- Fourth quarter 2022 net loss attributable to Prudential
Financial, Inc. of $558 million or $1.53 per Common share versus
net income of $1.208 billion or $3.13 per share for the year-ago
quarter.
- Fourth quarter 2022 after-tax adjusted operating income of $907
million or $2.42 per Common share versus $1.227 billion or $3.18
per share for the year-ago quarter.
- 2022 net loss attributable to Prudential Financial, Inc. of
$1.438 billion or $3.93 per Common share versus net income of
$7.724 billion or $19.51 per share for 2021.
- 2022 after-tax adjusted operating income of $3.592 billion or
$9.46 per Common share versus $5.772 billion or $14.58 per share
for 2021.
- Book value per Common share of $43.81 versus $161.26 per share
for the year-ago quarter; adjusted book value per Common share of
$99.22 versus $108.72 per share for the year-ago quarter.
- Parent company highly liquid assets(1) of $4.5 billion versus
$3.6 billion for the year-ago quarter.
- Assets under management(2) of $1.377 trillion versus $1.742
trillion for the year-ago quarter.
- Capital returned to shareholders of $824 million in the fourth
quarter, including $375 million of share repurchases and $449
million of dividends, versus $818 million in the year-ago quarter.
Dividends paid were $1.20 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, 2023 through December 31, 2023. In addition, the
Company declared a quarterly dividend of $1.25 per share of Common
Stock, payable on March 16, 2023, to shareholders of record as of
February 21, 2023. This represents an increase of 4% over the prior
year dividend level, the 15th consecutive year the dividend has
been increased.
Charles Lowrey, Chairman and CEO, commented on results:
“Our fourth quarter operating results reflect lower variable
investment and fee income, partially offset by improved COVID-19
mortality, a benefit from net spread results due to rising interest
rates, and underlying business growth.
During the year, we made further progress on our transformation
to become a higher growth, less market sensitive, and more nimble
company. We reduced the market sensitivity of our business while
investing in sustainable, long-term growth. We also exceeded our
$750 million cost savings target a year ahead of schedule and
maintained our rock solid balance sheet and disciplined approach to
capital deployment.
Looking ahead, our strategic progress, financial strength, and
complementary businesses, combined with the benefits of a higher
interest rate environment, position us well for the future. For
nearly 150 years, Prudential has remained focused on creating value
for its customers, shareholders, and other stakeholders. We will
continue to meet their evolving needs with enhanced solutions and
customer experience that make us a global leader in expanding
access to investing, insurance, and retirement security.”
Prudential Financial, Inc. (NYSE: PRU) today reported fourth
quarter and year-end 2022 results. Net loss attributable to
Prudential Financial, Inc. was $558 million ($1.53 per Common
share) for the fourth quarter of 2022, compared to net income of
$1.208 billion ($3.13 per Common share) for the fourth quarter of
2021. After-tax adjusted operating income was $907 million ($2.42
per Common share) for the fourth quarter of 2022, compared to
$1.227 billion ($3.18 per Common share) for the fourth quarter of
2021.
Net loss attributable to Prudential Financial, Inc. was $1.438
billion ($3.93 per Common share) for 2022, compared to net income
of $7.724 billion ($19.51 per Common share) for 2021. After-tax
adjusted operating income was $3.592 billion ($9.46 per Common
share) for 2022, compared to $5.772 billion ($14.58 per Common
share) for 2021.
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.
NET INCOME
Net loss in the current quarter included a
goodwill impairment charge of $713 million, net of tax, reflecting
a decline in the fair value of Assurance IQ as a result of lower
expected earnings growth, a higher discount rate applied to future
cash flows, and lower peer valuations. The current quarter also
included $1.027 billion of pre-tax net realized investment losses
and related charges and adjustments, largely reflecting the impacts
of rising interest rates, including $41 million of pre-tax net
impairment and credit-related losses, $62 million of pre-tax losses
from divested and run-off businesses, and $123 million of pre-tax
gains related to market experience updates.
Net income for the year-ago quarter included a goodwill
impairment charge of $837 million, net of tax, reflecting the
decline in the fair value of Assurance IQ. This loss was offset by
$420 million of pre-tax gains related to market experience updates,
$332 million of pre-tax earnings from divested and run-off
businesses, and $116 million of pre-tax net realized investment
gains and related charges and adjustments, including $17 million of
pre-tax net impairment and credit-related losses.
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 $230 million for
the fourth quarter of 2022, compared to $350 million in the
year-ago quarter. This decrease primarily reflects lower asset
management fees, driven by a reduction in assets under management,
and lower Other Related Revenues, driven by lower incentive fees,
agency income, and transaction fees, partially offset by lower
expenses.
PGIM assets under management of $1.228 trillion were down 19%
from the year-ago quarter, resulting from higher interest rates and
widening credit spreads, as well as declines in equity markets.
Third-party net outflows of $11.7 billion in the current quarter
were driven primarily by public fixed income funds and reflect
institutional outflows of $6.0 billion and retail outflows of $5.7
billion.
U.S. Businesses
U.S. Businesses reported adjusted operating income
of $864 million for the fourth quarter of 2022, compared to $895
million in the year-ago quarter. This decrease primarily reflects
lower net investment spread results, driven by lower variable
investment income, and lower net fee income, partially offset by
more favorable underwriting results.
Retirement Strategies, consisting of Institutional
Retirement Strategies and Individual Retirement Strategies,
reported adjusted operating income of $802 million for the fourth
quarter of 2022, compared to $1.029 billion in the year-ago
quarter.
Institutional Retirement Strategies:
- Reported adjusted operating income of $342 million in the
current quarter, compared to $543 million in the year-ago quarter.
This decrease reflects lower net investment spread results, driven
by lower variable investment income, partially offset by the
benefits from business growth and rising interest rates.
- Account values of $252 billion, a record high, increased 2%
from the year-ago quarter and reflects $31.8 billion of new
business growth driven by significant pension risk transfer
transactions. Net inflows in the current quarter totaled $8.0
billion, driven by $10.7 billion of international reinsurance
transactions.
Individual Retirement Strategies:
- Reported adjusted operating income of $460 million in the
current quarter, compared to $486 million in the year-ago quarter.
This decrease reflects lower fee income, net of distribution
expenses and other associated costs, driven by a reduction in
account values, partially offset by higher net investment spread
results.
- Account values of $120 billion were down 34% from the year-ago
quarter, reflecting the sale of a block of legacy variable
annuities, market depreciation, and net outflows. Gross sales of
$1.5 billion in the current quarter reflect the continued momentum
from our FlexGuard products and increased sales of fixed annuity
products.
Group Insurance:
- Reported adjusted operating income of $15 million in the
current quarter, compared to a net operating loss of $205 million
in the year-ago quarter. This increase reflects more favorable
underwriting results in both group life and disability, partially
offset by lower net investment spread results, driven by lower
variable investment income, and higher 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 $18 million in the
current quarter, compared to $81 million in the year-ago quarter.
This decrease primarily reflects lower net investment spread
results, driven by lower variable investment income, partially
offset by lower expenses.
- Sales of $154 million in the current quarter decreased 15% from
the year-ago quarter, driven by lower Variable Life sales.
Assurance IQ reported adjusted operating income of $29
million in the current quarter, compared to a net operating loss of
$10 million in the year-ago quarter. This increase reflects higher
Medicare commission revenue and lower expenses.
International Businesses
International Businesses, consisting of Life
Planner and Gibraltar Life & Other, reported adjusted operating
income of $618 million for the fourth quarter of 2022, compared to
$829 million in the year-ago quarter. This decrease primarily
reflects lower net investment spread results, driven by lower
variable investment income, less favorable underwriting results,
including unfavorable policyholder behavior, and higher
expenses.
Life Planner:
- Reported adjusted operating income of $363 million in the
current quarter, compared to $428 million in the year-ago quarter.
This decrease reflects lower net investment spread results, driven
by lower variable investment income, higher expenses, and less
favorable underwriting results, including unfavorable policyholder
behavior, partially offset by business growth.
- Constant dollar basis sales(3) of $276 million in the current
quarter increased 17% from the year-ago quarter, primarily driven
by growth in Brazil, as well as higher sales in Japan.
Gibraltar Life & Other:
- Reported adjusted operating income of $255 million in the
current quarter, compared to $401 million in the year-ago quarter.
This decrease reflects lower net investment spread results, driven
by lower variable investment income, less favorable underwriting
results, including unfavorable policyholder behavior, and higher
expenses.
- Constant dollar basis sales(3) of $254 million in the current
quarter increased 20% from the year-ago quarter, primarily driven
by the Life Consultant channel.
Corporate & Other
Corporate & Other reported a loss, on an
adjusted operating income basis, of $526 million for the fourth
quarter of 2022, compared to a loss of $489 million in the year-ago
quarter. This higher loss reflects higher expenses, partially
offset by higher income from pension and other employee benefit
plans.
EARNINGS CONFERENCE CALL
Members of Prudential’s senior management will host a conference
call on Wednesday, February 8, 2023, 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 be available on the Investor
Relations website through February 22. To access a replay via phone
starting at 3:00 p.m. ET on February 8 through February 22, dial
(877) 660-6853 (domestic) or (201) 612-7415 (international) and use
replay code 13733989.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including
those regarding our strategy to become a higher growth, less market
sensitive, and more nimble company, our approach to capital
management and deployment, the expected impact of the higher
interest rate environment, 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,” as adjusted, 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 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, changes in the fair value of contingent consideration, 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)
Highly liquid assets
predominantly include cash, short-term investments, U.S. Treasury
securities, obligations of other U.S. government authorities and
agencies, and/or foreign government bonds. For more information
about highly liquid assets, see the section entitled “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations – Liquidity and Capital Resources” included in
Prudential Financial, Inc.’s Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q.
(2)
For more information about assets
under management, see the section entitled “Management’s Discussion
and Analysis of Financial Condition and Results of Operations –
Results of Operations – Segment Measures” included in Prudential
Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q.
(3)
For more information about
constant dollar basis sales, see the section entitled “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations – Results of Operations by Segment – International
Businesses” included in Prudential Financial, Inc.’s Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q.
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
approximately $1.4 trillion in assets under management as of
December 31, 2022, 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
2022
2021
2022
2021
Adjusted operating income (loss) before
income taxes (1):
PGIM
$
230
$
350
$
843
$
1,643
U.S. Businesses
864
895
2,879
3,875
International Businesses
618
829
2,404
3,390
Corporate and Other
(526
)
(489
)
(1,476
)
(1,607
)
Total adjusted operating income before
income taxes
$
1,186
$
1,585
$
4,650
$
7,301
Reconciling Items:
Realized investment gains (losses), net,
and related charges and adjustments
$
(1,027
)
$
116
$
(6,201
)
$
1,627
Market experience updates
123
420
781
750
Divested and Run-off Businesses:
Closed Block division
(44
)
48
(32
)
140
Other Divested and Run-off Businesses
(18
)
284
9
716
Equity in earnings of operating joint
ventures and earnings attributable to noncontrolling interests
(21
)
12
(44
)
(41
)
Other adjustments (2)
(912
)
(1,077
)
(939
)
(1,112
)
Total reconciling items, before income
taxes
(1,899
)
(197
)
(6,426
)
2,080
Income (loss) before income taxes and
equity in earnings of operating joint ventures
$
(713
)
$
1,388
$
(1,776
)
$
9,381
Income Statement Data:
Net income (loss) attributable to
Prudential Financial, Inc.
$
(558
)
$
1,208
$
(1,438
)
$
7,724
Income (loss) attributable to
noncontrolling interests
2
34
(24
)
70
Net income (loss)
(556
)
1,242
(1,462
)
7,794
Less: Earnings attributable to
noncontrolling interests
2
34
(24
)
70
Income (loss) attributable to
Prudential Financial, Inc.
(558
)
1,208
(1,438
)
7,724
Less: Equity in earnings of operating
joint ventures, net of taxes and earnings attributable to
noncontrolling interests
(9
)
(10
)
(32
)
17
Income (loss) (after-tax) before equity
in earnings of operating joint ventures
(549
)
1,218
(1,406
)
7,707
Less: Total reconciling items, before
income taxes
(1,899
)
(197
)
(6,426
)
2,080
Less: Income taxes, not applicable to
adjusted operating income
(443
)
(188
)
(1,428
)
145
Total reconciling items, after income
taxes
(1,456
)
(9
)
(4,998
)
1,935
After-tax adjusted operating income
(1)
907
1,227
3,592
5,772
Income taxes, applicable to adjusted
operating income
279
358
1,058
1,529
Adjusted operating income before income
taxes (1)
$
1,186
$
1,585
$
4,650
$
7,301
See footnotes on last page.
Financial Highlights
(in millions, except per share data,
unaudited)
Three Months Ended
Year Ended
December 31
December 31
2022
2021
2022
2021
Earnings per share of Common
Stock:
Net income (loss) attributable to
Prudential Financial, Inc.
$
(1.53
)
$
3.13
$
(3.93
)
$
19.51
Less: Reconciling Items:
Realized investment gains (losses), net,
and related charges and adjustments
(2.78
)
0.30
(16.55
)
4.17
Market experience updates
0.33
1.10
2.08
1.92
Divested and Run-off Businesses:
Closed Block division
(0.12
)
0.13
(0.09
)
0.36
Other Divested and Run-off Businesses
(0.05
)
0.75
0.02
1.84
Difference in earnings allocated to
participating unvested share-based payment awards
0.02
—
0.06
(0.07
)
Other adjustments (2)
(2.47
)
(2.83
)
(2.51
)
(2.85
)
Total reconciling items, before income
taxes
(5.07
)
(0.55
)
(16.99
)
5.37
Less: Income taxes, not applicable to
adjusted operating income
(1.12
)
(0.50
)
(3.60
)
0.44
Total reconciling items, after income
taxes
(3.95
)
(0.05
)
(13.39
)
4.93
After-tax adjusted operating
income
$
2.42
$
3.18
$
9.46
$
14.58
Weighted average number of outstanding
common shares (basic)
367.6
377.7
372.3
387.2
Weighted average number of outstanding
common shares (diluted)
369.4
380.9
374.7
390.1
For earnings per share of Common Stock
calculation:
Net income (loss) attributable to
Prudential Financial, Inc.
$
(558
)
$
1,208
$
(1,438
)
$
7,724
Less: Earnings allocated to participating
unvested share-based payment awards
6
17
25
115
Net income (loss) attributable to
Prudential Financial, Inc. for earnings per share of Common Stock
calculation
$
(564
)
$
1,191
$
(1,463
)
$
7,609
After-tax adjusted operating income
(1)
$
907
$
1,227
$
3,592
$
5,772
Less: Earnings allocated to participating
unvested share-based payment awards
12
17
48
86
After-tax adjusted operating income for
earnings per share of Common Stock calculation (1)
$
895
$
1,210
$
3,544
$
5,686
Prudential Financial, Inc. Equity (as
of end of period):
GAAP book value (total PFI equity) at end
of period
$
16,250
$
61,876
Less: Accumulated other comprehensive
income (AOCI)
(19,827
)
21,324
GAAP book value excluding AOCI
36,077
40,552
Less: Cumulative effect of foreign
exchange rate remeasurement and currency translation
adjustments corresponding to realized
gains/losses
(723
)
(1,164
)
Adjusted book value
$
36,800
$
41,716
End of period number of common shares
(diluted)
370.9
383.7
GAAP book value per common share -
diluted
43.81
161.26
GAAP book value excluding AOCI per share -
diluted
97.27
105.69
Adjusted book value per common share -
diluted
99.22
108.72
See footnotes on last page.
Financial Highlights
(in millions, or as otherwise noted,
unaudited)
Three Months Ended
Year Ended
December 31
December 31
2022
2021
2022
2021
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of
end of period):
Institutional customers
$
549.2
$
629.4
Retail customers
299.6
401.4
General account
379.6
493.0
Total PGIM
$
1,228.4
$
1,523.8
Institutional Customers - Assets Under
Management (in billions):
Gross additions, other than money
market
$
13.8
$
20.2
$
71.6
$
78.4
Net additions (withdrawals), other than
money market
$
(6.0
)
$
3.5
$
3.0
$
10.9
Retail Customers - Assets Under Management
(in billions):
Gross additions, other than money
market
$
16.5
$
23.7
$
66.3
$
89.5
Net additions (withdrawals), other than
money market
$
(5.7
)
$
(3.6
)
$
(23.2
)
$
0.1
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions
$
12,277
$
3,501
$
31,773
$
21,967
Net additions (withdrawals)
$
8,029
$
(1,392
)
$
15,375
$
1,142
Total account value at end of period
$
251,818
$
245,720
Individual Retirement Strategies:
Fixed and Variable Annuity Sales and
Account Values:
Gross sales
$
1,497
$
1,551
$
6,027
$
6,599
Sales, net of full surrenders and death
benefits
$
355
$
(1,102
)
$
(88
)
$
(3,802
)
Total account value at end of period
$
120,022
$
182,305
Group Insurance:
Group Insurance Annualized New Business
Premiums (3):
Group life
$
10
$
23
$
283
$
265
Group disability
13
49
196
221
Total
$
23
$
72
$
479
$
486
Individual Life:
Individual Life Insurance Annualized New
Business Premiums (3):
Term life
$
22
$
24
$
93
$
115
Universal life (4)
25
22
92
102
Variable life
107
136
424
538
Total
$
154
$
182
$
609
$
755
International Businesses:
International Businesses:
International Businesses Annualized New
Business Premiums (3)(5):
Actual exchange rate basis
$
488
$
438
$
1,819
$
1,940
Constant exchange rate basis
$
530
$
448
$
1,929
$
1,965
See footnotes on last page.
Financial Highlights
(in billions, as of end of period,
unaudited)
December 31
2022
2021
Assets and Assets Under Management and
Administration:
Total assets
$
689.9
$
937.6
Assets under management (at fair market
value):
PGIM
$
1,228.4
$
1,523.8
U.S. Businesses
126.7
163.1
International Businesses
16.1
12.8
Corporate and Other
6.1
42.6
Total assets under management
1,377.3
1,742.3
Assets under administration
157.4
382.5
Total assets under management and
administration
$
1,534.7
$
2,124.8
(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 $903 million pre-tax and
$713 million after-tax for the three months and year ended December
31, 2022, and $1,060 million pre-tax and $837 million after-tax for
the three months and year ended December 31, 2021. Also includes
certain components of consideration for business acquisitions,
which are recognized as compensation expense over the requisite
service periods, as well as changes in the fair value of the
associated contingent consideration.
(3)
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.
(4)
Prior period amounts have been
reclassified to conform to current period presentation.
(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 104 per U.S. dollar.
U.S. dollar-denominated activity is included based on the amounts
as transacted in U.S. dollars.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207005296/en/
MEDIA: Laura Edling, laura.edling@prudential.com
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