01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $2.73 billiona for 2024, up from $2.49 billion in 2023, and total revenues of $70.41 billion.
Assets under management reached approximately $1.512 trillionb 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 billionc 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.
02—Key points
Key Highlights
- Net income attributable to Prudential Financial, Inc. was $2,727 million in 2024, compared with $2,488 million in 2023 and a loss of $1,647 million in 2022.
- Total revenues increased to $70.41 billion in 2024 from $53.98 billion in 2023, driven largely by Retirement Strategies institutional revenues of $28.20 billion, up from $11.03 billion.
- Assets under management were approximately $1.512 trillion at December 31, 2024, up from $1.450 trillion at December 31, 2023, with PGIM managing $1.375 trillion.
- Total adjusted operating income before income taxes was $5,926 million in 2024, versus $5,599 million in 2023, with PGIM's contribution rising to $875 million from $713 million.
- Guaranteed universal life reinsurance transactions with Somerset Re (closed March 2024) and Wilton Re (closed December 2024) reduced Credit-Linked Note financing of Guideline AXXX reserves by $5.04 billion and $2.10 billion, respectively.
- The Board authorized up to $1.0 billion of share repurchases for January 1 through December 31, 2025, following $1.0 billion repurchased in 2024; the February 4, 2025 declared dividend was $1.35 per share.
- Management disclosed an immaterial error in adjusted operating income that overstated results for indexed variable and fixed annuity products; the company revised historical adjusted operating income with no impact on GAAP net income.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $70.41B$53.98B | +30.4% |
| Operating Expenses | $22.33B$14.55B | +53.4% |
| Operating Income | $2.70B$2.46B | +9.9% |
| Interest Expense | $2.03B$1.76B | +15.1% |
| Net Income | $2.73B$2.51B | +8.7% |
| EPS (Basic) | $7.54$6.76 | +11.5% |
| EPS (Diluted) | $7.50$6.74 | +11.3% |
| Shares Outstanding (Basic) | 357.50M363.50M | −1.7% |
| Shares Outstanding (Diluted) | 359.30M364.60M | −1.5% |
05—Questions
Frequently Asked Questions
How much did Prudential's net income change in 2024?
Net income attributable to Prudential Financial, Inc. was $2,727 million in 2024, compared with $2,488 million in 2023. The filing attributes the $239 million increase mainly to a $360 million favorable variance from realized investment gains (losses), net, and related charges, and a $327 million favorable variance from higher adjusted operating income, partly offset by a $453 million unfavorable change in market risk benefits.
What is the size of Prudential's assets under management?
Prudential reported approximately $1.512 trillion of assets under management as of December 31, 2024, of which $1.375 trillion was managed by PGIM. Assets under management rose by $77 billion in PGIM in 2024, driven by equity market appreciation, fixed income net inflows and strong investment performance.
What capital return actions did Prudential take?
In 2024 Prudential repurchased $1.0 billion of common stock and paid dividends of $5.20 per share totaling $1,892 million. The Board authorized up to $1.0 billion of repurchases for 2025 and, on February 4, 2025, declared a $1.35 per share dividend payable March 13, 2025.
What were the main reinsurance transactions completed in 2024?
Prudential closed a reinsurance transaction with Somerset Re covering policies representing approximately 30% of statutory reserves on its in-force guaranteed universal life block, effective January 1, 2024, and a transaction with Wilton Re covering approximately 40% of the remaining block, effective October 1, 2024. The filing reports these reduced Credit-Linked Note financing of Guideline AXXX reserves by $5,040 million and a further $2,100 million, respectively.
Did the company restate any previously reported results?
Yes. Prudential identified an immaterial error in applying adjusted operating income for indexed variable and fixed annuity products in Retirement Strategies and voluntarily revised prior periods, reducing pre-tax adjusted operating income by $149 million for the nine months ended September 30, 2024 and by $55 million for 2023. The company stated these revisions had no impact on GAAP net income.
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