| Prudential Financial, Inc. (NYSE: PRU) today reported third-quarter results. Net income attributable to Prudential Financial, Inc. was $448 million ($1.24 per Common share) for the third quarter of 2024, compared to a net loss of $802 million ($2.23 per Common share) for the third quarter of 2023. After-tax adjusted operating income was $1.260 billion ($3.48 per Common share) for the third quarter of 2024, compared to $1.332 billion ($3.62 per Common share) for the third 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 adjusted operating income of $241 million for the third quarter of 2024, compared to $211 million in the year-ago quarter. This increase primarily reflects higher asset management fees, partially offset by higher expenses. |
| PGIM assets under management of $1.400 trillion were up 15% from the year-ago quarter, primarily resulting from equity market appreciation, lower interest rates, investment performance, and net inflows. Total net flows in the quarter of $3.2 billion reflect affiliated net inflows of $6.4 billion, partially offset by $3.2 billion of third-party net outflows. Third-party net outflows reflect institutional outflows of $4.5 billion and retail inflows of $1.3 billion, both primarily driven by fixed income. Total net flows on a year-to-date basis were $29.2 billion, including $15.3 billion of affiliated and $13.9 billion of third-party flows. |
| U.S. Businesses |
| U.S. Businesses reported adjusted operating income of $1.108 billion for the third quarter of 2024, compared to $1.088 billion in the year-ago quarter. This increase primarily reflects more favourable underwriting and higher net investment spread results, partially offset by lower net fee income and higher expenses. |
| Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $966 million for the third quarter of 2024, compared to $941 million in the year-ago quarter. |
| Institutional Retirement Strategies: |
- Reported adjusted operating income of $438 million in the current quarter, compared to $439 million in the year-ago quarter as higher net investment spread results were offset by higher expenses.
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- Net account values of $279 billion, a record high, increased 13% from the year-ago quarter, reflecting the benefits of business growth and market appreciation. Sales in the current quarter of $11 billion included funded pension risk transfer transactions of $6.3 billion and longevity risk transfer transactions of $2.8 billion. Year-to-date sales of $26 billion increased 84% from prior year-to-date.
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| Individual Retirement Strategies: |
- Reported adjusted operating income of $528 million in the current quarter, compared to $502 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.
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- Net account values of $129 billion increased 17% from the year-ago quarter, driven by market appreciation. Sales of $3.6 billion in the current quarter increased 86% from the year-ago quarter, reflecting the continued momentum of our registered index-linked annuity products and increased sales of fixed annuity products.
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| Group Insurance: |
- Reported adjusted operating income of $82 million in the current quarter, compared to $89 million in the year-ago quarter. This decrease primarily reflects higher expenses.
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- Year-to-date sales of $487 million increased 3% from prior year-to-date, driven by growth in group disability and supplemental health.
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| Individual Life: |
- Reported adjusted operating income of $60 million in the current quarter, compared to $58 million in the year-ago quarter. This increase primarily reflects more favourable underwriting results offset by lower net investment spread results.
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- Sales of $210 million in the current quarter increased 13% 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 $766 million for the third quarter of 2024, compared to $811 million in the year-ago quarter. This decrease primarily reflects less favourable underwriting results and higher expenses, partially offset by higher joint venture earnings and higher net investment spread results. |
| Life Planner: |
- Reported adjusted operating income of $464 million in the current quarter, compared to $527 million in the year-ago quarter. This decrease primarily reflects less favourable underwriting results, higher expenses, and a net unfavourable impact from foreign currency exchange rates.
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- Constant dollar basis sales (3) of $269 million in the current quarter increased 13% from the year-ago quarter, driven by growth in Japan and record-high sales in Brazil.
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| Gibraltar Life & Other: |
- Reported adjusted operating income of $302 million in the current quarter, compared to $284 million in the year-ago quarter. This increase primarily reflects higher joint venture earnings and higher net investment spread results, partially offset by less favourable underwriting results.
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- Constant dollar basis sales (3) of $331 million in the current quarter increased 37% from the year-ago quarter, including growth across all channels.
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| Corporate & Other |
| Corporate & Other reported a loss, on an adjusted operating income basis, of $487 million for the third quarter of 2024, compared to a loss of $438 million in the year-ago quarter. Current quarter results primarily reflect higher expenses. |
| NET INCOME |
| Net income in the current quarter included $805 million of pre-tax net realized investment losses and related charges and adjustments, including $93 million of pre-tax net credit-related losses, $146 million of pre-tax losses related to net change in value of market risk benefits, $127 million of pre-tax losses related to market experience updates, and $49 million of pre-tax earnings from divested and run-off businesses. |
| Net loss for the year-ago quarter included $2.491 billion of pre-tax net realized investment losses and related charges and adjustments, largely driven by the impacts of rising interest rates, and also $97 million of pre-tax net credit-related losses, $251 million of pre-tax losses related to net change in value of market risk benefits, $111 million of pre-tax losses from divested and run-off businesses, and $143 million of pre-tax gains related to market experience updates. |
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| Prudential Financial, Inc |
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