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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM 8-K
___________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2023
___________________________
PRUDENTIAL FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
___________________________
| | | | | | | | |
| New Jersey | 001-16707 | 22-3703799 |
| (State or other jurisdiction | (Commission | (I.R.S. Employer |
| of incorporation) | File Number) | Identification Number) |
751 Broad Street
Newark, NJ 07102
(Address of principal executive offices and zip code)
(973) 802-6000
(Registrant’s telephone number, including area code)
___________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| | | | | | | | | | | | | | |
| SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: |
| | | | |
| Title of Each Class | | Trading Symbol(s) | | Name of Each Exchange on Which Registered |
| Common Stock, Par Value $.01 | | PRU | | New York Stock Exchange |
| 5.950% Junior Subordinated Notes | | PRH | | New York Stock Exchange |
| 5.625% Junior Subordinated Notes | | PRS | | New York Stock Exchange |
| 4.125% Junior Subordinated Notes | | PFH | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Prudential Financial, Inc. (the "Company") furnishes herewith, as Exhibit 99.1, a news release announcing third quarter 2023 results.
Item 7.01 Regulation FD Disclosure.
| | | | | |
| A. | Quarterly Financial Supplement. The Company furnishes herewith, as Exhibit 99.2, the Quarterly Financial Supplement for third quarter 2023. |
| B. | Conference Call and Related Materials. Members of the Company's senior management will hold a conference call on Thursday, November 2, 2023 at 11:00 A.M. ET, to discuss the Company's third quarter 2023 results. Related materials are available on the Company's Investor Relations website at www.investor.prudential.com. |
Investors and others should note that the Company routinely uses its Investor Relations website to post presentations to investors and other important information, including information that may be deemed material to investors. Accordingly, the Company encourages investors and others interested in the Company to review the information that it shares at www.investor.prudential.com. Interested parties may register to receive automatic email alerts when presentations and other information are posted to the Investor Relations website by clicking on "Subscribe to Email Alerts" at www.investor.prudential.com and following the instructions provided.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | | | | |
| Exhibit No. | | Description |
| | |
| | |
| | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 1, 2023
| | | | | |
| PRUDENTIAL FINANCIAL, INC. |
| |
| By: | /s/ Robert D. Axel |
| | Name: Robert D. Axel
Title: Senior Vice President and Principal Accounting Officer |
November 1, 2023
Prudential Financial, Inc. Announces
Third Quarter 2023 Results
•Net loss(1) attributable to Prudential Financial, Inc. of $802 million or $2.23 per Common share versus net loss of $92 million or $0.26 per share for the year-ago quarter.
•After-tax adjusted operating income of $1.266 billion or $3.44 per Common share versus $896 million or $2.37 per share for the year-ago quarter.
•Book value per Common share of $70.82 versus $82.83 per share for the year-ago quarter; adjusted book value per Common share of $94.19 versus $96.41 per share for the year-ago quarter.
•Parent company highly liquid assets(2) of $4.3 billion versus $5.1 billion for the year-ago quarter.
•Assets under management(3) of $1.361 trillion versus $1.350 trillion for the year-ago quarter.
•Capital returned to shareholders of $711 million in the third quarter, including $250 million of share repurchases and $461 million of dividends, versus $829 million in the year-ago quarter. Dividends paid in the third quarter were $1.25 per Common share, representing a 5% yield on adjusted book value.
Charles Lowrey, Chairman and CEO, commented on results:
“Our third quarter results reflect continued momentum across our businesses, including the benefits from strong sales and the fifth consecutive quarter of underlying earnings growth.
We continued to execute on our strategy to reduce market sensitivity and increase capital efficiency, enhance our capabilities to better serve customers, and optimize our operating model to drive sustainable growth. We launched Prismic, a life and annuity reinsurance company, which will leverage our differentiated brand, global asset and liability origination capabilities, and multi-channel distribution to drive future growth and unlock value for our customers, shareholders, and other stakeholders over time.
Prudential is uniquely positioned at the intersection of insurance and asset management, with a strategy and evolving business model that support our vision to be a global leader in expanding access to investing, insurance, and retirement security.”
NEWARK, N.J. – Prudential Financial, Inc. (NYSE: PRU) today reported third quarter results. Net loss attributable to Prudential Financial, Inc. was $802 million ($2.23 per Common share) for the third quarter of 2023, compared to a net loss of $92 million ($0.26 per Common share) for the third quarter of 2022. After-tax adjusted operating income was $1.266 billion ($3.44 per Common share) for the third quarter of 2023, compared to $896 million ($2.37 per Common share) for the third 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.
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| Prudential Financial, Inc. Third Quarter 2023 Earnings Release | | Page 2 |
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 $211 million for the third quarter of 2023, compared to $219 million in the year-ago quarter. This decrease primarily reflects lower other related revenues, driven by lower agency and seed and co-investment income, and higher expenses.
PGIM assets under management of $1.219 trillion were up 1% from the year-ago quarter, primarily resulting from equity market appreciation and spread compression, partially offset by net outflows and the impact of higher interest rates. Third-party net outflows of $5.7 billion in the current quarter reflect institutional outflows of $3.8 billion, primarily driven by public fixed income outflows, and retail outflows of $1.9 billion, driven by public equity outflows.
U.S. Businesses
U.S. Businesses reported adjusted operating income of $1.088 billion for the third quarter of 2023, compared to $615 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, partially offset by lower net fee income.
Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $941 million for the third quarter of 2023, compared to $655 million in the year-ago quarter.
Institutional Retirement Strategies:
•Reported adjusted operating income of $439 million in the current quarter, compared to $268 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher variable investment income.
•Account values of $246 billion increased 3% from the year-ago quarter, reflecting the benefits of business growth and favorable foreign exchange impacts, partially offset by the reinsurance of a block of structured settlements. Sales in the current quarter of $4.7 billion included $2.5 billion of pension risk transfer transactions.
Individual Retirement Strategies:
•Reported adjusted operating income of $502 million in the current quarter, compared to $387 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.
•Account values of $110 billion were down 4% from the year-ago quarter, reflecting the reinsurance of a block of legacy variable annuities and net outflows, partially offset by market appreciation. Sales of $2.0 billion in the current quarter increased 40% 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 $89 million in the current quarter, compared to $30 million in the year-ago quarter. This increase primarily reflects more favorable group life underwriting results.
•Reported earned premiums, policy charges, and fees of $1.4 billion increased 3% from the year-ago quarter, reflecting growth in both disability and life.
Individual Life:
•Reported adjusted operating income of $58 million in the current quarter, compared to a loss of $70 million in the year-ago quarter. This increase primarily reflects higher net investment spread results and lower expenses, including a reduction in legal reserves, partially offset by less favorable underwriting results.
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| Prudential Financial, Inc. Third Quarter 2023 Earnings Release | | Page 3 |
•Sales of $186 million in the current quarter increased 24% from the year-ago quarter, driven by Variable Life and Term sales, reflecting our pivot to less market sensitive products.
International Businesses
International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $811 million for the third quarter of 2023, compared to $748 million in the year-ago quarter. This increase primarily reflects higher net investment spread results.
Life Planner:
•Reported adjusted operating income of $527 million in the current quarter, compared to $430 million in the year-ago quarter. This increase reflects higher net investment spread results and more favorable underwriting results.
•Constant dollar basis sales(4) of $259 million in the current quarter increased 18% 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 $284 million in the current quarter, compared to $318 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results.
•Constant dollar basis sales(4) of $246 million in the current quarter increased 20% 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 $504 million for the third quarter of 2023, compared to a loss of $415 million in the year-ago quarter. This higher loss primarily reflects higher expenses, less favorable foreign exchange rate impacts, and lower income from pension and other employee benefit plans, partially offset by higher net investment income and lower debt interest costs.
NET INCOME
Net Loss in the current quarter included $2.491 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $107 million of pre-tax net impairment and credit-related losses, $251 million of pre-tax losses related to net change in value of market risk benefits, $44 million of pre-tax losses from divested and run-off businesses, and $143 million of pre-tax gains related to market experience updates.
Net loss for the year-ago quarter included $1.243 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $75 million of pre-tax net impairment and credit-related losses, $74 million of pre-tax losses from divested and run-off businesses, $58 million of pre-tax losses related to net change in value of market risk benefits, and $125 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, November 2, 2023, 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 be available on the Investor Relations website through November 16. To access a replay via phone starting at 3:00 p.m. ET on November 2 through November 16, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13733992.
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| Prudential Financial, Inc. Third Quarter 2023 Earnings Release | | Page 4 |
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including those regarding Prismic and our expectations relating thereto, 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
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| Prudential Financial, Inc. Third Quarter 2023 Earnings Release | | Page 5 |
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 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.
(3)For more information about assets under management, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
(4)For more information about constant dollar basis sales, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations by Segment – International Businesses” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of September 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.
MEDIA CONTACT: Laura Edling, laura.edling@prudential.com
| | | | | | | | | | | | | | | | | | | | | | | |
| Financial Highlights | | | | | | | |
| (in millions, unaudited) | | | | | | | |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30 | | September 30 |
| 2023 | | 2022 | | 2023 | | 2022 |
| Adjusted operating income (loss) before income taxes (1): | | | | | | | |
| PGIM | $ | 211 | | | $ | 219 | | | $ | 541 | | | $ | 613 | |
| U.S. Businesses | 1,088 | | | 615 | | | 2,804 | | | 2,001 | |
| International Businesses | 811 | | | 748 | | | 2,435 | | | 2,391 | |
| Corporate and Other | (504) | | | (415) | | | (1,516) | | | (1,152) | |
| Total adjusted operating income before income taxes | $ | 1,606 | | | $ | 1,167 | | | $ | 4,264 | | | $ | 3,853 | |
| Reconciling Items: | | | | | | | |
| Realized investment losses, net, and related charges and adjustments | $ | (2,491) | | | $ | (1,243) | | | $ | (2,887) | | | $ | (5,402) | |
| Change in value of market risk benefits, net of related hedging gains (losses) | (251) | | | (58) | | | (160) | | | (1,072) | |
| Market experience updates | 143 | | | 125 | | | 188 | | | 617 | |
| Divested and Run-off Businesses: | | | | | | | |
| Closed Block division | 2 | | | (21) | | | (50) | | | 22 | |
| Other Divested and Run-off Businesses | (46) | | | (53) | | | 125 | | | 175 | |
| Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | (11) | | | (33) | | | (42) | | | (18) | |
| Other adjustments (2) | (10) | | | (10) | | | (28) | | | (27) | |
| Total reconciling items, before income taxes | (2,664) | | | (1,293) | | | (2,854) | | | (5,705) | |
| Income (loss) before income taxes and equity in earnings of operating joint ventures | $ | (1,058) | | | $ | (126) | | | $ | 1,410 | | | $ | (1,852) | |
| Income Statement Data: | | | | | | | |
| Net income (loss) attributable to Prudential Financial, Inc. | $ | (802) | | | $ | (92) | | | $ | 1,171 | | | $ | (1,595) | |
| Income (loss) attributable to noncontrolling interests | 11 | | | (16) | | | 11 | | | (36) | |
| Net income (loss) | (791) | | | (108) | | | 1,182 | | | (1,631) | |
| Less: Earnings attributable to noncontrolling interests | 11 | | | (16) | | | 11 | | | (36) | |
| Income (loss) attributable to Prudential Financial, Inc. | (802) | | | (92) | | | 1,171 | | | (1,595) | |
| Less: Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests | 5 | | | 23 | | | 15 | | | (17) | |
| Income (loss) (after-tax) before equity in earnings of operating joint ventures | (807) | | | (115) | | | 1,156 | | | (1,578) | |
| Less: Total reconciling items, before income taxes | (2,664) | | | (1,293) | | | (2,854) | | | (5,705) | |
| Less: Income taxes, not applicable to adjusted operating income | (591) | | | (282) | | | (667) | | | (1,145) | |
| Total reconciling items, after income taxes | (2,073) | | | (1,011) | | | (2,187) | | | (4,560) | |
| After-tax adjusted operating income (1) | 1,266 | | | 896 | | | 3,343 | | | 2,982 | |
| Income taxes, applicable to adjusted operating income | 340 | | | 271 | | | 921 | | | 871 | |
| Adjusted operating income before income taxes (1) | $ | 1,606 | | | $ | 1,167 | | | $ | 4,264 | | | $ | 3,853 | |
| | | | | | | |
| See footnotes on last page. | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Financial Highlights | | | | | | | |
| (in millions, except per share data, unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 30 | | September 30 |
| 2023 | | 2022 | | 2023 | | 2022 |
| Earnings per share of Common Stock: | | | | | | | |
| Net income (loss) attributable to Prudential Financial, Inc. | $ | (2.23) | | | $ | (0.26) | | | $ | 3.15 | | | $ | (4.32) | |
| Less: Reconciling Items: | | | | | | | |
| Realized investment losses, net, and related charges and adjustments | (6.85) | | | (3.33) | | | (7.89) | | | (14.35) | |
| Change in value of market risk benefits, net of related hedging gains (losses) | (0.69) | | | (0.16) | | | (0.44) | | | (2.85) | |
| Market experience updates | 0.39 | | | 0.34 | | | 0.51 | | | 1.64 | |
| Divested and Run-off Businesses: | | | | | | | |
| Closed Block division | 0.01 | | | (0.06) | | | (0.14) | | | 0.06 | |
| Other Divested and Run-off Businesses | (0.13) | | | (0.14) | | | 0.34 | | | 0.46 | |
| Difference in earnings allocated to participating unvested share-based payment awards | 0.02 | | | 0.02 | | | 0.06 | | | 0.06 | |
| Other adjustments (2) | (0.03) | | | (0.03) | | | (0.08) | | | (0.07) | |
| Total reconciling items, before income taxes | (7.28) | | | (3.36) | | | (7.64) | | | (15.05) | |
| Less: Income taxes, not applicable to adjusted operating income | (1.61) | | | (0.73) | | | (1.76) | | | (2.91) | |
| Total reconciling items, after income taxes | (5.67) | | | (2.63) | | | (5.88) | | | (12.14) | |
| After-tax adjusted operating income | $ | 3.44 | | | $ | 2.37 | | | $ | 9.03 | | | $ | 7.82 | |
| Weighted average number of outstanding common shares - basic | 362.6 | | | 371.0 | | | 364.6 | | | 373.8 | |
| Weighted average number of outstanding common shares - diluted | 363.8 | | | 373.1 | | | 365.8 | | | 376.4 | |
| For earnings per share of Common Stock calculation: | | | | | | | |
| Net income (loss) attributable to Prudential Financial, Inc. | $ | (802) | | | $ | (92) | | | $ | 1,171 | | | $ | (1,595) | |
| Less: Earnings allocated to participating unvested share-based payment awards | 5 | | | 6 | | | 17 | | | 19 | |
| Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation | $ | (807) | | | $ | (98) | | | $ | 1,154 | | | $ | (1,614) | |
| After-tax adjusted operating income (1) | $ | 1,266 | | | $ | 896 | | | $ | 3,343 | | | $ | 2,982 | |
| Less: Earnings allocated to participating unvested share-based payment awards | 14 | | | 12 | | | 39 | | | 40 | |
| After-tax adjusted operating income for earnings per share of Common Stock calculation (1) | $ | 1,252 | | | $ | 884 | | | $ | 3,304 | | | $ | 2,942 | |
| Prudential Financial, Inc. Equity (as of end of period): | | | | | | | |
| GAAP book value (total PFI equity) at end of period | $ | 25,814 | | | $ | 30,962 | | | | | |
| Less: Accumulated other comprehensive income (AOCI) | (7,831) | | | (4,230) | | | | | |
| GAAP book value excluding AOCI | 33,645 | | | 35,192 | | | | | |
| Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) | (687) | | | (847) | | | | | |
| Adjusted book value | $ | 34,332 | | | $ | 36,039 | | | | | |
| End of period number of common shares - diluted | 364.5 | | | 373.8 | | | | | |
| GAAP book value per common share - diluted | 70.82 | | | 82.83 | | | | | |
| GAAP book value excluding AOCI per share - diluted | 92.30 | | | 94.15 | | | | | |
| Adjusted book value per common share - diluted | 94.19 | | | 96.41 | | | | | |
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| See footnotes on last page. | | | | | | | |
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| Financial Highlights | | | | | | | |
| (in millions, or as otherwise noted, unaudited) | | | | | | | |
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| Three Months Ended | | Nine Months Ended |
| September 30 | | September 30 |
| 2023 | | 2022 | | 2023 | | 2022 |
| PGIM: | | | | | | | |
| PGIM: | | | | | | | |
| Assets Managed by PGIM (in billions, as of end of period): | | | | | | | |
| Institutional customers | $ | 547.6 | | | $ | 536.3 | | | | | |
| Retail customers | 312.5 | | | 298.1 | | | | | |
| General account | 358.5 | | | 371.8 | | | | | |
| Total PGIM | $ | 1,218.6 | | | $ | 1,206.2 | | | | | |
| Institutional Customers - Assets Under Management (in billions): | | | | | | | |
| Gross additions, excluding money market | $ | 14.4 | | | $ | 16.4 | | | $ | 47.2 | | | $ | 57.8 | |
| Net additions (withdrawals), excluding money market | $ | (3.8) | | | $ | 0.6 | | | $ | (17.0) | | | $ | 9.0 | |
| Retail Customers - Assets Under Management (in billions): | | | | | | | |
| Gross additions, excluding money market | $ | 11.9 | | | $ | 13.5 | | | $ | 37.1 | | | $ | 49.8 | |
| Net withdrawals, excluding money market | $ | (1.9) | | | $ | (4.6) | | | $ | (7.9) | | | $ | (17.5) | |
| U.S. Businesses: | | | | | | | |
| Retirement Strategies: | | | | | | | |
| Institutional Retirement Strategies: | | | | | | | |
| Gross additions | $ | 4,697 | | | $ | 13,518 | | | $ | 14,211 | | | $ | 19,496 | |
| Net additions (withdrawals) | $ | (3,084) | | | $ | 9,827 | | | $ | (4,909) | | | $ | 7,346 | |
| Total account value at end of period, net | $ | 245,660 | | | $ | 238,313 | | | | | |
| Individual Retirement Strategies: | | | | | | | |
| Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits: | | | | | | | |
| Gross sales (3) | $ | 1,943 | | | $ | 1,375 | | | $ | 5,502 | | | $ | 4,474 | |
| Sales, net of full surrenders and death benefits | $ | 198 | | | $ | 164 | | | $ | 635 | | | $ | (443) | |
| Total account value at end of period, net | $ | 110,106 | | | $ | 115,153 | | | | | |
| Group Insurance: | | | | | | | |
| Group Insurance Annualized New Business Premiums (4): | | | | | | | |
| Group life | $ | 61 | | | $ | 67 | | | $ | 255 | | | $ | 273 | |
| Group disability | 34 | | | 36 | | | 216 | | | 183 | |
| Total | $ | 95 | | | $ | 103 | | | $ | 471 | | | $ | 456 | |
| Individual Life: | | | | | | | |
| Individual Life Insurance Annualized New Business Premiums (4): | | | | | | | |
| Term life | $ | 33 | | | $ | 24 | | | $ | 87 | | | $ | 71 | |
| Universal life | 17 | | | 23 | | | 54 | | | 67 | |
| Variable life | 136 | | | 103 | | | 391 | | | 317 | |
| Total | $ | 186 | | | $ | 150 | | | $ | 532 | | | $ | 455 | |
| International Businesses: | | | | | | | |
| International Businesses: | | | | | | | |
| International Businesses Annualized New Business Premiums (4)(5): | | | | | | | |
| Actual exchange rate basis | $ | 491 | | | $ | 413 | | | $ | 1,489 | | | $ | 1,331 | |
| Constant exchange rate basis | $ | 505 | | | $ | 424 | | | $ | 1,527 | | | $ | 1,341 | |
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| See footnotes on last page. | | | | | | | |
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| Financial Highlights | | | | |
| (in billions, as of end of period, unaudited) | | | | |
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| September 30 | |
| 2023 | | 2022 | |
| Assets and Assets Under Management and Administration: | | | | |
| Total assets | $ | 681.3 | | | $ | 677.1 | | |
| Assets under management (at fair market value): | | | | |
| PGIM | $ | 1,218.6 | | | $ | 1,206.2 | | |
| U.S. Businesses | 119.9 | | | 123.4 | | |
| International Businesses | 16.4 | | | 13.8 | | |
| Corporate and Other | 6.4 | | | 6.1 | | |
| Total assets under management | 1,361.3 | | | 1,349.5 | | |
| Assets under administration | 164.7 | | | 139.4 | | |
| Total assets under management and administration | $ | 1,526.0 | | | $ | 1,488.9 | | |
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| (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. |
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| (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. |
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| (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. |
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| (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. |
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| (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. |
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Exhibit 99.2
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| | Prudential Financial, Inc. (PRU) | | |
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| | Quarterly Financial Supplement | | |
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| | Third Quarter 2023 | | |
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| | Reference is made to Prudential Financial, Inc.'s (PFI) filings with the Securities and Exchange Commission for general information and consolidated financial information. All financial information in this document is unaudited. | | |
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| Prudential Financial, Inc. | |
| Quarterly Financial Supplement |
| Third Quarter 2023 |
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| | TABLE OF CONTENTS |
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| | Individual Retirement Strategies Sales Results and Account Values | | | |
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| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | |
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| FINANCIAL METRICS SUMMARY | | | | | | | | | | | | | | | | | | | | |
| (in millions, except per share and return on equity data) | | | | | | | | | | | | | | | | | | | | |
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| | | | | 2022 | | 2023 | | | | Year-to-date |
| | | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
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| Earnings | | | | | | | | | | | | | | | | | | | | |
| | Adjusted operating income (loss) before income taxes: | | | | | | | | | | | | | | | | | | | | |
| | | PGIM | | 219 | | | | 230 | | | 151 | | | 179 | | | | 211 | | | | | 613 | | | 541 | | | -12% |
| | | U.S. Businesses | | 615 | | | | 710 | | | 760 | | | 956 | | | | 1,088 | | | | | 2,001 | | | 2,804 | | | 40% |
| | | International Businesses | | 748 | | | | 814 | | | 840 | | | 784 | | | | 811 | | | | | 2,391 | | | 2,435 | | | 2% |
| | | Corporate and Other | | (415) | | | | (525) | | | (485) | | | (527) | | | | (504) | | | | | (1,152) | | | (1,516) | | | -32% |
| | Total adjusted operating income before income taxes | | 1,167 | | | | 1,229 | | | 1,266 | | | 1,392 | | | | 1,606 | | | | | 3,853 | | | 4,264 | | | 11% |
| | Income taxes, applicable to adjusted operating income | | 271 | | | | 297 | | | 276 | | | 305 | | | | 340 | | | | | 871 | | | 921 | | | 6% |
| | After-tax adjusted operating income | | 896 | | | | 932 | | | 990 | | | 1,087 | | | | 1,266 | | | | | 2,982 | | | 3,343 | | | 12% |
| | Income (loss) attributable to Prudential Financial, Inc. | | (92) | | | | (52) | | | 1,462 | | | 511 | | | | (802) | | | | | (1,595) | | | 1,171 | | | 173% |
| Return on Equity | | | | | | | | | | | | | | | | | | | | |
| | Operating Return on Average Equity (based on adjusted operating income) (1) | | 9.8 | % | | | 10.5 | % | | 11.2 | % | | 12.2 | % | | | 14.5 | % | | | | 10.4 | % | | 12.7 | % | | |
| | Return on Average Equity (based on net income (loss)) | | -1.2 | % | | | -0.7 | % | | 18.9 | % | | 6.8 | % | | | -11.8 | % | | | | -7.0 | % | | 5.4 | % | | |
| Distributions to Shareholders | | | | | | | | | | | | | | | | | | | | |
| | Dividends paid | | 454 | | | | 449 | | | 468 | | | 463 | | | | 461 | | | | | 1,373 | | | 1,392 | | | 1% |
| | Share repurchases | | 375 | | | | 375 | | | 250 | | | 250 | | | | 250 | | | | | 1,125 | | | 750 | | | -33% |
| | Total capital returned | | 829 | | | | 824 | | | 718 | | | 713 | | | | 711 | | | | | 2,498 | | | 2,142 | | | -14% |
| Per Share Data | | | | | | | | | | | | | | | | | | | | |
| | Net income (loss) - diluted (2) | | (0.26) | | | | (0.16) | | | 3.93 | | | 1.38 | | | | (2.23) | | | | | (4.32) | | | 3.15 | | | 173% |
| | Adjusted Operating Income - diluted | | 2.37 | | | | 2.49 | | | 2.66 | | | 2.94 | | | | 3.44 | | | | | 7.82 | | | 9.03 | | | 15% |
| | Shareholder dividends | | 1.20 | | | | 1.20 | | | 1.25 | | | 1.25 | | | | 1.25 | | | | | 3.60 | | | 3.75 | | | 4% |
| | GAAP book value - diluted | | 82.83 | | | | 82.48 | | | 85.33 | | | 77.65 | | | | 70.82 | | | | | | | | | |
| | Adjusted book value - diluted (3) | | 96.41 | | | | 94.69 | | | 97.29 | | | 97.38 | | | | 94.19 | | | | | | | | | |
| Shares Outstanding | | | | | | | | | | | | | | | | | | | | |
| | Weighted average number of common shares - basic | | 371.0 | | | | 367.6 | | | 366.5 | | | 364.8 | | | | 362.6 | | | | | 373.8 | | | 364.6 | | | -2% |
| | Weighted average number of common shares - diluted | | 373.1 | | | | 369.4 | | | 367.7 | | | 366.1 | | | | 363.8 | | | | | 376.4 | | | 365.8 | | | -3% |
| | End of period common shares - basic | | 369.1 | | | | 366.0 | | | 365.9 | | | 363.4 | | | | 361.3 | | | | | | | | | |
| | End of period common shares - diluted | | 373.8 | | | | 370.9 | | | 367.8 | | | 366.2 | | | | 364.5 | | | | | | | | | |
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| __________ | | | | | | | | | | | | | | | | | | | | |
| (1) Operating Return on Average Equity (based on adjusted operating income) is a non-GAAP measure and represents adjusted operating income after-tax, annualized for interim periods, divided by average Prudential Financial, Inc. equity excluding accumulated other comprehensive income and adjusted to remove amounts included for foreign currency exchange rate remeasurement as described on page 3. |
| (2) For the three months ended September 30, 2023, December 31, 2022 and September 30, 2022, and for the nine months ended September 30, 2022 weighted average shares for basic earnings per share is used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended September 30, 2023, December 31, 2022 and September 30, 2022, and for the nine months ended September 30, 2022 all potential stock options and compensation programs were considered antidilutive. |
| (3) 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. |
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| Prudential Financial, Inc. | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | |
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| FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | | | | | | | |
| (in millions, except per share data) | | | | | | | | | | | | | | | | | | | |
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| | | | 2022 | | 2023 | | | | Year-to-date |
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| Earnings per share of Common Stock - diluted: | | | | | | | | | | | | | | | | | | | |
| After-tax adjusted operating income | | | 2.37 | | | | 2.49 | | | 2.66 | | | 2.94 | | | | 3.44 | | | | | 7.82 | | | 9.03 | |
| Reconciling items: | | | | | | | | | | | | | | | | | | | |
| Realized investment gains (losses), net, and related charges and adjustments | | | (3.33) | | | | (2.50) | | | 1.00 | | | (2.09) | | | | (6.85) | | | | | (14.35) | | | (7.89) | |
| Change in value of market risk benefits, net of related hedging gains (losses) | | | (0.16) | | | | 1.70 | | | 0.20 | | | 0.04 | | | | (0.69) | | | | | (2.85) | | | (0.44) | |
| Market experience updates | | | 0.34 | | | | 0.07 | | | 0.13 | | | (0.01) | | | | 0.39 | | | | | 1.64 | | | 0.51 | |
| Divested and Run-off Businesses: | | | | | | | | | | | | | | | | | | | |
| Closed Block division | | | (0.06) | | | | (0.11) | | | (0.01) | | | (0.13) | | | | 0.01 | | | | | 0.06 | | | (0.14) | |
| Other Divested and Run-off Businesses | | | (0.14) | | | | (0.08) | | | 0.29 | | | 0.17 | | | | (0.13) | | | | | 0.46 | | | 0.34 | |
| Difference in earnings allocated to participating unvested share-based payment awards | | | 0.02 | | | | 0.02 | | | (0.01) | | | 0.02 | | | | 0.02 | | | | | 0.06 | | | 0.06 | |
| Other adjustments (1) | | | (0.03) | | | | (2.47) | | | (0.02) | | | (0.02) | | | | (0.03) | | | | | (0.07) | | | (0.08) | |
| Total reconciling items, before income taxes | | | (3.36) | | | | (3.37) | | | 1.58 | | | (2.02) | | | | (7.28) | | | | | (15.05) | | | (7.64) | |
| Income taxes, not applicable to adjusted operating income | | | (0.73) | | | | (0.72) | | | 0.31 | | | (0.46) | | | | (1.61) | | | | | (2.91) | | | (1.76) | |
| Total reconciling items, after income taxes | | | (2.63) | | | | (2.65) | | | 1.27 | | | (1.56) | | | | (5.67) | | | | | (12.14) | | | (5.88) | |
| Net income (loss) attributable to Prudential Financial, Inc. | | | (0.26) | | | | (0.16) | | | 3.93 | | | 1.38 | | | | (2.23) | | | | | (4.32) | | | 3.15 | |
| Weighted average number of outstanding common shares - basic | | | 371.0 | | | | 367.6 | | | 366.5 | | | 364.8 | | | | 362.6 | | | | | 373.8 | | | 364.6 | |
| Weighted average number of outstanding common shares - diluted | | | 373.1 | | | | 369.4 | | | 367.7 | | | 366.1 | | | | 363.8 | | | | | 376.4 | | | 365.8 | |
| For earnings per share of Common Stock calculation: | | | | | | | | | | | | | | | | | | | |
| Net income (loss) attributable to Prudential Financial, Inc. | | | (92) | | | | (52) | | | 1,462 | | | 511 | | | | (802) | | | | | (1,595) | | | 1,171 | |
| Less: Earnings allocated to participating unvested share-based payment awards | | | 6 | | | | 6 | | | 18 | | | 6 | | | | 5 | | | | | 19 | | | 17 | |
| Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation | | | (98) | | | | (58) | | | 1,444 | | | 505 | | | | (807) | | | | | (1,614) | | | 1,154 | |
| After-tax adjusted operating income | | | 896 | | | | 932 | | | 990 | | | 1,087 | | | | 1,266 | | | | | 2,982 | | | 3,343 | |
| Less: Earnings allocated to participating unvested share-based payment awards | | | 12 | | | | 12 | | | 13 | | | 12 | | | | 14 | | | | | 40 | | | 39 | |
| After-tax adjusted operating income for earnings per share of Common Stock calculation | | | 884 | | | | 920 | | | 977 | | | 1,075 | | | | 1,252 | | | | | 2,942 | | | 3,304 | |
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| ___________ | | | | | | | | | | | | | | | | | | | |
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| (1) Represents adjustments not included in the above reconciling items, including a goodwill impairment that resulted in a charge in fourth quarter of 2022 related to Assurance IQ. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods. |
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| Prudential Financial, Inc. | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | |
| Third Quarter 2023 | | | | | | | |
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| OTHER FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | |
| (in millions, except per share data) | | | | | | | | | | | | | |
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| | | 2022 | | 2023 | |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | |
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| Capitalization Data (1): | | | | | | | | | | | | | |
| Senior Debt: | | | | | | | | | | | | | |
| Short-term Debt | | 767 | | | | 775 | | | 705 | | | 763 | | | | 615 | | |
| Long-term Debt | | 10,810 | | | | 10,814 | | | 10,860 | | | 10,787 | | | | 10,787 | | |
| Junior Subordinated Long-term Debt | | 9,088 | | | | 9,094 | | | 9,591 | | | 8,089 | | | | 8,090 | | |
| Prudential Financial, Inc. Equity: | | | | | | | | | | | | | |
| GAAP book value (total PFI equity) at end of period | | 30,962 | | | | 30,593 | | | 31,385 | | | 28,434 | | | | 25,814 | | |
| Less: Accumulated other comprehensive income (AOCI) | | (4,230) | | | | (3,806) | | | (3,825) | | | (6,649) | | | | (7,831) | | |
| GAAP book value excluding AOCI (2) | | 35,192 | | | | 34,399 | | | 35,210 | | | 35,083 | | | | 33,645 | | |
| Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses) (3) | | (847) | | | | (723) | | | (575) | | | (578) | | | | (687) | | |
| Adjusted book value | | 36,039 | | | | 35,122 | | | 35,785 | | | 35,661 | | | | 34,332 | | |
| Book Value per Share of Common Stock: | | | | | | | | | | | | | |
| GAAP book value per common share - diluted | | 82.83 | | | | 82.48 | | | 85.33 | | | 77.65 | | | | 70.82 | | |
| GAAP book value excluding AOCI per share - diluted (2) | | 94.15 | | | | 92.74 | | | 95.73 | | | 95.80 | | | | 92.30 | | |
| Adjusted book value per common share - diluted | | 96.41 | | | | 94.69 | | | 97.29 | | | 97.38 | | | | 94.19 | | |
| End of period number of common shares - diluted | | 373.8 | | | | 370.9 | | | 367.8 | | | 366.2 | | | | 364.5 | | |
| Common Stock Price Range (based on closing price): | | | | | | | | | | | | | |
| High | | 105.49 | | | | 110.21 | | | 104.94 | | | 88.22 | | | | 99.14 | | |
| Low | | 85.78 | | | | 89.19 | | | 77.23 | | | 78.04 | | | | 88.66 | | |
| Close | | 85.78 | | | | 99.46 | | | 82.74 | | | 88.22 | | | | 94.89 | | |
| Common Stock market capitalization (1) | | 31,661 | | | | 36,402 | | | 30,275 | | | 32,059 | | | | 34,284 | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (1) As of end of period. | |
| (2) Foreign currency translation adjustments and the cumulative impact of foreign currency exchange rate remeasurement, except for those items remeasured through net income (loss), are a component of accumulated other comprehensive income. | |
| (3) Includes the cumulative impact of net gains and losses resulting from foreign currency exchange rate remeasurement and associated realized investment gains and losses included in net income (loss) and currency translation adjustments corresponding to realized investment gains and losses. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | |
| Third Quarter 2023 | | | | | | | | |
| | | | | | | | | | | | | | |
| OPERATIONS HIGHLIGHTS | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | 2022 | | 2023 | |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | |
| | | | | | | | | | | | | | |
| Assets Under Management and Administration (in billions) (1)(2): | | | | | | | | | | | | | |
| PGIM: | | | | | | | | | | | | | |
| Institutional customers | | 536.3 | | | | 549.2 | | | 561.2 | | | 556.7 | | | | 547.6 | | |
| Retail customers | | 298.1 | | | | 299.6 | | | 314.4 | | | 324.1 | | | | 312.5 | | |
| General account | | 371.8 | | | | 379.6 | | | 394.2 | | | 385.0 | | | | 358.5 | | |
| Total PGIM | | 1,206.2 | | | | 1,228.4 | | | 1,269.8 | | | 1,265.8 | | | | 1,218.6 | | |
| U.S. Businesses | | 123.4 | | | | 126.7 | | | 126.0 | | | 127.0 | | | | 119.9 | | |
| International Businesses | | 13.8 | | | | 16.1 | | | 15.3 | | | 15.7 | | | | 16.4 | | |
| Corporate and Other | | 6.1 | | | | 6.1 | | | 5.9 | | | 6.1 | | | | 6.4 | | |
| Total assets under management | | 1,349.5 | | | | 1,377.3 | | | 1,417.0 | | | 1,414.6 | | | | 1,361.3 | | |
| Assets under administration | | 139.4 | | | | 157.4 | | | 158.6 | | | 166.6 | | | | 164.7 | | |
| Total assets under management and administration | | 1,488.9 | | | | 1,534.7 | | | 1,575.6 | | | 1,581.2 | | | | 1,526.0 | | |
| Distribution Representatives (1): | | | | | | | | | | | | | |
| Prudential Advisors | | 2,774 | | | | 2,616 | | | 2,627 | | | 2,638 | | | | 2,681 | | |
| International Life Planners | | 5,972 | | | | 5,924 | | | 5,978 | | | 5,806 | | | | 5,917 | | |
| Gibraltar Life Consultants | | 6,861 | | | | 6,821 | | | 6,689 | | | 6,648 | | | | 6,736 | | |
| | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | |
| (1) As of end of period. | |
| (2) At fair market value. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | |
| Premiums | | 15,322 | | | | 5,904 | | | 8,833 | | | 6,368 | | | | 3,659 | | | | 28,466 | | | 18,860 | | | -34% |
| Policy charges and fee income | | 1,083 | | | | 1,100 | | | 1,073 | | | 1,032 | | | | 1,060 | | | | 3,175 | | | 3,165 | | | —% |
| Net investment income | | 3,047 | | | | 3,483 | | | 3,671 | | | 3,814 | | | | 3,893 | | | | 9,701 | | | 11,378 | | | 17% |
| Asset management fees, commissions and other income | | 1,628 | | | | 1,719 | | | 1,527 | | | 1,430 | | | | 1,514 | | | | 5,997 | | | 4,471 | | | -25% |
| Total revenues | | 21,080 | | | | 12,206 | | | 15,104 | | | 12,644 | | | | 10,126 | | | | 47,339 | | | 37,874 | | | -20% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 15,925 | | | | 6,614 | | | 9,588 | | | 6,931 | | | | 4,348 | | | | 31,023 | | | 20,867 | | | -33% |
| Change in estimates of liability for future policy benefits | | 59 | | | | 50 | | | 22 | | | 159 | | | | 49 | | | | 901 | | | 230 | | | -74% |
| Interest credited to policyholders' account balances | | 628 | | | | 735 | | | 756 | | | 780 | | | | 804 | | | | 1,927 | | | 2,340 | | | 21% |
| Interest expense | | 407 | | | | 417 | | | 441 | | | 461 | | | | 422 | | | | 1,172 | | | 1,324 | | | 13% |
| Deferral of acquisition costs | | (531) | | | | (539) | | | (569) | | | (546) | | | | (576) | | | | (1,616) | | | (1,691) | | | -5% |
| Amortization of acquisition costs | | 355 | | | | 328 | | | 355 | | | 355 | | | | 351 | | | | 1,053 | | | 1,061 | | | 1% |
| General and administrative expenses | | 3,070 | | | | 3,372 | | | 3,245 | | | 3,112 | | | | 3,122 | | | | 9,026 | | | 9,479 | | | 5% |
| Total benefits and expenses | | 19,913 | | | | 10,977 | | | 13,838 | | | 11,252 | | | | 8,520 | | | | 43,486 | | | 33,610 | | | -23% |
| Adjusted operating income before income taxes | | 1,167 | | | | 1,229 | | | 1,266 | | | 1,392 | | | | 1,606 | | | | 3,853 | | | 4,264 | | | 11% |
| Income taxes, applicable to adjusted operating income | | 271 | | | | 297 | | | 276 | | | 305 | | | | 340 | | | | 871 | | | 921 | | | 6% |
| After-tax adjusted operating income | | 896 | | | | 932 | | | 990 | | | 1,087 | | | | 1,266 | | | | 2,982 | | | 3,343 | | | 12% |
| Reconciling items: | | | | | | | | | | | | | | | | | | | |
| Realized investment gains (losses), net, and related charges and adjustments | | (1,243) | | | | (924) | | | 369 | | | (765) | | | | (2,491) | | | | (5,402) | | | (2,887) | | | 47% |
| Change in value of market risk benefits, net of related hedging gains (losses) | | (58) | | | | 629 | | | 75 | | | 16 | | | | (251) | | | | (1,072) | | | (160) | | | 85% |
| Market experience updates | | 125 | | | | 25 | | | 48 | | | (3) | | | | 143 | | | | 617 | | | 188 | | | -70% |
| Divested and Run-off Businesses: | | | | | | | | | | | | | | | | | | | |
| Closed Block division | | (21) | | | | (40) | | | (4) | | | (48) | | | | 2 | | | | 22 | | | (50) | | | -327% |
| Other Divested and Run-off Businesses | | (53) | | | | (29) | | | 107 | | | 64 | | | | (46) | | | | 175 | | | 125 | | | -29% |
| Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | (33) | | | | (18) | | | (5) | | | (26) | | | | (11) | | | | (18) | | | (42) | | | -133% |
| Other adjustments (2) | | (10) | | | | (912) | | | (9) | | | (9) | | | | (10) | | | | (27) | | | (28) | | | -4% |
| Total reconciling items, before income taxes | | (1,293) | | | | (1,269) | | | 581 | | | (771) | | | | (2,664) | | | | (5,705) | | | (2,854) | | | 50% |
| Income taxes, not applicable to adjusted operating income | | (282) | | | | (302) | | | 106 | | | (182) | | | | (591) | | | | (1,145) | | | (667) | | | 42% |
| Total reconciling items, after income taxes | | (1,011) | | | | (967) | | | 475 | | | (589) | | | | (2,073) | | | | (4,560) | | | (2,187) | | | 52% |
| Income (loss) before income taxes and equity in earnings of operating joint ventures | | (126) | | | | (40) | | | 1,847 | | | 621 | | | | (1,058) | | | | (1,852) | | | 1,410 | | | 176% |
| Income tax expense (benefit) | | (11) | | | | (5) | | | 382 | | | 123 | | | | (251) | | | | (274) | | | 254 | | | 193% |
| Income (loss) before equity in earnings of operating joint ventures | | (115) | | | | (35) | | | 1,465 | | | 498 | | | | (807) | | | | (1,578) | | | 1,156 | | | 173% |
| Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests | | 23 | | | | (17) | | | (3) | | | 13 | | | | 5 | | | | (17) | | | 15 | | | 188% |
| Income (loss) attributable to Prudential Financial, Inc. | | (92) | | | | (52) | | | 1,462 | | | 511 | | | | (802) | | | | (1,595) | | | 1,171 | | | 173% |
| Earnings attributable to noncontrolling interests | | (16) | | | | 8 | | | 15 | | | (15) | | | | 11 | | | | (36) | | | 11 | | | 131% |
| Net income (loss) | | (108) | | | | (44) | | | 1,477 | | | 496 | | | | (791) | | | | (1,631) | | | 1,182 | | | 172% |
| Less: Income (loss) attributable to noncontrolling interests | | (16) | | | | 8 | | | 15 | | | (15) | | | | 11 | | | | (36) | | | 11 | | | 131% |
| Net income (loss) attributable to Prudential Financial, Inc. | | (92) | | | | (52) | | | 1,462 | | | 511 | | | | (802) | | | | (1,595) | | | 1,171 | | | 173% |
| __________ | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses), revenues of Divested and Run-off Businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as Divested and Run-off Businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, benefits and expenses of Divested and Run-off Businesses, and certain components of acquisitions, including the Assurance IQ acquisition which are recognized as compensation expense over the requisite service periods and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. See pages 35, 36, 37 and 38 for reconciliation. |
| (2) Represents adjustments not included in the above reconciling items, including a goodwill impairment related to Assurance IQ that resulted in a charge of $903 million pre-tax and $713 million after-tax in the fourth quarter of 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | |
| Third Quarter 2023 | | | | | | | | |
| | | | | | | | | | | | | | |
| CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | 09/30/2022 | | | 12/31/2022 | | 03/31/2023 | | 06/30/2023 | | | 09/30/2023 | |
| | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | |
| Fixed maturities, available-for-sale, at fair value | | 295,841 | | | | 307,719 | | | 320,512 | | | 312,230 | | | | 295,318 | | |
| Fixed maturities, held-to-maturity, at amortized cost, net of allowance for credit losses | | 1,199 | | | | 1,296 | | | 1,277 | | | 1,171 | | | | — | | |
| Fixed maturities, trading, at fair value | | 5,690 | | | | 5,951 | | | 6,269 | | | 6,349 | | | | 7,129 | | |
| Assets supporting experience-rated contractholder liabilities, at fair value | | 2,580 | | | | 2,844 | | | 2,958 | | | 3,019 | | | | 2,943 | | |
| Equity securities, at fair value | | 6,882 | | | | 7,150 | | | 7,573 | | | 8,359 | | | | 7,039 | | |
| Commercial mortgage and other loans | | 56,896 | | | | 56,745 | | | 56,778 | | | 57,689 | | | | 57,908 | | |
| Policy loans | | 9,920 | | | | 10,046 | | | 10,041 | | | 9,983 | | | | 9,959 | | |
| Other invested assets | | 21,050 | | | | 21,099 | | | 21,491 | | | 21,473 | | | | 21,868 | | |
| Short-term investments | | 5,181 | | | | 4,591 | | | 5,177 | | | 5,059 | | | | 5,072 | | |
| Total investments | | 405,239 | | | | 417,441 | | | 432,076 | | | 425,332 | | | | 407,236 | | |
| Cash and cash equivalents | | 20,104 | | | | 17,251 | | | 17,425 | | | 14,652 | | | | 16,892 | | |
| Accrued investment income | | 2,888 | | | | 3,012 | | | 3,095 | | | 3,142 | | | | 3,191 | | |
| Deferred policy acquisition costs | | 20,038 | | | | 20,546 | | | 20,741 | | | 20,320 | | | | 20,394 | | |
| Value of business acquired | | 560 | | | | 621 | | | 601 | | | 542 | | | | 514 | | |
| Market risk benefit assets | | 806 | | | | 800 | | | 976 | | | 1,951 | | | | 2,200 | | |
| Income tax assets | | — | | | | — | | | — | | | 803 | | | | 1,108 | | |
| Other assets | | 32,912 | | | | 31,679 | | | 32,061 | | | 29,691 | | | | 39,077 | | |
| Separate account assets | | 194,525 | | | | 197,679 | | | 202,294 | | | 200,871 | | | | 190,642 | | |
| Total assets | | 677,072 | | | | 689,029 | | | 709,269 | | | 697,304 | | | | 681,254 | | |
| Liabilities: | | | | | | | | | | | | | |
| Future policy benefits | | 255,135 | | | | 261,773 | | | 273,586 | | | 268,649 | | | | 253,551 | | |
| Policyholders' account balances | | 131,533 | | | | 135,624 | | | 138,139 | | | 138,743 | | | | 140,788 | | |
| Market risk benefit liabilities | | 6,488 | | | | 5,864 | | | 6,096 | | | 5,462 | | | | 4,660 | | |
| Securities sold under agreements to repurchase | | 8,223 | | | | 6,589 | | | 6,617 | | | 6,097 | | | | 5,547 | | |
| Cash collateral for loaned securities | | 5,865 | | | | 6,100 | | | 5,975 | | | 5,207 | | | | 6,067 | | |
| Income tax liabilities | | 403 | | | | 277 | | | 517 | | | — | | | | — | | |
| Senior short-term debt | | 767 | | | | 775 | | | 705 | | | 763 | | | | 615 | | |
| Senior long-term debt | | 10,810 | | | | 10,814 | | | 10,860 | | | 10,787 | | | | 10,787 | | |
| Junior subordinated long-term debt | | 9,088 | | | | 9,094 | | | 9,591 | | | 8,089 | | | | 8,090 | | |
| Other liabilities | | 22,386 | | | | 22,518 | | | 22,027 | | | 22,779 | | | | 32,769 | | |
| Notes issued by consolidated variable interest entities | | 218 | | | | 374 | | | 415 | | | 402 | | | | 791 | | |
| Separate account liabilities | | 194,525 | | | | 197,679 | | | 202,294 | | | 200,871 | | | | 190,642 | | |
| Total liabilities | | 645,441 | | | | 657,481 | | | 676,822 | | | 667,849 | | | | 654,307 | | |
| Equity: | | | | | | | | | | | | | |
| Accumulated other comprehensive loss | | (4,230) | | | | (3,806) | | | (3,825) | | | (6,649) | | | | (7,831) | | |
| Other equity | | 35,192 | | | | 34,399 | | | 35,210 | | | 35,083 | | | | 33,645 | | |
| Total Prudential Financial, Inc. equity | | 30,962 | | | | 30,593 | | | 31,385 | | | 28,434 | | | | 25,814 | | |
| Noncontrolling interests | | 669 | | | | 955 | | | 1,062 | | | 1,021 | | | | 1,133 | | |
| Total equity | | 31,631 | | | | 31,548 | | | 32,447 | | | 29,455 | | | | 26,947 | | |
| Total liabilities and equity | | 677,072 | | | | 689,029 | | | 709,269 | | | 697,304 | | | | 681,254 | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| COMBINING BALANCE SHEETS | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | As of September 30, 2023 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | Consolidated PFI | | Closed Block Division | | | PFI Excluding Closed Block Division | | | PGIM | | U.S. Businesses | | International Businesses | | Corporate and Other |
| Assets: | | | | | | | | | | | | | | | |
| Total investments | 407,236 | | | 47,670 | | | | 359,566 | | | | 4,644 | | | 174,768 | | | 157,656 | | | 22,498 | |
| Deferred policy acquisition costs | 20,394 | | | 171 | | | | 20,223 | | | | — | | | 11,625 | | | 9,005 | | | (407) | |
| Other assets | 62,982 | | | 887 | | | | 62,095 | | | | 4,352 | | | 38,980 | | | 10,936 | | | 7,827 | |
| Separate account assets | 190,642 | | | — | | | | 190,642 | | | | 35,254 | | | 158,321 | | | — | | | (2,933) | |
| Total assets | 681,254 | | | 48,728 | | | | 632,526 | | | | 44,250 | | | 383,694 | | | 177,597 | | | 26,985 | |
| Liabilities: | | | | | | | | | | | | | | | |
| Future policy benefits | 253,551 | | | 43,731 | | | | 209,820 | | | | — | | | 99,686 | | | 102,475 | | | 7,659 | |
| Policyholders' account balances | 140,788 | | | 4,528 | | | | 136,260 | | | | — | | | 83,076 | | | 48,448 | | | 4,736 | |
| Debt | 19,492 | | | — | | | | 19,492 | | | | 1,415 | | | 7,604 | | | 81 | | | 10,392 | |
| Other liabilities | 49,834 | | | 2,926 | | | | 46,908 | | | | 3,669 | | | 20,503 | | | 8,513 | | | 14,223 | |
| Separate account liabilities | 190,642 | | | — | | | | 190,642 | | | | 35,254 | | | 158,321 | | | — | | | (2,933) | |
| Total liabilities | 654,307 | | | 51,185 | | | | 603,122 | | | | 40,338 | | | 369,190 | | | 159,517 | | | 34,077 | |
| Equity: | | | | | | | | | | | | | | | |
| Accumulated other comprehensive loss | (7,831) | | | (1,092) | | | | (6,739) | | | | (159) | | | (3,588) | | | (491) | | | (2,501) | |
| Other equity | 33,645 | | | (1,377) | | | | 35,022 | | | | 2,481 | | | 18,007 | | | 18,540 | | | (4,006) | |
| Total Prudential Financial, Inc. equity | 25,814 | | | (2,469) | | | | 28,283 | | | | 2,322 | | | 14,419 | | | 18,049 | | | (6,507) | |
| Noncontrolling interests | 1,133 | | | 12 | | | | 1,121 | | | | 1,590 | | | 85 | | | 31 | | | (585) | |
| Total equity | 26,947 | | | (2,457) | | | | 29,404 | | | | 3,912 | | | 14,504 | | | 18,080 | | | (7,092) | |
| Total liabilities and equity | 681,254 | | | 48,728 | | | | 632,526 | | | | 44,250 | | | 383,694 | | | 177,597 | | | 26,985 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | As of December 31, 2022 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | Consolidated PFI | | Closed Block Division | | | PFI Excluding Closed Block Division | | | PGIM | | U.S. Businesses | | International Businesses | | Corporate and Other |
| Assets: | | | | | | | | | | | | | | | |
| Total investments | 417,441 | | | 48,858 | | | | 368,583 | | | | 3,811 | | | 179,299 | | | 165,831 | | | 19,642 | |
| Deferred policy acquisition costs | 20,546 | | | 181 | | | | 20,365 | | | | — | | | 11,809 | | | 8,941 | | | (385) | |
| Other assets | 53,363 | | | 1,895 | | | | 51,468 | | | | 4,498 | | | 27,009 | | | 12,019 | | | 7,942 | |
| Separate account assets | 197,679 | | | — | | | | 197,679 | | | | 40,055 | | | 161,267 | | | — | | | (3,643) | |
| Total assets | 689,029 | | | 50,934 | | | | 638,095 | | | | 48,364 | | | 379,384 | | | 186,791 | | | 23,556 | |
| Liabilities: | | | | | | | | | | | | | | | |
| Future policy benefits | 261,773 | | | 44,414 | | | | 217,359 | | | | — | | | 99,948 | | | 109,018 | | | 8,393 | |
| Policyholders' account balances | 135,624 | | | 4,606 | | | | 131,018 | | | | — | | | 75,928 | | | 46,903 | | | 8,187 | |
| Debt | 20,683 | | | — | | | | 20,683 | | | | 1,726 | | | 7,850 | | | 84 | | | 11,023 | |
| Other liabilities | 41,722 | | | 3,479 | | | | 38,243 | | | | 2,813 | | | 20,238 | | | 11,497 | | | 3,695 | |
| Separate account liabilities | 197,679 | | | — | | | | 197,679 | | | | 40,055 | | | 161,267 | | | — | | | (3,643) | |
| Total liabilities | 657,481 | | | 52,499 | | | | 604,982 | | | | 44,594 | | | 365,231 | | | 167,502 | | | 27,655 | |
| Equity: | | | | | | | | | | | | | | | |
| Accumulated other comprehensive income (loss) | (3,806) | | | (214) | | | | (3,592) | | | | (145) | | | (3,034) | | | 1,590 | | | (2,003) | |
| Other equity | 34,399 | | | (1,363) | | | | 35,762 | | | | 2,613 | | | 17,103 | | | 17,668 | | | (1,622) | |
| Total Prudential Financial, Inc. equity | 30,593 | | | (1,577) | | | | 32,170 | | | | 2,468 | | | 14,069 | | | 19,258 | | | (3,625) | |
| Noncontrolling interests | 955 | | | 12 | | | | 943 | | | | 1,302 | | | 84 | | | 31 | | | (474) | |
| Total equity | 31,548 | | | (1,565) | | | | 33,113 | | | | 3,770 | | | 14,153 | | | 19,289 | | | (4,099) | |
| Total liabilities and equity | 689,029 | | | 50,934 | | | | 638,095 | | | | 48,364 | | | 379,384 | | | 186,791 | | | 23,556 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| SHORT-TERM AND LONG-TERM DEBT - UNAFFILIATED | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | As of September 30, 2023 | | As of December 31, 2022 |
| | | Senior Debt | | | | | | Senior Debt | | | | |
| | | Short-term Debt | | Long-term Debt | | Junior Subordinated Long-term Debt | | Total Debt | | Short-term Debt | | Long-term Debt | | Junior Subordinated Long-term Debt | | Total Debt |
| | | | | | | | | | | | | | | | | |
| Borrowings by use of proceeds: | | | | | | | | | | | | | | | | |
| Capital Debt | | — | | | 4,871 | | | 8,090 | | | 12,961 | | | 100 | | | 4,877 | | | 9,094 | | | 14,071 | |
| Operating Debt | | 533 | | | 5,588 | | | — | | | 6,121 | | | 511 | | | 5,583 | | | — | | | 6,094 | |
| Limited recourse and non-recourse borrowing | | 82 | | | 328 | | | — | | | 410 | | | 164 | | | 354 | | | — | | | 518 | |
| Total Debt | | 615 | | | 10,787 | | | 8,090 | | | 19,492 | | | 775 | | | 10,814 | | | 9,094 | | | 20,683 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | As of September 30, 2023 | | As of December 31, 2022 |
| | | Prudential Financial, Inc. | | The Prudential Insurance Company of America (1)(2) | | Other Affiliates | | Total Debt | | Prudential Financial, Inc. | | The Prudential Insurance Company of America (1)(2) | | Other Affiliates | | Total Debt |
| | | | | | | | | | | | | | | | | |
| Borrowings by sources: | | | | | | | | | | | | | | | | |
| Capital Debt | | 12,573 | | | 346 | | | 42 | | | 12,961 | | | 13,579 | | | 445 | | | 47 | | | 14,071 | |
| Operating Debt | | 5,613 | | | 508 | | | — | | | 6,121 | | | 5,608 | | | 486 | | | — | | | 6,094 | |
| Limited recourse and non-recourse borrowing | | — | | | 155 | | | 255 | | | 410 | | | — | | | 179 | | | 339 | | | 518 | |
| Total Debt | | 18,186 | | | 1,009 | | | 297 | | | 19,492 | | | 19,187 | | | 1,110 | | | 386 | | | 20,683 | |
| | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| (1) Includes Prudential Funding, LLC. |
| (2) Capital Debt at The Prudential Insurance Company of America includes $346 million of surplus notes as of September 30, 2023 and $345 million as of December 31, 2022. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - PGIM | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Policy charges and fee income | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Net investment income | | 56 | | | | 56 | | | 80 | | | 67 | | | | 42 | | | | | 38 | | | 189 | | | 397% |
| Asset management fees, commissions and other income | | 851 | | | | 904 | | | 818 | | | 782 | | | | 934 | | | | | 2,624 | | | 2,534 | | | -3% |
| Total revenues | | 907 | | | | 960 | | | 898 | | | 849 | | | | 976 | | | | | 2,662 | | | 2,723 | | | 2% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Change in estimates of liability for future policy benefits | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Interest credited to policyholders' account balances | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Interest expense | | 14 | | | | 27 | | | 27 | | | 29 | | | | 28 | | | | | 30 | | | 84 | | | 180% |
| Deferral of acquisition costs | | (1) | | | | — | | | (1) | | | — | | | | (1) | | | | | (2) | | | (2) | | | —% |
| Amortization of acquisition costs | | 1 | | | | — | | | 1 | | | — | | | | — | | | | | 3 | | | 1 | | | -67% |
| General and administrative expenses | | 674 | | | | 703 | | | 720 | | | 641 | | | | 738 | | | | | 2,018 | | | 2,099 | | | 4% |
| Total benefits and expenses | | 688 | | | | 730 | | | 747 | | | 670 | | | | 765 | | | | | 2,049 | | | 2,182 | | | 6% |
| Adjusted operating income before income taxes | | 219 | | | | 230 | | | 151 | | | 179 | | | | 211 | | | | | 613 | | | 541 | | | -12% |
| Total revenues | | 907 | | | | 960 | | | 898 | | | 849 | | | | 976 | | | | | 2,662 | | | 2,723 | | | 2% |
| Less: Passthrough distribution revenue | | 19 | | | | 19 | | | 19 | | | 20 | | | | 20 | | | | | 67 | | | 59 | | | -12% |
| Less: Revenue associated with consolidations | | 8 | | | | 31 | | | 32 | | | (25) | | | | 62 | | | | | 2 | | | 69 | | | 3,350% |
| Total adjusted revenues (2) | | 880 | | | | 910 | | | 847 | | | 854 | | | | 894 | | | | | 2,593 | | | 2,595 | | | —% |
| Adjusted operating margin (2)(3) | | 24.9 | % | | | 25.3 | % | | 17.8 | % | | 21.0 | % | | | 23.6 | % | | | | 23.6 | % | | 20.8 | % | | |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses. Benefits and expenses include charges for income attributable to noncontrolling interests and exclude certain components of the consideration for acquisitions. |
| (2) Not calculated in accordance with GAAP. Adjusted revenue excludes passthrough distribution revenue and revenue associated with consolidations. Adjusted operating income before income taxes as a percentage of total adjusted revenues. |
| (3) Reported Operating Margin based on total revenues is 21.6%, 21.1%, 16.8%, 23.9%, and 24.2% for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively, and 19.9% and 23.0% for the nine months ended September 30, 2023 and September 30, 2022, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| PGIM - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Supplementary Revenue Information (in millions): | | | | | | | | | | | | | | | | | | | | |
| Analysis of revenues by type: | | | | | | | | | | | | | | | | | | | | |
| Asset management fees | | 742 | | | | 725 | | | 720 | | | 726 | | | | 738 | | | | | 2,307 | | | 2,184 | | | -5% |
| Other related revenues (1) | | 80 | | | | 113 | | | 52 | | | 58 | | | | 71 | | | | | 116 | | | 181 | | | 56% |
| Service, distribution and other revenues | | 85 | | | | 122 | | | 126 | | | 65 | | | | 167 | | | | | 239 | | | 358 | | | 50% |
| Total PGIM revenues | | 907 | | | | 960 | | | 898 | | | 849 | | | | 976 | | | | | 2,662 | | | 2,723 | | | 2% |
| Analysis of asset management fees by source: | | | | | | | | | | | | | | | | | | | | |
| Institutional customers | | 364 | | | | 359 | | | 362 | | | 357 | | | | 363 | | | | | 1,084 | | | 1,082 | | | —% |
| Retail customers | | 256 | | | | 250 | | | 243 | | | 253 | | | | 261 | | | | | 831 | | | 757 | | | -9% |
| General account | | 122 | | | | 116 | | | 115 | | | 116 | | | | 114 | | | | | 392 | | | 345 | | | -12% |
| Total asset management fees | | 742 | | | | 725 | | | 720 | | | 726 | | | | 738 | | | | | 2,307 | | | 2,184 | | | -5% |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Supplementary Assets Under Management Information (at fair market value) (in billions): | | | | | | | | | | | |
| | | September 30, 2023 | | | | |
| | | Public Equity | | | Public Fixed Income | | Real Estate | | Private Credit and Other Alternatives | | | Multi-Asset | | | | Total | | | | |
| Institutional customers | | 56.2 | | | | 387.2 | | | 70.5 | | | 32.4 | | | | 1.3 | | | | | 547.6 | | | | | |
| Retail customers | | 108.1 | | | | 131.6 | | | 2.2 | | | 0.9 | | | | 69.7 | | | | | 312.5 | | | | | |
| General account | | 3.6 | | | | 228.6 | | | 54.4 | | | 71.9 | | | | — | | | | | 358.5 | | | | | |
| Total | | 167.9 | | | | 747.4 | | | 127.1 | | | 105.2 | | | | 71.0 | | | | | 1,218.6 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | September 30, 2022 | | | | |
| | | Public Equity | | | Public Fixed Income | | Real Estate | | Private Credit and Other Alternatives | | | Multi-Asset | | | | Total | | | | |
| Institutional customers | | 46.8 | | | | 384.8 | | | 74.1 | | | 29.4 | | | | 1.2 | | | | | 536.3 | | | | | |
| Retail customers | | 94.0 | | | | 131.4 | | | 2.1 | | | 0.9 | | | | 69.7 | | | | | 298.1 | | | | | |
| General account | | 3.3 | | | | 246.3 | | | 52.8 | | | 69.4 | | | | — | | | | | 371.8 | | | | | |
| Total | | 144.1 | | | | 762.5 | | | 129.0 | | | 99.7 | | | | 70.9 | | | | | 1,206.2 | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| (1) Other related revenues, net of related expenses are $37 million, $31 million, $28 million, $51 million, and $47 million for the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively, and $96 million and $57 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| PGIM - SUPPLEMENTARY ASSETS UNDER MANAGEMENT INFORMATION | | | | | | | | | | | | | | | | | | |
| (in billions) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | |
| Institutional Customers - Assets Under Management (at fair market value): | | | | | | | | | | | | | | | | | | |
| Beginning assets under management | | 539.7 | | | | 516.6 | | | 528.9 | | | 540.2 | | | | 536.7 | | | | | 568.0 | | | 528.9 | |
| Additions | | 16.4 | | | | 13.8 | | | 13.9 | | | 18.9 | | | | 14.4 | | | | | 57.8 | | | 47.2 | |
| Withdrawals | | (15.8) | | | | (19.8) | | | (24.1) | | | (21.9) | | | | (18.2) | | | | | (48.8) | | | (64.2) | |
| Net institutional additions (withdrawals), excluding money market activity | | 0.6 | | | | (6.0) | | | (10.2) | | | (3.0) | | | | (3.8) | | | | | 9.0 | | | (17.0) | |
| Change in market value | | (22.1) | | | | 17.0 | | | 17.2 | | | 3.5 | | | | (13.8) | | | | | (102.8) | | | 6.9 | |
| Net money market flows | | (0.9) | | | | (0.7) | | | 3.2 | | | (3.7) | | | | 0.1 | | | | | 0.1 | | | (0.4) | |
| Other (1) | | (0.7) | | | | 2.0 | | | 1.1 | | | (0.3) | | | | 9.4 | | | | | 42.3 | | | 10.2 | |
| Ending assets under management | | 516.6 | | | | 528.9 | | | 540.2 | | | 536.7 | | | | 528.6 | | | | | 516.6 | | | 528.6 | |
| Affiliated institutional assets under management | | 19.7 | | | | 20.3 | | | 21.0 | | | 20.0 | | | | 19.0 | | | | | 19.7 | | | 19.0 | |
| Total assets managed for institutional customers at end of period | | 536.3 | | | | 549.2 | | | 561.2 | | | 556.7 | | | | 547.6 | | | | | 536.3 | | | 547.6 | |
| Retail Customers - Assets Under Management (at fair market value): | | | | | | | | | | | | | | | | | | |
| Beginning assets under management | | 204.0 | | | | 192.2 | | | 191.7 | | | 201.4 | | | | 209.4 | | | | | 265.8 | | | 191.7 | |
| Additions | | 13.5 | | | | 16.5 | | | 12.6 | | | 12.6 | | | | 11.9 | | | | | 49.8 | | | 37.1 | |
| Withdrawals | | (18.1) | | | | (22.2) | | | (16.4) | | | (14.8) | | | | (13.8) | | | | | (67.3) | | | (45.0) | |
| Net retail withdrawals, excluding money market activity | | (4.6) | | | | (5.7) | | | (3.8) | | | (2.2) | | | | (1.9) | | | | | (17.5) | | | (7.9) | |
| Change in market value | | (5.5) | | | | 4.2 | | | 13.6 | | | 10.3 | | | | (4.7) | | | | | (61.0) | | | 19.2 | |
| Net money market flows | | — | | | | 1.0 | | | 0.4 | | | 0.2 | | | | 0.7 | | | | | 0.9 | | | 1.3 | |
| Other | | (1.7) | | | | — | | | (0.5) | | | (0.3) | | | | (0.4) | | | | | 4.0 | | | (1.2) | |
| Ending assets under management | | 192.2 | | | | 191.7 | | | 201.4 | | | 209.4 | | | | 203.1 | | | | | 192.2 | | | 203.1 | |
| Affiliated retail assets under management | | 105.9 | | | | 107.9 | | | 113.0 | | | 114.7 | | | | 109.4 | | | | | 105.9 | | | 109.4 | |
| Total assets managed for retail customers at end of period | | 298.1 | | | | 299.6 | | | 314.4 | | | 324.1 | | | | 312.5 | | | | | 298.1 | | | 312.5 | |
| | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | |
| (1) Other includes $9.5 billion related to the reinsurance of in-force structured settlement annuities business to Prismic Life Reinsurance, Ltd in September 2023 which was previously included in General Account assets under management. |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - U.S. BUSINESSES | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 12,038 | | | | 2,895 | | | 5,268 | | | 3,098 | | | | 550 | | | | | 18,106 | | | 8,916 | | | -51% |
| Policy charges and fee income | | 1,013 | | | | 1,028 | | | 1,014 | | | 968 | | | | 997 | | | | | 2,961 | | | 2,979 | | | 1% |
| Net investment income | | 1,729 | | | | 1,989 | | | 2,117 | | | 2,253 | | | | 2,355 | | | | | 5,528 | | | 6,725 | | | 22% |
| Asset management fees, commissions and other income | | 641 | | | | 584 | | | 676 | | | 699 | | | | 637 | | | | | 3,396 | | | 2,012 | | | -41% |
| Total revenues | | 15,421 | | | | 6,496 | | | 9,075 | | | 7,018 | | | | 4,539 | | | | | 29,991 | | | 20,632 | | | -31% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 13,020 | | | | 4,021 | | | 6,434 | | | 4,284 | | | | 1,601 | | | | | 21,842 | | | 12,319 | | | -44% |
| Change in estimates of liability for future policy benefits | | 21 | | | | (9) | | | 16 | | | (134) | | | | 33 | | | | | 829 | | | (85) | | | -110% |
| Interest credited to policyholders' account balances | | 413 | | | | 508 | | | 507 | | | 523 | | | | 540 | | | | | 1,279 | | | 1,570 | | | 23% |
| Interest expense | | 197 | | | | 165 | | | 251 | | | 249 | | | | 226 | | | | | 609 | | | 726 | | | 19% |
| Deferral of acquisition costs | | (254) | | | | (253) | | | (274) | | | (295) | | | | (307) | | | | | (763) | | | (876) | | | -15% |
| Amortization of acquisition costs | | 213 | | | | 195 | | | 212 | | | 205 | | | | 204 | | | | | 626 | | | 621 | | | -1% |
| General and administrative expenses | | 1,196 | | | | 1,159 | | | 1,169 | | | 1,230 | | | | 1,154 | | | | | 3,568 | | | 3,553 | | | —% |
| Total benefits and expenses | | 14,806 | | | | 5,786 | | | 8,315 | | | 6,062 | | | | 3,451 | | | | | 27,990 | | | 17,828 | | | -36% |
| Adjusted operating income before income taxes | | 615 | | | | 710 | | | 760 | | | 956 | | | | 1,088 | | | | | 2,001 | | | 2,804 | | | 40% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes, and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 10,576 | | | | 1,419 | | | 3,785 | | | 1,561 | | | | (959) | | | | | 13,703 | | | 4,387 | | | -68% |
| Policy charges and fee income | | 346 | | | | 344 | | | 332 | | | 320 | | | | 318 | | | | | 1,209 | | | 970 | | | -20% |
| Net investment income | | 1,028 | | | | 1,243 | | | 1,322 | | | 1,416 | | | | 1,491 | | | | | 3,328 | | | 4,229 | | | 27% |
| Asset management fees, commissions and other income | | 489 | | | | 450 | | | 545 | | | 559 | | | | 524 | | | | | 2,890 | | | 1,628 | | | -44% |
| Total revenues | | 12,439 | | | | 3,456 | | | 5,984 | | | 3,856 | | | | 1,374 | | | | | 21,130 | | | 11,214 | | | -47% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 11,042 | | | | 2,004 | | | 4,383 | | | 2,312 | | | | (417) | | | | | 15,621 | | | 6,278 | | | -60% |
| Change in estimates of liability for future policy benefits | | 18 | | | | 2 | | | (42) | | | (157) | | | | 31 | | | | | (526) | | | (168) | | | 68% |
| Interest credited to policyholders' account balances | | 143 | | | | 232 | | | 240 | | | 255 | | | | 270 | | | | | 476 | | | 765 | | | 61% |
| Interest expense | | (10) | | | | (53) | | | 24 | | | 15 | | | | 14 | | | | | 13 | | | 53 | | | 308% |
| Deferral of acquisition costs | | (83) | | | | (79) | | | (99) | | | (107) | | | | (117) | | | | | (250) | | | (323) | | | -29% |
| Amortization of acquisition costs | | 100 | | | | 81 | | | 97 | | | 89 | | | | 89 | | | | | 292 | | | 275 | | | -6% |
| General and administrative expenses | | 574 | | | | 522 | | | 544 | | | 573 | | | | 563 | | | | | 1,722 | | | 1,680 | | | -2% |
| Total benefits and expenses | | 11,784 | | | | 2,709 | | | 5,147 | | | 2,980 | | | | 433 | | | | | 17,348 | | | 8,560 | | | -51% |
| Adjusted operating income before income taxes | | 655 | | | | 747 | | | 837 | | | 876 | | | | 941 | | | | | 3,782 | | | 2,654 | | | -30% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 10,558 | | | | 1,395 | | | 3,763 | | | 1,531 | | | | (979) | | | | | 13,642 | | | 4,315 | | | -68% |
| Policy charges and fee income | | 11 | | | | 6 | | | 8 | | | 8 | | | | 10 | | | | | 28 | | | 26 | | | -7% |
| Net investment income | | 824 | | | | 969 | | | 1,004 | | | 1,072 | | | | 1,098 | | | | | 2,684 | | | 3,174 | | | 18% |
| Asset management fees, commissions and other income | | 75 | | | | 109 | | | 114 | | | 126 | | | | 92 | | | | | 283 | | | 332 | | | 17% |
| Total revenues | | 11,468 | | | | 2,479 | | | 4,889 | | | 2,737 | | | | 221 | | | | | 16,637 | | | 7,847 | | | -53% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 11,028 | | | | 1,960 | | | 4,350 | | | 2,263 | | | | (438) | | | | | 15,516 | | | 6,175 | | | -60% |
| Change in estimates of liability for future policy benefits | | 12 | | | | (6) | | | (44) | | | (156) | | | | 24 | | | | | (528) | | | (176) | | | 67% |
| Interest credited to policyholders' account balances | | 100 | | | | 139 | | | 125 | | | 144 | | | | 146 | | | | | 255 | | | 415 | | | 63% |
| Interest expense | | 6 | | | | 7 | | | 10 | | | (4) | | | | (6) | | | | | 8 | | | — | | | -100% |
| Deferral of acquisition costs | | (11) | | | | (5) | | | (17) | | | (16) | | | | (18) | | | | | (16) | | | (51) | | | -219% |
| Amortization of acquisition costs | | 2 | | | | 3 | | | 4 | | | 6 | | | | 3 | | | | | 8 | | | 13 | | | 63% |
| General and administrative expenses | | 63 | | | | 49 | | | 65 | | | 72 | | | | 71 | | | | | 179 | | | 208 | | | 16% |
| Total benefits and expenses | | 11,200 | | | | 2,147 | | | 4,493 | | | 2,309 | | | | (218) | | | | | 15,422 | | | 6,584 | | | -57% |
| Adjusted operating income before income taxes | | 268 | | | | 332 | | | 396 | | | 428 | | | | 439 | | | | | 1,215 | | | 1,263 | | | 4% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - RETIREMENT STRATEGIES - INSTITUTIONAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | | | Year-to-date |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | |
| Beginning total account value | | | 234,594 | | | | 238,313 | | | 251,818 | | | 252,952 | | | | 258,533 | | | | 245,720 | | | 251,818 | |
| Additions | | | 13,518 | | | | 12,277 | | | 3,828 | | | 5,686 | | | | 4,697 | | | | 19,496 | | | 14,211 | |
| Withdrawals and benefits | | | (3,691) | | | | (4,248) | | | (5,474) | | | (5,865) | | | | (7,781) | | | | (12,150) | | | (19,120) | |
| Net flows | | | 9,827 | | | | 8,029 | | | (1,646) | | | (179) | | | | (3,084) | | | | 7,346 | | | (4,909) | |
| Change in market value, interest credited and interest income | | | (553) | | | | 402 | | | 1,823 | | | 2,456 | | | | 878 | | | | (4,512) | | | 5,157 | |
| Other (1) | | | (5,555) | | | | 5,074 | | | 957 | | | 3,304 | | | | (1,394) | | | | (10,241) | | | 2,867 | |
| Ending total account value, gross | | | 238,313 | | | | 251,818 | | | 252,952 | | | 258,533 | | | | 254,933 | | | | 238,313 | | | 254,933 | |
| Reinsurance ceded | | | — | | | | — | | | — | | | — | | | | (9,273) | | | | — | | | (9,273) | |
| Ending total account value, net | | | 238,313 | | | | 251,818 | | | 252,952 | | | 258,533 | | | | 245,660 | | | | 238,313 | | | 245,660 | |
| Amounts included in ending total account value, net above: | | | | | | | | | | | | | | | | | | |
| Investment-only stable value wraps | | | 71,168 | | | | 69,521 | | | 68,170 | | | 67,335 | | | | 65,497 | | | | | | |
| International reinsurance (2) | | | 68,581 | | | | 83,910 | | | 84,137 | | | 90,612 | | | | 88,253 | | | | | | |
| Group annuities and other products | | | 98,564 | | | | 98,387 | | | 100,645 | | | 100,586 | | | | 91,910 | | | | | | |
| Ending total account value, net | | | 238,313 | | | | 251,818 | | | 252,952 | | | 258,533 | | | | 245,660 | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| (1) Other activity includes the effect of foreign exchange rate changes associated with our United Kingdom international reinsurance business; net presentation of receipts and payments related to funding agreements backed commercial paper which typically have maturities of less than 90 days, and changes in asset balances for externally-managed accounts. |
| (2) Represents notional amounts based on present value of future benefits under international reinsurance contracts. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 18 | | | | 24 | | | 22 | | | 30 | | | | 20 | | | | | 61 | | | 72 | | | 18% |
| Policy charges and fee income | | 335 | | | | 338 | | | 324 | | | 312 | | | | 308 | | | | | 1,181 | | | 944 | | | -20% |
| Net investment income | | 204 | | | | 274 | | | 318 | | | 344 | | | | 393 | | | | | 644 | | | 1,055 | | | 64% |
| Asset management fees, commissions and other income | | 414 | | | | 341 | | | 431 | | | 433 | | | | 432 | | | | | 2,607 | | | 1,296 | | | -50% |
| Total revenues | | 971 | | | | 977 | | | 1,095 | | | 1,119 | | | | 1,153 | | | | | 4,493 | | | 3,367 | | | -25% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 14 | | | | 44 | | | 33 | | | 49 | | | | 21 | | | | | 105 | | | 103 | | | -2% |
| Change in estimates of liability for future policy benefits | | 6 | | | | 8 | | | 2 | | | (1) | | | | 7 | | | | | 2 | | | 8 | | | 300% |
| Interest credited to policyholders' account balances | | 43 | | | | 93 | | | 115 | | | 111 | | | | 124 | | | | | 221 | | | 350 | | | 58% |
| Interest expense | | (16) | | | | (60) | | | 14 | | | 19 | | | | 20 | | | | | 5 | | | 53 | | | 960% |
| Deferral of acquisition costs | | (72) | | | | (74) | | | (82) | | | (91) | | | | (99) | | | | | (234) | | | (272) | | | -16% |
| Amortization of acquisition costs | | 98 | | | | 78 | | | 93 | | | 83 | | | | 86 | | | | | 284 | | | 262 | | | -8% |
| General and administrative expenses | | 511 | | | | 473 | | | 479 | | | 501 | | | | 492 | | | | | 1,543 | | | 1,472 | | | -5% |
| Total benefits and expenses | | 584 | | | | 562 | | | 654 | | | 671 | | | | 651 | | | | | 1,926 | | | 1,976 | | | 3% |
| Adjusted operating income before income taxes | | 387 | | | | 415 | | | 441 | | | 448 | | | | 502 | | | | | 2,567 | | | 1,391 | | | -46% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, and change in value of market risk benefits, net of related hedging gains (losses). Benefits and expenses exclude charges related to realized investment gains, net of losses. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES SALES RESULTS AND ACCOUNT VALUES | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | | | | Year-to-date |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Actively -Sold Protected Investment and Income Product Sales (1): | | | | | | | | | | | | | | | | | | | |
| FlexGuard Suite | | | 1,080 | | | | 1,062 | | | 1,088 | | | 1,240 | | | | 1,279 | | | | | 3,936 | | | 3,607 | |
| Investment Only VA (2) | | | 46 | | | | 31 | | | 32 | | | 36 | | | | 48 | | | | | 198 | | | 116 | |
| Fixed | | | 249 | | | | 397 | | | 547 | | | 616 | | | | 616 | | | | | 340 | | | 1,779 | |
| Total | | | 1,375 | | | | 1,490 | | | 1,667 | | | 1,892 | | | | 1,943 | | | | | 4,474 | | | 5,502 | |
| Actively-Sold Protected Investment and Income Solutions (1): | | | | | | | | | | | | | | | | | | | |
| Beginning total account value | | | 18,526 | | | | 19,099 | | | 21,208 | | | 23,268 | | | | 25,970 | | | | | 18,819 | | | 21,208 | |
| Sales | | | 1,375 | | | | 1,490 | | | 1,667 | | | 1,892 | | | | 1,943 | | | | | 4,474 | | | 5,502 | |
| Full surrenders and death benefits | | | (94) | | | | (148) | | | (191) | | | (223) | | | | (208) | | | | | (278) | | | (622) | |
| Sales, net of full surrenders and death benefits | | | 1,281 | | | | 1,342 | | | 1,476 | | | 1,669 | | | | 1,735 | | | | | 4,196 | | | 4,880 | |
| Partial withdrawals and other benefit payments | | | (124) | | | | (158) | | | (135) | | | (131) | | | | (135) | | | | | (381) | | | (401) | |
| Net flows | | | 1,157 | | | | 1,184 | | | 1,341 | | | 1,538 | | | | 1,600 | | | | | 3,815 | | | 4,479 | |
| Change in market value, interest credited, and other | | | (581) | | | | 930 | | | 725 | | | 1,171 | | | | (494) | | | | | (3,529) | | | 1,402 | |
| Policy charges | | | (3) | | | | (5) | | | (6) | | | (7) | | | | (7) | | | | | (6) | | | (20) | |
| Ending total account value, gross | | | 19,099 | | | | 21,208 | | | 23,268 | | | 25,970 | | | | 27,069 | | | | | 19,099 | | | 27,069 | |
| Reinsurance ceded | | | (637) | | | | (817) | | | (1,079) | | | (1,357) | | | | (1,552) | | | | | (637) | | | (1,552) | |
| Ending total account value, net | | | 18,462 | | | | 20,391 | | | 22,189 | | | 24,613 | | | | 25,517 | | | | | 18,462 | | | 25,517 | |
| Discontinued Traditional VA and Guaranteed Living Benefit Block (3): | | | | | | | | | | | | | | | | | | | |
| Beginning total account value | | | 104,612 | | | | 96,691 | | | 98,814 | | | 100,536 | | | | 100,327 | | | | | 163,486 | | | 98,814 | |
| Sales | | | 14 | | | | 7 | | | 8 | | | 9 | | | | 7 | | | | | 56 | | | 24 | |
| Full surrenders and death benefits | | | (1,131) | | | | (994) | | | (1,297) | | | (1,428) | | | | (1,544) | | | | | (4,695) | | | (4,269) | |
| Sales, net of full surrenders and death benefits | | | (1,117) | | | | (987) | | | (1,289) | | | (1,419) | | | | (1,537) | | | | | (4,639) | | | (4,245) | |
| Partial withdrawals and other benefit payments | | | (852) | | | | (1,075) | | | (985) | | | (926) | | | | (927) | | | | | (3,056) | | | (2,838) | |
| Net flows | | | (1,969) | | | | (2,062) | | | (2,274) | | | (2,345) | | | | (2,464) | | | | | (7,695) | | | (7,083) | |
| Change in market value and other | | | (5,340) | | | | 4,809 | | | 4,605 | | | 2,693 | | | | (3,298) | | | | | (57,019) | | | 4,000 | |
| Policy charges | | | (612) | | | | (624) | | | (609) | | | (557) | | | | (544) | | | | | (2,081) | | | (1,710) | |
| Ending total account value, gross | | | 96,691 | | | | 98,814 | | | 100,536 | | | 100,327 | | | | 94,021 | | | | | 96,691 | | | 94,021 | |
| Reinsurance ceded | | | — | | | | — | | | — | | | (10,227) | | | | (9,432) | | | | | — | | | (9,432) | |
| Ending total account value, net | | | 96,691 | | | | 98,814 | | | 100,536 | | | 90,100 | | | | 84,589 | | | | | 96,691 | | | 84,589 | |
| | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| (1) Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits. |
| (2) Represents variable annuities without guaranteed living benefits including Prudential Premier Investment and MyRock. |
| (3) Includes Prudential Highest Daily Income, Prudential Defined Income and other legacy variable products with and without guaranteed minimum income and withdrawal benefits. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES ACCOUNT VALUE ACTIVITY | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | | | | Year-to-date |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | | |
| Account Values in General Account (1): | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | | 19,430 | | | | 20,170 | | | 22,063 | | | 23,948 | | | | 26,455 | | | | | 20,062 | | | 22,063 | |
| Premiums and deposits | | | 1,300 | | | | 1,437 | | | 1,601 | | | 1,821 | | | | 1,856 | | | | | 4,124 | | | 5,278 | |
| Full surrenders and death benefits | | | (86) | | | | (87) | | | (119) | | | (118) | | | | (121) | | | | | (417) | | | (358) | |
| Premiums and deposits net of full surrenders and death benefits | | | 1,214 | | | | 1,350 | | | 1,482 | | | 1,703 | | | | 1,735 | | | | | 3,707 | | | 4,920 | |
| Partial withdrawals and other benefit payments | | | (131) | | | | (167) | | | (148) | | | (149) | | | | (148) | | | | | (429) | | | (445) | |
| Net flows | | | 1,083 | | | | 1,183 | | | 1,334 | | | 1,554 | | | | 1,587 | | | | | 3,278 | | | 4,475 | |
| Change in market value, interest credited and other | | | (240) | | | | 619 | | | 582 | | | 1,181 | | | | (285) | | | | | (2,629) | | | 1,478 | |
| Net transfers (to) from separate account | | | (102) | | | | 92 | | | (30) | | | (227) | | | | (142) | | | | | (539) | | | (399) | |
| Policy charges | | | (1) | | | | (1) | | | (1) | | | (1) | | | | (2) | | | | | (2) | | | (4) | |
| Ending balance, gross | | | 20,170 | | | | 22,063 | | | 23,948 | | | 26,455 | | | | 27,613 | | | | | 20,170 | | | 27,613 | |
| Reinsurance ceded | | | (637) | | | | (817) | | | (1,079) | | | (1,357) | | | | (1,552) | | | | | (637) | | | (1,552) | |
| Ending balance, net | | | 19,533 | | | | 21,246 | | | 22,869 | | | 25,098 | | | | 26,061 | | | | | 19,533 | | | 26,061 | |
| Account Values in Separate Account (1): | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | | 103,708 | | | | 95,620 | | | 97,959 | | | 99,856 | | | | 99,842 | | | | | 162,243 | | | 97,959 | |
| Premiums and deposits | | | 89 | | | | 60 | | | 74 | | | 80 | | | | 94 | | | | | 406 | | | 248 | |
| Full surrenders and death benefits | | | (1,139) | | | | (1,055) | | | (1,369) | | | (1,533) | | | | (1,631) | | | | | (4,556) | | | (4,533) | |
| Premiums and deposits net of full surrenders and death benefits | | | (1,050) | | | | (995) | | | (1,295) | | | (1,453) | | | | (1,537) | | | | | (4,150) | | | (4,285) | |
| Partial withdrawals and other benefit payments | | | (845) | | | | (1,066) | | | (972) | | | (908) | | | | (914) | | | | | (3,008) | | | (2,794) | |
| Net flows | | | (1,895) | | | | (2,061) | | | (2,267) | | | (2,361) | | | | (2,451) | | | | | (7,158) | | | (7,079) | |
| Change in market value, interest credited and other | | | (5,681) | | | | 5,120 | | | 4,748 | | | 2,683 | | | | (3,507) | | | | | (57,919) | | | 3,924 | |
| Net transfers (to) from general account | | | 102 | | | | (92) | | | 30 | | | 227 | | | | 142 | | | | | 539 | | | 399 | |
| Policy charges | | | (614) | | | | (628) | | | (614) | | | (563) | | | | (549) | | | | | (2,085) | | | (1,726) | |
| Ending balance, gross | | | 95,620 | | | | 97,959 | | | 99,856 | | | 99,842 | | | | 93,477 | | | | | 95,620 | | | 93,477 | |
| Reinsurance ceded | | | — | | | | — | | | — | | | (10,227) | | | | (9,432) | | | | | — | | | (9,432) | |
| Ending balance, net | | | 95,620 | | | | 97,959 | | | 99,856 | | | 89,615 | | | | 84,045 | | | | | 95,620 | | | 84,045 | |
| | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| (1) Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company's general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - RETIREMENT STRATEGIES - INDIVIDUAL RETIREMENT STRATEGIES MARKET RISK BENEFIT FEATURES | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | 2022 | | 2023 | |
| | | | | | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| MARKET RISK BENEFITS ACCOUNT VALUES AND NET AMOUNT AT RISK (1): | | | | | | | | | | | | | | | | | | |
| Market Risk Benefits Account Values by Risk Management Design: | | | | | | | | | | | | | | | | | | |
| Account Values with Auto-Rebalancing Feature - risk retained by Prudential | | | | | | | 67,654 | | | | 69,365 | | | 70,701 | | | 70,816 | | | | 66,563 | | |
| Account Values with Auto-Rebalancing Feature - externally reinsured | | | | | | | 2,446 | | | | 2,482 | | | 2,493 | | | 2,468 | | | | 2,269 | | |
| Account Values without Auto-Rebalancing Feature | | | | | | | 25,294 | | | | 25,660 | | | 26,004 | | | 25,667 | | | | 23,869 | | |
| Total | | | | | | | 95,394 | | | | 97,507 | | | 99,198 | | | 98,951 | | | | 92,701 | | |
| Market Risk Benefits Net Amount at Risk by Product Design Type: | | | | | | | | | | | | | | | | | | |
| Net Amount at Risk with Auto-Rebalancing Feature | | | | | | | 10,669 | | | | 9,335 | | | 8,167 | | | 7,803 | | | | 9,508 | | |
| Net Amount at Risk without Auto-Rebalancing Feature | | | | | | | 4,630 | | | | 3,845 | | | 3,165 | | | 3,082 | | | | 3,909 | | |
| Total | | | | | | | 15,299 | | | | 13,180 | | | 11,332 | | | 10,885 | | | | 13,417 | | |
| __________ | | | | | | | | | | | | | | | | | | |
| (1) At end of period. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - U.S. BUSINESSES - GROUP INSURANCE | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 1,215 | | | | 1,231 | | | 1,237 | | | 1,288 | | | | 1,268 | | | | | 3,643 | | | 3,793 | | | 4% |
| Policy charges and fee income | | 170 | | | | 185 | | | 181 | | | 161 | | | | 163 | | | | | 496 | | | 505 | | | 2% |
| Net investment income | | 121 | | | | 117 | | | 126 | | | 128 | | | | 130 | | | | | 362 | | | 384 | | | 6% |
| Asset management fees, commissions and other income | | 19 | | | | 22 | | | 20 | | | 21 | | | | 15 | | | | | 59 | | | 56 | | | -5% |
| Total revenues | | 1,525 | | | | 1,555 | | | 1,564 | | | 1,598 | | | | 1,576 | | | | | 4,560 | | | 4,738 | | | 4% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 1,196 | | | | 1,221 | | | 1,218 | | | 1,140 | | | | 1,179 | | | | | 3,693 | | | 3,537 | | | -4% |
| Change in estimates of liability for future policy benefits | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Interest credited to policyholders' account balances | | 37 | | | | 41 | | | 44 | | | 41 | | | | 39 | | | | | 112 | | | 124 | | | 11% |
| Interest expense | | 1 | | | | 1 | | | 4 | | | 2 | | | | 1 | | | | | 3 | | | 7 | | | 133% |
| Deferral of acquisition costs | | (1) | | | | — | | | — | | | — | | | | (1) | | | | | (3) | | | (1) | | | 67% |
| Amortization of acquisition costs | | 2 | | | | 1 | | | 1 | | | 2 | | | | 1 | | | | | 1 | | | 4 | | | 300% |
| General and administrative expenses | | 260 | | | | 276 | | | 272 | | | 274 | | | | 268 | | | | | 785 | | | 814 | | | 4% |
| Total benefits and expenses | | 1,495 | | | | 1,540 | | | 1,539 | | | 1,459 | | | | 1,487 | | | | | 4,591 | | | 4,485 | | | -2% |
| Adjusted operating income (loss) before income taxes | | 30 | | | | 15 | | | 25 | | | 139 | | | | 89 | | | | | (31) | | | 253 | | | 916% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - GROUP INSURANCE SUPPLEMENTARY INFORMATION | | | | | | |
| (dollar amounts in millions, or as otherwise noted) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | | | | Year-to-date |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Annualized New Business Premiums: | | | | | | | | | | | | | | | | | | |
| Group life | | 67 | | | | 10 | | | 162 | | | 32 | | | | 61 | | | | | 273 | | | 255 | |
| Group disability | | 36 | | | | 13 | | | 157 | | | 25 | | | | 34 | | | | | 183 | | | 216 | |
| Total | | 103 | | | | 23 | | | 319 | | | 57 | | | | 95 | | | | | 456 | | | 471 | |
| Future Policy Benefits (1): | | | | | | | | | | | | | | | | | | |
| Group life | | 2,366 | | | | 2,551 | | | 2,397 | | | 2,309 | | | | 2,242 | | | | | | | |
| Group disability | | 3,098 | | | | 3,106 | | | 3,141 | | | 3,144 | | | | 3,175 | | | | | | | |
| Total | | 5,464 | | | | 5,657 | | | 5,538 | | | 5,453 | | | | 5,417 | | | | | | | |
| Policyholders' Account Balances (1): | | | | | | | | | | | | | | | | | | |
| Group life | | 5,889 | | | | 5,751 | | | 5,480 | | | 5,385 | | | | 5,250 | | | | | | | |
| Group disability | | 125 | | | | 131 | | | 117 | | | 121 | | | | 112 | | | | | | | |
| Total | | 6,014 | | | | 5,882 | | | 5,597 | | | 5,506 | | | | 5,362 | | | | | | | |
| Separate Account Liabilities (1): | | | | | | | | | | | | | | | | | | |
| Group life | | 22,789 | | | | 23,513 | | | 24,661 | | | 23,747 | | | | 22,864 | | | | | | | |
| Group Life Insurance: | | | | | | | | | | | | | | | | | | |
| Gross premiums, policy charges and fee income (2) | | 1,050 | | | | 1,121 | | | 1,085 | | | 1,135 | | | | 1,100 | | | | | 3,207 | | | 3,320 | |
| Earned premiums | | 885 | | | | 899 | | | 892 | | | 937 | | | | 900 | | | | | 2,689 | | | 2,729 | |
| Earned policy charges and fee income | | 145 | | | | 164 | | | 158 | | | 137 | | | | 138 | | | | | 424 | | | 433 | |
| Benefits ratio (3) | | 91.2 | % | | | 90.2 | % | | 92.9 | % | | 85.1 | % | | | 84.8 | % | | | | 94.4 | % | | 87.6 | % |
| Administrative operating expense ratio | | 10.9 | % | | | 10.9 | % | | 11.8 | % | | 11.9 | % | | | 11.8 | % | | | | 10.8 | % | | 11.8 | % |
| Persistency ratio | | 96.0 | % | | | 95.9 | % | | 94.4 | % | | 94.0 | % | | | 93.7 | % | | | | | | |
| Group Disability Insurance: | | | | | | | | | | | | | | | | | | |
| Gross premiums, policy charges and fee income (2) | | 356 | | | | 361 | | | 371 | | | 380 | | | | 393 | | | | | 1,040 | | | 1,144 | |
| Earned premiums | | 330 | | | | 332 | | | 345 | | | 351 | | | | 368 | | | | | 954 | | | 1,064 | |
| Earned policy charges and fee income | | 25 | | | | 21 | | | 23 | | | 24 | | | | 25 | | | | | 72 | | | 72 | |
| Benefits ratio (3) | | 72.5 | % | | | 74.2 | % | | 65.8 | % | | 69.8 | % | | | 76.2 | % | | | | 73.0 | % | | 70.7 | % |
| Administrative operating expense ratio | | 30.3 | % | | | 31.6 | % | | 25.2 | % | | 25.6 | % | | | 24.1 | % | | | | 31.2 | % | | 24.9 | % |
| Persistency ratio | | 90.9 | % | | | 90.6 | % | | 92.5 | % | | 91.9 | % | | | 91.2 | % | | | | | | |
| Total Group Insurance: | | | | | | | | | | | | | | | | | | |
| Benefits ratio (3) | | 86.4 | % | | | 86.2 | % | | 85.9 | % | | 81.1 | % | | | 82.4 | % | | | | 89.2 | % | | 83.1 | % |
| Administrative operating expense ratio | | 15.9 | % | | | 15.9 | % | | 15.2 | % | | 15.4 | % | | | 15.1 | % | | | | 15.8 | % | | 15.2 | % |
| Net face amount of policies in force (in billions) (4) | | 2,103 | | | 2,126 | | 2,104 | | 2,153 | | | 2,143 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| (1) As of end of period. |
| (2) Before returns of premiums to participating policyholders for favorable claims experience. |
| (3) Benefits ratios excluding the impact of the annual assumption updates and other refinements in the second quarter. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 83.0%, 66.4%, and 78.7% for the three months ended June 30, 2023, respectively. Benefits ratios including these impacts for Group Life, Group Disability, and Total Group Insurance are 86.9%, 69.6%, 82.3% and 94.2%, 73.8%, 89.2% for the nine months ended September 30, 2023 and September 30, 2022, respectively. |
| (4) At end of period; net of reinsurance. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| U.S. BUSINESSES - STATEMENTS OF OPERATIONS - INDIVIDUAL LIFE | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 247 | | | | 245 | | | 246 | | | 249 | | | | 241 | | | | | 760 | | | 736 | | | -3% |
| Policy charges and fee income | | 497 | | | | 499 | | | 501 | | | 487 | | | | 516 | | | | | 1,256 | | | 1,504 | | | 20% |
| Net investment income | | 580 | | | | 629 | | | 669 | | | 709 | | | | 734 | | | | | 1,838 | | | 2,112 | | | 15% |
| Asset management fees, commissions and other income | | 133 | | | | 112 | | | 111 | | | 119 | | | | 98 | | | | | 447 | | | 328 | | | -27% |
| Total revenues | | 1,457 | | | | 1,485 | | | 1,527 | | | 1,564 | | | | 1,589 | | | | | 4,301 | | | 4,680 | | | 9% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 782 | | | | 796 | | | 833 | | | 832 | | | | 839 | | | | | 2,528 | | | 2,504 | | | -1% |
| Change in estimates of liability for future policy benefits | | 3 | | | | (11) | | | 58 | | | 23 | | | | 2 | | | | | 1,355 | | | 83 | | | -94% |
| Interest credited to policyholders' account balances | | 233 | | | | 235 | | | 223 | | | 227 | | | | 231 | | | | | 691 | | | 681 | | | -1% |
| Interest expense | | 206 | | | | 217 | | | 223 | | | 232 | | | | 211 | | | | | 593 | | | 666 | | | 12% |
| Deferral of acquisition costs | | (170) | | | | (174) | | | (175) | | | (188) | | | | (189) | | | | | (510) | | | (552) | | | -8% |
| Amortization of acquisition costs | | 111 | | | | 113 | | | 114 | | | 114 | | | | 114 | | | | | 333 | | | 342 | | | 3% |
| General and administrative expenses | | 362 | | | | 361 | | | 353 | | | 383 | | | | 323 | | | | | 1,061 | | | 1,059 | | | —% |
| Total benefits and expenses | | 1,527 | | | | 1,537 | | | 1,629 | | | 1,623 | | | | 1,531 | | | | | 6,051 | | | 4,783 | | | -21% |
| Adjusted operating income (loss) before income taxes | | (70) | | | | (52) | | | (102) | | | (59) | | | | 58 | | | | | (1,750) | | | (103) | | | 94% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. Revenues and Benefits and expenses exclude market experience updates. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| U.S. BUSINESSES - INDIVIDUAL LIFE SUPPLEMENTARY INFORMATION | | | | | | | | | |
| (in millions, or as otherwise noted) | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | |
| ANNUALIZED NEW BUSINESS PREMIUMS (1): | | | | | | | | | | | | | | | | | | |
| Term life | | 24 | | | | 22 | | | 23 | | | 31 | | | | 33 | | | | | 71 | | | 87 | |
| Universal life | | 23 | | | | 25 | | | 17 | | | 20 | | | | 17 | | | | | 67 | | | 54 | |
| Variable life | | 103 | | | | 107 | | | 109 | | | 146 | | | | 136 | | | | | 317 | | | 391 | |
| Total | | 150 | | | | 154 | | | 149 | | | 197 | | | | 186 | | | | | 455 | | | 532 | |
| ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1): | | | | | | | | | | | | | | | | | | |
| Prudential Advisors | | 33 | | | | 32 | | | 33 | | | 38 | | | | 35 | | | | | 101 | | | 106 | |
| Third party distribution | | 117 | | | | 122 | | | 116 | | | 159 | | | | 151 | | | | | 354 | | | 426 | |
| Total | | 150 | | | | 154 | | | 149 | | | 197 | | | | 186 | | | | | 455 | | | 532 | |
| ACCOUNT VALUE ACTIVITY: | | | | | | | | | | | | | | | | | | |
| Policyholders' Account Balances (2): | | | | | | | | | | | | | | | | | | |
| Beginning balance | | 31,274 | | | | 31,400 | | | 31,522 | | | 31,644 | | | | 32,713 | | | | | 31,304 | | | 31,522 | |
| Premiums and deposits | | 642 | | | | 647 | | | 636 | | | 577 | | | | 587 | | | | | 1,934 | | | 1,800 | |
| Surrenders and withdrawals | | (348) | | | | (478) | | | (455) | | | (429) | | | | (417) | | | | | (1,209) | | | (1,301) | |
| Net sales | | 294 | | | | 169 | | | 181 | | | 148 | | | | 170 | | | | | 725 | | | 499 | |
| Benefit payments | | (51) | | | | (51) | | | (59) | | | (45) | | | | (41) | | | | | (171) | | | (145) | |
| Net flows | | 243 | | | | 118 | | | 122 | | | 103 | | | | 129 | | | | | 554 | | | 354 | |
| Interest credited and other | | 314 | | | | 426 | | | 461 | | | 406 | | | | 274 | | | | | 751 | | | 1,141 | |
| Net transfers from separate account | | 89 | | | | 98 | | | 78 | | | 1,079 | | | | 128 | | | | | 355 | | | 1,285 | |
| Policy charges | | (520) | | | | (520) | | | (539) | | | (519) | | | | (514) | | | | | (1,564) | | | (1,572) | |
| Ending balance | | 31,400 | | | | 31,522 | | | 31,644 | | | 32,713 | | | | 32,730 | | | | | 31,400 | | | 32,730 | |
| Separate Account Liabilities: | | | | | | | | | | | | | | | | | | |
| Beginning balance | | 38,931 | | | | 37,250 | | | 39,419 | | | 41,650 | | | | 43,230 | | | | | 48,133 | | | 39,419 | |
| Premiums and deposits | | 671 | | | | 684 | | | 709 | | | 865 | | | | 739 | | | | | 2,029 | | | 2,313 | |
| Surrenders and withdrawals | | (242) | | | | (179) | | | (224) | | | (278) | | | | (212) | | | | | (717) | | | (714) | |
| Net sales | | 429 | | | | 505 | | | 485 | | | 587 | | | | 527 | | | | | 1,312 | | | 1,599 | |
| Benefit payments | | (171) | | | | (102) | | | (130) | | | (91) | | | | (119) | | | | | (433) | | | (340) | |
| Net flows | | 258 | | | | 403 | | | 355 | | | 496 | | | | 408 | | | | | 879 | | | 1,259 | |
| Change in market value, interest credited and other | | (1,532) | | | | 2,188 | | | 2,286 | | | 2,489 | | | | (1,003) | | | | | (10,462) | | | 3,772 | |
| Net transfers to general account | | (89) | | | | (98) | | | (78) | | | (1,079) | | | | (128) | | | | | (355) | | | (1,285) | |
| Policy charges | | (318) | | | | (324) | | | (332) | | | (326) | | | | (336) | | | | | (945) | | | (994) | |
| Ending balance | | 37,250 | | | | 39,419 | | | 41,650 | | | 43,230 | | | | 42,171 | | | | | 37,250 | | | 42,171 | |
| NET FACE AMOUNT IN FORCE (in billions) (3): | | | | | | | | | | | | | | | | | | |
| Term life | | 297 | | | | 296 | | | 295 | | | 294 | | | | 293 | | | | | | | |
| Universal life | | 99 | | | | 98 | | | 98 | | | 98 | | | | 97 | | | | | | | |
| Variable life | | 143 | | | | 145 | | | 148 | | | 150 | | | | 150 | | | | | | | |
| Total | | 539 | | | | 539 | | | 541 | | | 542 | | | | 540 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | |
| (1) Excludes corporate-owned life insurance. |
| (2) Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products. |
| (3) At end of period; net of reinsurance. Net Face Amount In Force excludes certain policies considered to be non-core business drivers impacting Adjusted Operating Income for Individual Life. Policies within the Closed Block division are not reported through Individual Life. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 3,291 | | | | 3,016 | | | 3,569 | | | 3,274 | | | | 3,112 | | | | | 10,375 | | | 9,955 | | | -4% |
| Policy charges and fee income | | 83 | | | | 84 | | | 72 | | | 77 | | | | 77 | | | | | 256 | | | 226 | | | -12% |
| Net investment income | | 1,112 | | | | 1,271 | | | 1,285 | | | 1,321 | | | | 1,316 | | | | | 3,695 | | | 3,922 | | | 6% |
| Asset management fees, commissions and other income | | 132 | | | | 89 | | | 89 | | | 51 | | | | 61 | | | | | 225 | | | 201 | | | -11% |
| Total revenues | | 4,618 | | | | 4,460 | | | 5,015 | | | 4,723 | | | | 4,566 | | | | | 14,551 | | | 14,304 | | | -2% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 2,905 | | | | 2,589 | | | 3,159 | | | 2,647 | | | | 2,751 | | | | | 9,185 | | | 8,557 | | | -7% |
| Change in estimates of liability for future policy benefits | | 38 | | | | 59 | | | 6 | | | 293 | | | | 16 | | | | | 72 | | | 315 | | | 338% |
| Interest credited to policyholders' account balances | | 180 | | | | 193 | | | 215 | | | 226 | | | | 239 | | | | | 545 | | | 680 | | | 25% |
| Interest expense | | 11 | | | | 16 | | | 11 | | | 4 | | | | 3 | | | | | 19 | | | 18 | | | -5% |
| Deferral of acquisition costs | | (285) | | | | (295) | | | (313) | | | (281) | | | | (292) | | | | | (883) | | | (886) | | | —% |
| Amortization of acquisition costs | | 150 | | | | 141 | | | 151 | | | 159 | | | | 156 | | | | | 455 | | | 466 | | | 2% |
| General and administrative expenses | | 871 | | | | 943 | | | 946 | | | 891 | | | | 882 | | | | | 2,767 | | | 2,719 | | | -2% |
| Total benefits and expenses | | 3,870 | | | | 3,646 | | | 4,175 | | | 3,939 | | | | 3,755 | | | | | 12,160 | | | 11,869 | | | -2% |
| Adjusted operating income before income taxes | | 748 | | | | 814 | | | 840 | | | 784 | | | | 811 | | | | | 2,391 | | | 2,435 | | | 2% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - LIFE PLANNER | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 1,689 | | | | 1,540 | | | 1,934 | | | 1,693 | | | | 1,665 | | | | | 5,413 | | | 5,292 | | | -2% |
| Policy charges and fee income | | 41 | | | | 47 | | | 48 | | | 48 | | | | 48 | | | | | 128 | | | 144 | | | 13% |
| Net investment income | | 435 | | | | 555 | | | 573 | | | 586 | | | | 584 | | | | | 1,564 | | | 1,743 | | | 11% |
| Asset management fees, commissions and other income | | 79 | | | | 91 | | | 69 | | | 54 | | | | 62 | | | | | 203 | | | 185 | | | -9% |
| Total revenues | | 2,244 | | | | 2,233 | | | 2,624 | | | 2,381 | | | | 2,359 | | | | | 7,308 | | | 7,364 | | | 1% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 1,432 | | | | 1,310 | | | 1,692 | | | 1,417 | | | | 1,421 | | | | | 4,682 | | | 4,530 | | | -3% |
| Change in estimates of liability for future policy benefits | | 8 | | | | 13 | | | 2 | | | 69 | | | | 11 | | | | | (6) | | | 82 | | | 1467% |
| Interest credited to policyholders' account balances | | 44 | | | | 48 | | | 57 | | | 57 | | | | 61 | | | | | 135 | | | 175 | | | 30% |
| Interest expense | | 6 | | | | 7 | | | 3 | | | (1) | | | | (1) | | | | | 11 | | | 1 | | | -91% |
| Deferral of acquisition costs | | (137) | | | | (136) | | | (158) | | | (142) | | | | (143) | | | | | (442) | | | (443) | | | —% |
| Amortization of acquisition costs | | 75 | | | | 68 | | | 76 | | | 78 | | | | 76 | | | | | 228 | | | 230 | | | 1% |
| General and administrative expenses | | 386 | | | | 430 | | | 430 | | | 416 | | | | 407 | | | | | 1,249 | | | 1,253 | | | —% |
| Total benefits and expenses | | 1,814 | | | | 1,740 | | | 2,102 | | | 1,894 | | | | 1,832 | | | | | 5,857 | | | 5,828 | | | —% |
| Adjusted operating income before income taxes | | 430 | | | | 493 | | | 522 | | | 487 | | | | 527 | | | | | 1,451 | | | 1,536 | | | 6% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - INTERNATIONAL BUSINESSES - GIBRALTAR LIFE AND OTHER | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 1,602 | | | | 1,476 | | | 1,635 | | | 1,581 | | | | 1,447 | | | | | 4,962 | | | 4,663 | | | -6% |
| Policy charges and fee income | | 42 | | | | 37 | | | 24 | | | 29 | | | | 29 | | | | | 128 | | | 82 | | | -36% |
| Net investment income | | 677 | | | | 716 | | | 712 | | | 735 | | | | 732 | | | | | 2,131 | | | 2,179 | | | 2% |
| Asset management fees, commissions and other income | | 53 | | | | (2) | | | 20 | | | (3) | | | | (1) | | | | | 22 | | | 16 | | | -27% |
| Total revenues | | 2,374 | | | | 2,227 | | | 2,391 | | | 2,342 | | | | 2,207 | | | | | 7,243 | | | 6,940 | | | -4% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 1,473 | | | | 1,279 | | | 1,467 | | | 1,230 | | | | 1,330 | | | | | 4,503 | | | 4,027 | | | -11% |
| Change in estimates of liability for future policy benefits | | 30 | | | | 46 | | | 4 | | | 224 | | | | 5 | | | | | 78 | | | 233 | | | 199% |
| Interest credited to policyholders' account balances | | 136 | | | | 145 | | | 158 | | | 169 | | | | 178 | | | | | 410 | | | 505 | | | 23% |
| Interest expense | | 5 | | | | 9 | | | 8 | | | 5 | | | | 4 | | | | | 8 | | | 17 | | | 113% |
| Deferral of acquisition costs | | (148) | | | | (159) | | | (155) | | | (139) | | | | (149) | | | | | (441) | | | (443) | | | —% |
| Amortization of acquisition costs | | 75 | | | | 73 | | | 75 | | | 81 | | | | 80 | | | | | 227 | | | 236 | | | 4% |
| General and administrative expenses | | 485 | | | | 513 | | | 516 | | | 475 | | | | 475 | | | | | 1,518 | | | 1,466 | | | -3% |
| Total benefits and expenses | | 2,056 | | | | 1,906 | | | 2,073 | | | 2,045 | | | | 1,923 | | | | | 6,303 | | | 6,041 | | | -4% |
| Adjusted operating income before income taxes | | 318 | | | | 321 | | | 318 | | | 297 | | | | 284 | | | | | 940 | | | 899 | | | -4% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on assets supporting experience-rated contractholder liabilities, change in value of market risk benefits, net of related hedging gains (losses) and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to noncontrolling interests. Revenues and Benefits and expenses exclude market experience updates. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | | | | Year-to-date |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Actual exchange rate basis (1): | | | | | | | | | | | | | | | | | | | |
| Net premiums, policy charges and fee income: | | | | | | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 1,496 | | | | 1,341 | | | 1,735 | | | 1,463 | | | | 1,422 | | | | | 4,887 | | | 4,620 | |
| Japan - Gibraltar Life | | | 1,644 | | | | 1,513 | | | 1,659 | | | 1,610 | | | | 1,476 | | | | | 5,090 | | | 4,745 | |
| Emerging Markets | | | 234 | | | | 246 | | | 247 | | | 278 | | | | 291 | | | | | 654 | | | 816 | |
| Total | | | 3,374 | | | | 3,100 | | | 3,641 | | | 3,351 | | | | 3,189 | | | | | 10,631 | | | 10,181 | |
| Annualized new business premiums: | | | | | | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 138 | | | | 160 | | | 196 | | | 158 | | | | 143 | | | | | 497 | | | 497 | |
| Japan - Gibraltar Life | | | 198 | | | | 244 | | | 231 | | | 241 | | | | 236 | | | | | 634 | | | 708 | |
| Emerging Markets | | | 77 | | | | 84 | | | 81 | | | 91 | | | | 112 | | | | | 200 | | | 284 | |
| Total | | | 413 | | | | 488 | | | 508 | | | 490 | | | | 491 | | | | | 1,331 | | | 1,489 | |
| Annualized new business premiums by distribution channel: | | | | | | | | | | | | | | | | | | | |
| Life Planners | | | 215 | | | | 244 | | | 277 | | | 249 | | | | 255 | | | | | 697 | | | 781 | |
| Gibraltar Life Consultants | | | 125 | | | | 156 | | | 128 | | | 144 | | | | 131 | | | | | 365 | | | 403 | |
| Banks | | | 34 | | | | 49 | | | 55 | | | 51 | | | | 68 | | | | | 119 | | | 174 | |
| Independent Agency | | | 39 | | | | 39 | | | 48 | | | 46 | | | | 37 | | | | | 150 | | | 131 | |
| Total | | | 413 | | | | 488 | | | 508 | | | 490 | | | | 491 | | | | | 1,331 | | | 1,489 | |
| Constant exchange rate basis (2): | | | | | | | | | | | | | | | | | | | |
| Net premiums, policy charges and fee income: | | | | | | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 1,657 | | | | 1,523 | | | 1,901 | | | 1,600 | | | | 1,601 | | | | | 5,213 | | | 5,102 | |
| Japan - Gibraltar Life | | | 1,837 | | | | 1,680 | | | 1,820 | | | 1,758 | | | | 1,663 | | | | | 5,489 | | | 5,241 | |
| Emerging Markets | | | 203 | | | | 216 | | | 213 | | | 228 | | | | 235 | | | | | 561 | | | 676 | |
| Total | | | 3,697 | | | | 3,419 | | | 3,934 | | | 3,586 | | | | 3,499 | | | | | 11,263 | | | 11,019 | |
| Annualized new business premiums: | | | | | | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 155 | | | | 181 | | | 212 | | | 174 | | | | 162 | | | | | 529 | | | 548 | |
| Japan - Gibraltar Life | | | 205 | | | | 252 | | | 239 | | | 251 | | | | 246 | | | | | 648 | | | 736 | |
| Emerging Markets | | | 64 | | | | 72 | | | 70 | | | 76 | | | | 97 | | | | | 164 | | | 243 | |
| Total | | | 424 | | | | 505 | | | 521 | | | 501 | | | | 505 | | | | | 1,341 | | | 1,527 | |
| Annualized new business premiums by distribution channel: | | | | | | | | | | | | | | | | | | | |
| Life Planners | | | 219 | | | | 253 | | | 282 | | | 250 | | | | 259 | | | | | 693 | | | 791 | |
| Gibraltar Life Consultants | | | 129 | | | | 161 | | | 131 | | | 149 | | | | 136 | | | | | 373 | | | 416 | |
| Banks | | | 34 | | | | 49 | | | 55 | | | 51 | | | | 69 | | | | | 119 | | | 175 | |
| Independent Agency | | | 42 | | | | 42 | | | 53 | | | 51 | | | | 41 | | | | | 156 | | | 145 | |
| Total | | | 424 | | | | 505 | | | 521 | | | 501 | | | | 505 | | | | | 1,341 | | | 1,527 | |
| | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | |
| (1) Translated based on applicable average exchange rates for the period shown. |
| (2) 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. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | |
| | | | | | | | | | | | | | | |
| INTERNATIONAL BUSINESSES - SALES RESULTS AND SUPPLEMENTARY INFORMATION | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | 2022 | | 2023 | |
| | | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Face amount of individual policies in force at end of period (in billions) (1)(2): | | | | | | | | | | | | | | |
| (Constant exchange rate basis) | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 366 | | | | 363 | | | 362 | | | 361 | | | | 359 | | |
| Japan - Gibraltar Life | | | 332 | | | | 328 | | | 325 | | | 323 | | | | 320 | | |
| Emerging Markets | | | 37 | | | | 38 | | | 39 | | | 40 | | | | 42 | | |
| Total | | | 735 | | | | 729 | | | 726 | | | 724 | | | | 721 | | |
| Number of individual policies in force at end of period (in thousands) (3): | | | | | | | | | | | | | | |
| Japan - Prudential of Japan | | | 4,455 | | | | 4,463 | | | 4,484 | | | 4,496 | | | | 4,501 | | |
| Japan - Gibraltar Life | | | 6,765 | | | | 6,713 | | | 6,681 | | | 6,650 | | | | 6,626 | | |
| Emerging Markets | | | 704 | | | | 726 | | | 742 | | | 754 | | | | 769 | | |
| Total | | | 11,924 | | | | 11,902 | | | 11,907 | | | 11,900 | | | | 11,896 | | |
| International life insurance individual policy persistency: | | | | | | | | | | | | | | |
| Life Planner: | | | | | | | | | | | | | | |
| 13 months | | | 92.4 | % | | | 92.4 | % | | 92.4 | % | | 92.2 | % | | | 92.2 | % | |
| 25 months | | | 85.6 | % | | | 85.3 | % | | 84.7 | % | | 84.0 | % | | | 83.2 | % | |
| Gibraltar Life (4): | | | | | | | | | | | | | | |
| 13 months | | | 95.5 | % | | | 95.2 | % | | 95.2 | % | | 95.0 | % | | | 94.8 | % | |
| 25 months | | | 90.8 | % | | | 90.8 | % | | 90.1 | % | | 89.2 | % | | | 88.7 | % | |
| Number of Life Planners at end of period: | | | | | | | | | | | | | | |
| Japan | | | 4,481 | | | | 4,446 | | | 4,454 | | | 4,317 | | | | 4,337 | | |
| All other countries | | | 1,491 | | | | 1,478 | | | 1,524 | | | 1,489 | | | | 1,580 | | |
| Total Life Planners | | | 5,972 | | | | 5,924 | | | 5,978 | | | 5,806 | | | | 5,917 | | |
| Gibraltar Life Consultants | | | 6,861 | | | | 6,821 | | | 6,689 | | | 6,648 | | | | 6,736 | | |
| | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | |
| (1) 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. | |
| (2) Net of reinsurance. | |
| (3) Direct business only; policy count includes annuities. | |
| (4) Reflects business sold by Life Consultants and Independent Agents. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| STATEMENTS OF OPERATIONS - CORPORATE AND OTHER | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2022 | | 2023 | | | | Year-to-date |
| | | 3Q | | | 4Q | | 1Q | | 2Q | | | 3Q | | | | 2022 | | 2023 | | % change |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues (1): | | | | | | | | | | | | | | | | | | | | |
| Premiums | | (7) | | | | (7) | | | (4) | | | (4) | | | | (3) | | | | | (15) | | | (11) | | | 27% |
| Policy charges and fee income | | (13) | | | | (12) | | | (13) | | | (13) | | | | (14) | | | | | (42) | | | (40) | | | 5% |
| Net investment income | | 150 | | | | 167 | | | 189 | | | 173 | | | | 180 | | | | | 440 | | | 542 | | | 23% |
| Asset management fees, commissions and other income | | 4 | | | | 142 | | | (56) | | | (102) | | | | (118) | | | | | (248) | | | (276) | | | -11% |
| Total revenues | | 134 | | | | 290 | | | 116 | | | 54 | | | | 45 | | | | | 135 | | | 215 | | | 59% |
| Benefits and expenses (1): | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | — | | | | 4 | | | (5) | | | — | | | | (4) | | | | | (4) | | | (9) | | | -125% |
| Change in estimates of liability for future policy benefits | | — | | | | — | | | — | | | — | | | | — | | | | | — | | | — | | | — |
| Interest credited to policyholders' account balances | | 35 | | | | 34 | | | 34 | | | 31 | | | | 25 | | | | | 103 | | | 90 | | | -13% |
| Interest expense | | 185 | | | | 209 | | | 152 | | | 179 | | | | 165 | | | | | 514 | | | 496 | | | -4% |
| Deferral of acquisition costs | | 9 | | | | 9 | | | 19 | | | 30 | | | | 24 | | | | | 32 | | | 73 | | | 128% |
| Amortization of acquisition costs | | (9) | | | | (8) | | | (9) | | | (9) | | | | (9) | | | | | (31) | | | (27) | | | 13% |
| General and administrative expenses | | 329 | | | | 567 | | | 410 | | | 350 | | | | 348 | | | | | 673 | | | 1,108 | | | 65% |
| Total benefits and expenses | | 549 | | | | 815 | | | 601 | | | 581 | | | | 549 | | | | | 1,287 | | | 1,731 | | | 34% |
| Adjusted operating loss before income taxes | | (415) | | | | (525) | | | (485) | | | (527) | | | | (504) | | | | | (1,152) | | | (1,516) | | | -32% |
| | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| (1) Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses and goodwill impairment and certain components of consideration for a business acquisition, which are recognized as compensation expense over the requisite service periods. Revenues and Benefits and expenses include consolidating adjustments. |
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| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| INVESTMENT PORTFOLIO COMPOSITION | | | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | September 30, 2023 | | | | | | December 31, 2022 | | | | |
| | | | | | Closed | | PFI Excluding | | | | | | | | Closed | | PFI Excluding | | | | |
| | | | Total | | Block | | Closed Block Division | | | | | | Total | | Block | | Closed Block Division | | | | |
| | | | Portfolio | | Division | | Amount | | % of Total | | | | | | Portfolio | | Division | | Amount | | % of Total | | | | |
| | Fixed maturities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | Public, available-for-sale, at fair value | | 226,376 | | | 19,563 | | | 206,813 | | | 58.5 | % | | | | | | 242,246 | | | 21,140 | | | 221,106 | | | 60.8 | % | | | | |
| | Public, held-to-maturity, at amortized cost, net of allowance (1) | | — | | | — | | | — | | | 0.0 | % | | | | | | 1,229 | | | — | | | 1,229 | | | 0.3 | % | | | | |
| | Private, available-for-sale, at fair value | | 68,113 | | | 9,175 | | | 58,938 | | | 16.7 | % | | | | | | 64,745 | | | 8,931 | | | 55,814 | | | 15.4 | % | | | | |
| | Private, held-to-maturity, at amortized cost, net of allowance (1) | | — | | | — | | | — | | | 0.0 | % | | | | | | 67 | | | — | | | 67 | | | 0.0 | % | | | | |
| | Fixed maturities, trading, at fair value | | 6,516 | | | 816 | | | 5,700 | | | 1.6 | % | | | | | | 5,738 | | | 900 | | | 4,838 | | | 1.3 | % | | | | |
| | Assets supporting experience-rated contractholder liabilities, at fair value | | 2,943 | | | — | | | 2,943 | | | 0.8 | % | | | | | | 2,844 | | | — | | | 2,844 | | | 0.8 | % | | | | |
| | Equity securities, at fair value | | 6,366 | | | 1,778 | | | 4,588 | | | 1.3 | % | | | | | | 6,404 | | | 1,733 | | | 4,671 | | | 1.3 | % | | | | |
| | Commercial mortgage and other loans, at book value, net of allowance | | 57,521 | | | 7,836 | | | 49,685 | | | 14.0 | % | | | | | | 56,608 | | | 7,926 | | | 48,682 | | | 13.4 | % | | | | |
| | Policy loans, at outstanding balance | | 9,959 | | | 3,520 | | | 6,439 | | | 1.8 | % | | | | | | 10,046 | | | 3,637 | | | 6,409 | | | 1.8 | % | | | | |
| | Other invested assets, net of allowance (2) | | 18,674 | | | 4,679 | | | 13,995 | | | 4.0 | % | | | | | | 17,531 | | | 4,254 | | | 13,277 | | | 3.7 | % | | | | |
| | Short-term investments, net of allowance | | 5,058 | | | 303 | | | 4,755 | | | 1.3 | % | | | | | | 4,573 | | | 337 | | | 4,236 | | | 1.2 | % | | | | |
| | Subtotal (3) | | 401,526 | | | 47,670 | | | 353,856 | | | 100.0 | % | | | | | | 412,031 | | | 48,858 | | | 363,173 | | | 100.0 | % | | | | |
| | Invested assets of other entities and operations (4) | | 5,710 | | | — | | | 5,710 | | | | | | | | | 5,410 | | | — | | | 5,410 | | | | | | | |
| | Total investments | | 407,236 | | | 47,670 | | | 359,566 | | | | | | | | | 417,441 | | | 48,858 | | | 368,583 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fixed Maturities by Credit Quality (3)(5): | | September 30, 2023 | | December 31, 2022 | | |
| | | | PFI Excluding Closed Block Division | | PFI Excluding Closed Block Division |
| | | | | | Gross | | Gross | | | | | | | | | | Gross | | Gross | | | | | | |
| | | | Amortized | | Unrealized | | Unrealized | | Allowance for | | Fair | | | | Amortized | | Unrealized | | Unrealized | | Allowance for | | Fair | | |
| | | | Cost | | Gains | | Losses | | Credit Losses | | Value | | % of Total | | Cost | | Gains | | Losses | | Credit Losses | | Value | | % of Total |
| | Public Fixed Maturities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | NAIC Rating (6) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1 | | 183,149 | | | 5,150 | | | 23,198 | | | 1 | | | 165,100 | | | 79.8 | % | | 189,939 | | | 6,918 | | | 18,145 | | | — | | | 178,712 | | | 80.8 | % |
| | 2 | | 40,894 | | | 393 | | | 6,397 | | | — | | | 34,890 | | | 16.9 | % | | 39,388 | | | 534 | | | 5,212 | | | — | | | 34,710 | | | 15.7 | % |
| | Subtotal - High or Highest Quality Securities | | 224,043 | | | 5,543 | | | 29,595 | | | 1 | | | 199,990 | | | 96.7 | % | | 229,327 | | | 7,452 | | | 23,357 | | | — | | | 213,422 | | | 96.5 | % |
| | 3 | | 5,064 | | | 70 | | | 411 | | | — | | | 4,723 | | | 2.3 | % | | 5,416 | | | 66 | | | 625 | | | — | | | 4,857 | | | 2.2 | % |
| | 4 | | 1,818 | | | 29 | | | 176 | | | 64 | | | 1,607 | | | 0.7 | % | | 2,362 | | | 39 | | | 287 | | | 1 | | | 2,113 | | | 1.0 | % |
| | 5 | | 426 | | | 18 | | | 65 | | | 37 | | | 342 | | | 0.2 | % | | 614 | | | 10 | | | 141 | | | 8 | | | 475 | | | 0.2 | % |
| | 6 | | 273 | | | 4 | | | 25 | | | 101 | | | 151 | | | 0.1 | % | | 318 | | | 9 | | | 63 | | | 25 | | | 239 | | | 0.1 | % |
| | Subtotal - Other Securities | | 7,581 | | | 121 | | | 677 | | | 202 | | | 6,823 | | | 3.3 | % | | 8,710 | | | 124 | | | 1,116 | | | 34 | | | 7,684 | | | 3.5 | % |
| | Total | | 231,624 | | | 5,664 | | | 30,272 | | | 203 | | | 206,813 | | | 100.0 | % | | 238,037 | | | 7,576 | | | 24,473 | | | 34 | | | 221,106 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Private Fixed Maturities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | NAIC Rating (6) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1 | | 17,383 | | | 144 | | | 2,557 | | | — | | | 14,970 | | | 25.4 | % | | 16,111 | | | 126 | | | 2,145 | | | — | | | 14,092 | | | 25.2 | % |
| | 2 | | 39,502 | | | 576 | | | 4,761 | | | — | | | 35,317 | | | 59.9 | % | | 36,773 | | | 406 | | | 4,307 | | | — | | | 32,872 | | | 58.9 | % |
| | Subtotal - High or Highest Quality Securities | | 56,885 | | | 720 | | | 7,318 | | | — | | | 50,287 | | | 85.3 | % | | 52,884 | | | 532 | | | 6,452 | | | — | | | 46,964 | | | 84.1 | % |
| | 3 | | 5,113 | | | 48 | | | 492 | | | 5 | | | 4,664 | | | 7.8 | % | | 5,522 | | | 38 | | | 538 | | | — | | | 5,022 | | | 9.0 | % |
| | 4 | | 3,333 | | | 12 | | | 153 | | | 1 | | | 3,191 | | | 5.5 | % | | 2,654 | | | 11 | | | 148 | | | — | | | 2,517 | | | 4.5 | % |
| | 5 | | 736 | | | 6 | | | 57 | | | 3 | | | 682 | | | 1.2 | % | | 1,307 | | | 7 | | | 117 | | | 16 | | | 1,181 | | | 2.1 | % |
| | 6 | | 121 | | | 15 | | | — | | | 22 | | | 114 | | | 0.2 | % | | 160 | | | 22 | | | 1 | | | 51 | | | 130 | | | 0.3 | % |
| | Subtotal - Other Securities | | 9,303 | | | 81 | | | 702 | | | 31 | | | 8,651 | | | 14.7 | % | | 9,643 | | | 78 | | | 804 | | | 67 | | | 8,850 | | | 15.9 | % |
| | Total | | 66,188 | | | 801 | | | 8,020 | | | 31 | | | 58,938 | | | 100.0 | % | | 62,527 | | | 610 | | | 7,256 | | | 67 | | | 55,814 | | | 100.0 | % |
| | _____________ | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) In the the third quarter of 2023, the Company changed its intent to hold a portion of its held-to-maturity portfolio which will be redeemed as part of a recently announced reinsurance transaction that is targeted to close by December 31, 2023. As a result, the entire held-to-maturity portfolio was reclassified to fixed maturities available-for-sale. On an amortized cost basis, net of allowance, as of December 31, 2022, includes $1,149 million (fair value, $1,299 million) and $67 million (fair value, $71 million) of public and private fixed maturities, respectively, classified as “1” highest quality and $80 million (fair value, $85 million) and $0 million (fair value, $0 million) of public and private fixed maturities, respectively, classified as “2” high quality securities based on the NAIC designations. |
| (2) Other invested assets consist of investments in limited partnerships and limited liability companies (“LPs/LLCs”), investment real estate held through direct ownership, derivative instruments and other miscellaneous investments. |
| (3) Excludes (i) assets of our investment management operations, including assets managed for third parties, (ii) derivative operations and (iii) those assets classified as "Separate account assets" on our balance sheet. |
| (4) Includes invested assets of our investment management and derivative operations. Excludes assets of our investment management operations that are managed for third parties and those assets classified as “Separate account assets” on our balance sheet. |
| (5) Excludes fixed maturity securities classified as trading. |
| (6) Reflects equivalent ratings for investments of the international operations. Includes, as of September 30, 2023 and December 31, 2022, 781 securities with amortized cost of $8,710 million (fair value $8,318 million) and 422 securities with amortized cost of $4,836 million (fair value $4,610 million), respectively, that have been categorized based on expected NAIC designations pending receipt of SVO ratings. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | |
| Third Quarter 2023 | | | | | | | |
| | | | | | | | | | | | | |
| INVESTMENT PORTFOLIO COMPOSITION - JAPANESE INSURANCE OPERATIONS AND EXCLUDING JAPANESE INSURANCE OPERATIONS (1) | | |
| (in millions) | | |
| | | | | | | | | | | | | |
| | | | | September 30, 2023 | | | | December 31, 2022 |
| | | | | Amount | | % of Total | | | | Amount | | % of Total |
| | Japanese Insurance Operations (2): | | | | | | | | | | |
| | | Fixed maturities: | | | | | | | | | | |
| | | Public, available-for-sale, at fair value | | 104,691 | | | 67.4 | % | | | | 112,013 | | | 68.4 | % |
| | | Public, held-to-maturity, at amortized cost, net of allowance | | — | | | 0.0 | % | | | | 1,229 | | | 0.7 | % |
| | | Private, available-for-sale, at fair value | | 19,497 | | | 12.5 | % | | | | 19,268 | | | 11.8 | % |
| | | Private, held-to-maturity, at amortized cost, net of allowance | | — | | | 0.0 | % | | | | 67 | | | 0.0 | % |
| | | Fixed maturities, trading, at fair value | | 516 | | | 0.3 | % | | | | 612 | | | 0.4 | % |
| | | Assets supporting experience-rated contractholder liabilities, at fair value | | 2,943 | | | 1.9 | % | | | | 2,844 | | | 1.7 | % |
| | | Equity securities, at fair value | | 1,669 | | | 1.1 | % | | | | 1,806 | | | 1.1 | % |
| | | Commercial mortgage and other loans, at book value, net of allowance | | 17,640 | | | 11.4 | % | | | | 18,080 | | | 11.0 | % |
| | | Policy loans, at outstanding balance | | 2,545 | | | 1.6 | % | | | | 2,607 | | | 1.6 | % |
| | | Other invested assets (3) | | 5,694 | | | 3.7 | % | | | | 5,272 | | | 3.2 | % |
| | | Short-term investments, net of allowance | | 196 | | | 0.1 | % | | | | 100 | | | 0.1 | % |
| | | Total | | 155,391 | | | 100.0 | % | | | | 163,898 | | | 100.0 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | September 30, 2023 | | | | December 31, 2022 |
| | | | | Amount | | % of Total | | | | Amount | | % of Total |
| | Excluding Japanese Insurance Operations (2): | | | | | | | | | | |
| | | Fixed maturities: | | | | | | | | | | |
| | | Public, available-for-sale, at fair value | | 102,122 | | | 51.4 | % | | | | 109,093 | | | 54.8 | % |
| | | Public, held-to-maturity, at amortized cost | | — | | | 0.0 | % | | | | — | | | 0.0 | % |
| | | Private, available-for-sale, at fair value | | 39,441 | | | 19.9 | % | | | | 36,546 | | | 18.3 | % |
| | | Private, held-to-maturity, at amortized cost | | — | | | 0.0 | % | | | | — | | | 0.0 | % |
| | | Fixed maturities, trading, at fair value | | 5,184 | | | 2.6 | % | | | | 4,226 | | | 2.1 | % |
| | | Assets supporting experience-rated contractholder liabilities, at fair value | | — | | | 0.0 | % | | | | — | | | 0.0 | % |
| | | Equity securities, at fair value | | 2,919 | | | 1.5 | % | | | | 2,865 | | | 1.4 | % |
| | | Commercial mortgage and other loans, at book value, net of allowance | | 32,045 | | | 16.1 | % | | | | 30,602 | | | 15.4 | % |
| | | Policy loans, at outstanding balance | | 3,894 | | | 2.0 | % | | | | 3,802 | | | 1.9 | % |
| | | Other invested assets, net of allowance (3) | | 8,301 | | | 4.2 | % | | | | 8,005 | | | 4.0 | % |
| | | Short-term investments, net of allowance | | 4,559 | | | 2.3 | % | | | | 4,136 | | | 2.1 | % |
| | | Total | | 198,465 | | | 100.0 | % | | | | 199,275 | | | 100.0 | % |
| | __________ | | | | | | | | | | |
| | (1) Excludes Closed Block division. |
| | (2) Excludes assets classified as "Separate account assets" on our balance sheet. |
| | (3) Other invested assets consist of investments in LPs/LLCs, investment real estate held through direct ownership, derivative instruments and other miscellaneous investments. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | |
| Third Quarter 2023 | | | | | | | |
| | | | | | | | | | | | | | |
| INVESTMENT RESULTS (1) |
| (in millions) |
| | | | | | | | | | | | | | |
| | | | Three Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (6) | | Amount | | | Yield (6) | | Amount | |
| General Account (2) | | | | | | | | | | | | |
| | Fixed maturities (3) | | 4.18 | % | | 3,098 | | | (367) | | | 3.72 | % | | 2,617 | | | 25 | |
| | Equity securities | | 2.32 | % | | 30 | | | — | | | 1.73 | % | | 19 | | | — | |
| | Commercial mortgage and other loans | | 4.01 | % | | 495 | | | (68) | | | 3.71 | % | | 446 | | | (16) | |
| | Policy loans | | 4.50 | % | | 72 | | | — | | | 4.51 | % | | 70 | | | — | |
| | Short-term investments and cash equivalents | | 6.41 | % | | 232 | | | 2 | | | 3.23 | % | | 130 | | | (4) | |
| | Gross investment income before investment expenses | | 4.21 | % | | 3,927 | | | (433) | | | 3.69 | % | | 3,282 | | | 5 | |
| | Investment expenses (4) | | -0.13 | % | | (211) | | | — | | | -0.14 | % | | (176) | | | — | |
| | Subtotal | | 4.08 | % | | 3,716 | | | (433) | | | 3.55 | % | | 3,106 | | | 5 | |
| | Other investments (3)(4) | | | | 299 | | | (1,776) | | | | | 28 | | | (541) | |
| Investment results of other entities and operations (5) | | | | 45 | | | 38 | | | | | 63 | | | 77 | |
| Less: investment income related to adjusted operating income reconciling items | | | | (167) | | | | | | | (150) | | | |
| | Total | | | | 3,893 | | | (2,171) | | | | | 3,047 | | | (459) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Nine Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (6) | | Amount | | | Yield (6) | | Amount | |
| General Account (2) | | | | | | | | | | | | |
| | Fixed maturities (3) | | 4.09 | % | | 9,125 | | | (586) | | | 3.68 | % | | 7,994 | | | (901) | |
| | Equity securities | | 2.93 | % | | 109 | | | — | | | 2.07 | % | | 75 | | | — | |
| | Commercial mortgage and other loans | | 3.95 | % | | 1,435 | | | (105) | | | 3.68 | % | | 1,349 | | | (90) | |
| | Policy loans | | 4.56 | % | | 216 | | | — | | | 4.53 | % | | 214 | | | — | |
| | Short-term investments and cash equivalents | | 5.80 | % | | 643 | | | 2 | | | 1.83 | % | | 202 | | | (5) | |
| | Gross investment income before investment expenses | | 4.12 | % | | 11,528 | | | (689) | | | 3.61 | % | | 9,834 | | | (996) | |
| | Investment expenses (4) | | -0.13 | % | | (633) | | | — | | | -0.14 | % | | (439) | | | — | |
| | Subtotal | | 3.99 | % | | 10,895 | | | (689) | | | 3.47 | % | | 9,395 | | | (996) | |
| | Other investments (3)(4) | | | | 780 | | | (2,100) | | | | | 799 | | | (2,439) | |
| Investment results of other entities and operations (5) | | | | 201 | | | 27 | | | | | 225 | | | 256 | |
| Less: investment income related to adjusted operating income reconciling items | | | | (498) | | | | | | | (718) | | | |
| | Total | | | | 11,378 | | | (2,762) | | | | | 9,701 | | | (3,179) | |
| | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | |
| (1) Excludes Closed Block division. |
| (2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet. |
| (3) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives. |
| (4) Prior period amounts have been reclassified to conform to current period presentation. |
| (5) Includes invested income of commercial loans, assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment management operations. |
| (6) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | |
| | | | | | | | | | | | | | |
| INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Three Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (1) | | Amount | | | Yield (1) | | Amount | |
| Japanese Insurance Operations: | | | | | | | | | | | | |
| | Fixed maturities (2) | | 2.96 | % | | 1,009 | | | (15) | | | 2.82 | % | | 954 | | | 156 | |
| | Equity securities | | 1.12 | % | | 5 | | | — | | | 1.04 | % | | 4 | | | — | |
| | Commercial mortgage and other loans | | 3.67 | % | | 162 | | | (33) | | | 3.63 | % | | 169 | | | (3) | |
| | Policy loans | | 3.89 | % | | 25 | | | — | | | 3.94 | % | | 24 | | | — | |
| | Short-term investments and cash equivalents | | 5.20 | % | | 27 | | | — | | | 3.07 | % | | 12 | | | (2) | |
| | Gross investment income before investment expenses | | 3.05 | % | | 1,228 | | | (48) | | | 2.91 | % | | 1,163 | | | 151 | |
| | Investment expenses | | -0.12 | % | | (79) | | | — | | | -0.13 | % | | (74) | | | — | |
| | Subtotal | | 2.93 | % | | 1,149 | | | (48) | | | 2.78 | % | | 1,089 | | | 151 | |
| | Other investments (2) | | | | 84 | | | (807) | | | | | 6 | | | (502) | |
| | Total | | | | 1,233 | | | (855) | | | | | 1,095 | | | (351) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Nine Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (1) | | Amount | | | Yield (1) | | Amount | |
| Japanese Insurance Operations: | | | | | | | | | | | | |
| | Fixed maturities (2) | | 2.88 | % | | 2,981 | | | 189 | | | 2.75 | % | | 2,863 | | | 233 | |
| | Equity securities | | 2.84 | % | | 37 | | | — | | | 2.89 | % | | 41 | | | — | |
| | Commercial mortgage and other loans | | 3.66 | % | | 484 | | | (48) | | | 3.65 | % | | 521 | | | (12) | |
| | Policy loans | | 3.88 | % | | 74 | | | — | | | 3.92 | % | | 75 | | | — | |
| | Short-term investments and cash equivalents | | 4.76 | % | | 71 | | | — | | | 2.08 | % | | 18 | | | (2) | |
| | Gross investment income before investment expenses | | 3.00 | % | | 3,647 | | | 141 | | | 2.87 | % | | 3,518 | | | 219 | |
| | Investment expenses | | -0.13 | % | | (241) | | | — | | | -0.14 | % | | (197) | | | — | |
| | Subtotal | | 2.87 | % | | 3,406 | | | 141 | | | 2.73 | % | | 3,321 | | | 219 | |
| | Other investments (2) | | | | 238 | | | (926) | | | | | 142 | | | (2,077) | |
| | Total | | | | 3,644 | | | (785) | | | | | 3,463 | | | (1,858) | |
| __________ | | | | | | | | | | | | |
| (1) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. |
| (2) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | |
| Third Quarter 2023 | | | | | | | | |
| | | | | | | | | | | | | | |
| INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS (1) | | | | | | |
| (in millions) | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Three Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (5) | | Amount | | | Yield (5) | | Amount | |
| Excluding Japanese Insurance Operations (2): | | | | | | | | | | | | |
| | Fixed maturities (3) | | 5.22 | % | | 2,089 | | | (352) | | | 4.57 | % | | 1,663 | | | (131) | |
| | Equity securities | | 2.92 | % | | 25 | | | — | | | 2.18 | % | | 15 | | | — | |
| | Commercial mortgage and other loans | | 4.19 | % | | 333 | | | (35) | | | 3.77 | % | | 277 | | | (13) | |
| | Policy loans | | 4.90 | % | | 47 | | | — | | | 4.88 | % | | 46 | | | — | |
| | Short-term investments and cash equivalents | | 6.57 | % | | 205 | | | 2 | | | 3.24 | % | | 118 | | | (2) | |
| | Gross investment income before investment expenses | | 5.09 | % | | 2,699 | | | (385) | | | 4.32 | % | | 2,119 | | | (146) | |
| | Investment expenses (4) | | -0.13 | % | | (132) | | | — | | | -0.15 | % | | (102) | | | — | |
| | Subtotal | | 4.96 | % | | 2,567 | | | (385) | | | 4.17 | % | | 2,017 | | | (146) | |
| | Other investments (3)(4) | | | | 215 | | | (969) | | | | | 22 | | | (39) | |
| | Total | | | | 2,782 | | | (1,354) | | | | | 2,039 | | | (185) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Nine Months Ended September 30, |
| | | | 2023 | | 2022 |
| | | | Investment Income | | Realized Gains (Losses) | | Investment Income | | Realized Gains (Losses) |
| | | | Yield (5) | | Amount | | | Yield (5) | | Amount | |
| Excluding Japanese Insurance Operations (2): | | | | | | | | | | | | |
| | Fixed maturities (3) | | 5.14 | % | | 6,144 | | | (775) | | | 4.53 | % | | 5,131 | | | (1,134) | |
| | Equity securities | | 2.98 | % | | 72 | | | — | | | 1.54 | % | | 34 | | | — | |
| | Commercial mortgage and other loans | | 4.11 | % | | 951 | | | (57) | | | 3.70 | % | | 828 | | | (78) | |
| | Policy loans | | 5.02 | % | | 142 | | | — | | | 4.94 | % | | 139 | | | — | |
| | Short-term investments and cash equivalents | | 5.93 | % | | 572 | | | 2 | | | 1.82 | % | | 184 | | | (3) | |
| | Gross investment income before investment expenses | | 4.99 | % | | 7,881 | | | (830) | | | 4.20 | % | | 6,316 | | | (1,215) | |
| | Investment expenses (4) | | -0.13 | % | | (392) | | | — | | | -0.15 | % | | (242) | | | — | |
| | Subtotal | | 4.86 | % | | 7,489 | | | (830) | | | 4.05 | % | | 6,074 | | | (1,215) | |
| | Other investments (3)(4) | | | | 542 | | | (1,174) | | | | | 657 | | | (362) | |
| | Total | | | | 8,031 | | | (2,004) | | | | | 6,731 | | | (1,577) | |
| __________ | | | | | | | | | | | | |
| (1) Excludes Closed Block division. |
| (2) Excludes commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders, assets of our investment management operations, including assets that are managed for third parties and assets classified as "Separate account assets" on our balance sheet. |
| (3) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading, which are included in "Other investments." Realized gains (losses) for "Other investments" includes changes in fair value of product-related and other derivatives and embedded derivatives. |
| (4) Prior period amounts have been reclassified to conform to current period presentation. |
| (5) Yields are based on net investment income as reported under U.S. GAAP and as such do not include certain interest-related items, such as settlements of duration management swaps which are included in realized investment gains and losses and included in adjusted operating income. For interim periods, yields are annualized. The denominator in the yield percentage is based on quarterly average carrying values for all asset types except for fixed maturities which are based on amortized cost, net of allowance. The denominator in the yield percentage includes assets "held-for-sale" as of March 31, 2022 and December 31, 2021. Amounts for fixed maturities, short-term investments and cash equivalents are also netted for securities lending activity (i.e., income netted for rebate expenses and asset values netted for security lending liabilities). A yield is not presented for other investments as it is not considered a meaningful measure of investment performance. Yields exclude investment income and assets related to commercial loans and assets supporting experience-rated contractholder liabilities where the investment results generally accrue to contractholders and investment income and assets related to other investments. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES | | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2023 | | | | Nine Months Ended September 30, 2022 | |
| | | | | | Reconciling Items | | | | | | | | | | Reconciling Items | | | | |
| | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | | | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 18,860 | | | | — | | | — | | | (1) | | | 1,228 | | | 358 | | | — | | | — | | | | 20,445 | | | | | 28,466 | | | | — | | | — | | | (2) | | | 1,248 | | | 299 | | | — | | | — | | | | 30,011 | | |
| Policy charges and fee income | | 3,165 | | | | 95 | | | — | | | 59 | | | — | | | — | | | — | | | — | | | | 3,319 | | | | | 3,175 | | | | 43 | | | — | | | 141 | | | — | | | 58 | | | — | | | — | | | | 3,417 | | |
| Net investment income | | 11,378 | | | | (14) | | | — | | | — | | | 1,491 | | | 512 | | | — | | | — | | | | 13,367 | | | | | 9,701 | | | | (18) | | | — | | | — | | | 1,508 | | | 736 | | | — | | | — | | | | 11,927 | | |
| Realized investment gains (losses), net | | 293 | | | | (2,932) | | | — | | | — | | | (361) | | | (123) | | | — | | | — | | | | (3,123) | | | | | 678 | | | | (3,506) | | | — | | | — | | | 69 | | | (351) | | | — | | | — | | | | (3,110) | | |
| Asset management fees, commissions and other income | | 4,178 | | | | 464 | | | — | | | — | | | 183 | | | 273 | | | (51) | | | — | | | | 5,047 | | | | | 5,319 | | | | (1,553) | | | — | | | — | | | (621) | | | (925) | | | 21 | | | — | | | | 2,241 | | |
| Change in value of market risk benefits, net of related hedging gains (losses) | | — | | | | — | | | (160) | | | — | | | — | | | — | | | — | | | — | | | | (160) | | | | | — | | | | — | | | (1,072) | | | — | | | — | | | 34 | | | — | | | — | | | | (1,038) | | |
| Total revenues | | 37,874 | | | | (2,387) | | | (160) | | | 58 | | | 2,541 | | | 1,020 | | | (51) | | | — | | | | 38,895 | | | | | 47,339 | | | | (5,034) | | | (1,072) | | | 139 | | | 2,204 | | | (149) | | | 21 | | | — | | | | 43,448 | | |
| Benefits and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 20,867 | | | | 17 | | | — | | | 7 | | | 2,290 | | | 566 | | | — | | | — | | | | 23,747 | | | | | 31,023 | | | | 335 | | | — | | | (11) | | | 1,865 | | | (209) | | | — | | | — | | | | 33,003 | | |
| Change in estimates of liability for future policy benefits | | 230 | | | | 34 | | | — | | | (137) | | | — | | | 104 | | | — | | | — | | | | 231 | | | | | 901 | | | | 141 | | | — | | | (468) | | | — | | | 23 | | | — | | | — | | | | 597 | | |
| Interest credited to policyholders' account balances | | 2,340 | | | | 428 | | | — | | | — | | | 89 | | | 145 | | | — | | | — | | | | 3,002 | | | | | 1,927 | | | | (136) | | | — | | | — | | | 91 | | | (487) | | | — | | | — | | | | 1,395 | | |
| Interest expense | | 1,324 | | | | — | | | — | | | — | | | — | | | (3) | | | — | | | — | | | | 1,321 | | | | | 1,172 | | | | — | | | — | | | — | | | 4 | | | — | | | — | | | — | | | | 1,176 | | |
| Deferral of acquisition costs | | (1,691) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (1,691) | | | | | (1,616) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (1,616) | | |
| Amortization of acquisition costs | | 1,061 | | | | 21 | | | — | | | — | | | 10 | | | — | | | — | | | — | | | | 1,092 | | | | | 1,053 | | | | 28 | | | — | | | 1 | | | 10 | | | — | | | — | | | — | | | | 1,092 | | |
| General and administrative expenses | | 9,479 | | | | — | | | — | | | — | | | 202 | | | 83 | | | (9) | | | 28 | | | | 9,783 | | | | | 9,026 | | | | — | | | — | | | — | | | 212 | | | 349 | | | 39 | | | 27 | | | | 9,653 | | |
| Total benefits and expenses | | 33,610 | | | | 500 | | | — | | | (130) | | | 2,591 | | | 895 | | | (9) | | | 28 | | | | 37,485 | | | | | 43,486 | | | | 368 | | | — | | | (478) | | | 2,182 | | | (324) | | | 39 | | | 27 | | | | 45,300 | | |
| __________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) See page 39 for a definition of adjusted operating income. |
| (2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES | | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, 2023 | | | | Three Months Ended September 30, 2022 | |
| | | | | | Reconciling Items | | | | | | | | | | Reconciling Items | | | | |
| | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | | | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 3,659 | | | | — | | | — | | | (1) | | | 392 | | | 123 | | | — | | | — | | | | 4,173 | | | | | 15,322 | | | | — | | | — | | | (1) | | | 396 | | | 128 | | | — | | | — | | | | 15,845 | | |
| Policy charges and fee income | | 1,060 | | | | 12 | | | — | | | 40 | | | — | | | — | | | — | | | — | | | | 1,112 | | | | | 1,083 | | | | 33 | | | — | | | 27 | | | — | | | — | | | — | | | — | | | | 1,143 | | |
| Net investment income | | 3,893 | | | | (5) | | | — | | | — | | | 511 | | | 172 | | | — | | | — | | | | 4,571 | | | | | 3,047 | | | | (4) | | | — | | | — | | | 434 | | | 154 | | | — | | | — | | | | 3,631 | | |
| Realized investment gains (losses), net | | 47 | | | | (2,126) | | | — | | | — | | | (231) | | | (92) | | | — | | | — | | | | (2,402) | | | | | 250 | | | | (687) | | | — | | | — | | | 29 | | | (22) | | | — | | | — | | | | (430) | | |
| Asset management fees, commissions and other income | | 1,467 | | | | (277) | | | — | | | — | | | (57) | | | 38 | | | (22) | | | — | | | | 1,149 | | | | | 1,378 | | | | (445) | | | — | | | — | | | (149) | | | (687) | | | (27) | | | — | | | | 70 | | |
| Change in value of market risk benefits, net of related hedging gains (losses) | | — | | | | — | | | (251) | | | — | | | — | | | — | | | — | | | — | | | | (251) | | | | | — | | | | — | | | (58) | | | — | | | — | | | — | | | — | | | — | | | | (58) | | |
| Total revenues | | 10,126 | | | | (2,396) | | | (251) | | | 39 | | | 615 | | | 241 | | | (22) | | | — | | | | 8,352 | | | | | 21,080 | | | | (1,103) | | | (58) | | | 26 | | | 710 | | | (427) | | | (27) | | | — | | | | 20,201 | | |
| Benefits and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 4,348 | | | | 91 | | | — | | | 4 | | | 515 | | | 202 | | | — | | | — | | | | 5,160 | | | | | 15,925 | | | | 154 | | | — | | | (2) | | | 621 | | | (456) | | | — | | | — | | | | 16,242 | | |
| Change in estimates of liability for future policy benefits | | 49 | | | | 2 | | | — | | | (108) | | | — | | | 8 | | | — | | | — | | | | (49) | | | | | 59 | | | | — | | | — | | | (97) | | | — | | | 3 | | | — | | | — | | | | (35) | | |
| Interest credited to policyholders' account balances | | 804 | | | | (5) | | | — | | | — | | | 30 | | | 43 | | | — | | | — | | | | 872 | | | | | 628 | | | | (20) | | | — | | | — | | | 30 | | | 53 | | | — | | | — | | | | 691 | | |
| Interest expense | | 422 | | | | — | | | — | | | — | | | (1) | | | — | | | — | | | — | | | | 421 | | | | | 407 | | | | — | | | — | | | — | | | 4 | | | (1) | | | — | | | — | | | | 410 | | |
| Deferral of acquisition costs | | (576) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (576) | | | | | (531) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (531) | | |
| Amortization of acquisition costs | | 351 | | | | 7 | | | — | | | — | | | 3 | | | — | | | — | | | — | | | | 361 | | | | | 355 | | | | 6 | | | — | | | — | | | 3 | | | (1) | | | — | | | — | | | | 363 | | |
| General and administrative expenses | | 3,122 | | | | — | | | — | | | — | | | 66 | | | 34 | | | (11) | | | 10 | | | | 3,221 | | | | | 3,070 | | | | — | | | — | | | — | | | 73 | | | 28 | | | 6 | | | 10 | | | | 3,187 | | |
| Total benefits and expenses | | 8,520 | | | | 95 | | | — | | | (104) | | | 613 | | | 287 | | | (11) | | | 10 | | | | 9,410 | | | | | 19,913 | | | | 140 | | | — | | | (99) | | | 731 | | | (374) | | | 6 | | | 10 | | | | 20,327 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) See page 39 for a definition of adjusted operating income. |
| (2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES | | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | Three Months Ended December 31, 2022 | | | | Three Months Ended March 31, 2023 | |
| | | | | | Reconciling Items | | | | | | | | | | Reconciling Items | | | | |
| | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | | | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 5,904 | | | | — | | | — | | | 1 | | | 451 | | | 108 | | | — | | | — | | | | 6,464 | | | | | 8,833 | | | | — | | | — | | | — | | | 406 | | | 124 | | | — | | | — | | | | 9,363 | | |
| Policy charges and fee income | | 1,100 | | | | 77 | | | — | | | 21 | | | — | | | — | | | — | | | — | | | | 1,198 | | | | | 1,073 | | | | 37 | | | — | | | 24 | | | — | | | — | | | — | | | — | | | | 1,134 | | |
| Net investment income | | 3,483 | | | | (5) | | | — | | | — | | | 468 | | | 164 | | | — | | | — | | | | 4,110 | | | | | 3,671 | | | | (5) | | | — | | | — | | | 481 | | | 173 | | | — | | | — | | | | 4,320 | | |
| Realized investment gains (losses), net | | 169 | | | | (1,200) | | | — | | | — | | | (339) | | | (27) | | | — | | | — | | | | (1,397) | | | | | 137 | | | | 105 | | | — | | | — | | | (17) | | | (8) | | | — | | | — | | | | 217 | | |
| Asset management fees, commissions and other income | | 1,550 | | | | 78 | | | — | | | — | | | 174 | | | 646 | | | (19) | | | — | | | | 2,429 | | | | | 1,390 | | | | 375 | | | — | | | — | | | 101 | | | 89 | | | (19) | | | — | | | | 1,936 | | |
| Change in value of market risk benefits, net of related hedging gains (losses) | | — | | | | — | | | 629 | | | — | | | — | | | — | | | — | | | — | | | | 629 | | | | | — | | | | — | | | 75 | | | — | | | — | | | — | | | — | | | — | | | | 75 | | |
| Total revenues | | 12,206 | | | | (1,050) | | | 629 | | | 22 | | | 754 | | | 891 | | | (19) | | | — | | | | 13,433 | | | | | 15,104 | | | | 512 | | | 75 | | | 24 | | | 971 | | | 378 | | | (19) | | | — | | | | 17,045 | | |
| Benefits and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 6,614 | | | | (128) | | | — | | | 5 | | | 678 | | | 842 | | | — | | | — | | | | 8,011 | | | | | 9,588 | | | | (32) | | | — | | | 4 | | | 875 | | | 188 | | | — | | | — | | | | 10,623 | | |
| Change in estimates of liability for future policy benefits | | 50 | | | | 13 | | | — | | | (7) | | | — | | | 1 | | | — | | | — | | | | 57 | | | | | 22 | | | | 24 | | | — | | | (28) | | | — | | | 7 | | | — | | | — | | | | 25 | | |
| Interest credited to policyholders' account balances | | 735 | | | | (20) | | | — | | | — | | | 30 | | | 53 | | | — | | | — | | | | 798 | | | | | 756 | | | | 144 | | | — | | | — | | | 30 | | | 51 | | | — | | | — | | | | 981 | | |
| Interest expense | | 417 | | | | — | | | — | | | — | | | 5 | | | (2) | | | — | | | — | | | | 420 | | | | | 441 | | | | — | | | — | | | — | | | 1 | | | (1) | | | — | | | — | | | | 441 | | |
| Deferral of acquisition costs | | (539) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (539) | | | | | (569) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (569) | | |
| Amortization of acquisition costs | | 328 | | | | 9 | | | — | | | (1) | | | 4 | | | 1 | | | — | | | — | | | | 341 | | | | | 355 | | | | 7 | | | — | | | — | | | 3 | | | — | | | — | | | — | | | | 365 | | |
| Goodwill impairment | | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | 903 | | | | 903 | | | | | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | — | | |
| General and administrative expenses | | 3,372 | | | | — | | | — | | | — | | | 77 | | | 25 | | | (1) | | | 9 | | | | 3,482 | | | | | 3,245 | | | | — | | | — | | | — | | | 66 | | | 26 | | | (14) | | | 9 | | | | 3,332 | | |
| Total benefits and expenses | | 10,977 | | | | (126) | | | — | | | (3) | | | 794 | | | 920 | | | (1) | | | 912 | | | | 13,473 | | | | | 13,838 | | | | 143 | | | — | | | (24) | | | 975 | | | 271 | | | (14) | | | 9 | | | | 15,198 | | |
| __________ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) See page 39 for a definition of adjusted operating income. | | | | | | | | | | | | | | | | | | | | | | | |
| (2) Represents adjustments not included in the above reconciling items, including goodwill impairments related to Assurance IQ that resulted in charges of $903 million pre-tax and $713 million after-tax in the fourth quarter of December 31, 2022. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | | | | | | | | |
| Quarterly Financial Supplement | | | | | | | | | | | | | | |
| Third Quarter 2023 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| COMBINED STATEMENTS OF OPERATIONS - AOI TO U.S. GAAP RECONCILIATION OF REVENUES AND BENEFITS AND EXPENSES | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, 2023 | |
| | | | | | Reconciling Items | | | | |
| | | Adjusted Operating Income (Loss) basis (1) | | | Total realized investment gains (losses), net, and related charges and adjustments | | Change in value of market risk benefits, net of related hedging gains (losses) | | Market experience updates | | Closed Block Division | | Other Divested and Run-off Businesses | | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | | Other adjustments (2) | | | U.S. GAAP | |
| | | | | | | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | | | | | | | | | | |
| Premiums | | 6,368 | | | | — | | | — | | | — | | | 430 | | | 111 | | | — | | | — | | | | 6,909 | | |
| Policy charges and fee income | | 1,032 | | | | 46 | | | — | | | (5) | | | — | | | — | | | — | | | — | | | | 1,073 | | |
| Net investment income | | 3,814 | | | | (4) | | | — | | | — | | | 499 | | | 167 | | | — | | | — | | | | 4,476 | | |
| Realized investment gains (losses), net | | 109 | | | | (911) | | | — | | | — | | | (113) | | | (23) | | | — | | | — | | | | (938) | | |
| Asset management fees, commissions and other income | | 1,321 | | | | 366 | | | — | | | — | | | 139 | | | 146 | | | (10) | | | — | | | | 1,962 | | |
| Change in value of market risk benefits, net of related hedging gains (losses) | | — | | | | — | | | 16 | | | — | | | — | | | — | | | — | | | — | | | | 16 | | |
| Total revenues | | 12,644 | | | | (503) | | | 16 | | | (5) | | | 955 | | | 401 | | | (10) | | | — | | | | 13,498 | | |
| Benefits and expenses: | | | | | | | | | | | | | | | | | | | | | |
| Insurance and annuity benefits | | 6,931 | | | | (42) | | | — | | | (1) | | | 900 | | | 176 | | | — | | | — | | | | 7,964 | | |
| Change in estimates of liability for future policy benefits | | 159 | | | | 8 | | | — | | | (1) | | | — | | | 89 | | | — | | | — | | | | 255 | | |
| Interest credited to policyholders' account balances | | 780 | | | | 289 | | | — | | | — | | | 29 | | | 51 | | | — | | | — | | | | 1,149 | | |
| Interest expense | | 461 | | | | — | | | — | | | — | | | — | | | (2) | | | — | | | — | | | | 459 | | |
| Deferral of acquisition costs | | (546) | | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | (546) | | |
| Amortization of acquisition costs | | 355 | | | | 7 | | | — | | | — | | | 4 | | | — | | | — | | | — | | | | 366 | | |
| General and administrative expenses | | 3,112 | | | | — | | | — | | | — | | | 70 | | | 23 | | | 16 | | | 9 | | | | 3,230 | | |
| Total benefits and expenses | | 11,252 | | | | 262 | | | — | | | (2) | | | 1,003 | | | 337 | | | 16 | | | 9 | | | | 12,877 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| __________ | | | | | | | | | | | | | | | | | | | | | |
| (1) See page 39 for a definition of adjusted operating income. | | | | | | | |
| (2) Represents adjustments not included in the above reconciling items. Also includes certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | |
| Quarterly Financial Supplement | | | | | |
| Third Quarter 2023 | | | | | |
| | | | | | |
| KEY DEFINITIONS AND FORMULAS | | | | | | | |
| | | | | | | | |
| 1. Adjusted operating income before income taxes: | | | | | | | |
| 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. |
| | | | | | | | |
| 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. |
| | | | | | | | |
| 2. After-tax adjusted operating income: | | | | | | | |
| Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments. |
| | | | | | | | |
| 3. Annualized New Business Premiums: | | | | | | | |
| Premiums from new sales that 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. Amounts ascribed to Gibraltar Life Consultants include production by captive agents associated with the Japan operation. |
| | | | | | | | |
| 4. Assets Under Administration: | | | | | | | |
| Fair market value of assets in client accounts and mortgage servicing assets, which are reported on an unpaid principal balance basis, that are not included in Assets Under Management. Prudential does not receive a management fee on these assets, but may receive a fee for executing trades, custody or record keeping services, or servicing the mortgage loans. In addition, fair market value of assets for which Prudential provides non-discretionary investment advice and receives a fee. |
| | | | | | | | |
| 5. Assets Under Management: | | | | | | | |
| Fair market value of assets directly managed by Prudential or joint ventures of which Prudential has at least 50% ownership, and assets invested in investment options included in the Company’s products that are managed by third party sub-advised managers at the discretion of Prudential. This includes externally managed modified coinsurance for both Hartford and Allstate. It also includes the fair value of derivatives used in various portfolio management strategies related to the portfolio’s invested assets, regardless of the hedge accounting designation, but excludes direct hedges of product liabilities and expenses. |
| | | | | | | | |
| 6. Book value per share of Common Stock: | | | | | | | |
| GAAP equity attributed to Prudential Financial, Inc. divided by the number of common shares outstanding at end of period, on a diluted basis. Adjusted book value per common share is a non-GAAP measure. This non-GAAP measure 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 including the removal of the associated accounting impacts of the remeasurement of certain insurance liabilities and investments that are marked to market through AOCI under GAAP. However, adjusted book value per common share is not a substitute for book value per share including AOCI determined in accordance with GAAP, and the adjustments made to derive the measure are important to an understanding of our overall financial position. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | |
| Quarterly Financial Supplement | | | | | |
| Third Quarter 2023 | | | | | |
| | | | | | |
| KEY DEFINITIONS AND FORMULAS | | | | | | | |
| | | | | | | | |
| 7. Borrowings - Capital Debt: | | | | | | | |
| Debt utilized to meet the capital requirements of our business. |
| | | | | | | | |
| 8. Borrowings - Operating Debt: | | | | | | | |
| Debt utilized for business funding to meet specific purposes, which may include activities associated with our PGIM and Assurance IQ businesses. Operating debt also consists of debt issued to finance specific portfolios of investment assets, the proceeds from which will service the debt. Specifically, this includes assets supporting reserve requirements under Regulation XXX and Guideline AXXX, as well as funding for institutional and insurance company portfolio cash flow timing differences. |
| | | | | | | | |
| 9. Divested and Run-off Businesses: | | | | | | | |
| Businesses that have been or will be sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP. |
| | | | | | | | |
| 10. Earned Premiums: | | | | | | | |
| The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed. |
| | | | | | | | |
| 11. General Account: | | | | | | | |
| Includes assets of the insurance companies for which the Company bears the investment risk. These generally include assets supporting "Future Policy Benefits" and "Policyholders' Account Balances". General account assets also include assets of the parent company, Prudential Financial, Inc. and excludes assets recognized for statutory purposes that are specifically allocated to a separate account. |
| | | | | | | | |
| 12. Gibraltar Life: | | | | | | | |
| Includes results from the Japan operation. |
| | | | | | | | |
| 13. Gibraltar Life Consultants: | | | | | | | |
| Captive insurance agents for Gibraltar Life. |
| | | | | | | | |
| 14. Group Insurance Benefits Ratios: | | | | | | | |
| Ratio of policyholder benefits to earned premiums, policy charges and fee income. |
| | | | | | | | |
| 15. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios: | | | | | | | |
| Ratio of administrative operating expenses (excluding commissions) to gross premiums, and net policy charges and fee income. |
| | | | | | | | |
| 16. Individual Retirement Strategies Account Values in General Account and Separate Account: | | | | | | | |
| Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company. |
| | | | | | | | |
| 17. Individual Retirement Strategies - Net Amounts at Risk: | | | | | | | |
| Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. |
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| Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. |
| | | | | | | | |
| 18. Insurance and Annuity Benefits: | | | | | | | |
| Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses. |
| | | | | | | | |
| 19. International Life Planners: | | | | | | | |
| Captive insurance Advisors in our Life Planner operations. |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | |
| Quarterly Financial Supplement | | | | | |
| Third Quarter 2023 | | | | | |
| | | | | | |
| KEY DEFINITIONS AND FORMULAS | | | | | | | |
| | | | | | | | |
| 20. Non-recourse and Limited-recourse Debt: | | | | | | | |
| Limited and non-recourse borrowing is where the debt holder is only entitled to collect against the assets pledged to the debt as collateral or has very limited rights to collect against other assets. |
| | | | | | | | |
| 21. Other Related Revenues: | | | | | | | |
| Other related revenues include incentive fees, transaction fees, seed and co-investment results, and commercial mortgage revenues. | | | | |
| | | | | | | | |
| 22. PGIM Asset Under Management Classifications: | | | | | | | |
| Public Equity - Represents stock ownership interest in a corporation or partnership (excluding hedge funds) or real estate investment trust. |
| | | | | | | | |
| Public Fixed Income - Represents debt instruments that pay fixed interest and usually have a maturity (excluding mortgages). |
| | | | | | | | |
| Real Estate - Includes direct real estate equity and real estate mortgages. |
| | | | | | | | |
| Private Credit and Other Alternatives - Includes private credit, private equity, hedge funds and other alternative strategies. |
| | | | | | | | |
| Multi-Asset - Includes funds or products that invest in more than one asset class, balancing equity and fixed income funds and target date funds. |
| | | | | | | | |
| 23. Policy Persistency - Group Insurance: | | | | | | | |
| Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers' Group Life Insurance and Prudential Employee Benefit Plan). |
| | | | | | | | |
| 24. Policy Persistency - International Businesses: | | | | | | | |
| 13 month persistency represents the average percentage of face amount of policies that are still in force at their 13th policy month. 25 month persistency represents the average percentage of face amount of policies that are still in force at their 25th policy month. |
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| 25. Prudential Advisors: | | | | | | | |
| Captive financial professionals in our insurance operations in the United States. |
| | | | | | | | |
| 26. Prudential Advisor Productivity: | | | | | | | |
| Commissions on new sales of all products by Prudential Advisors financial professionals under contract for the entire period, divided by the number of those financial professionals. Excludes commissions on new sales by financial professionals hired or departed during the period. For interim reporting periods, the productivity measures are annualized. |
| | | | | | | | |
| 27. Prudential Financial, Inc. Equity: | | | | | | | |
| Amount of capital assigned to each of the Company's segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment's risks. Represents all of Prudential Financial, Inc. equity that is not attributable to noncontrolling interests. |
| | | | | | | | |
| 28. Separate Accounts: | | | | | | | |
| Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account. |
| | | | | | | | |
| 29. Wrap-Fee Products: | | | | | | | |
| Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Prudential Financial, Inc. | | | | | | |
| Quarterly Financial Supplement | | | | | |
| Third Quarter 2023 | | | | | |
| | | | | | |
| | | | | | |
| RATINGS AND INVESTOR INFORMATION | | | | | | | | |
| | | | | | | | | |
| FINANCIAL STRENGTH RATINGS | | | | | | | | |
| as of November 1, 2023 | | | | | | | | |
| | | | | Standard & | | | | Fitch |
| | | A.M. Best* | | Poor's | | Moody's* | | Ratings* |
| The Prudential Insurance Company of America | | A+ | | AA- | | Aa3 | | AA- |
| PRUCO Life Insurance Company | | A+ | | AA- | | Aa3 | | AA- |
| PRUCO Life Insurance Company of New Jersey | | A+ | | AA- | | NR | | AA- |
| The Prudential Life Insurance Co., Ltd. (Prudential of Japan) | | NR | | A+ | | NR | | NR |
| Gibraltar Life Insurance Company, Ltd. | | NR | | A+ | | NR | | NR |
| The Prudential Gibraltar Financial Life Insurance Co. Ltd. | | NR | | A+ | | NR | | NR |
| CREDIT RATINGS: | | | | | | | | |
| as of November 1, 2023 | | | | | | | | |
| | | | | | | | | |
| Prudential Financial, Inc.: | | | | | | | | |
| Short-Term Borrowings | | AMB-1 | | A-1 | | P-2 | | F1 |
| Long-Term Senior Debt | | a- | | A | | A3 | | A- |
| Junior Subordinated Long-Term Debt | | bbb | | BBB+ | | Baa1 | | BBB |
| | | | | | | | | |
| The Prudential Insurance Company of America: | | | | | | | | |
| Capital and surplus notes | | a | | A | | A2 | | A |
| | | | | | | | | |
| Prudential Funding, LLC: | | | | | | | | |
| Short-Term Debt | | AMB-1 | | A-1+ | | P-1 | | F1+ |
| Long-Term Senior Debt | | a+ | | AA- | | A1 | | A+ |
| | | | | | | | | |
| PRICOA Global Funding I: | | | | | | | | |
| Long-Term Senior Debt | | aa- | | AA- | | Aa3 | | AA- |
| | | | | | | | | |
| * NR indicates not rated. | | | | | | | | |
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| INVESTOR INFORMATION: | | | | | | | | |
| | | | | | | | | |
| Corporate Office: | | | | | | | | |
| Prudential Financial, Inc. | | | | | | | | |
| 751 Broad Street | | | | | | | | |
| Newark, New Jersey 07102 | | | | | | | | |
| | | | | | | | | |
| Common Stock: | | | | | | | | |
| Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU. | | | | | | | | |
| | | | | | | | | |
| For more information, please visit our website at investor.prudential.com. | | | | | | | | |
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