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PRU · Prudential Financial

27 filings

10-K

PRU 10-K Annual Reports

Prudential Financial - 27 annual reports

Filing record · 2016–202610-K1110-Q328-K198

2025
Prudential Financial Annual Report, Year Ended Dec 31, 2025
Prudential Financial, Inc. (PRU) reported consolidated net income attributable to Prudential Financial, Inc. of $3.58 billion for 2025, up from $2.73 billion in 2024, and total revenues of $60.77 billion versus $70.41 billion in 2024. Pre-tax income before taxes and equity in earnings of joint ventures rose to $4.66 billion from $3.21 billion, though income tax expense increased to $1.05 billion from $507 million. The company reported assets under management of $1.609 trillion at December 31, 2025, with PGIM assets under management of $1.466 trillion. Diluted earnings per share were $9.99 for 2025, compared with $7.50 in 2024. The most significant near-term item for investors is the voluntary 90-day suspension of new sales at Prudential of Japan, commencing February 9, 2026, following an internal investigation into employee misconduct. The company estimates this will reduce Prudential of Japan's 2026 pre-tax adjusted operating income by $300 to $350 million, and notes that the impact could be greater if the suspension extends beyond 90 days. The company also expects 2026 pension income to be $50 million to $55 million lower than 2025, and it authorized up to $1.0 billion of share repurchases for 2026. The filing shows continued shareholder returns, with $1.93 billion of common stock dividends declared in 2025 ($5.40 per share) and a $1.40 per share dividend declared on February 3, 2026. Total capital was $49.61 billion at year-end 2025. The company's Japan operations remain central to its results, with Japan government bonds representing a significant share of its international fixed maturity holdings.
Feb 12, 2026
2024
Prudential Financial Annual Report, Year Ended Dec 31, 2024
Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $2.73 billion for 2024, up from $2.49 billion in 2023, and total revenues of $70.41 billion. Assets under management reached approximately $1.512 trillion as of December 31, 2024. Adjusted operating income before income taxes for total segments was $5.93 billion in 2024 versus $5.60 billion in 2023, led by Retirement Strategies ($3.62 billion) and International Businesses ($3.11 billion), while Corporate and Other showed a loss of $1.78 billion. The company's strategy centers on a business system spanning PGIM, U.S. Businesses and International Businesses, with stated goals of becoming less market-sensitive and higher growth. During 2024 it completed guaranteed universal life reinsurance transactions with Somerset Re and Wilton Re, which reduced the financing of Guideline AXXX reserves by $5.04 billion and $2.10 billion respectively. The company also restated prior-period adjusted operating income for an immaterial error, reducing pre-tax adjusted operating income by $149 million for the nine months ended September 30, 2024 and by $55 million for 2023, with no effect on GAAP net income. Capital and liquidity remained a focus: total capital was $48.41 billion at year-end 2024, the company repurchased $1.0 billion of common stock in 2024 and authorized another $1.0 billion for 2025, and the Board declared a $1.35 per share dividend on February 4, 2025. Management stated its capital and liquidity resources are sufficient to meet requirements, and its ratings remain on stable outlook at A.M. Best, Fitch, S&P and Moody's.
Feb 13, 2025
2023
Prudential Financial Annual Report, Year Ended Dec 31, 2023
Prudential Financial, Inc. (PRU) reports in its 2023 Form 10-K that it manages approximately $1.450 trillion of assets under management as of December 31, 2023, with operations across the United States, Asia, Europe and Latin America. The segments are PGIM (global investment management), the U.S. Businesses (Retirement Strategies, Group Insurance, Individual Life), International Businesses, the Closed Block division, and Corporate and Other. Net income attributable to Prudential Financial was $2.488 billion in 2023, compared with a loss of $1.647 billion in 2022, while total revenues were $53.979 billion. Segment adjusted operating income before income taxes totaled $5.516 billion in 2023, versus $5.082 billion in 2022. The filing describes a company in transition toward being less market-sensitive, pursuing reinsurance transactions, and reallocating capital toward higher-growth businesses. Notable 2023 actions included the Prismic Re reinsurance of approximately $9 billion of structured settlement reserves, a reinsurance agreement with AuguStar covering about $10 billion of PDI variable annuity account values, a $200 million restructuring charge, and a $177 million goodwill impairment for Assurance IQ. The company disclosed a cybersecurity incident on February 13, 2024, as amended on February 21, 2024, and stated it had not had a material impact on operations or financial condition as of the filing date. Capital and liquidity measures were presented as consistent with ratings targets. Total capital was $47.287 billion at year-end, and the company repurchased $1.0 billion of common stock in 2023, with a further $1.0 billion authorized for 2024. Quarterly common stock dividends were $1.25 per share through 2023, and a $1.30 per share dividend was declared on February 6, 2024.
Feb 21, 2024
2022
Prudential Financial Annual Report, Year Ended Dec 31, 2022
Prudential Financial, Inc. (PRU) reported a net loss attributable to Prudential Financial, Inc. of $1.44 billion for 2022, compared with net income of $7.72 billion in 2021, with total revenues of $60.05 billion. The filing attributes the decline mainly to a $6.88 billion unfavorable variance in realized investment gains (losses), net, and related charges, a $2.65 billion unfavorable variance from lower adjusted operating income across business segments, and an $879 million unfavorable variance from Divested and Run-off Businesses. Management cites rapidly rising interest rates, equity market declines and geopolitical risk as adversely affecting liquidity, capital positions and results during 2022. Adjusted operating income before income taxes fell to $4.65 billion in 2022 from $7.30 billion in 2021. Individual Life recorded a $1.4 billion net charge from annual assumption reviews in 2022, and Assurance IQ incurred a $903 million pre-tax goodwill impairment. The PALAC sale generated a pre-tax gain of $852 million and the Full Service Retirement sale produced a net pre-tax gain of $620 million, both completed April 1, 2022. Assets under management were $1.377 trillion at year-end, down from $1.742 trillion in 2021. On capital, the company held $50.1 billion of total capital as of December 31, 2022, versus $53.2 billion a year earlier, and repurchased $1.5 billion of common stock in 2022. For 2023 the Board authorized up to $1.0 billion of repurchases and declared a $1.25 per share quarterly dividend. Total borrowings were $20.7 billion. PICA's RBC ratio was 456% as of December 31, 2021, and the company expects its December 31, 2022 RBC ratios to exceed its AA targets.
Feb 16, 2023
2021
Prudential Financial Annual Report, Year Ended Dec 31, 2021
Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $7.72 billion for 2021, compared with a net loss of $374 million in 2020, as reported in its Form 10-K filed February 17, 2022. The company describes itself as a global financial services leader and premier active global investment manager with approximately $1.742 trillion of assets under management as of December 31, 2021. Results were driven by a $3.34 billion favorable variance in realized investment gains (losses) excluding certain variable annuity hedging impacts, a $2.35 billion favorable variance in adjusted operating income from business segments, and a $1.06 billion goodwill impairment related to Assurance IQ, which the filing cites as a notable pre-tax item in the year-over-year comparison. The company is pursuing a multi-year business transformation. In 2021 it agreed to sell its Full Service Retirement business to Great-West Life & Annuity Insurance Company and a portion of its in-force traditional variable annuity block (PALAC) to Fortitude Group Holdings, LLC, with both transactions expected to close in the first half of 2022, subject to regulatory approvals. The filing states that the company plans to reallocate capital with the intention of doubling the earnings contribution from its higher-growth businesses and reducing the earnings contribution from Individual Annuities. Shareholder returns in 2021 totaled $2.5 billion of share repurchases and $1.82 billion of dividends declared, and the board authorized up to $1.5 billion of repurchases for 2022. Key risks highlighted include the ongoing COVID-19 pandemic's effect on mortality and investment portfolios, the low interest rate environment affecting investment spreads, Japan sovereign and yen exposure, ratings sensitivity, and pending securities and regulatory litigation related to reserve assumptions in the Individual Life business. The filing reports $53.2 billion of total capital as of December 31, 2021, which it states is consistent with its ratings targets.
Feb 17, 2022
2020
Prudential Financial Annual Report, Year Ended Dec 31, 2020
Prudential Financial, Inc. (PRU) reported a net loss attributable to Prudential Financial, Inc. of $374 million for 2020, compared with net income of $4.186 billion in 2019. The decline was driven primarily by $3.887 billion in net realized investment losses in 2020 (largely $4.571 billion of losses on derivatives), a $1.444 billion unfavorable swing from Divested and Run-off Businesses, and lower adjusted operating income. Total revenues were $57.033 billion and total benefits and expenses were $57.356 billion. Adjusted operating income before income taxes for the segments totaled $5.144 billion in 2020 versus $5.851 billion in 2019, with PGIM ($1.262 billion) and Retirement ($1.436 billion) the largest contributors and Individual Annuities declining to $1.470 billion from $1.843 billion. The company reports approximately $1.721 trillion of assets under management, including $1.499 trillion at PGIM, and total PFI assets of $940.7 billion at year-end 2020. Management cites COVID-19 as a significant factor, with elevated mortality in Group Insurance and Individual Life, partially offset by favorable mortality in Retirement, and an estimated $85 million net underwriting impact for every additional 100,000 U.S. fatalities. Prudential sold its Korean life insurance business (POK) for about $1.9 billion in August 2020 and agreed to sell its Taiwanese business (POT) for about $195 million, expected to close in 2021. Capital actions included suspending share repurchases after April 1, 2020 and authorizing up to $1.5 billion of repurchases for 2021, along with a quarterly dividend of $1.10 per share for 2020 and a $1.15 per share dividend declared in February 2021. The filing also highlights a low interest rate environment, with the Company estimating $120 million to $160 million of unfavorable net investment income impact in 2021 from reinvestment at a hypothetical 10-year Treasury rate of 0.85%. Credit ratings were maintained at stable outlooks from all four agencies, and the company's year-end 2020 total equity was $68.210 billion.
Feb 19, 2021
2019
Prudential Financial Annual Report, Year Ended Dec 31, 2019
Prudential Financial, Inc. (PRU) reported a 2019 annual report on Form 10-K filed February 14, 2020. The company describes itself as a financial wellness leader and premier global investment manager with approximately $1.551 trillion of assets under management as of December 31, 2019, operating across PGIM, U.S. Businesses (Workplace Solutions, Individual Solutions, and Assurance IQ), International Businesses, the Closed Block division, and Corporate and Other. Total revenues were $64.807 billion in 2019, up from $62.992 billion in 2018, while net income attributable to Prudential Financial was $4.186 billion, compared with $4.074 billion in 2018. Basic and diluted EPS were $10.23 and $10.11, respectively. Total assets were $896.552 billion at year-end. The year included the October 2019 acquisition of Assurance IQ, Inc., for $2.212 billion paid at closing plus contingent consideration of up to $1.2 billion payable in 2023 based on Variable Profits targets. The filing also discloses multi-year programs to accelerate margin growth, with implementation costs of approximately $400 million in 2019 and $365 million in the fourth quarter. Adjusted operating income before income taxes was $6.098 billion in 2019, versus $6.368 billion in 2018, with the decline driven by Corporate and Other losses and Individual Life. The company repurchased $2.5 billion of common stock and declared dividends of $4.00 per share for 2019. Investors should note the filing's disclosures on risk and legal matters. These include a 2019 IRS memorandum challenging the company's Section 952 election for Brazil affiliates, class action securities suits filed in November 2019 and January 2020 alleging inadequate mortality reserves in Individual Life, and a Japanese low-interest-rate environment affecting reinvestment yields. Net realized investment losses were $459 million in 2019, reversing gains of $1.977 billion in 2018.
Feb 14, 2020
2018
Prudential Financial Annual Report, Year Ended Dec 31, 2018
Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $4.07 billion for 2018, down from $7.86 billion in 2017, with total revenues of $62.99 billion (up from $59.69 billion). The filing attributes the decrease primarily to income tax expense of $822 million in 2018 versus a tax benefit of $1.44 billion in 2017 due to tax reform, along with a pre-tax unfavorable variance of $1.43 billion from reserve, DAC and other cost adjustments and a $1.54 billion-equivalent (pre-tax) loss from Divested and Run-off Businesses, primarily Long-Term Care. The company reported $1.377 trillion of assets under management at December 31, 2018, with total assets of $815.08 billion and total equity of $49.03 billion. Adjusted operating income before income taxes totaled $6.37 billion in 2018, up from $6.24 billion in 2017, with International Insurance ($3.27 billion) and Individual Annuities ($1.93 billion) as the largest contributors. Capital and shareholder returns remained central to the filing: the company repurchased $1.5 billion of common stock and declared $1.5 billion in common dividends during 2018, and the Board authorized up to $2.0 billion of repurchases for 2019. The company stated it was no longer designated a non-bank financial company subject to Federal Reserve supervision after the Financial Stability Oversight Council rescinded that designation in October 2018. Management reported that it expects RBC and solvency margin ratios at year-end 2018 to exceed its AA-level targets, although these figures were not yet filed. Key risks highlighted include a low interest rate environment affecting net investment spread, Japanese yen exposure (Japan is a major earnings source), rising regulatory and reserving changes (including ASU 2018-12 effective January 1, 2021), and a 2018 Long-Term Care reserve charge of $1.46 billion from updated morbidity assumptions. Management also noted ongoing litigation and regulatory matters, none of which it expects to have a material adverse effect on financial position.
Feb 15, 2019
2017
Prudential Financial Annual Report, Year Ended Dec 31, 2017
Prudential Financial, Inc. (PRU) reported approximately $1.394 trillion of assets under management as of December 31, 2017, with operations across the United States, Asia, Europe and Latin America. Net income attributable to Prudential Financial, Inc. was $7,863 million in 2017, compared with $4,368 million in 2016 and $5,642 million in 2015. The 2017 result was boosted by a $2,880 million net tax benefit from the Tax Cuts and Jobs Act, and revenues rose to $59,689 million from $58,779 million. Total assets were $831,921 million and total equity was $54,344 million at year end. The filing highlights a continued low interest rate environment that pressures net investment spreads, particularly in Japan and the U.S., alongside ongoing regulatory change including Dodd-Frank Designated Financial Company status, DOL fiduciary rules and evolving insurance capital standards. Management reported adjusted operating income before income taxes of $6,244 million for 2017, up from $5,399 million in 2016, with International Insurance ($3,198 million) and Retirement ($1,244 million) as the largest contributors, while Corporate and Other operations recorded a loss of $1,437 million. The company repurchased $1.25 billion of common stock and declared dividends of $3.00 per share for 2017, and authorized up to $1.5 billion of repurchases for 2018. Additional risk items include variable annuity guarantee exposures, reliance on Japanese operations for a significant share of earnings, and pending litigation and regulatory matters, none of which the filing expects to have a material adverse effect on financial position. Credit ratings are maintained at stable or positive outlooks from the major agencies.
Feb 16, 2018
2016
Prudential Financial Annual Report, Year Ended Dec 31, 2016
Prudential Financial, Inc. (NYSE: PRU) reported approximately $1.264 trillion of assets under management as of December 31, 2016, with operations in the United States, Asia, Europe and Latin America. Net income attributable to Prudential Financial, Inc. was $4.368 billion in 2016, down from $5.642 billion in 2015, and total revenues were $58.779 billion versus $57.119 billion. Income from continuing operations before income taxes was $5.705 billion in 2016 compared with $7.769 billion in 2015. Diluted earnings per share of Common Stock were $9.71 in 2016 versus $12.17 in 2015. The filing attributes the decline primarily to unfavorable items including $980 million of adjustments to DAC and reserves, a $972 million pre-tax impact from the Capital Protection Framework, and $479 million lower net pre-tax realized gains, partially offset by a $737 million favorable tax variance and a $660 million favorable variance from embedded derivatives and hedges. Management highlights persistent low interest rates as a key challenge, noting that reinvestment yields remain below portfolio yields and that approximately $183 billion of fixed maturity and commercial mortgage assets in the U.S. operations have an average yield of about 4.5%. The company completed the Variable Annuities Recapture effective April 1, 2016, which distributed $1.0 billion of highly liquid assets to Prudential Financial, repurchased $2.0 billion of Common Stock, and declared Common Stock dividends of $2.80 per share for 2016. Regulatory developments, including Designated Financial Company status under Dodd-Frank and the Department of Labor fiduciary rule, are described as areas of uncertainty. Total stockholders' equity attributable to Prudential Financial was $45.863 billion at year-end 2016, and total borrowings were $19.174 billion. In addition, the company authorized up to $1.25 billion of share repurchases for 2017 and declared a $0.75 per share dividend on February 8, 2017.
Feb 17, 2017
2015
Prudential Financial Annual Report, Year Ended Dec 31, 2015
Prudential Financial, Inc. reported consolidated net income attributable to Prudential Financial, Inc. of $5,642 million for 2015, compared with $1,381 million in 2014 and a net loss of $(667) million in 2013. The company manages approximately $1.184 trillion of assets under management as of December 31, 2015, and operates across the United States, Asia, Europe and Latin America through four divisions: U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, International Insurance, and Closed Block. Total revenues were $57,119 million in 2015, and pre-tax income from continuing operations was $7,769 million, with the prior-year comparison affected by yen-related foreign exchange and hedging items. On January 2, 2015 the company repurchased all 2.0 million shares of its Class B Stock for $651 million, eliminating the two-class structure and making Common Stock reflect consolidated results. Management highlighted the company's designation as a Designated Financial Company under Dodd-Frank, its designation as a global systemically important insurer by the FSB, and expected regulatory changes including the DOL fiduciary rule, captive reinsurance reforms (AG 48 and the NAIC Variable Annuities Framework for Change), and planned recapture of variable annuity living benefit risks from Pruco Re in 2016. Share repurchases totaled $1.0 billion in 2015, and a $1.5 billion repurchase authorization was approved for 2016. Dividends declared were $2.44 per share for 2015. Key risks cited in the filing include low interest rates compressing net investment spreads, foreign currency exposure particularly to the Japanese yen, ratings sensitivity (S&P downgraded Japanese insurance subsidiaries to A+ in September 2015), litigation and regulatory matters including unclaimed property matters, and the potential impact of the proposed DOL fiduciary rules on retirement and annuity distribution.
Feb 19, 2016
2014
Prudential Financial Annual Report, Year Ended Dec 31, 2014
Prudential Financial, Inc. (NYSE: PRU) reported approximately $1.176 trillion of assets under management as of December 31, 2014, with a general account investment portfolio of $409 billion, and operations across the United States, Asia, Europe and Latin America. Total revenues for 2014 were $54.1 billion, and net income attributable to Prudential Financial was $1.381 billion, compared with a net loss of $667 million in 2013. Net income of the Financial Services Businesses was $1.533 billion versus a loss of $713 million the prior year, while the Closed Block Business recorded a loss of $152 million. The filing's central structural event is the elimination of the separation between the Financial Services Businesses and the Closed Block Business. On January 2, 2015, Prudential repurchased all 2.0 million outstanding shares of its Class B Stock for $650.8 million, and PHLLC redeemed the $2.1 billion IHC Debt on December 18, 2014. Beginning in 2015, Common Stock earnings per share will reflect consolidated results, and the Closed Block will be reported as a divested business. Management also declared a $0.58 quarterly dividend on February 10, 2015 and maintained a $1.0 billion share repurchase authorization through June 30, 2015. Key risks highlighted include Designated Financial Company and G-SII regulatory designations that expect enhanced capital and supervision requirements, continued low interest rates affecting spreads on $166 billion of domestic insurance liabilities, sensitivity of variable annuity guarantees to equity markets and interest rates, and exposure to Japanese operations, where the company reports 41% of Financial Services general account investments and substantial yen-related earnings volatility.
Feb 20, 2015
2013-A
Prudential Financial Annual Report (Amendment), Year Ended Dec 31, 2013
Prudential Financial, Inc. filed this Amendment No. 1 on Form 10-K/A (dated June 4, 2014) to correct the selected consolidated balance sheet data for 2011, 2010 and 2009 in Item 6 of its Annual Report on Form 10-K for the year ended December 31, 2013. The original columns had inadvertently presented 2010, 2009 and 2008 data for those years without revision for the retrospective adoption of a discretionary change in accounting principle for recognition of performance based incentive fee revenue. The amendment restates Items 6 and 9A only; the company states the errors did not affect the Consolidated Financial Statements or other disclosures, and that its conclusions on disclosure controls remain effective. The corrected selected financial data show 2013 total revenues of $41.46 billion and a net loss attributable to Prudential Financial, Inc. of $667 million, compared with net income of $520 million in 2012 and $3.63 billion in 2011. Income from continuing operations attributable to Prudential was negative $1.57 per basic share in 2013, versus $1.02 in 2012. Total assets were $731.78 billion at December 31, 2013, and Prudential Financial, Inc. equity was $35.28 billion. Key 2013 events cited include the acquisition of The Hartford's individual life insurance business through reinsurance for $615 million in cash consideration, covering approximately 700,000 policies with about $141 billion of net retained face amount in force. For investors, the principal takeaway is the 2013 loss, which the filing attributes in part to realized investment losses of $5.21 billion, alongside lower premiums versus the 2012 pension risk transfer year, which included approximately $32 billion of premiums. The filing's text does not separately explain the drivers of the 2013 loss beyond the figures presented.
Jun 4, 2014
2013
Prudential Financial Annual Report, Year Ended Dec 31, 2013
Prudential Financial, Inc. reported approximately $1.107 trillion of assets under management as of December 31, 2013, with operations in the United States, Asia, Europe and Latin America. The Financial Services Businesses reported a net loss of $713 million for 2013, compared with net income of $479 million in 2012. Consolidated net loss attributable to Prudential Financial was $667 million, compared with net income of $520 million in 2012, reflecting realized investment losses of $5.2 billion, largely from derivatives, including net losses on embedded derivatives and hedges tied to certain variable annuities. Adjusted operating income before income taxes for the Financial Services Businesses rose to $6.369 billion in 2013 from $4.027 billion in 2012, led by Individual Annuities ($2.085 billion) and International Insurance ($3.152 billion). The filing states that the Financial Services Businesses and Closed Block Business are not legally separated, and that Class B Stock dividends and Closed Block results affect Common Stock capacity. The company was designated a Designated Financial Company by the Financial Stability Oversight Council on September 19, 2013, and was identified by the Financial Stability Board as a global systemically important insurer on July 18, 2013. Both designations bring expected stricter prudential standards, with compliance requirements still being developed. Total dividends declared on Common Stock were $1.73 per share in 2013, and $500 million of share repurchases were completed under the authorization.
Feb 27, 2014
2012
Prudential Financial Annual Report, Year Ended Dec 31, 2012
Prudential Financial, Inc. (NYSE: PRU) reported approximately $1.060 trillion of assets under management as of December 31, 2012, with operations in the United States, Asia, Europe and Latin America. Its Financial Services Businesses reported net income attributable to Prudential Financial, Inc. of $428 million for 2012, compared with $3,420 million in 2011, while pre-tax adjusted operating income rose to $3,949 million from $3,836 million. Consolidated net income attributable to Prudential Financial, Inc. was $469 million, versus $3,566 million in 2011. Management attributed the lower Financial Services results mainly to a $2,377 million pre-tax unfavorable impact from foreign currency movements on Japanese insurance liabilities, a $666 million pre-tax unfavorable variance on variable annuity embedded derivatives and hedges, and lower realized gains. Revenue rose sharply to $84,815 million, largely because two significant pension risk transfer transactions (General Motors and Verizon) brought about $32 billion of premiums, which were largely offset by higher policyholders' benefits. The filing states the company faces a possible designation as a Designated Financial Company under the Dodd-Frank Act; it received notice on October 19, 2012 that it was under consideration by the Financial Stability Oversight Council. The company also closed the acquisition of The Hartford's individual life insurance business on January 2, 2013 for $615 million in cash consideration, and the CFO is retiring effective March 4, 2013. For shareholders, the 2012 Common Stock dividend was $1.60 per share, and the Board moves to quarterly dividends beginning in 2013, with a first-quarter 2013 dividend of $0.40 per share declared February 12, 2013. The company repurchased $650 million of Common Stock in 2012 under its authorizations.
Feb 22, 2013
2011
Prudential Financial Annual Report, Year Ended Dec 31, 2011
Prudential Financial, Inc. (NYSE: PRU) reported approximately $901 billion of assets under management as of December 31, 2011, with operations in the United States, Asia, Europe and Latin America. The company is organized into the Financial Services Businesses (U.S. Retirement Solutions and Investment Management, U.S. Individual Life and Group Insurance, International Insurance, and Corporate and Other) and the Closed Block Business, which are allocated and reported separately but have no legal separation. Net income attributable to Prudential Financial, Inc. was $3,666 million in 2011 compared with $3,195 million in 2010. Net income of the Financial Services Businesses attributable to Prudential Financial was $3,531 million in 2011 versus $2,714 million in 2010, with International Insurance income from continuing operations before income taxes of $2,986 million in 2011 versus $1,644 million in 2010. Key 2011 developments included the February 1, 2011 acquisition of AIG's Star and Edison Japanese life insurance businesses for a total purchase price of $4,709 million, the sale of the Global Commodities Business for $422 million in cash, and the sale of the real estate brokerage and relocation business. Common Stock dividends declared were $1.45 per share for 2011, up from $1.15 in 2010, and the company repurchased 19.8 million shares for $999.5 million under a $1.5 billion authorization. The filing also discloses that the company's variable annuity living benefit hedging and temporary under-hedging decisions produced a $1,662 million pre-tax loss in Corporate and Other operations in 2011, and that the company expects a retrospective adoption of new deferred acquisition cost guidance to reduce total equity by approximately $2.6 to $3.0 billion for the Financial Services Businesses. The filing also describes regulatory uncertainty under the Dodd-Frank Act, including possible designation as a systemically significant non-bank financial company, and notes that the Company's ratings were at or above the targets for some entities but below target for others. Investors should weigh these items alongside the company's reported growth in International Insurance and asset management flows.
Feb 24, 2012
2010
Prudential Financial Annual Report, Year Ended Dec 31, 2010
Prudential Financial, Inc. (PRU) reports approximately $784 billion of assets under management as of December 31, 2010, with operations in the United States, Asia, Europe and Latin America. The company is split into Financial Services Businesses and a Closed Block Business, which reflect the Common Stock and Class B Stock respectively, though there is no legal separation between them. Financial Services Businesses net income attributable to Prudential Financial was $2.714 billion in 2010, compared with $3.411 billion in 2009, which included a $1.457 billion after-tax gain on the sale of the Wachovia Securities joint venture interest. Consolidated net income attributable to Prudential Financial was $3.195 billion for 2010, compared with $3.124 billion in 2009. Key 2010 operating highlights include record Individual Annuity total account values of $106.2 billion and gross sales of $21.8 billion, and record institutional Asset Management net flows of $28.6 billion. The February 1, 2011 acquisition of AIG's Japanese life insurance businesses (Star and Edison) for a total purchase price of approximately $4.8 billion, comprised of about $4.2 billion in cash and $0.6 billion in assumed third-party debt, is a significant post-year-end event. The Common Stock dividend for 2010 was $1.15 per share, an increase of approximately 64% from 2009. The filing also highlights risk factors including credit ratings downgrades that could require collateral postings, exposure to Dodd-Frank regulatory changes, and reliance on Japanese operations, which represented 48% of the net premiums, policy charges and fee income of the International Insurance segment's Life Planner and Gibraltar Life operations.
Feb 25, 2011
2009
Prudential Financial Annual Report, Year Ended Dec 31, 2009
Prudential Financial, Inc. reported approximately $667 billion of assets under management as of December 31, 2009, with operations in the United States, Asia, Europe and Latin America. Its Financial Services Businesses and Closed Block Business are separated for financial reporting, though there is no legal separation between them. The Common Stock (NYSE: PRU) reflects the Financial Services Businesses, and the Class B Stock, held by private investors, reflects the Closed Block Business. For 2009, income from continuing operations attributable to Prudential Financial, Inc. was $3.071 billion, compared with a loss of $1.099 billion in 2008. Net income attributable to Prudential Financial, Inc. was $3.124 billion, versus a $1.117 billion loss in 2008. Results include a $2.247 billion pre-tax gain from the sale of the minority joint venture interest in Wachovia Securities, completed December 31, 2009, and pre-tax net realized investment losses of $2.896 billion consolidated. Income tax expense was $21 million, which includes a $272 million benefit from the expiration of the statute of limitations. The company raised approximately $4.4 billion in capital markets during 2009, including a public common stock offering of 36.9 million shares at $39.00 per share for net proceeds of $1.391 billion. Management also reported that Prudential Insurance's RBC ratio was approximately 575% as of December 31, 2009, and that the Financial Services Businesses had $33.9 billion of capital. Ratings were downgraded during 2009 by several agencies, and the company disclosed that downgrades could increase borrowing costs and collateral requirements.
Feb 26, 2010
2008
Prudential Financial Annual Report, Year Ended Dec 31, 2008
Prudential Financial, Inc. reported a 2008 net loss of $1.073 billion, compared with net income of $3.704 billion in 2007, as unfavorable financial markets produced large realized investment losses and charges across its businesses. The Financial Services Businesses posted a net loss of $1.096 billion, driven by $2.267 billion of pre-tax net realized investment losses and related adjustments, including other-than-temporary impairments of $2.494 billion. Results were also hit by reserve increases and accelerated amortization tied to the Individual Annuities segment, which reported an adjusted operating loss of $1.077 billion, and by $653 million of impairments on goodwill and operating joint ventures. Stockholders' equity fell to $13.422 billion from $23.457 billion at year-end 2007, reflecting a $6.735 billion net unrealized loss on investments and other comprehensive losses. To conserve capital and liquidity, management suspended share repurchases in October 2008, cut the annual Common Stock dividend by about 50% to $0.58 per share, drew $3.0 billion from the Federal Home Loan Bank of New York, and applied to the U.S. Treasury's Capital Purchase Program. Several rating agencies lowered Prudential Financial's senior debt and the financial strength ratings of its life insurance subsidiaries in late 2008 and early 2009, and Prudential Financial lost eligibility for the Commercial Paper Funding Facility after Fitch's February 2009 downgrade. The company reported approximately $558 billion of assets under management at December 31, 2008. The filing also describes the structure of two classes of common stock. The Common Stock reflects the Financial Services Businesses, while the Class B Stock reflects the Closed Block Business, which carries the IHC debt and is not legally separate from the rest of the company. Investors should note the risk that losses in the Closed Block Business can affect the earnings available to Common Stock holders. Other pending matters include the Garcia retained asset account class action and the Lederman litigation, in which plaintiffs have demanded $6.5 billion in damages.
Feb 27, 2009
2007
Prudential Financial Annual Report, Year Ended Dec 31, 2007
Prudential Financial, Inc. (NYSE: PRU) reported approximately $648 billion of assets under management as of December 31, 2007, with operations in the United States, Asia, Europe and Latin America. The company is organized into the Financial Services Businesses (Insurance, Investment, and International Insurance and Investments divisions, plus Corporate and Other) and the Closed Block Business, which holds the in-force traditional participating policies from its December 2001 demutualization. Common Stock reflects the Financial Services Businesses and Class B Stock reflects the Closed Block Business; the two are not legally separated, so results of the Closed Block, including interest on the $1.75 billion IHC debt, affect consolidated results. In 2007, consolidated net income was $3.704 billion (versus $3.428 billion in 2006) and total revenues were $34.401 billion. Income from continuing operations for the Financial Services Businesses rose to $3.497 billion, and diluted income per Common Stock share from continuing operations was $7.58 (versus $6.36). Results were pressured in the second half of 2007 by adverse credit markets, including $161 million of adjusted operating income impact from declines in externally managed European investments, $82 million of charges tied to payments to plan clients in the State Street Global Advisors matter, and sub-prime related impairments and sales losses. Stockholders' equity was $23.457 billion at year-end. Capital deployment remained a major focus: the company repurchased 32.0 million shares for $3.0 billion in 2007, raised the annual Common Stock dividend 21% to $1.15 per share, issued $3.0 billion of floating rate convertible senior notes in December 2007, and authorized up to $3.5 billion of repurchases for 2008. The filing also describes material litigation exposure, including a New Jersey action (Lederman) in which plaintiffs demanded $6.5 billion in damages, though management believes the ultimate outcome of pending matters is not likely to have a material adverse effect on financial position.
Feb 27, 2008
2006
Prudential Financial Annual Report, Year Ended Dec 31, 2006
Prudential Financial, Inc. ended 2006 with approximately $616 billion of assets under management and operates in the United States, Asia, Europe and Latin America through its Financial Services Businesses and its Closed Block Business. Net income for 2006 was $3.428 billion, compared with $3.540 billion in 2005, and income from continuing operations before income taxes was $4.403 billion. Total assets were $454.3 billion and stockholders' equity was $22.9 billion at December 31, 2006. Results for the Financial Services Businesses were $3.144 billion of net income, while the Closed Block Business contributed $284 million. Diluted net income per share of Common Stock was $6.50, compared with $6.34 in 2005. The company's 2006 capital deployment included repurchases of 32.4 million shares of Common Stock for $2.5 billion, a 22% increase in the annual Common Stock dividend to $0.95 per share, and the acquisition of the variable annuity business of The Allstate Corporation for $635 million of total consideration. The board authorized up to $3.0 billion of share repurchases for 2007. Income from the Financial Services Businesses was $3.1 billion, slightly below 2005, reflecting a $720 million tax benefit recognized in 2005 that did not recur. Growth in International Insurance, higher asset-based fees and improved investment results were offset by lower realized investment gains and higher general and administrative expenses. Investors should note the structure of the company: the Common Stock reflects the Financial Services Businesses, while the non-traded Class B Stock reflects the Closed Block Business, and there is no legal separation between the two. The filing also discloses ongoing regulatory and litigation matters, including the December 2006 resolution of the New York Attorney General investigation, the August 2006 market timing settlements totaling $600 million, and pending class actions. Management believes the ultimate outcome of pending litigation should not have a material adverse effect on financial position.
Feb 28, 2007
2005-A
Prudential Financial Annual Report (Amendment), Year Ended Dec 31, 2005
This filing is Amendment No. 1 on Form 10-K/A from Prudential Financial, Inc., filed March 16, 2006, to amend its Annual Report for the year ended December 31, 2005. Under General Instruction G to Form 10-K, the company had incorporated Part III information by reference to its definitive proxy statement. This amendment supplies that Part III information in advance of the proxy statement for the May 9, 2006 Annual Meeting of Shareholders. All other Items of the original filing are unaffected and are not included in this amendment, so the filing contains no financial statements or operating results. The content covers governance and compensation. It discloses equity compensation plan data as of December 31, 2005, showing 25,186,944 securities to be issued under the Omnibus Plan and a grand total of 25,370,079 securities to be issued with 51,787,534 remaining available for future issuance. It also sets out the election of seven directors, the ratification of PricewaterhouseCoopers LLP as independent auditor for 2006, and total PwC fees of $33,607,000 for 2005 versus $44,432,000 for 2004. The Summary Compensation Table shows Chairman and CEO Arthur F. Ryan with a 2005 salary of $1,000,000 and a bonus of $5,650,000. The filing also reports that the Financial Services Businesses' pre-tax adjusted operating income increased 41% in 2005, and that total shareholder return was 34.51%. For investors, the most useful points are the compensation structure tied to ROE and EPS performance metrics, the leadership and independence of the board committees, and the auditor fee trend. Ownership concentration is also noted: AIG subsidiaries hold 90% of the Class B Stock, and no person owns more than 5% of the Common Stock.
Mar 16, 2006
2005
Prudential Financial Annual Report, Year Ended Dec 31, 2005
Prudential Financial, Inc. reported 2005 net income of $3.54 billion, up from $2.26 billion in 2004, on total revenues of $31.71 billion. Income from continuing operations before income taxes was $4.47 billion, which includes a $720 million benefit from the completion of the IRS examination of tax years 1997 through 2001. Adjusted operating income for the Financial Services Businesses rose to $3.55 billion from $2.52 billion, led by International Insurance ($1.31 billion) and Individual Life and Annuities ($1.00 billion). The company is split into Financial Services Businesses (Common Stock, NYSE: PRU) and the Closed Block Business (non-traded Class B Stock), with no legal separation between them. Capital deployment was a major theme. Prudential repurchased 32.4 million shares for $2.1 billion in 2005, raised its annual Common Stock dividend 25% to $0.78 per share, and authorized up to $2.5 billion of repurchases for 2006. Total borrowings rose to $19.4 billion from $11.7 billion, driven largely by the $2.0 billion floating rate convertible senior notes issued in November 2005. Stockholders' equity grew to $22.76 billion from $22.34 billion. The filing also discloses significant legal and regulatory exposure, including market timing investigations involving Prudential Securities and American Skandia, a $269 million judgment on appeal in the Burns case, and ongoing reinsurance accounting inquiries by the SEC and Connecticut Attorney General. The company restated its 2004 and interim 2005 cash flow statements for classification errors. Management believes the ultimate outcome of pending litigation should not have a material adverse effect on financial position, but acknowledges that results in a given quarter could be materially affected.
Feb 28, 2006
2004-A
Prudential Financial Annual Report (Amendment), Year Ended Dec 31, 2004
This Amendment No. 1 on Form 10-K/A, filed by Prudential Financial, Inc. (PRU) on February 15, 2006, amends Items 8 and 9A of the 2004 Annual Report solely to restate the Consolidated Statements of Cash Flows for 2004, 2003 and 2002. The restatement reclassifies items among operating, investing and financing activities; it has no effect on the total change in cash, net income, the Consolidated Statements of Operations, or the Consolidated Statements of Financial Position. Restated 2004 cash flows from operating activities are $4,583 million, down from $7,119 million as originally reported, with investing outflows of $6,198 million (originally $7,423 million) and financing inflows of $1,807 million (originally $506 million). The filing reports 2004 net income of $2,256 million, total revenues of $28,348 million, and total assets of $401,058 million, with stockholders' equity of $22,344 million at December 31, 2004. Management concluded that internal control over financial reporting was effective as of December 31, 2004, though the restatement was identified after the original filing and management implemented enhancements to its cash flow statement review process. PricewaterhouseCoopers LLP's opinion on Note 2 is dated February 15, 2006. For investors, the principal takeaway is that the restatement changes the composition of reported cash flows but not reported earnings or the balance sheet. The filing reflects December 31, 2004 information and does not update for later events.
Feb 15, 2006
2004
Prudential Financial Annual Report, Year Ended Dec 31, 2004
Prudential Financial, Inc. (NYSE: PRU) reported net income of $2.256 billion for 2004, up from $1.264 billion in 2003, on total revenues of $28.348 billion. The Financial Services Businesses and Closed Block Business are reported separately: the Financial Services Businesses produced income from continuing operations before taxes of $2.372 billion, and the Closed Block Business $915 million. Total assets rose to $401.058 billion at year-end 2004 from $321.274 billion, largely reflecting the April 1, 2004 acquisition of CIGNA's retirement business for $2.123 billion, which added $34.7 billion of defined contribution account value and $19.1 billion of defined benefit account value. The company's earnings improved across most segments. Individual Life and Annuities adjusted operating income rose to $817 million from $619 million, International Insurance to $917 million from $819 million, and Retirement to $334 million from $192 million. Financial Advisory, which holds a 38% stake in Wachovia Securities, posted an adjusted operating loss of $245 million, including $194 million of transition costs. Stockholders' equity was $22.344 billion, and the company repurchased 32.5 million shares for $1.5 billion in 2004, with a new $1.5 billion authorization for 2005. The Common Stock dividend was raised 25% to $0.625 per share. Investors should note the structure of the company: the Common Stock tracks the Financial Services Businesses, while the Class B Stock tracks the Closed Block Business, which carries $1.75 billion of IHC debt. The filing also discloses ongoing regulatory inquiries and litigation, including mutual fund market timing matters, requests for information on payments to insurance intermediaries, and the Azar and Shane class actions. Management believes the ultimate outcome of pending litigation should not have a material adverse effect on financial position.
Mar 9, 2005
2003
Prudential Financial Annual Report, Year Ended Dec 31, 2003
Prudential Financial, Inc. reported net income of $1.264 billion for 2003, compared with $194 million in 2002, on income from continuing operations before income taxes of $1.958 billion. The company describes itself as one of the largest U.S. financial services institutions, operating in the U.S. and over 30 other countries. Results are split between the Financial Services Businesses (income from continuing operations before taxes of $1.588 billion) and the Closed Block Business ($370 million), which reflects the demutualization of Prudential Insurance on December 18, 2001. Total revenues were $27.907 billion and total assets were $321.274 billion at year-end 2003. During 2003 the company acquired Skandia U.S. (American Skandia) for a total purchase price of $1.184 billion, and combined its retail brokerage operations with Wachovia into a joint venture in which it holds a 38% interest. It also sold its property and casualty insurance businesses, recording a pre-tax loss of $491 million on the disposition. Management repurchased 29.1 million shares of Common Stock for about $1.0 billion and raised the annual Common Stock dividend to $0.50 per share. In early 2004 the board authorized up to $1.5 billion of share repurchases for 2004, and the company agreed to acquire CIGNA's retirement business for a cash price of $2.1 billion, expected to close in the first half of 2004. Investors should note the company's reliance on the Closed Block structure, under which Class B Stock dividends and the $1.75 billion IHC debt are tied to Closed Block performance, and the open litigation disclosed in Item 3, including a $269 million judgment under appeal against Prudential Securities. Total stockholders' equity was $21.292 billion at December 31, 2003.
Mar 10, 2004
2002
Prudential Financial Annual Report, Year Ended Dec 31, 2002
Prudential Financial, Inc. reported net income of $194 million for 2002, compared with a net loss of $154 million in 2001, on total revenues of $26.675 billion. Income from continuing operations before income taxes was $64 million, including a $757 million pre-tax loss in the Closed Block Business, while the Financial Services Businesses earned $821 million before taxes. Adjusted operating income for the Financial Services Businesses rose to $1.780 billion from $1.349 billion, driven by the Insurance Division and International Insurance and Investments Division, while realized investment losses of $1.358 billion weighed on GAAP results. The Investment Division was weaker, with a pre-tax loss of $28 million, reflecting a $235 million loss in the Retirement segment and a $41 million loss in Financial Advisory. Management is pursuing growth through the pending $1.15 billion acquisition of Skandia U.S. Inc., expected to close in the second quarter of 2003, and a February 2003 agreement to combine retail brokerage operations with Wachovia Corporation, in which Prudential would hold a 38% interest. The company also noted it is exploring options for its personal lines property and casualty business, including a possible sale. Investors should weigh the Closed Block structure, which ties Class B Stock dividends to that business and leaves Common Stock dependent on the Financial Services Businesses. Pending litigation includes a $250 million punitive damages verdict against Prudential Securities, and the Plan of Reorganization faces state court challenges that management says could have a material adverse effect if successful.
Mar 14, 2003