Strategies to $3.6B
Negative
  • After-tax adjusted operating income decreased to $1.260B from $1.332B YoY
  • PGIM experienced third-party net outflows of $3.2B
  • Corporate & Other segment loss increased to $487M from $438M YoY
  • $805M pre-tax net realized investment losses in Q3

Insights

The Q3 2024 results show a significant turnaround with a $448 million net income compared to last year's $802 million loss. The $3.48 adjusted EPS, while slightly down from $3.62 YoY, demonstrates resilient operational performance. Key positives include 15% growth in assets under management to $1.558 trillion and strong capital returns to shareholders totaling $721 million. The $11 billion Guaranteed Universal Life reinsurance transaction signals strategic portfolio optimization. Robust sales across U.S. and international segments, particularly in retirement products, indicate healthy business momentum. The 5% dividend yield on adjusted book value provides attractive shareholder returns.

Strong performance across insurance segments with notable growth in retirement products. Institutional Retirement Strategies achieved record-high account values of $279 billion, up 13% YoY, with impressive pension risk transfer sales of $6.3 billion. International operations show robust growth, particularly in Japan and Brazil, with Life Planner sales up 13% and Gibraltar Life sales increasing 37% on a constant dollar basis. The $11 billion reinsurance deal demonstrates strategic risk management and capital optimization. Group Insurance remains stable with moderate growth in disability and supplemental health products.

  • Net income attributable to Prudential Financial, Inc. of $448 million or $1.24 per Common share versus net loss of $802 million or $2.23 per share for the year-ago quarter.
  • After-tax adjusted operating income of $1.260 billion or $3.48 per Common share versus $1.332 billion or $3.62 per share for the year-ago quarter.
  • Book value per Common share of $84.47 versus $70.82 per share for the year-ago quarter; adjusted book value per Common share of $98.71 versus $94.19 per share for the year-ago quarter.
  • Parent company highly liquid assets(1) of $4.3 billion, in-line with the year-ago quarter.
  • Assets under management(2) of $1.558 trillion versus $1.361 trillion for the year-ago quarter.
  • Capital returned to shareholders of $721 million in the third quarter, including $250 million of share repurchases and $471 million of dividends, versus $711 million in the year-ago quarter. Dividends paid in the third quarter were $1.30 per Common share, representing a 5% yield on adjusted book value.

Charlie Lowrey, Chairman & CEO, commented on results:

"Our third quarter performance reflects continued momentum in our global investment, insurance, and retirement businesses.

Prudential reported robust sales across our U.S. and international insurance and retirement businesses, as well as strong investment performance and private credit originations in PGIM.

We also continue to shift our business mix, through the recently announced $11 billion Guaranteed Universal Life reinsurance transaction, and by expanding our distribution capabilities and diversifying our products to grow our market-leading businesses.

We remain well positioned to deliver long-term value for our stakeholders and help our customers around the world live better lives, longer."

NEWARK, N.J.--(BUSINESS WIRE)-- Prudential Financial, Inc. (NYSE: PRU) today reported third quarter results. Net income attributable to Prudential Financial, Inc. was $448 million ($1.24 per Common share) for the third quarter of 2024, compared to a net loss of $802 million ($2.23 per Common share) for the third quarter of 2023. After-tax adjusted operating income was $1.260 billion ($3.48 per Common share) for the third quarter of 2024, compared to $1.332 billion ($3.62 per Common share) for the third quarter of 2023.

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, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.

PGIM

PGIM, the Company’s global investment management business, reported adjusted operating income of $241 million for the third quarter of 2024, compared to $211 million in the year-ago quarter. This increase primarily reflects higher asset management fees, partially offset by higher expenses.

PGIM assets under management of $1.400 trillion were up 15% from the year-ago quarter, primarily resulting from equity market appreciation, lower interest rates, investment performance, and net inflows. Total net flows in the quarter of $3.2 billion reflect affiliated net inflows of $6.4 billion, partially offset by $3.2 billion of third-party net outflows. Third-party net outflows reflect institutional outflows of $4.5 billion and retail inflows of $1.3 billion, both primarily driven by fixed income. Total net flows on a year-to-date basis were $29.2 billion, including $15.3 billion of affiliated and $13.9 billion of third-party flows.

U.S. Businesses

U.S. Businesses reported adjusted operating income of $1.108 billion for the third quarter of 2024, compared to $1.088 billion in the year-ago quarter. This increase primarily reflects more favorable underwriting and higher net investment spread results, partially offset by lower net fee income and higher expenses.

Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $966 million for the third quarter of 2024, compared to $941 million in the year-ago quarter.

Institutional Retirement Strategies:

  • Reported adjusted operating income of $438 million in the current quarter, compared to $439 million in the year-ago quarter as higher net investment spread results were offset by higher expenses.
  • Net account values of $279 billion, a record high, increased 13% from the year-ago quarter, reflecting the benefits of business growth and market appreciation. Sales in the current quarter of $11 billion included funded pension risk transfer transactions of $6.3 billion and longevity risk transfer transactions of $2.8 billion. Year-to-date sales of $26 billion increased 84% from prior year-to-date.

Individual Retirement Strategies:

  • Reported adjusted operating income of $528 million in the current quarter, compared to $502 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, partially offset by lower fee income, net of distribution expenses and other associated costs.
  • Net account values of $129 billion increased 17% from the year-ago quarter, driven by market appreciation. Sales of $3.6 billion in the current quarter increased 86% from the year-ago quarter, reflecting continued momentum of our registered index-linked annuity products and increased sales of fixed annuity products.

Group Insurance:

  • Reported adjusted operating income of $82 million in the current quarter, compared to $89 million in the year-ago quarter. This decrease primarily reflects higher expenses.
  • Year-to-date sales of $487 million increased 3% from prior year-to-date, driven by growth in group disability and supplemental health.

Individual Life:

  • Reported adjusted operating income of $60 million in the current quarter, compared to $58 million in the year-ago quarter. This increase primarily reflects more favorable underwriting results offset by lower net investment spread results.
  • Sales of $210 million in the current quarter increased 13% from the year-ago quarter, driven by variable life sales.

International Businesses

International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $766 million for the third quarter of 2024, compared to $811 million in the year-ago quarter. This decrease primarily reflects less favorable underwriting results and higher expenses, partially offset by higher joint venture earnings and higher net investment spread results.

Life Planner:

  • Reported adjusted operating income of $464 million in the current quarter, compared to $527 million in the year-ago quarter. This decrease primarily reflects less favorable underwriting results, higher expenses, and a net unfavorable impact from foreign currency exchange rates.
  • Constant dollar basis sales(3) of $269 million in the current quarter increased 13% from the year-ago quarter, driven by growth in Japan and record high sales in Brazil.

Gibraltar Life & Other:

  • Reported adjusted operating income of $302 million in the current quarter, compared to $284 million in the year-ago quarter. This increase primarily reflects higher joint venture earnings and higher net investment spread results, partially offset by less favorable underwriting results.
  • Constant dollar basis sales(3) of $331 million in the current quarter increased 37% from the year-ago quarter, including growth across all channels.

Corporate & Other

Corporate & Other reported a loss, on an adjusted operating income basis, of $487 million for the third quarter of 2024, compared to a loss of $438 million in the year-ago quarter. Current quarter results primarily reflect higher expenses.

NET INCOME

Net income in the current quarter included $805 million of pre-tax net realized investment losses and related charges and adjustments, including $93 million of pre-tax net credit-related losses, $146 million of pre-tax losses related to net change in value of market risk benefits, $127 million of pre-tax losses related to market experience updates, and $49 million of pre-tax earnings from divested and run-off businesses.

Net loss for the year-ago quarter included $2.491 billion of pre-tax net realized investment losses and related charges and adjustments, largely driven by the impacts of rising interest rates, and also $97 million of pre-tax net credit-related losses, $251 million of pre-tax losses related to net change in value of market risk benefits, $111 million of pre-tax losses from divested and run-off businesses, and $143 million of pre-tax gains related to market experience updates.

EARNINGS CONFERENCE CALL

Members of Prudential’s senior management will host a conference call on Thursday, October 31, 2024, at 11:00 a.m. ET to discuss with the investment community the Company’s third 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 November 14. To access a replay via phone starting at 3:00 p.m. ET on October 31 through November 14, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13742770.

FORWARD-LOOKING STATEMENTS

Certain of the statements included in this release, including those regarding our recently announced planned reinsurance transaction and our strategy to deliver long-term value for our stakeholders, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.

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 U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our 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 above.

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, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. For more information about highly liquid assets, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

 

 

(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 $1.6 trillion in assets under management as of September 30, 2024, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for nearly 150 years. For more information, please visit news.prudential.com.

Financial Highlights

 

 

 

 

 

 

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Adjusted operating income (loss) before income taxes (1):

 

 

 

 

 

 

 

PGIM

$

241

 

 

$

211

 

 

$

616

 

 

$

541

 

U.S. Businesses

 

1,108

 

 

 

1,088

 

 

 

3,017

 

 

 

2,804

 

International Businesses

 

766

 

 

 

811

 

 

 

2,364

 

 

 

2,435

 

Corporate and Other

 

(487

)

 

 

(438

)

 

 

(1,293

)

 

 

(1,381

)

Total adjusted operating income before income taxes

$

1,628

 

 

$

1,672

 

 

$

4,704

 

 

$

4,399

 

Reconciling Items:

 

 

 

 

 

 

 

Realized investment gains (losses), net, and related charges and adjustments

$

(805

)

 

$

(2,491

)

 

$

(774

)

 

$

(2,879

)

Change in value of market risk benefits, net of related hedging gains (losses)

 

(146

)

 

 

(251

)

 

 

(320

)

 

 

(160

)

Market experience updates

 

(127

)

 

 

143

 

 

 

(112

)

 

 

188

 

Divested and Run-off Businesses:

 

 

 

 

 

 

 

Closed Block division

 

2

 

 

 

2

 

 

 

(61

)

 

 

(50

)

Other Divested and Run-off Businesses

 

47

 

 

 

(113

)

 

 

50

 

 

 

(22

)

Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests

 

(43

)

 

 

(11

)

 

 

(113

)

 

 

(42

)

Other adjustments (2)

 

(3

)

 

 

(9

)

 

 

(16

)

 

 

(24

)

Total reconciling items, before income taxes

 

(1,075

)

 

 

(2,730

)

 

 

(1,346

)

 

 

(2,989

)

Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities

$

553

 

 

$

(1,058

)

 

$

3,358

 

 

$

1,410

 

Income Statement Data:

 

 

 

 

 

 

 

Net income (loss) attributable to Prudential Financial, Inc.

$

448

 

 

$

(802

)

 

$

2,784

 

 

$

1,171

 

Income (loss) attributable to noncontrolling interests

 

3

 

 

 

11

 

 

 

(11

)

 

 

11

 

Net income (loss)

 

451

 

 

 

(791

)

 

 

2,773

 

 

 

1,182

 

Less: Earnings attributable to noncontrolling interests

 

3

 

 

 

11

 

 

 

(11

)

 

 

11

 

Income (loss) attributable to Prudential Financial, Inc.

 

448

 

 

 

(802

)

 

 

2,784

 

 

 

1,171

 

Less: Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests

 

35

 

 

 

5

 

 

 

119

 

 

 

15

 

Income (loss) (after-tax) before equity in earnings of joint ventures and other operating entities

 

413

 

 

 

(807

)

 

 

2,665

 

 

 

1,156

 

Less: Total reconciling items, before income taxes

 

(1,075

)

 

 

(2,730

)

 

 

(1,346

)

 

 

(2,989

)

Less: Income taxes, not applicable to adjusted operating income

 

(228

)

 

 

(591

)

 

 

(376

)

 

 

(667

)

Total reconciling items, after income taxes

 

(847

)

 

 

(2,139

)

 

 

(970

)

 

 

(2,322

)

After-tax adjusted operating income (1)

 

1,260

 

 

 

1,332

 

 

 

3,635

 

 

 

3,478

 

Income taxes, applicable to adjusted operating income

 

368

 

 

 

340

 

 

 

1,069

 

 

 

921

 

Adjusted operating income before income taxes (1)

$

1,628

 

 

$

1,672

 

 

$

4,704

 

 

$

4,399

 

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

 

 

(in millions, except per share data, unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Earnings per share of Common Stock:

 

 

 

 

 

 

 

Net income (loss) attributable to Prudential Financial, Inc.

$

1.24

 

 

$

(2.23

)

 

$

7.64

 

 

$

3.15

 

Less: Reconciling Items:

 

 

 

 

 

 

 

Realized investment gains (losses), net, and related charges and adjustments

 

(2.24

)

 

 

(6.85

)

 

 

(2.15

)

 

 

(7.87

)

Change in value of market risk benefits, net of related hedging gains (losses)

 

(0.41

)

 

 

(0.69

)

 

 

(0.89

)

 

 

(0.44

)

Market experience updates

 

(0.35

)

 

 

0.39

 

 

 

(0.31

)

 

 

0.51

 

Divested and Run-off Businesses:

 

 

 

 

 

 

 

Closed Block division

 

0.01

 

 

 

0.01

 

 

 

(0.17

)

 

 

(0.14

)

Other Divested and Run-off Businesses

 

0.13

 

 

 

(0.31

)

 

 

0.14

 

 

 

(0.06

)

Difference in earnings allocated to participating unvested share-based payment awards

 

0.02

 

 

 

0.03

 

 

 

0.03

 

 

 

0.06

 

Other adjustments (2)

 

(0.01

)

 

 

(0.02

)

 

 

(0.04

)

 

 

(0.07

)

Total reconciling items, before income taxes

 

(2.85

)

 

 

(7.44

)

 

 

(3.39

)

 

 

(8.01

)

Less: Income taxes, not applicable to adjusted operating income

 

(0.61

)

 

 

(1.59

)

 

 

(1.05

)

 

 

(1.76

)

Total reconciling items, after income taxes

 

(2.24

)

 

 

(5.85

)

 

 

(2.34

)

 

 

(6.25

)

After-tax adjusted operating income

$

3.48

 

 

$

3.62

 

 

$

9.98

 

 

$

9.40

 

Weighted average number of outstanding common shares - basic

 

356.9

 

 

 

362.6

 

 

 

358.3

 

 

 

364.6

 

Weighted average number of outstanding common shares - diluted

 

358.7

 

 

 

363.8

 

 

 

359.9

 

 

 

365.8

 

For earnings per share of Common Stock calculation:

 

 

 

 

 

 

 

Net income (loss) attributable to Prudential Financial, Inc.

$

448

 

 

$

(802

)

 

$

2,784

 

 

$

1,171

 

Less: Earnings allocated to participating unvested share-based payment awards

 

5

 

 

 

5

 

 

 

33

 

 

 

17

 

Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation

$

443

 

 

$

(807

)

 

$

2,751

 

 

$

1,154

 

After-tax adjusted operating income (1)

$

1,260

 

 

$

1,332

 

 

$

3,635

 

 

$

3,478

 

Less: Earnings allocated to participating unvested share-based payment awards

 

13

 

 

 

15

 

 

 

42

 

 

 

40

 

After-tax adjusted operating income for earnings per share of Common Stock calculation (1)

$

1,247

 

 

$

1,317

 

 

$

3,593

 

 

$

3,438

 

Prudential Financial, Inc. Equity (as of end of period):

 

 

 

 

 

 

 

GAAP book value (total PFI equity) at end of period

$

30,416

 

 

$

25,814

 

 

 

 

 

Less: Accumulated other comprehensive income (AOCI)

 

(4,844

)

 

 

(7,831

)

 

 

 

 

GAAP book value excluding AOCI

 

35,260

 

 

 

33,645

 

 

 

 

 

Less: Cumulative change in fair value of funds withheld embedded derivatives

 

(238

)

 

 

 

 

 

 

 

Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses)

 

(49

)

 

 

(687

)

 

 

 

 

Adjusted book value

$

35,547

 

 

$

34,332

 

 

 

 

 

End of period number of common shares - diluted

 

360.1

 

 

 

364.5

 

 

 

 

 

GAAP book value per common share - diluted

 

84.47

 

 

 

70.82

 

 

 

 

 

GAAP book value excluding AOCI per share - diluted

 

97.92

 

 

 

92.30

 

 

 

 

 

Adjusted book value per common share - diluted

 

98.71

 

 

 

94.19

 

 

 

 

 

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

 

 

 

(in millions, or as otherwise noted, unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2024

 

 

 

2023

 

 

2024

 

 

2023

 

PGIM:

 

 

 

 

 

 

 

 

PGIM:

 

 

 

 

 

 

 

 

Assets Managed by PGIM (in billions, as of end of period):

 

 

 

 

 

 

 

 

Institutional customers

$

630.4

 

 

$

547.6

 

 

 

 

 

 

Retail customers

 

361.9

 

 

 

312.5

 

 

 

 

 

 

General account

 

407.6

 

 

 

358.5

 

 

 

 

 

 

Total PGIM

$

1,399.9

 

 

$

1,218.6

 

 

 

 

 

 

Institutional Customers - Assets Under Management (in billions):

 

 

 

 

 

 

 

 

Gross additions, excluding money market

$

15.7

 

 

$

14.4

 

 

$

77.8

 

 

$

47.2

 

Net additions (withdrawals), excluding money market

$

(4.5

)

 

$

(3.8

)

 

$

12.7

 

 

$

(17.0

)

Retail Customers - Assets Under Management (in billions):

 

 

 

 

 

 

 

 

Gross additions, excluding money market

$

16.4

 

 

$

11.9

 

 

$

46.6

 

 

$

37.1

 

Net additions (withdrawals), excluding money market

$

1.3

 

 

$

(1.9

)

 

$

1.2

 

 

$

(7.9

)

U.S. Businesses:

 

 

 

 

 

 

 

 

Retirement Strategies:

 

 

 

 

 

 

 

 

Institutional Retirement Strategies:

 

 

 

 

 

 

 

 

Gross additions

$

11,081

 

 

$

4,697

 

 

$

26,082

 

 

$

14,211

 

Net additions (withdrawals)

$

4,462

 

 

$

(3,084

)

 

$

6,882

 

 

$

(4,909

)

Total account value at end of period, net

$

278,767

 

 

$

245,660

 

 

 

 

 

 

Individual Retirement Strategies:

 

 

 

 

 

 

 

 

Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits:

 

 

 

 

 

 

 

 

Gross sales (3)

$

3,618

 

 

$

1,943

 

 

$

10,402

 

 

$

5,502

 

Sales, net of full surrenders and death benefits

$

763

 

 

$

198

 

 

$

2,209

 

 

$

635

 

Total account value at end of period, net

$

128,825

 

 

$

110,106

 

 

 

 

 

 

Group Insurance:

 

 

 

 

 

 

 

 

Annualized New Business Premiums (4):

 

 

 

 

 

 

 

 

Group life

$

35

 

 

$

61

 

 

$

251

 

 

$

255

 

Group disability

 

28

 

 

 

34

 

 

 

236

 

 

 

216

 

Total

$

63

 

 

$

95

 

 

$

487

 

 

$

471

 

Individual Life:

 

 

 

 

 

 

 

 

Annualized New Business Premiums (4):

 

 

 

 

 

 

 

 

Term life

$

34

 

 

$

33

 

 

$

99

 

 

$

87

 

Universal life

 

19

 

 

 

17

 

 

 

61

 

 

 

54

 

Variable life

 

157

 

 

 

136

 

 

 

420

 

 

 

391

 

Total

$

210

 

 

$

186

 

 

$

580

 

 

$

532

 

International Businesses:

 

 

 

 

 

 

 

 

International Businesses:

 

 

 

 

 

 

 

 

Annualized New Business Premiums (4)(5):

 

 

 

 

 

 

 

 

Actual exchange rate basis

$

588

 

 

$

491

 

 

$

1,624

 

 

$

1,489

 

Constant exchange rate basis

$

600

 

 

$

479

 

 

$

1,652

 

 

$

1,454

 

 

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

(in billions, as of end of period, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

2024

 

2023

Assets and Assets Under Management and Administration:

 

 

 

 

 

Total assets

$

760.3

 

 

$

681.3

 

Assets under management (at fair market value):

 

 

 

 

 

PGIM

$

1,399.9

 

 

$

1,218.6

 

U.S. Businesses

 

128.6

 

 

 

116.5

 

International Businesses

 

18.1

 

 

 

16.4

 

Corporate and Other

 

11.3

 

 

 

9.8

 

Total assets under management

 

1,557.9

 

 

 

1,361.3

 

Assets under administration

 

189.8

 

 

 

164.7

 

Total assets under management and administration

$

1,747.7

 

 

$

1,526.0

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 U.S. GAAP measure, is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standard Codification (ASC) 280 – Segment Reporting. When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.

 

 

 

(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 10% credit.

 

 

 

(5)

 

Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 129 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.

 

MEDIA CONTACT: YeaJin Kim, YeaJin.Kim@prudential.com

Source: Prudential Financial, Inc.

FAQ

What was Prudential's (PRU) earnings per share in Q3 2024?

Prudential reported earnings of $1.24 per share in Q3 2024, with adjusted operating earnings of $3.48 per share.

How much did Prudential (PRU) return to shareholders in Q3 2024?

Prudential returned $721 million to shareholders, consisting of $250 million in share repurchases and $471 million in dividends.

What was Prudential's (PRU) assets under management in Q3 2024?

Prudential's assets under management reached $1.558 trillion, up from $1.361 trillion in the year-ago quarter.

What was Prudential's (PRU) dividend yield in Q3 2024?

Prudential paid dividends of $1.30 per Common share, representing a 5% yield on adjusted book value.

Prudential Financial, Inc.

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Insurance - Life
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