- Net income(1) attributable to Prudential Financial, Inc. of
$511 million or $1.38 per Common share versus net loss of $1.010
billion or $2.71 per share for the year-ago quarter. The current
quarter included a net after-tax charge from our annual assumption
update and other refinements of $329 million or $0.89 per Common
share versus a charge of $1.294 billion or $3.46 per share in the
year-ago quarter. The year-ago quarter also included an after-tax
gain due to the sales of a block of legacy variable annuities and
the Full Service business of $1.607 billion or $4.29 per Common
share.
- After-tax adjusted operating income of $1.087 billion or $2.94
per Common share versus $895 million or $2.34 per share for the
year-ago quarter. The current quarter included a net after-tax
benefit from our annual assumption update and other refinements of
$13 million or $0.03 per Common share versus a charge of $1.281
billion or $3.36 per share in the year-ago quarter. The year-ago
quarter also included an after-tax gain due to the sale of a block
of legacy variable annuities of $1.144 billion or $2.99 per Common
share.
- Book value per Common share of $77.65 versus $82.92 per share
for the year-ago quarter; adjusted book value per Common share of
$97.38 versus $97.91 per share for the year-ago quarter.
- Parent company highly liquid assets(2) of $4.5 billion versus
$7.1 billion for the year-ago quarter.
- Assets under management(3) of $1.415 trillion versus $1.410
trillion for the year-ago quarter.
- Capital returned to shareholders of $713 million in the second
quarter, including $250 million of share repurchases and $463
million of dividends, versus $832 million in the year-ago quarter.
Dividends paid in the second quarter were $1.25 per Common share,
representing a 5% yield on adjusted book value.
Charles Lowrey, Chairman and CEO, commented on results:
“Our second quarter results reflect continued momentum across
our businesses, including the fourth consecutive quarter of
underlying earnings growth and record operating earnings for Group
Insurance.
We continue to execute on our strategy to reduce market
sensitivity and invest in businesses that support our long-term
growth. Since last quarter, we reached agreements to reinsure
significant blocks of traditional variable annuities and guaranteed
universal life policies and continued to expand in growth markets.
Our strategic progress has increased capital flexibility, further
strengthened our rock solid balance sheet, and supported over $700
million of capital being returned to shareholders during the second
quarter.
Looking ahead, we remain confident that our strategy, the
strength of our brand, global asset and liability origination
capabilities, and multi-channel distribution will enable Prudential
to be a global leader in expanding access to investing, insurance,
and retirement security.”
Prudential Financial, Inc. (NYSE: PRU) today reported second
quarter results. Net income attributable to Prudential Financial,
Inc. was $511 million ($1.38 per Common share) for the second
quarter of 2023, compared to a net loss of $1.010 billion ($2.71
per Common share) for the second quarter of 2022. After-tax
adjusted operating income was $1.087 billion ($2.94 per Common
share) for the second quarter of 2023, compared to $895 million
($2.34 per Common share) for the second quarter of 2022.
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 $179 million for
the second quarter of 2023, compared to $206 million in the
year-ago quarter. This decrease primarily reflects lower asset
management fees, driven by net outflows and rising rates, and
higher expenses, partially offset by higher other related revenues,
driven by higher seed and co-investment income.
PGIM assets under management of $1.266 trillion were up 1% from
the year-ago quarter, primarily resulting from equity market
appreciation, partially offset by higher interest rates and net
outflows. Third-party net outflows of $5.2 billion in the current
quarter were driven primarily by redemptions from public equity
strategies and reflect institutional outflows of $3.0 billion and
retail outflows of $2.2 billion.
U.S. Businesses
U.S. Businesses reported adjusted operating income of
$956 million for the second quarter of 2023, compared to $573
million in the year-ago quarter. This increase includes a favorable
comparative impact from our annual assumption update and other
refinements of $1.606 billion, partially offset by the absence of a
one-time gain on the sale of a block of legacy variable annuities
of $1.448 billion. Excluding these items, current quarter results
primarily reflect higher net investment spread results and more
favorable underwriting results, partially offset by lower net fee
income.
Retirement Strategies, consisting of Institutional
Retirement Strategies and Individual Retirement Strategies,
reported adjusted operating income of $876 million for the second
quarter of 2023, compared to $2.181 billion in the year-ago
quarter.
Institutional Retirement Strategies:
- Reported adjusted operating income of $428 million in the
current quarter, compared to $432 million in the year-ago quarter.
This decrease includes a less favorable comparative impact from our
annual assumption update and other refinements of $8 million.
Excluding this item, current quarter results primarily reflect
higher fee income from business growth. In addition, net investment
spread results reflect business growth, offset by lower variable
investment income.
- Account values of $259 billion, a record high, increased 10%
from the year-ago quarter and reflect business growth driven by
significant pension risk transfer transactions. Sales in the
current quarter of $5.7 billion included $3.6 billion of
international reinsurance transactions.
Individual Retirement Strategies:
- Reported adjusted operating income of $448 million in the
current quarter, compared to $1.749 billion in the year-ago
quarter. This decrease includes a less favorable comparative impact
from our annual assumption update and other refinements of $7
million and the absence of a one-time gain on the sale of a block
of legacy variable annuities of $1.448 billion. Excluding these
items, current quarter results primarily reflect higher net
investment spread results, partially offset by lower fee income,
net of distribution expenses and other associated costs.
- Account values of $115 billion were down 6% 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 $1.9 billion in the current quarter
increased 19% 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 $139 million in the
current quarter, a record high, compared to $54 million in the
year-ago quarter. This increase includes a favorable comparative
impact from our annual assumption update and other refinements of
$39 million. Excluding this item, current quarter results primarily
reflect more favorable underwriting results in both group life and
disability, partially offset by higher expenses driven by business
growth.
- Reported earned premiums, policy charges, and fees of $1.4
billion increased 7% from the year-ago quarter, reflecting growth
in disability.
Individual Life:
- Reported a loss, on an adjusted operating income basis, of $59
million in the current quarter, compared to a loss of $1.662
billion in the year-ago quarter. This lower loss includes a
favorable comparative impact from our annual assumption update and
other refinements of $1.582 billion. Excluding this item, current
quarter results primarily reflect higher net investment spread
results.
- Sales of $197 million in the current quarter increased 27% from
the year-ago quarter, driven by Variable Life, 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
$784 million for the second quarter of 2023, compared to $692
million in the year-ago quarter. This increase includes a favorable
comparative impact from our annual assumption update and other
refinements of $32 million. Excluding this item, current quarter
results primarily reflect higher emerging market earnings.
Life Planner:
- Reported adjusted operating income of $487 million in the
current quarter, compared to $443 million in the year-ago quarter.
This increase reflects higher net investment spread results and
business growth.
- Constant dollar basis sales(4) of $250 million in the current
quarter increased 12% from the year-ago quarter, primarily driven
by record high sales in Brazil, as well as higher sales in
Japan.
Gibraltar Life & Other:
- Reported adjusted operating income of $297 million in the
current quarter, compared to $249 million in the year-ago quarter.
This increase includes a favorable comparative impact from our
annual assumption update and other refinements of $32 million.
Excluding this item, current quarter results primarily reflect
higher emerging market earnings, partially offset by lower net
investment spread results.
- Constant dollar basis sales(4) of $251 million in the current
quarter increased 6% from the year-ago quarter, primarily driven by
the Bank channel.
Corporate & Other
Corporate & Other reported a loss, on an adjusted
operating income basis, of $527 million for the second quarter of
2023, compared to a loss of $321 million in the year-ago quarter.
This higher loss primarily reflects higher expenses, unfavorable
foreign exchange rate impacts, lower net investment income, and
lower income from pension and other employee benefit plans.
NET INCOME
Net Income in the current quarter included $765 million
of pre-tax net realized investment losses and related charges and
adjustments, including $51 million of pre-tax net impairment and
credit-related losses, $3 million of pre-tax losses related to
market experience updates, $16 million of pre-tax earnings from
divested and run-off businesses, and $16 million of pre-tax gains
related to net change in value of market risk benefits.
Net loss for the year-ago quarter included $2.438 billion of
pre-tax net realized investment losses and related charges and
adjustments, largely reflecting the impacts of rising interest
rates, and also $104 million of pre-tax net impairment and
credit-related losses, $710 million of pre-tax losses related to
net change in value of market risk benefits, $515 million of
pre-tax earnings from divested and run-off businesses, and $371
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 Wednesday, August 2, 2023, 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 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 13733991.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including
those regarding our prospects for long-term growth, the planned
reinsurance transactions, our capital flexibility, and other
business strategies, 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 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 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) 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.
(2)
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 entitled “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.
(3)
For more information about assets under
management, see the section entitled “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.
(4)
For more information about constant dollar
basis sales, see the section entitled “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 $1.4 trillion in assets under management as of June
30, 2023, 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
Six Months Ended
June 30
June 30
2023
2022
2023
2022
Adjusted operating income (loss) before
income taxes (1):
PGIM
$
179
$
206
$
330
$
394
U.S. Businesses
956
573
1,716
1,386
International Businesses
784
692
1,624
1,643
Corporate and Other
(527
)
(321
)
(1,012
)
(737
)
Total adjusted operating income before
income taxes
$
1,392
$
1,150
$
2,658
$
2,686
Reconciling Items:
Realized investment losses, net, and
related charges and adjustments
$
(765
)
$
(2,438
)
$
(396
)
$
(4,159
)
Change in value of market risk benefits,
net of related hedging gains (losses)
16
(710
)
91
(1,014
)
Market experience updates
(3
)
371
45
492
Divested and Run-off Businesses:
Closed Block division
(48
)
16
(52
)
43
Other Divested and Run-off Businesses
64
499
171
228
Equity in earnings of operating joint
ventures and earnings attributable to noncontrolling interests
(26
)
44
(31
)
15
Other adjustments (2)
(9
)
—
(18
)
(17
)
Total reconciling items, before income
taxes
(771
)
(2,218
)
(190
)
(4,412
)
Income (loss) before income taxes and
equity in earnings of operating joint ventures
$
621
$
(1,068
)
$
2,468
$
(1,726
)
Income Statement Data:
Net income (loss) attributable to
Prudential Financial, Inc.
$
511
$
(1,010
)
$
1,973
$
(1,503
)
Income (loss) attributable to
noncontrolling interests
(15
)
(7
)
—
(20
)
Net income (loss)
496
(1,017
)
1,973
(1,523
)
Less: Earnings attributable to
noncontrolling interests
(15
)
(7
)
—
(20
)
Income (loss) attributable to
Prudential Financial, Inc.
511
(1,010
)
1,973
(1,503
)
Less: Equity in earnings of operating
joint ventures, net of taxes and earnings attributable to
noncontrolling interests
13
(61
)
10
(40
)
Income (loss) (after-tax) before equity
in earnings of operating joint ventures
498
(949
)
1,963
(1,463
)
Less: Total reconciling items, before
income taxes
(771
)
(2,218
)
(190
)
(4,412
)
Less: Income taxes, not applicable to
adjusted operating income
(182
)
(374
)
(76
)
(863
)
Total reconciling items, after income
taxes
(589
)
(1,844
)
(114
)
(3,549
)
After-tax adjusted operating income
(1)
1,087
895
2,077
2,086
Income taxes, applicable to adjusted
operating income
305
255
581
600
Adjusted operating income before income
taxes (1)
$
1,392
$
1,150
$
2,658
$
2,686
See footnotes on last page.
Financial Highlights
(in millions, except per share data,
unaudited)
Three Months Ended
Six Months Ended
June 30
June 30
2023
2022
2023
2022
Earnings per share of Common
Stock:
Net income (loss) attributable to
Prudential Financial, Inc.
$
1.38
$
(2.71
)
$
5.31
$
(4.04
)
Less: Reconciling Items:
Realized investment losses, net, and
related charges and adjustments
(2.09
)
(6.47
)
(1.08
)
(11.00
)
Change in value of market risk benefits,
net of related hedging gains (losses)
0.04
(1.88
)
0.25
(2.68
)
Market experience updates
(0.01
)
0.98
0.12
1.30
Divested and Run-off Businesses:
Closed Block division
(0.13
)
0.04
(0.14
)
0.11
Other Divested and Run-off Businesses
0.17
1.32
0.47
0.60
Difference in earnings allocated to
participating unvested share-based payment awards
0.02
0.01
—
0.04
Other adjustments (2)
(0.02
)
—
(0.05
)
(0.04
)
Total reconciling items, before income
taxes
(2.02
)
(6.00
)
(0.43
)
(11.67
)
Less: Income taxes, not applicable to
adjusted operating income
(0.46
)
(0.95
)
(0.15
)
(2.19
)
Total reconciling items, after income
taxes
(1.56
)
(5.05
)
(0.28
)
(9.48
)
After-tax adjusted operating
income
$
2.94
$
2.34
$
5.59
$
5.44
Weighted average number of outstanding
common shares (basic)
364.8
374.4
365.7
375.3
Weighted average number of outstanding
common shares (diluted)
366.1
377.1
366.9
378.1
For earnings per share of Common Stock
calculation:
Net income (loss) attributable to
Prudential Financial, Inc.
$
511
$
(1,010
)
$
1,973
$
(1,503
)
Less: Earnings allocated to participating
unvested share-based payment awards
6
6
24
13
Net income (loss) attributable to
Prudential Financial, Inc. for earnings per share of Common Stock
calculation
$
505
$
(1,016
)
$
1,949
$
(1,516
)
After-tax adjusted operating income
(1)
$
1,087
$
895
$
2,077
$
2,086
Less: Earnings allocated to participating
unvested share-based payment awards
12
11
25
28
After-tax adjusted operating income for
earnings per share of Common Stock calculation (1)
$
1,075
$
884
$
2,052
$
2,058
Prudential Financial, Inc. Equity (as
of end of period):
GAAP book value (total PFI equity) at end
of period
$
28,434
$
31,334
Less: Accumulated other comprehensive
income (AOCI)
(6,649
)
(4,703
)
GAAP book value excluding AOCI
35,083
36,037
Less: Cumulative effect of foreign
exchange rate remeasurement and currency translation adjustments
corresponding to realized gains (losses)
(578
)
(962
)
Adjusted book value
$
35,661
$
36,999
End of period number of common shares
(diluted)
366.2
377.9
GAAP book value per common share -
diluted
77.65
82.92
GAAP book value excluding AOCI per share -
diluted
95.80
95.36
Adjusted book value per common share -
diluted
97.38
97.91
See footnotes on last page.
Financial Highlights
(in millions, or as otherwise noted,
unaudited)
Three Months Ended
Six Months Ended
June 30
June 30
2023
2022
2023
2022
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of
end of period):
Institutional customers
$
556.7
$
560.7
Retail customers
324.1
314.3
General account
385.0
382.4
Total PGIM
$
1,265.8
$
1,257.4
Institutional Customers - Assets Under
Management (in billions):
Gross additions, other than money
market
$
18.9
$
24.6
$
32.8
$
41.4
Net additions (withdrawals), other than
money market
$
(3.0
)
$
8.1
$
(13.2
)
$
8.4
Retail Customers - Assets Under Management
(in billions):
Gross additions, other than money
market
$
12.6
$
16.1
$
25.2
$
36.3
Net withdrawals, other than money
market
$
(2.2
)
$
(8.3
)
$
(6.0
)
$
(12.9
)
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions
$
5,686
$
3,700
$
9,514
$
5,978
Net additions (withdrawals)
$
(179
)
$
140
$
(1,825
)
$
(2,481
)
Total account value at end of period
$
258,533
$
234,594
Individual Retirement Strategies:
Actively-Sold Protected Investment and
Income Solutions and, Discontinued Traditional VA and Guaranteed
Living Benefits:
Gross sales (3)
$
1,892
$
1,581
$
3,559
$
3,099
Sales, net of full surrenders and death
benefits
$
250
$
38
$
437
$
(607
)
Total account value at end of period
$
126,297
$
123,138
Group Insurance:
Group Insurance Annualized New Business
Premiums (4):
Group life
$
32
$
26
$
194
$
206
Group disability
25
17
182
147
Total
$
57
$
43
$
376
$
353
Individual Life:
Individual Life Insurance Annualized New
Business Premiums (4):
Term life
$
31
$
23
$
54
$
47
Universal life
20
22
37
44
Variable life
146
110
255
214
Total
$
197
$
155
$
346
$
305
International Businesses:
International Businesses:
International Businesses Annualized New
Business Premiums (4)(5):
Actual exchange rate basis
$
490
$
457
$
998
$
918
Constant exchange rate basis
$
501
$
461
$
1,022
$
917
See footnotes on last page.
Financial Highlights
(in billions, as of end of period,
unaudited)
June 30
2023
2022
Assets and Assets Under Management and
Administration:
Total assets
$
697.3
$
698.9
Assets under management (at fair market
value):
PGIM
$
1,265.8
$
1,257.4
U.S. Businesses
127.0
132.2
International Businesses
15.7
13.6
Corporate and Other
6.1
6.4
Total assets under management
1,414.6
1,409.6
Assets under administration
166.6
145.9
Total assets under management and
administration
$
1,581.2
$
1,555.5
(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, and
goodwill impairments.
(3)
Includes Prudential FlexGuard and
FlexGuard Income, Prudential Premier Investment, MyRock 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 110 per U.S. dollar.
U.S. dollar-denominated activity is included based on the amounts
as transacted in U.S. dollars.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801881164/en/
MEDIA; Laura Edling, laura.edling@prudential.com
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