- 2023 net income attributable to Prudential Financial, Inc. of
$2.488 billion or $6.74 per Common share versus net loss of $1.647
billion or $4.49 per share for 2022.
- 2023 after-tax adjusted operating income of $4.286 billion or
$11.62 per Common share versus $3.914 billion or $10.31 per share
for 2022.
- Fourth quarter 2023 net income attributable to Prudential
Financial, Inc. of $1.317 billion or $3.61 per Common share versus
net loss of $52 million or $0.16 per share for the year-ago
quarter.
- Fourth quarter 2023 after-tax adjusted operating income of $943
million or $2.58 per Common share versus $932 million or $2.49 per
share for the year-ago quarter.
- Book value per Common share of $76.77 versus $82.48 per share
for the year-ago quarter; adjusted book value per Common share of
$96.64 versus $94.69 per share for the year-ago quarter.
- Parent company highly liquid assets(2) of $4.1 billion versus
$4.5 billion for the year-ago quarter.
- Assets under management(3) of $1.450 trillion versus $1.377
trillion for the year-ago quarter.
- Capital returned to shareholders of $708 million in the fourth
quarter, including $250 million of share repurchases and $458
million of dividends, versus $824 million in the year-ago quarter.
Dividends paid in the fourth quarter were $1.25 per Common share,
representing a 5% yield on adjusted book value.
- The Company’s Board of Directors has authorized the repurchase
of up to $1.0 billion of outstanding Common Stock during the period
from January 1, 2024 through December 31, 2024. In addition, the
Company declared a quarterly dividend of $1.30 per share of Common
Stock, payable on March 14, 2024, to shareholders of record as of
February 20, 2024. This represents an increase of 4% over the prior
year dividend level, the 16th consecutive year the dividend has
been increased.
Charles Lowrey, Chairman and CEO, commented on results:
“Our 2023 results reflect continued strong sales across our
insurance and retirement businesses and solid underlying earnings
growth.
We are proud of the significant progress we made to become a
higher growth, more capital efficient, and more nimble company.
In 2023, we successfully reduced our market sensitivity and
increased capital flexibility through multiple strategic
transactions. We reached more people around the world with our
leading life, retirement, and investment products through expanded
distribution and enhanced technology. We launched Prismic, a life
and annuity reinsurance company, to drive future growth and unlock
value for all stakeholders. And finally, we adopted a new operating
model to ensure we meet our customers’ evolving needs while driving
efficiency to maintain our competitive market position.
Looking ahead, we are confident that our strategy and mutually
reinforcing business system position us well to deliver long-term,
sustainable growth, and to continue to be a global leader in
expanding access to investing, insurance, and retirement
security.”
Prudential Financial, Inc. (NYSE: PRU) today reported fourth
quarter and year-end 2023 results. Net income attributable to
Prudential Financial, Inc. was $1.317 billion ($3.61 per Common
share) for the fourth quarter of 2023, compared to a net loss of
$52 million ($0.16 per Common share) for the fourth quarter of
2022. After-tax adjusted operating income was $943 million ($2.58
per Common share) for the fourth quarter of 2023, compared to $932
million ($2.49 per Common share) for the fourth quarter of
2022.
Net income attributable to Prudential Financial, Inc. was $2.488
billion ($6.74 per Common share) for 2023, compared to net loss of
$1.647 billion ($4.49 per Common share) for 2022. After-tax
adjusted operating income was $4.286 billion ($11.62 per Common
share) for 2023, compared to $3.914 billion ($10.31 per Common
share) for 2022.
Consolidated adjusted operating income and adjusted book value
are non-GAAP measures. A discussion of these measures, including
definitions thereof, how they are useful to investors, and certain
limitations thereof, is included later in this press release under
“Non-GAAP Measures” and reconciliations to the most comparable GAAP
measures are provided in the tables that accompany this
release.
RESULTS OF ONGOING OPERATIONS
The Company’s ongoing operations include PGIM, U.S. Businesses,
International Businesses, and Corporate & Other. In the
following business-level discussion, adjusted operating income
refers to pre-tax results.
PGIM
PGIM, the Company’s global investment management
business, reported adjusted operating income of $172 million for
the fourth quarter of 2023, compared to $230 million in the
year-ago quarter. This decrease primarily reflects higher expenses
and lower other related revenues, driven by lower incentive fees
and agency income, partially offset by higher asset management
fees.
PGIM assets under management of $1.298 trillion were up 6% from
the year-ago quarter, primarily resulting from equity market
appreciation, partially offset by net outflows. Third-party net
outflows of $13.5 billion in the current quarter reflect retail
outflows of $7.2 billion, driven by equity sub-advised mandates and
fixed income outflows, and institutional outflows of $6.3 billion,
including a large redemption from an equity mandate and outflows
from public fixed income.
U.S. Businesses
U.S. Businesses reported adjusted operating income of
$988 million for the fourth quarter of 2023, compared to $710
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 $914 million for the fourth
quarter of 2023, compared to $747 million in the year-ago
quarter.
Institutional Retirement Strategies:
- Reported adjusted operating income of $432 million in the
current quarter, compared to $332 million in the year-ago quarter.
This increase primarily reflects higher net investment spread
results.
- Account values of $258 billion increased 3% from the year-ago
quarter, reflecting the benefits of business growth, favorable
foreign exchange impacts, and market appreciation, partially offset
by the reinsurance of a block of structured settlements. Sales in
the current quarter of $14.3 billion reflect $13.0 billion of
international reinsurance transactions, including a $9.2 billion
longevity risk transfer transaction in the Netherlands.
Individual Retirement Strategies:
- Reported adjusted operating income of $482 million in the
current quarter, compared to $415 million in the year-ago quarter.
This increase primarily reflects higher net investment spread
results and lower expenses, partially offset by lower fee income,
net of distribution expenses and other associated costs.
- Account values of $118 billion were down 1% from the year-ago
quarter, reflecting the reinsurance of a block of legacy variable
annuities and net outflows, partially offset by market
appreciation. Sales of $2.1 billion in the current quarter
increased 41% from the year-ago quarter, reflecting continued
momentum from our FlexGuard products and increased sales of fixed
annuity products.
Group Insurance:
- Reported adjusted operating income of $66 million in the
current quarter, compared to $15 million in the year-ago quarter.
This increase primarily reflects more favorable underwriting
results in both group life and disability and lower expenses.
- Reported earned premiums, policy charges, and fees of $1.4
billion decreased 1% from the year-ago quarter.
Individual Life:
- Reported adjusted operating income of $8 million in the current
quarter, compared to a loss of $52 million in the year-ago quarter.
This increase reflects higher net investment spread results and
lower expenses, partially offset by less favorable underwriting
results.
- Sales of $205 million in the current quarter increased 33% from
the year-ago quarter, driven by Variable Life and Term sales,
reflecting our pivot to less market sensitive products.
International Businesses
International Businesses, consisting of Life Planner and
Gibraltar Life & Other, reported adjusted operating income of
$748 million for the fourth quarter of 2023, compared to $814
million in the year-ago quarter. This decrease primarily reflects
less favorable underwriting results, including unfavorable
policyholder behavior, partially offset by lower expenses.
Life Planner:
- Reported adjusted operating income of $464 million in the
current quarter, compared to $493 million in the year-ago quarter.
This decrease reflects less favorable underwriting results,
including unfavorable policyholder behavior, partially offset by
higher net investment spread results.
- Constant dollar basis sales(4) of $306 million in the current
quarter increased 21% from the year-ago quarter, driven by higher
sales in both Japan and Brazil.
Gibraltar Life & Other:
- Reported adjusted operating income of $284 million in the
current quarter, compared to $321 million in the year-ago quarter.
This decrease primarily reflects less favorable underwriting
results, including unfavorable policyholder behavior, and lower net
investment spread results, partially offset by lower expenses.
- Constant dollar basis sales(4) of $320 million in the current
quarter increased 27% from the year-ago quarter, driven by growth
in the Independent Agency and Bank channels.
Corporate & Other
Corporate & Other reported a loss, on an adjusted
operating income basis, of $656 million for the fourth quarter of
2023, compared to a loss of $525 million in the year-ago quarter.
This higher loss primarily reflects higher expenses, driven by a
$200 million restructuring charge in the current quarter.
NET INCOME
Net Income in the current quarter included $314 million
of pre-tax net realized investment gains and related charges and
adjustments, largely reflecting the impacts of lower interest
rates, and includes $21 million of pre-tax net impairment and
credit-related losses, $216 million of pre-tax gains related to net
change in value of market risk benefits, $174 million of pre-tax
earnings from divested and run-off businesses, a goodwill
impairment charge of $177 million pre-tax, reflecting the decline
in the fair value of Assurance IQ, and $78 million of pre-tax
losses related to market experience updates.
Net loss for the year-ago quarter included $924 million of
pre-tax net realized investment losses and related charges and
adjustments, largely reflecting the impacts of rising interest
rates, and includes $42 million of pre-tax net impairment and
credit-related losses, a goodwill impairment charge of $903 million
pre-tax, reflecting the decline in the fair value of Assurance IQ,
$69 million of pre-tax losses from divested and run-off businesses,
$629 million of pre-tax gains related to net change in value of
market risk benefits, and $25 million of pre-tax gains related to
market experience updates.
EARNINGS CONFERENCE CALL
Members of Prudential’s senior management will host a conference
call on Wednesday, February 7, 2024, at 11:00 a.m. ET to discuss
with the investment community the Company’s fourth quarter results.
The conference call will be broadcast live over the Company’s
Investor Relations website at investor.prudential.com. Please log
on 15 minutes early in the event necessary software needs to be
downloaded. Institutional investors, analysts, and other interested
parties are invited to listen to the call by dialing one of the
following numbers: (877) 407-8293 (domestic) or (201) 689-8349
(international). A replay will also be available on the Investor
Relations website through February 21. To access a replay via phone
starting at 3:00 p.m. ET on February 7 through February 21, dial
(877) 660-6853 (domestic) or (201) 612-7415 (international) and use
replay code 13742767.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including
those regarding planned dividends and share repurchases, our
expectation that Prismic will drive future growth, our strategy to
deliver long-term, sustainable growth and to be a global leader in
expanding access to investing, insurance, and retirement security,
and other business strategies, constitute forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements are made
based on management’s current expectations and beliefs concerning
future developments and their potential effects upon Prudential
Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s
actual results may differ, possibly materially, from expectations
or estimates reflected in such forward-looking statements. Certain
important factors that could cause actual results to differ,
possibly materially, from expectations or estimates reflected in
such forward-looking statements can be found in the “Risk Factors”
and “Forward-Looking Statements” sections included in Prudential
Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q. The forward-looking statements herein are subject to
the risk, among others, that we will be unable to execute our
strategy because of market or competitive conditions or other
factors. Prudential Financial, Inc. does not undertake to update
any particular forward-looking statement included in this
document.
NON-GAAP MEASURES
Consolidated adjusted operating income and adjusted book value
are non-GAAP measures. Reconciliations to the most directly
comparable GAAP measures are included in this release.
We believe that our use of these non-GAAP measures helps
investors understand and evaluate the Company’s performance and
financial position. The presentation of adjusted operating income
as we measure it for management purposes enhances the understanding
of the results of operations by highlighting the results from
ongoing operations and the underlying profitability of our
businesses. Trends in the underlying profitability of our
businesses can be more clearly identified without the fluctuating
effects of the items described below. Adjusted book value augments
the understanding of our financial position by providing a measure
of net worth that is primarily attributable to our business
operations separate from the portion that is affected by capital
and currency market conditions, and by isolating the accounting
impact associated with insurance liabilities that are generally not
marked to market and the supporting investments that are marked to
market through accumulated other comprehensive income under GAAP.
However, these non-GAAP measures are not substitutes for income and
equity determined in accordance with GAAP, and the adjustments made
to derive these measures are important to an understanding of our
overall results of operations and financial position. The schedules
accompanying this release provide reconciliations of non-GAAP
measures with the corresponding measures calculated using GAAP.
Additional historic information relating to our financial
performance is located on our website at
investor.prudential.com.
Adjusted operating income is a non-GAAP measure used by the
Company to evaluate segment performance and to allocate resources.
Adjusted operating income excludes “Realized investment gains
(losses), net, and related charges and adjustments”. A significant
element of realized investment gains and losses are impairments and
credit-related and interest rate-related gains and losses.
Impairments and losses from sales of credit-impaired securities,
the timing of which depends largely on market credit cycles, can
vary considerably across periods. The timing of other sales that
would result in gains or losses, such as interest rate-related
gains or losses, is largely subject to our discretion and
influenced by market opportunities as well as our tax and capital
profile.
Realized investment gains (losses) within certain businesses for
which such gains (losses) are a principal source of earnings, and
those associated with terminating hedges of foreign currency
earnings and current period yield adjustments, are included in
adjusted operating income. Adjusted operating income generally
excludes realized investment gains and losses from products that
contain embedded derivatives, and from associated derivative
portfolios that are part of an asset-liability management program
related to the risk of those products. Adjusted operating income
also excludes gains and losses from changes in value of certain
assets and liabilities relating to foreign currency exchange
movements that have been economically hedged or considered part of
our capital funding strategies for our international subsidiaries,
as well as gains and losses on certain investments that are
designated as trading. Adjusted operating income also excludes
investment gains and losses on assets supporting experience-rated
contractholder liabilities and changes in experience-rated
contractholder liabilities due to asset value changes, because
these recorded changes in asset and liability values are expected
to ultimately accrue to contractholders. Additionally, adjusted
operating income excludes the changes in fair value of equity
securities that are recorded in net income.
Adjusted operating income excludes “Change in value of market
risk benefits, net of related hedging gains (losses)”, which
reflects the impact from changes in current market conditions, and
market experience updates, reflecting the immediate impacts in
current period results from changes in current market conditions on
estimates of profitability, which we believe enhances the
understanding of underlying performance trends. Adjusted operating
income also excludes the results of Divested and Run-off
Businesses, which are not relevant to our ongoing operations, and
discontinued operations and earnings attributable to noncontrolling
interests, each of which is presented as a separate component of
net income under GAAP. Additionally, adjusted operating income
excludes other items, such as certain components of the
consideration for acquisitions, which are recognized as
compensation expense over the requisite service periods, and
goodwill impairments. Earnings attributable to noncontrolling
interests is presented as a separate component of net income under
GAAP and excluded from adjusted operating income. The tax effect
associated with pre-tax adjusted operating income is based on
applicable IRS and foreign tax regulations inclusive of pertinent
adjustments.
Adjusted operating income does not equate to “Net income” as
determined in accordance with U.S. GAAP. Adjusted operating income
is not a substitute for income determined in accordance with U.S.
GAAP, and our definition of adjusted operating income may differ
from that used by other companies. The items above are important to
an understanding of our overall results of operations. However, we
believe that the presentation of adjusted operating income as we
measure it for management purposes enhances the understanding of
our results of operations by highlighting the results from ongoing
operations and the underlying profitability of our businesses.
Trends in the underlying profitability of our businesses can be
more clearly identified without the fluctuating effects of the
items described above.
Adjusted book value is calculated as total equity (GAAP book
value) excluding accumulated other comprehensive income (loss), the
cumulative change in fair value of funds withheld embedded
derivatives, and the cumulative effect of foreign currency exchange
rate remeasurements and currency translation adjustments
corresponding to realized investment gains and losses. These items
are excluded in order to highlight the book value attributable to
our core business operations separate from the portion attributable
to external and potentially volatile capital and currency market
conditions.
FOOTNOTES
(1)
On January 1, 2023, the Company
adopted Accounting Standard Update 2018-12 for Targeted
Improvements to the Accounting for Long-Duration Contracts, which
provided new authoritative guidance impacting the accounting and
disclosure requirements for long-duration insurance and investment
contracts issued by the Company. Prior-year amounts have been
adjusted to reflect this guidance.
(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
December 31, 2023, has operations in the United States, Asia,
Europe, and Latin America. Prudential’s diverse and talented
employees help make lives better and create financial opportunity
for more people by expanding access to investing, insurance, and
retirement security. Prudential’s iconic Rock symbol has stood for
strength, stability, expertise, and innovation for nearly 150
years. For more information, please visit news.prudential.com.
Financial Highlights
(in millions, unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Adjusted operating income (loss) before
income taxes (1):
PGIM
$
172
$
230
$
713
$
843
U.S. Businesses
988
710
3,792
2,711
International Businesses
748
814
3,183
3,205
Corporate and Other
(656
)
(525
)
(2,172
)
(1,677
)
Total adjusted operating income before
income taxes
$
1,252
$
1,229
$
5,516
$
5,082
Reconciling Items:
Realized investment gains (losses), net,
and related charges and adjustments
$
314
$
(924
)
$
(2,573
)
$
(6,326
)
Change in value of market risk benefits,
net of related hedging gains (losses)
216
629
56
(443
)
Market experience updates
(78
)
25
110
642
Divested and Run-off Businesses:
Closed Block division
(50
)
(40
)
(100
)
(18
)
Other Divested and Run-off Businesses
224
(29
)
349
146
Equity in earnings of operating joint
ventures and earnings attributable to noncontrolling interests
(26
)
(18
)
(68
)
(36
)
Other adjustments (2)
(190
)
(912
)
(218
)
(939
)
Total reconciling items, before income
taxes
410
(1,269
)
(2,444
)
(6,974
)
Income (loss) before income taxes and
equity in earnings of operating joint ventures
$
1,662
$
(40
)
$
3,072
$
(1,892
)
Income Statement Data:
Net income (loss) attributable to
Prudential Financial, Inc.
$
1,317
$
(52
)
$
2,488
$
(1,647
)
Income (loss) attributable to
noncontrolling interests
9
8
20
(28
)
Net income (loss)
1,326
(44
)
2,508
(1,675
)
Less: Earnings attributable to
noncontrolling interests
9
8
20
(28
)
Income (loss) attributable to
Prudential Financial, Inc.
1,317
(52
)
2,488
(1,647
)
Less: Equity in earnings of operating
joint ventures, net of taxes and earnings attributable to
noncontrolling interests
14
(17
)
29
(34
)
Income (loss) (after-tax) before equity
in earnings of operating joint ventures
1,303
(35
)
2,459
(1,613
)
Less: Total reconciling items, before
income taxes
410
(1,269
)
(2,444
)
(6,974
)
Less: Income taxes, not applicable to
adjusted operating income
50
(302
)
(617
)
(1,447
)
Total reconciling items, after income
taxes
360
(967
)
(1,827
)
(5,527
)
After-tax adjusted operating income
(1)
943
932
4,286
3,914
Income taxes, applicable to adjusted
operating income
309
297
1,230
1,168
Adjusted operating income before income
taxes (1)
$
1,252
$
1,229
$
5,516
$
5,082
See footnotes on last page.
Financial Highlights
(in millions, except per share data,
unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Earnings per share of Common
Stock:
Net income (loss) attributable to
Prudential Financial, Inc.
$
3.61
$
(0.16
)
$
6.74
$
(4.49
)
Less: Reconciling Items:
Realized investment gains (losses), net,
and related charges and adjustments
0.87
(2.50
)
(7.06
)
(16.88
)
Change in value of market risk benefits,
net of related hedging gains (losses)
0.60
1.70
0.15
(1.18
)
Market experience updates
(0.22
)
0.07
0.30
1.71
Divested and Run-off Businesses:
Closed Block division
(0.14
)
(0.11
)
(0.27
)
(0.05
)
Other Divested and Run-off Businesses
0.62
(0.08
)
0.96
0.39
Difference in earnings allocated to
participating unvested share-based payment awards
(0.01
)
0.02
0.05
0.07
Other adjustments (2)
(0.53
)
(2.47
)
(0.60
)
(2.51
)
Total reconciling items, before income
taxes
1.19
(3.37
)
(6.47
)
(18.45
)
Less: Income taxes, not applicable to
adjusted operating income
0.16
(0.72
)
(1.59
)
(3.65
)
Total reconciling items, after income
taxes
1.03
(2.65
)
(4.88
)
(14.80
)
After-tax adjusted operating
income
$
2.58
$
2.49
$
11.62
$
10.31
Weighted average number of outstanding
common shares - basic
360.3
367.6
363.5
372.3
Weighted average number of outstanding
common shares - diluted
361.0
369.4
364.6
374.7
For earnings per share of Common Stock
calculation:
Net income (loss) attributable to
Prudential Financial, Inc.
$
1,317
$
(52
)
$
2,488
$
(1,647
)
Less: Earnings allocated to participating
unvested share-based payment awards
14
6
29
25
Net income (loss) attributable to
Prudential Financial, Inc. for earnings per share of Common Stock
calculation
$
1,303
$
(58
)
$
2,459
$
(1,672
)
After-tax adjusted operating income
(1)
$
943
$
932
$
4,286
$
3,914
Less: Earnings allocated to participating
unvested share-based payment awards
10
12
49
52
After-tax adjusted operating income for
earnings per share of Common Stock calculation (1)
$
933
$
920
$
4,237
$
3,862
Prudential Financial, Inc. Equity (as
of end of period):
GAAP book value (total PFI equity) at end
of period
$
27,820
$
30,593
Less: Accumulated other comprehensive
income (AOCI)
(6,504
)
(3,806
)
GAAP book value excluding AOCI
34,324
34,399
Less: Cumulative change in fair value of
funds withheld embedded derivatives
(181
)
—
Less: Cumulative effect of foreign
exchange rate remeasurement and currency translation adjustments
corresponding to realized gains (losses)
(518
)
(723
)
Adjusted book value
$
35,023
$
35,122
End of period number of common shares -
diluted
362.4
370.9
GAAP book value per common share -
diluted
76.77
82.48
GAAP book value excluding AOCI per share -
diluted
94.71
92.74
Adjusted book value per common share -
diluted
96.64
94.69
See footnotes on last page.
Financial Highlights
(in millions, or as otherwise noted,
unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of
end of period):
Institutional customers
$
582.6
$
549.2
Retail customers
330.3
299.6
General account
385.2
379.6
Total PGIM
$
1,298.1
$
1,228.4
Institutional Customers - Assets Under
Management (in billions):
Gross additions, excluding money
market
$
20.5
$
13.8
$
67.7
$
71.6
Net additions (withdrawals), excluding
money market
$
(6.3
)
$
(6.0
)
$
(23.3
)
$
3.0
Retail Customers - Assets Under Management
(in billions):
Gross additions, excluding money
market
$
14.8
$
16.5
$
51.9
$
66.3
Net withdrawals, excluding money
market
$
(7.2
)
$
(5.7
)
$
(15.1
)
$
(23.2
)
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions
$
14,287
$
12,277
$
28,498
$
31,773
Net additions
$
8,124
$
8,029
$
3,215
$
15,375
Total account value at end of period,
net
$
258,417
$
251,818
Individual Retirement Strategies:
Actively-Sold Protected Investment and
Income Solutions and, Discontinued Traditional VA and Guaranteed
Living Benefits:
Gross sales (3)
$
2,102
$
1,490
$
7,604
$
5,964
Sales, net of full surrenders and death
benefits
$
234
$
355
$
869
$
(88
)
Total account value at end of period,
net
$
117,911
$
119,205
Group Insurance:
Annualized New Business Premiums (4):
Group life
$
41
$
10
$
296
$
283
Group disability
19
13
235
196
Total
$
60
$
23
$
531
$
479
Individual Life:
Annualized New Business Premiums (4):
Term life
$
33
$
22
$
120
$
93
Universal life
27
25
81
92
Variable life
145
107
536
424
Total
$
205
$
154
$
737
$
609
International Businesses:
International Businesses:
Annualized New Business Premiums
(4)(5):
Actual exchange rate basis
$
598
$
488
$
2,087
$
1,819
Constant exchange rate basis
$
626
$
505
$
2,153
$
1,846
See footnotes on last page.
Financial Highlights
(in billions, as of end of period,
unaudited)
December 31,
2023
2022
Assets and Assets Under Management and
Administration:
Total assets
$
721.1
$
689.0
Assets under management (at fair market
value):
PGIM
$
1,298.1
$
1,228.4
U.S. Businesses (6)
123.9
124.1
International Businesses
17.9
16.1
Corporate and Other (6)
9.7
8.7
Total assets under management
1,449.6
1,377.3
Assets under administration
181.5
157.4
Total assets under management and
administration
$
1,631.1
$
1,534.7
(1)
Adjusted operating income is a non-GAAP
measure of performance. See NON-GAAP MEASURES within the earnings
release for additional information. Adjusted operating income, when
presented at the segment level, is also a segment performance
measure. This segment performance measure, while not a traditional
U.S. GAAP measure, is required to be disclosed by U.S. GAAP in
accordance with FASB Accounting Standard Codification (ASC) 280 –
Segment Reporting. When presented by segment, we have prepared the
reconciliation of adjusted operating income to the corresponding
consolidated U.S. GAAP total in accordance with the disclosure
requirements as articulated in ASC 280.
(2)
Represents adjustments not included in the
above reconciling items, including goodwill impairments related to
Assurance IQ that resulted in charges of $177 million pre-tax and
$140 million after-tax for the three months and year ended December
31, 2023, and $903 million pre-tax and $713 million after-tax for
the three months and year ended December 31, 2022. Also includes
certain components of consideration for business acquisitions,
which are recognized as compensation expense over the requisite
service periods.
(3)
Includes Prudential FlexGuard and
FlexGuard Income, Prudential Premier Investment, MyRock, Private
Placement Variable Annuity and all fixed annuity products. Excludes
discontinued traditional variable annuities and guaranteed living
benefits.
(4)
Premiums from new sales are expected to be
collected over a one-year period. Group insurance annualized new
business premiums exclude new premiums resulting from rate changes
on existing policies, from additional coverage issued under our
Servicemembers’ Group Life Insurance contract, and from excess
premiums on group universal life insurance that build cash value
but do not purchase face amounts. Group insurance annualized new
business premiums include premiums from the takeover of claim
liabilities. Excess (unscheduled) and single premium business for
the Company’s domestic individual life and international operations
are included in annualized new business premiums based on a 10%
credit.
(5)
Actual amounts reflect the impact of
currency fluctuations. Constant amounts reflect foreign denominated
activity translated to U.S. dollars at uniform exchange rates for
all periods presented, including Japanese yen 110 per U.S. dollar.
U.S. dollar-denominated activity is included based on the amounts
as transacted in U.S. dollars.
(6)
Prior period amounts have been
reclassified to conform to current period presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240206789085/en/
MEDIA: Laura Edling, laura.edling@prudential.com
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