- 2024 net income attributable to Prudential Financial, Inc. of $2.727 billion or $7.50 per Common share versus $2.488 billion or $6.74 per share for 2023.
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- 2024 after-tax adjusted operating income of $4.588 billion or $12.62 per Common share versus $4.380 billion or $11.88 per share for 2023.
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- Fourth quarter 2024 net loss attributable to Prudential Financial, Inc. of $57 million or $0.17 per Common share versus net income of $1.317 billion or $3.61 per share for the year-ago quarter.
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- Fourth quarter after-tax adjusted operating income of $1.068 billion or $2.96 per Common share versus $926 million or $2.54 per share for the year-ago quarter.
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- Book value per Common share of $77.62 versus $76.77 per share for the year-ago quarter; adjusted book value per Common share of $95.82 versus $96.64 per share for the year-ago quarter.
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- Parent company highly liquid assets(1) of $4.6 billion versus $4.1 billion for the year-ago quarter.
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- Assets under management(2) of $1.512 trillion versus $1.450 trillion for the year-ago quarter.
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- Capital returned to shareholders of $720 million in the fourth quarter, including $250 million of share repurchases and $470 million of dividends, versus $708 million in the year-ago quarter. Dividends paid in the fourth quarter were $1.30 per Common share, representing a 5% yield on adjusted book value.
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- As previously announced, 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, 2025 through December 31, 2025. In addition, the Company declared a quarterly dividend of $1.35 per share of Common Stock, payable on March 13, 2025, to shareholders of record as of February 18, 2025. This represents an increase of 4% over the prior year’s dividend level, the 17th consecutive year the dividend has been increased.
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| Charles Lowrey, Chairman and CEO of Prudential Financial, commented on the results: |
| “Our 2024 results reflect strong sales across our retirement and insurance businesses and significant positive net flows in PGIM. We also made substantial progress to become a higher growth, more capital-efficient company. We further diversified our product mix and expanded distribution channels to reach more people around the world, while continuing to address the growing global retirement opportunity and increased demand for alternative investments. |
| We balanced meaningful returns to our shareholders with continued investment in the growth of our businesses, all while maintaining our robust financial strength. |
| We also announced several executive leadership changes, and as we look ahead to our 150th anniversary this year, Prudential is well-positioned to continue to deliver long-term, sustainable growth and remain a global leader in expanding access to investing, insurance, and retirement security.” |
| NEWARK, N.J.–(BUSINESS WIRE)– Prudential Financial, Inc. (NYSE: PRU) today reported year-end and fourth quarter 2024 results. Net income attributable to Prudential Financial, Inc. was $2.727 billion ($7.50 per Common share) for 2024, compared to $2.488 billion ($6.74 per Common share) for 2023. After-tax adjusted operating income was $4.588 billion ($12.62 per Common share) for 2024, compared to $4.380 billion ($11.88 per Common share) for 2023. |
| Net loss attributable to Prudential Financial, Inc. was $57 million ($0.17 per Common share) for the fourth quarter of 2024, compared to net income of $1.317 billion ($3.61 per Common share) for the fourth quarter of 2023. After-tax adjusted operating income was $1.068 billion ($2.96 per Common share) for the fourth quarter of 2024, compared to $926 million ($2.54 per Common share) for the fourth quarter of 2023. |
| Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this press release under “Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release. |
| Results Of Ongoing Operations |
| The Company’s ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & others. In the following business-level discussion, adjusted operating income refers to pre-tax results. |
| PGIM |
| PGIM, the Company’s global investment management business, reported an adjusted operating income of $259 million for the fourth quarter of 2024, compared to $172 million in the year-ago quarter. This increase primarily reflects higher asset management fees and other related revenues, which were driven by higher incentive fees, partially offset by higher expenses. |
| PGIM assets under management of $1.375 trillion were up 6% from the year-ago quarter, driven by net inflows, equity market appreciation, and strong investment performance. Total net flows in the quarter of $8.6 billion reflect affiliated net inflows of $8.9 billion, partially offset by $0.3 billion of third-party net outflows. Third-party institutional outflows were $0.5 billion as real estate outflows were partially offset by positive momentum in fixed income. Third-party retail inflows of $0.2 billion were primarily driven by fixed income. Total net flows for 2024 were $37.7 billion, including $24.1 billion of affiliated flows and $13.6 billion of third-party flows. |
| U.S. Businesses |
| U.S. Businesses reported adjusted operating income of $860 million for the fourth quarter of 2024, compared to $964 million in the year-ago quarter. This decrease primarily reflects higher expenses, related to one-time transaction impacts associated with closing the Guaranteed Universal Life reinsurance transaction and the consolidation of our captive financing arrangements, lower net fee income, and less favourable underwriting results, partially offset by higher net investment spread results. |
| Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $851 million for the fourth quarter of 2024, compared to $890 million in the year-ago quarter. |
| Institutional Retirement Strategies: |
- Reported adjusted operating income of $427 million in the current quarter, compared to $432 million in the year-ago quarter. This decrease primarily reflects less favourable underwriting results offset by higher net investment spread results.
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- Net account values of $279 billion, a record high, increased 8% from the year-ago quarter, reflecting the benefits of business growth and market appreciation. Sales in the current quarter of $10 billion included longevity risk transfer transactions of $6 billion. Full-year sales of $36 billion increased 27% from the prior year.
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| Individual Retirement Strategies: |
- Reported adjusted operating income of $424 million in the current quarter, compared to $458 million in the year-ago quarter. This decrease primarily reflects lower fee income, net distribution expenses and other associated costs, and higher expenses, partially offset by higher net investment spread results.
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- Net account values of $127 billion increased 8% from the year-ago quarter, driven by market appreciation. Sales of $3.6 billion in the current quarter increased 73% from the year-ago quarter, reflecting the continued momentum of our registered index-linked and fixed annuity products.
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| Group Insurance: |
- The reported adjusted operating income of $66 million in the current quarter was consistent with the year-ago quarter as higher net investment spread results and more favourable underwriting results were offset by higher expenses.
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- Full-year sales of $550 million, increased 4% from the prior year, primarily driven by growth in supplemental health.
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| Individual Life: |
- Reported a loss, on an adjusted operating income basis, of $57 million in the current quarter, compared to income of $8 million in the year-ago quarter. This decrease primarily reflects one-time transaction costs associated with the Guaranteed Universal Life reinsurance transaction and the consolidation of our captive financing arrangements.
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- Sales of $326 million in the current quarter, a record high, increased 59% from the year-ago quarter, driven by variable life sales.
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| International Businesses |
| International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $742 million for the fourth quarter of 2024, compared to $748 million in the year-ago quarter. This decrease primarily reflects less favourable underwriting results and higher expenses, partially offset by higher net investment spread results. |
| Life Planner: |
- Reported adjusted operating income of $461 million in the current quarter, compared to $464 million in the year-ago quarter. This decrease primarily reflects higher expenses and a net unfavourable impact from foreign currency exchange rates, partially offset by higher net investment spread results.
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- Constant dollar basis sales(3)of $272 million in the current quarter decreased 3% from the year-ago quarter, driven by lower U.S. dollar product sales in Japan, partially offset by sales growth in Brazil.
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| Gibraltar Life & Other: |
- Reported adjusted operating income of $281 million in the current quarter, compared to $284 million in the year-ago quarter. This decrease primarily reflects less favorable underwriting results mostly offset by higher net investment spread results.
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- Constant dollar basis sales(3)of $247 million in the current quarter decreased 21% from the year-ago quarter, driven by lower U.S. dollar product sales.
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| Corporate & Other |
| Corporate & Other reported a loss, on an adjusted operating income basis, of $490 million for the fourth quarter of 2024, compared to a loss of $653 million in the year-ago quarter. This lower loss primarily reflects lower expenses, driven by the absence of a restructuring charge in the prior year. |
| NET INCOME |
| Net loss in the current quarter included $1.525 billion of pre-tax net realized investment losses and related charges and adjustments, including $202 million of pre-tax net credit-related losses, $77 million of pre-tax losses related to net change in value of market risk benefits, $72 million of pre-tax losses from divested and run-off businesses, and $60 million of pre-tax gains related to market experience updates. |
| Net income for the year-ago quarter included $338 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 credit-related losses, $216 million of pre-tax gains related to net change in value of market risk benefits, $78 million of pre-tax losses related to market experience updates, and $7 million of pre-tax losses from divested and run-off businesses. |
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| Prudential Financial, Inc |
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