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PRU · Prudential Financial

50 filings

10-Q

PRU 10-Q Quarterly Reports

Prudential Financial - 50 quarterly reports

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

PRU filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 198 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Feb ’20Feb ’20
  3. Deal closed8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2026

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $985 million for the second quarter of 2026, compared with $533 million in the second quarter of 2025, and $1.58 billion for the first six months of 2026 versus $1.24 billion a year earlier. Total revenues rose to $15.66 billion for the quarter from $13.73 billion, driven by higher other income, net investment income and a favorable change in market risk benefits, while total benefits and expenses rose to $14.48 billion, largely from higher interest credited to policyholders, changes in future policy benefit estimates and general and administrative expenses. Diluted earnings per share were $2.80 for the quarter and $4.48 for the six months, compared with $1.48 and $3.44 a year earlier. The filing highlights a significant strategic and operational issue at Prudential of Japan, where an internal investigation into employee misconduct led to a voluntary suspension of new sales, now extended through November 5, 2026. The company estimates the suspension reduced International Businesses' pre-tax adjusted operating income by $235 million in the first six months of 2026 and projects a $525 to $575 million reduction for 2026. The filing also describes an August 2026 announcement of a multi-year strategy to exit emerging markets and focus on large developed markets, with an expected $750 million reduction in annual operating expenses by year-end 2028. Balance sheet items include total assets of $783.55 billion, total equity of $31.94 billion, and long-term debt of $19.66 billion. The company issued $750 million of 6.25% junior subordinated notes in June 2026 and repurchased $500 million of common stock under its $1.0 billion 2026 authorization. Fitch placed the ratings outlook on Ratings Watch Negative on May 4, 2026.

    Aug 5, 2026
  2. 2026-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2026

    Prudential Financial, Inc. reported net income attributable to Prudential Financial of $597 million for the first quarter of 2026, versus $707 million in the first quarter of 2025. Diluted earnings per share were $1.68, compared with $1.96 a year earlier. Total revenues rose to $15.53 billion from $13.47 billion, driven mainly by premiums of $8.36 billion (up from $7.00 billion), which the filing attributes primarily to higher pension risk transfer premiums. Pre-tax income before taxes and equity in earnings of joint ventures was $733 million, down from $920 million, as higher policyholder benefits and general and administrative expenses, including remediation costs tied to the Prudential of Japan matter, offset the revenue growth. Total assets were $765.40 billion at March 31, 2026, against $773.74 billion at year-end 2025, and total Prudential Financial equity was $31.98 billion, down from $32.44 billion, largely reflecting a $4.74 billion pre-tax unrealized investment loss recorded in other comprehensive income. The company repurchased $250 million of common stock under its $1.0 billion 2026 authorization and paid $496 million in dividends declared, or $1.40 per share. The filing highlights the Prudential of Japan misconduct investigation. The company voluntarily suspended new sales at Prudential of Japan from February 9, 2026, and in April 2026 extended the suspension through November 5, 2026. Management estimates the suspension will reduce International Businesses pre-tax adjusted operating income by $525 to $575 million for 2026, and by $400 to $450 million for 2027. The filing also notes that on May 4, 2026, Fitch revised its outlook on Prudential Financial and its subsidiaries to Ratings Watch Negative from Stable.

    May 6, 2026
  3. 2025-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2025

    Prudential Financial, Inc. reported third-quarter 2025 net income attributable to Prudential Financial, Inc. of $1,431 million, or $4.01 diluted earnings per share, compared with $448 million, or $1.24 per diluted share, in the third quarter of 2024. For the first nine months of 2025, net income attributable to Prudential Financial, Inc. was $2,671 million, or $7.44 per diluted share, compared with $2,784 million, or $7.64 per diluted share, a year earlier. Total revenues fell to $45.08 billion for the nine months from $57.88 billion, primarily because of lower pension risk transfer premiums, which also reduced policyholders' benefits. Pre-tax adjusted operating income, by contrast, rose across most segments, and total segment adjusted operating income before income taxes was $5.13 billion for the nine months versus $4.56 billion a year earlier. Balance sheet growth was notable: total assets rose to $776.30 billion at September 30, 2025 from $735.59 billion at December 31, 2024, and total Prudential Financial, Inc. equity increased to $32.09 billion from $27.87 billion. Accumulated other comprehensive loss narrowed to $(3.18) billion from $(6.71) billion. The company repurchased 7.0 million shares for $750 million under its $1.0 billion authorization for 2025 and paid $1.45 billion in cash dividends on common stock during the nine months. Management reports $1.612 trillion in assets under management at September 30, 2025. The filing also notes a $150 million net out-of-period charge in the first quarter of 2025 and a $1.0 billion redemption of junior subordinated notes in May 2025. Key risks highlighted in the filing include $32.3 billion of gross unrealized losses on available-for-sale fixed maturities, $1.1 billion of nonperforming commercial mortgage and other loans on non-accrual status, and substantial derivative and embedded derivative exposures that drive realized investment losses, which totaled $3.46 billion for the nine months. Management also discusses the influence of interest rates, foreign currency movements (particularly the yen), and equity market performance on earnings and capital.

    Oct 30, 2025
  4. 2025-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2025

    Prudential Financial, Inc. reported a sharp decline in second-quarter 2025 earnings. Net income attributable to Prudential Financial, Inc. was $533 million for the three months ended June 30, 2025, versus $1,198 million a year earlier, and $1,240 million for the six months, versus $2,336 million. The filing attributes the drop mainly to a $691 million unfavorable pre-tax swing in realized investment gains (losses), net, and related charges for the quarter, and a $129 million unfavorable change in the value of market risk benefits, net of hedging. Realized investment losses were $1,699 million for the quarter, driven largely by $1,345 million of losses on derivatives. Adjusted operating income before income taxes rose to $1,665 million for the quarter from $1,560 million, led by International Businesses and a smaller Corporate and Other loss. The balance sheet grew, with total assets of $758,952 million at June 30, 2025, up from $735,587 million at December 31, 2024, and total equity of $30,903 million, up from $28,187 million. Total Prudential Financial, Inc. equity rose to $30,582 million, with accumulated other comprehensive loss narrowing to $(3,921) million from $(6,711) million, largely reflecting interest rate remeasurement of future policy benefits. Cash flows from operating activities were negative at $(1,344) million for the first six months of 2025, compared with $5,075 million a year earlier. The company completed $496 million of common stock repurchases in the first half under a $1.0 billion authorization for 2025, and paid $972 million in common dividends. Balance sheet and capital actions included a $750 million issuance of 5.200% medium-term notes due 2035, the May 2025 redemption of $1.0 billion of 5.375% junior subordinated notes, and a planned repayment of $350 million of surplus notes in July 2025. The filing also discloses a $150 million first-quarter out-of-period charge, a Prismic Re International reinsurance transaction covering about $7 billion of reserves, and a 24.2% effective tax rate for the first six months of 2025. The company reports $48.7 billion of total capital at June 30, 2025.

    Jul 31, 2025
  5. 2025-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2025

    Prudential Financial, Inc.'s first-quarter 2025 Form 10-Q reports net income attributable to Prudential Financial, Inc. of $707 million, or $1.96 diluted earnings per share, compared with $1,138 million, or $3.12 diluted, in the first quarter of 2024. Total revenues were $13.47 billion versus $23.51 billion a year earlier, largely reflecting lower pension risk transfer premiums in Institutional Retirement Strategies. Income before income taxes was $920 million versus $1.39 billion. The decrease in net income was driven by a $474 million unfavorable variance in the change in value of market risk benefits and a $183 million unfavorable variance in realized investment gains (losses), partially offset by an $85 million increase in segment adjusted operating income and a $71 million favorable variance from market experience updates. Total segment adjusted operating income before income taxes was $1.52 billion versus $1.44 billion. Balance sheet and capital: total assets were $739.26 billion at March 31, 2025, against $735.59 billion at year-end 2024, and total equity rose to $30.20 billion from $28.19 billion. Cash and cash equivalents declined to $16.06 billion from $18.50 billion, and operating cash flow was negative $2.51 billion versus positive $5.22 billion a year earlier. Common Stock repurchases totaled $250 million in the quarter under a $1.0 billion authorization for 2025, and the Company declared dividends of $1.35 per share. Prudential issued $750 million of 5.20% medium-term notes due 2035 in March 2025 and announced the redemption in full of $1.0 billion of 5.375% junior subordinated notes due 2045. Notable transactions and risks: in March 2025 the Company completed a reinsurance transaction with Prismic Life Reinsurance International, Ltd. covering approximately $7 billion of reserves for USD-denominated Japanese whole life policies. The filing also records an out-of-period adjustment net charge of $150 million to pre-tax income and a $1.0 billion shift in general account positions tied to rising interest rates. The Company states it does not expect the tariff and market environment described to change its risk framework, but flags that tariffs and retaliatory actions could raise rates, depress equity markets and increase inflation, affecting liquidity and capital.

    May 1, 2025
  6. 2024-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2024

    Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $448 million ($1.24 per diluted share) for the third quarter of 2024, compared with a net loss of $802 million in the third quarter of 2023, and $2.784 billion for the first nine months of 2024 versus $1.171 billion a year earlier. Total revenues were $19.490 billion for the quarter and $57.882 billion for the nine months, with premiums rising sharply largely due to pension risk transfer sales in Institutional Retirement Strategies. Adjusted operating income before income taxes was $1.628 billion for the quarter and $4.704 billion for the nine months, with the company citing higher results in PGIM, Retirement Strategies and Individual Life. The balance sheet grew to $760.3 billion of total assets at September 30, 2024, from $721.1 billion at December 31, 2023, and total Prudential Financial, Inc. equity rose to $30.4 billion from $27.8 billion. Management reported assets under management of $1.558 trillion and a total capital base of $48.8 billion. The company also disclosed a $136 million pre-tax out-of-period charge in the second quarter of 2024, a $1.0 billion share repurchase authorization for 2024 under which $750 million had been used by September 30, and dividends of $1.30 per share declared in the quarter. Key risks flagged in the filing include unrealized losses on fixed maturities, primarily from higher interest rates and foreign currency movements, sensitivity of market risk benefits and policyholder account balances to capital markets, and ongoing litigation and regulatory matters, for which the company estimates aggregate reasonably possible losses in excess of accruals of less than $250 million. Management concluded that disclosure controls were effective as of September 30, 2024.

    Oct 31, 2024
  7. 2024-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2024

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,198 million for the second quarter of 2024, compared to $511 million in the second quarter of 2023, and $2,336 million for the six months ended June 30, 2024, compared to $1,973 million a year earlier. Diluted earnings per share were $3.28 for the quarter and $6.40 for the six months. Total revenues were $14.88 billion for the quarter and $38.39 billion for the six months. The filing attributes the quarter's increase mainly to a $885 million pre-tax favorable variance in realized investment gains (losses), net, and related charges, and a $160 million favorable variance in adjusted operating income from business segments, partially offset by a $313 million unfavorable change in the value of market risk benefits. The company recorded two out-of-period adjustments in the second quarter totaling a $136 million pre-tax charge, which did not affect adjusted operating income. At June 30, 2024, total assets were $715.20 billion and total liabilities were $685.09 billion, versus $721.12 billion and $691.34 billion at December 31, 2023. Total Prudential Financial, Inc. equity rose to $28.01 billion from $27.82 billion. The company repurchased $493 million of common stock in the first six months under a $1.0 billion authorization for 2024, and declared dividends of $1.30 per share in each quarter. Approximately $1.48 trillion of assets under management are reported as of June 30, 2024. Key transactions in 2024 include a reinsurance agreement with Somerset Re covering guaranteed universal life policies (approximately 30% of the in-force block), a $1.0 billion junior subordinated notes issuance, and the redemption of $500 million of junior subordinated notes. The filing also discloses pending legal and regulatory matters, with management concluding that the ultimate outcome of pending litigation is not likely to have a material adverse effect on the financial statements, and an aggregate reasonably possible loss range in excess of accruals of less than $250 million. In July 2024, the company amended and restated its $4.0 billion credit facility, extending its term to July 2029. The company also reported that two federal district courts stayed the effective date of the DOL Retirement Security Rule in July 2024.

    Aug 2, 2024
  8. 2024-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2024

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1.138 billion for the first quarter of 2024, compared with $1.462 billion in the first quarter of 2023, and diluted earnings per share of $3.12 versus $3.93. Total revenues rose to $23.509 billion from $17.045 billion, driven largely by premiums of $15.537 billion (up from $9.363 billion), reflecting significant pension risk transfer sales in Institutional Retirement Strategies. Realized investment losses of $308 million contrasted with gains of $217 million a year earlier, and the filing attributes the lower net income chiefly to a $466 million pre-tax unfavorable variance in realized investment gains and losses, along with other unfavorable items. Segment results were mixed. Adjusted operating income before income taxes rose to $1.469 billion from $1.280 billion, with higher results in Retirement Strategies, International Businesses, PGIM and Group Insurance, while Individual Life declined. Total assets were $725.8 billion at March 31, 2024, and total equity was $28.9 billion. Accumulated other comprehensive loss widened to $7.661 billion, largely from net unrealized investment losses and interest rate effects on policy benefit liabilities as interest rates rose. The company reinsured guaranteed universal life policies to Somerset Re, which the filing says represent approximately 30% of its in-force guaranteed universal life reserves, and recognized a $411 million deferred reinsurance gain. It also issued $1.0 billion of 6.50% junior subordinated notes and redeemed $0.5 billion of 5.20% notes in March 2024, and it repurchased 2.3 million shares for $250 million under a $1.0 billion authorization for 2024.

    May 2, 2024
  9. 2023-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2023

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $(802) million for the third quarter of 2023 versus $(92) million in the third quarter of 2022, and net income attributable to Prudential Financial, Inc. of $1,171 million for the first nine months of 2023 versus a net loss of $(1,595) million in the prior-year period. Total revenues were $8,352 million for the quarter and $38,895 million for the nine months. Adjusted operating income before income taxes for segments totaled $1,606 million in the quarter and $4,264 million for the nine months, versus $1,167 million and $3,853 million in the prior-year periods. Total assets were $681.25 billion at September 30, 2023, and total equity was $26.95 billion, including $25.81 billion attributable to Prudential Financial, Inc. Accumulated other comprehensive loss widened to $(7.83) billion from $(3.81) billion at year-end 2022, reflecting higher interest rates. During 2023 the company took several capital and liquidity actions, including issuing $500 million of junior subordinated notes, redeeming $1.5 billion of junior subordinated notes, and entering into facility agreements for up to $1.5 billion of senior notes. It also completed a reinsurance transaction with Ohio National covering about $10 billion of PDI variable annuity account values, effective April 1, 2023. In September 2023 it reinsured about $9 billion of structured settlement annuity reserves with Prismic Re and acquired a 20% limited partner interest in Prismic HoldCo for approximately $200 million. Share repurchases of $754 million were made in the first nine months under a $1.0 billion authorization for 2023, and quarterly dividends of $1.25 per share were declared. The filing also discloses a $200 million restructuring charge expected in the fourth quarter of 2023, the adoption of ASU 2018-12 effective January 1, 2023 with prior periods restated, and an unfavorable impact on net income from 2023 actuarial assumption updates, primarily on long-term care policies. Total capital was $46.6 billion as of September 30, 2023, down from $48.5 billion at year-end 2022.

    Nov 2, 2023
  10. 2023-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2023

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $511 million, or $1.38 per diluted share, for the three months ended June 30, 2023, compared with a net loss of $(1,010) million, or $(2.71) per share, in the second quarter of 2022. For the six months ended June 30, 2023, net income attributable to Prudential Financial, Inc. was $1,973 million, or $5.31 per diluted share, versus a net loss of $(1,503) million, or $(4.04) per share, a year earlier. Total revenues were $13,498 million for the quarter and $30,543 million for the six months, and total assets were $697,304 million at June 30, 2023. Management cites a $1,521 million improvement in quarterly net income, driven mainly by favorable realized investment gains (losses) and market risk benefit results, partially offset by unfavorable divested business results and market experience updates. The balance sheet shows total equity of $29,455 million and accumulated other comprehensive loss of $(6,649) million at June 30, 2023, compared with $(3,806) million at year-end 2022, reflecting the rise in interest rates. Assets under management were $1,414.6 billion, and the company adopted ASU 2018-12 effective January 1, 2023, with prior periods restated. Capital actions in the period included $500 million of share repurchases in the first half under a $1.0 billion authorization, dividends of $1.25 per share per quarter, issuance of $500 million of junior subordinated notes, and redemption of $1.5 billion of junior subordinated notes. The filing also describes several transactions: the reinsurance of approximately $10 billion of Prudential Defined Income variable annuity account values to Ohio National, which generated about $650 million of proceeds, and an agreement signed in July 2023 to reinsure certain guaranteed universal life policies to Somerset Re, expected to yield about $450 million of proceeds. Management reports that its Closed Block policyholder dividend obligation was $392 million at June 30, 2023.

    Aug 3, 2023
  11. 2023-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2023

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,462 million, or $3.93 per diluted share, for the three months ended March 31, 2023, compared with a net loss of $(493) million, or $(1.33) per share, in the first quarter of 2022. Total revenues rose to $17,045 million from $11,855 million. Management attributed the $1,955 million year-over-year improvement in net income primarily to a $2,090 million pre-tax favorable variance in realized investment gains (losses) and related items and a $379 million favorable variance in the change in value of market risk benefits, partially offset by a $526 million unfavorable income tax variance and a $270 million decline in adjusted operating income from business segments. Total adjusted operating income before income taxes was $1,266 million versus $1,536 million a year earlier, with lower results in PGIM, Retirement Strategies, and International Businesses partly offset by a Group Insurance improvement. The filing reflects the company's adoption of ASU 2018-12 (Long-Duration Contracts) effective January 1, 2023, with prior periods retrospectively adjusted. Total assets were $709,269 million at March 31, 2023, up from $689,029 million at December 31, 2022, and total equity was $32,447 million. Assets under management were $1.417 trillion. The company repurchased 2.7 million shares for $250 million in the quarter under a $1.0 billion authorization for 2023, paid $468 million in common dividends ($1.25 per share), and issued $500 million of 6.750% junior subordinated notes in February 2023. The company also disclosed that in March 2023 it entered into facility agreements with two Delaware trusts for up to $1.5 billion of senior notes, and that in May 2023 it agreed to acquire a majority stake in Deerpath Capital Management, LP and announced the redemption of $1.5 billion of 5.625% junior subordinated notes due 2043. Management stated that disclosure controls were effective as of March 31, 2023.

    May 4, 2023
  12. 2022-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2022

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial of $(284) million for the third quarter of 2022, compared with net income of $1,530 million in the third quarter of 2021, and a net loss of $(880) million for the first nine months of 2022 versus net income of $6,516 million a year earlier. Total revenues for the nine months fell to $46,716 million from $54,510 million, and the company recorded realized investment losses of $(1,977) million, largely reflecting rising interest rates and derivative losses. Results were also affected by the April 1, 2022 sales of Prudential Annuities Life Assurance Corporation (a pre-tax gain of $852 million) and the Full Service Retirement business (a net pre-tax gain of $690 million), along with a $1,401 million net charge from annual assumption reviews within Individual Life for the nine months. Total equity fell to $17,180 million at September 30, 2022 from $62,608 million at December 31, 2021, driven by a swing in accumulated other comprehensive income to $(20,874) million from $21,324 million as unrealized investment gains reversed amid higher interest rates. Adjusted operating income before income taxes for total segments was $3,464 million for the nine months versus $5,716 million a year earlier, with Individual Life at $(1,233) million. The company reported approximately $1.350 trillion in assets under management and repurchased $1,113 million of common stock during the nine months under a $1.5 billion authorization for 2022. The filing also notes that Prudential will adopt ASU 2018-12 on January 1, 2023, which it expects to have a significant impact on its financial statements, including a decrease to retained earnings of approximately $2 billion to $3 billion and a decrease to AOCI of approximately $40 billion to $45 billion as of the January 1, 2021 transition date. Management states that the Company's disclosure controls were effective as of September 30, 2022.

    Nov 3, 2022
  13. 2022-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2022

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $565 million for the second quarter of 2022 (versus net income of $2,158 million in the second quarter of 2021) and a net loss of $596 million for the first six months of 2022 (versus $4,986 million in the prior-year period). Per-share results were a loss of $1.53 basic and diluted for the quarter. Total revenues were $13,021 million for the quarter and $26,236 million for the six months. The results were driven largely by realized investment losses of $1,147 million in the quarter, and a net charge of $1,401 million from annual assumption reviews in Individual Life, partly offset by a pre-tax gain of $852 million on the sale of PALAC and a net pre-tax gain of $690 million on the sale of the Full Service Retirement business, both completed April 1, 2022. Total assets declined to $695.6 billion at June 30, 2022 from $937.6 billion at December 31, 2021, largely reflecting the held-for-sale businesses leaving the balance sheet. Shareholders' equity attributable to Prudential Financial fell to $28.2 billion from $61.9 billion, as accumulated other comprehensive income swung to a loss of $10.2 billion from a gain of $21.3 billion, reflecting rising interest rates on the fixed maturity portfolio. The company reported approximately $1.410 trillion of assets under management, down from $1.742 trillion at year-end 2021, and repurchased $750 million of common stock under its $1.5 billion 2022 authorization. Management states that rising interest rates reduce fee income in fee-based businesses in the short term while increasing investment income over the longer term. The filing also notes a new $1.0 billion junior subordinated note issuance in February 2022, and that the company expects to accumulate approximately $750 million of annual run-rate cost savings by the end of 2022.

    Aug 5, 2022
  14. 2022-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2022

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $(31) million for the first quarter of 2022, compared with net income of $2,828 million in the first quarter of 2021. Total revenues fell to $13,215 million from $16,952 million, and realized investment losses of $(316) million compared with gains of $2,079 million a year earlier. Adjusted operating income before income taxes was $1,566 million versus $2,043 million, with PGIM ($188 million vs. $651 million) and International Businesses ($801 million vs. $871 million) declining, while U.S. Businesses rose to $943 million from $843 million. Diluted EPS was $(0.10) versus $6.98 in the prior-year quarter. Total shareholders' equity attributable to Prudential Financial fell to $43,978 million from $61,876 million at December 31, 2021, driven mainly by a $17,119 million decrease in accumulated other comprehensive income as interest rates rose. Total assets declined to $878,066 million from $937,582 million, partly reflecting assets classified as held-for-sale tied to the Full Service Retirement and PALAC dispositions. Both sales closed on April 1, 2022, with the Full Service Retirement sale generating a transaction value of approximately $2.8 billion and PALAC approximately $2.6 billion, and the company expects gains to be recognized in the second quarter of 2022. Management highlighted a $1.5 billion share repurchase authorization for 2022, of which $375 million (3.3 million shares) had been used as of March 31, 2022, and a $1.0 billion junior subordinated note issuance in February 2022. The company also noted that it will update actuarial assumptions in the second quarter of 2022, including a review of Individual Life experience that it described as more adverse than current assumptions, and that the outcome is uncertain.

    May 5, 2022
  15. 2021-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2021

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,530 million for the third quarter of 2021 and $6,516 million for the first nine months of 2021, compared with $1,487 million and a loss of $1,193 million in the same periods of 2020. Total revenues were $21.64 billion for the quarter and $54.51 billion for the nine months. Diluted earnings per share were $3.90 for the quarter and $16.32 for the nine months. Total adjusted operating income before income taxes across segments was $1,844 million for the quarter and $5,716 million for the nine months. Total Prudential Financial, Inc. equity fell to $61.89 billion at September 30, 2021 from $67.43 billion at December 31, 2020, largely reflecting a $8.91 billion decline in other comprehensive income, net of taxes, for the nine months. The company agreed in July 2021 to sell its Full Service Retirement business to Great-West Life & Annuity Insurance Company, with total proceeds expected to be approximately $2.8 billion and an expected closing by the end of the first quarter of 2022. In September 2021 it agreed to sell its equity interest in Prudential Annuities Life Assurance Corporation (PALAC), a block with a total transaction value of approximately $2.2 billion, expected to close in the first half of 2022. Both businesses are classified as held-for-sale as of September 30, 2021, with total held-for-sale assets of $143.91 billion and liabilities of $140.74 billion. The company also completed the sale of The Prudential Life Insurance Company of Taiwan Inc. in June 2021 and sold its 35% stake in Pramerica SGR in March 2021. The company's share repurchase authorization for calendar 2021 was raised to $2.5 billion, and 21.1 million shares had been repurchased at a total cost of $2,125 million as of September 30, 2021. Dividends declared were $1.15 per share in the quarter. The filing also notes COVID-19 continued to affect underwriting results, with an estimated adverse impact of approximately $185 million in the U.S. Businesses and $20 million in International Businesses expected for the fourth quarter of 2021.

    Nov 4, 2021
  16. 2021-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2021

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $2,158 million for the second quarter of 2021, compared with a net loss of $2,409 million in the second quarter of 2020, and $4,986 million for the first six months of 2021 versus a loss of $2,680 million a year earlier. Total revenues were $15,917 million for the quarter and $32,869 million for the six months. Diluted earnings per share were $5.40 for the quarter and $12.39 for the six months. Adjusted operating income before income taxes was $1,906 million in the quarter and $3,994 million for the six months, with PGIM, Retirement, Individual Annuities and International Businesses contributing the bulk of segment results. The balance sheet shows total assets of $926,461 million and total equity of $63,684 million at June 30, 2021, down from $68,210 million at year-end 2020, largely because accumulated other comprehensive income declined from $30,738 million to $23,277 million as interest rates rose. The company repurchased $1,238 million of common stock in the first six months and paid $926 million in dividends. Management's share repurchase authorization for calendar 2021 was raised to $2.5 billion in July 2021, and $1,250 million had been used as of June 30, 2021. Subsequent events include an agreement announced July 21, 2021 to sell the Full Service Retirement business to Great-West Life & Annuity Insurance Company for total expected proceeds of approximately $2.8 billion, net of about $400 million of costs and taxes, with closing expected by the first quarter of 2022. The company also sold The Prudential Life Insurance Company of Taiwan in June 2021 and its Pramerica SGR stake in March 2021, which contributed an after-tax gain of approximately $330 million.

    Aug 5, 2021
  17. 2021-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2021

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $2.83 billion, or $6.98 diluted earnings per share, for the first quarter of 2021, compared with a net loss of $271 million, or $(0.70) per share, in the first quarter of 2020. Total revenues rose to $16.95 billion from $13.46 billion. Management attributed the improvement to a $2.24 billion pre-tax favorable variance from variable annuity embedded derivatives and related hedges, a $1.24 billion favorable variance from market experience updates, and $951 million higher adjusted operating income from the business segments, which included a gain on the sale of the company's 35% stake in Pramerica SGR. Total adjusted operating income before income taxes was $2.09 billion, up from $1.14 billion. Balance sheet total equity fell to $58.78 billion from $68.21 billion at December 31, 2020, driven mainly by a decline in accumulated other comprehensive income to $19.22 billion from $30.74 billion, reflecting net unrealized investment losses of $14.13 billion before tax. Cash and cash equivalents increased to $16.10 billion. Common stock repurchases totaled $375 million in the quarter, and the Board raised the 2021 repurchase authorization by $500 million on May 4, 2021, to $2.0 billion. Quarterly dividends declared were $1.15 per share. The filing also notes ongoing litigation and regulatory matters, including escheatment litigation, securities derivative litigation, and SEC subpoena and regulatory inquiries related to variable product sales, with management stating that the aggregate reasonably possible losses in excess of accruals are less than $250 million. The company expects the sale of The Prudential Life Insurance Company of Taiwan Inc. to close in 2021, and it has cumulatively recognized an estimated $390 million after-tax charge related to that sale.

    May 6, 2021
  18. 2020-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2020

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $(1,193) million for the first nine months of 2020, compared with net income of $3,058 million in the same period of 2019, and net income of $1,487 million for the third quarter of 2020 versus $1,418 million a year earlier. Revenues for the nine months were $41,004 million versus $45,584 million. The filing attributes the results to substantial effects from financial market conditions and COVID-19, including realized investment losses of $(2,164) million, driven largely by derivatives, and a $(125) million loss in other income. Total assets were $911,589 million at September 30, 2020, and total equity was $66,890 million. Segment adjusted operating income before income taxes was $3,629 million for the nine months, versus $4,712 million in the prior year period. The company completed the sale of The Prudential Life Insurance Company of Korea, Ltd. for approximately $1.9 billion in August 2020, recording an after-tax loss of approximately $800 million. It also agreed in August 2020 to sell Prudential Life Insurance Company of Taiwan Inc. for about $190 million in cash plus contingent consideration, recognizing an estimated $300 million after-tax charge in the third quarter, with closing expected in 2021. The company suspended share repurchases beginning April 1, 2020, after buying $500 million of stock in the first quarter, and does not intend to resume repurchases in 2020. Quarterly dividends were $1.10 per share. The filing highlights liquidity actions taken during 2020, including $1.3 billion of junior subordinated notes issued in August, a $1.5 billion facility agreement with a Delaware trust, and $1.5 billion of senior notes issued in March. It reports $6.1 billion of highly liquid assets at Prudential Financial and states that all significant insurance subsidiaries maintained capital levels consistent with ratings targets as of September 30, 2020. Shareholder derivative and securities lawsuits related to mortality reserve assumptions in the Individual Life business were filed or consolidated during 2020.

    Nov 5, 2020
  19. 2020-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2020

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $(2,409) million for the second quarter of 2020 and $(2,680) million for the first six months of 2020, compared with net income of $708 million and $1,640 million in the same periods of 2019. The filing attributes the results to unfavorable financial market conditions driven by COVID-19, including realized investment losses on derivatives, mainly tied to variable annuity hedging and embedded derivatives. Total revenues were $12,115 million for the quarter and $25,579 million for the six months, and total equity was $66,508 million at June 30, 2020. Adjusted operating income before income taxes for total segments was $931 million in the quarter and $2,070 million for the six months, compared with $1,594 million and $3,136 million a year earlier. The company agreed in April 2020 to sell The Prudential Life Insurance Company of Korea, Ltd. to KB Financial Group for cash consideration of approximately 2.3 trillion Korean Won (about U.S. $1.9 billion at then-current exchange rates). Beginning in the second quarter, the business was classified as held for sale, and the company recognized an after-tax charge of approximately $700 million, with the final loss to be based on closing-date balances. The transaction is expected to close by the end of 2020, subject to regulatory approval. Management also temporarily suspended share repurchases beginning April 1, 2020, after repurchasing $500 million of stock in the first quarter, and it increased its liquidity sources, including a $1.5 billion facility agreement with a Delaware trust and $1.5 billion of senior notes issued in March 2020. The filing states that the company lowered its outlook and that COVID-19 may continue to affect results, financial condition and cash flows; the company says it cannot predict the ultimate impact. Its statutory capital levels for significant insurance subsidiaries were described as consistent with ratings targets as of June 30, 2020, but market conditions could constrain capital flexibility. Net unrealized gains on fixed maturity investments excluding trading securities were $54,717 million at June 30, 2020, compared with $44,891 million at December 31, 2019.

    Aug 6, 2020
  20. 2020-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2020

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $(271) million for the first quarter of 2020, compared with net income of $932 million in the first quarter of 2019, as unfavorable financial market conditions had a substantial negative effect on reported results. Total revenues were $13.46 billion versus $15.09 billion a year earlier, and diluted EPS was $(0.70) versus $2.22. The filing attributes the decline mainly to a $1.38 billion pre-tax unfavorable variance from investment-related activities in Other income (loss), a $1.01 billion unfavorable variance from market experience updates, and an $809 million unfavorable variance from embedded derivatives and related hedges on certain variable annuities, partially offset by a $2.44 billion favorable variance from realized investment gains and losses. Total assets declined to $873.71 billion at March 31, 2020 from $896.55 billion at December 31, 2019, and total Prudential Financial, Inc. equity fell to $60.45 billion from $63.12 billion, reflecting a $1.44 billion decrease in other comprehensive income. Cash and cash equivalents rose to $31.65 billion from $16.33 billion. During the quarter the company issued $1.5 billion of senior notes, issued $800 million of surplus notes through a reserve financing facility, and repurchased $500 million of common stock, after which it temporarily suspended repurchases beginning April 1, 2020. The filing states that COVID-19 has adversely affected results and that the company cannot predict its ultimate impact; it estimates an underwriting impact of approximately $200 million and higher expenses of approximately $230 million in 2020. The filing also discloses an agreement, announced April 10, 2020, to sell The Prudential Life Insurance Company of Korea, Ltd. to KB Financial Group Inc. for approximately U.S. $1.9 billion, with an expected $600 million after-tax charge in the second quarter of 2020. Shareholder demand letters and securities litigation (City of Warren and Crawford matters, now consolidated) remain pending, and the company estimates reasonably possible losses in excess of accruals of less than $250 million.

    May 8, 2020
  21. 2019-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2019

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,418 million for the third quarter of 2019, compared with $1,672 million in the third quarter of 2018, and $3,058 million for the first nine months of 2019, compared with $3,232 million a year earlier. Total revenues were $15,105 million for the quarter and $45,584 million for the nine months. Diluted earnings per share were $3.44 for the quarter and $7.35 for the nine months. The filing attributes the quarterly decrease mainly to a $476 million pre-tax unfavorable variance from embedded derivatives and related hedges tied to certain variable annuities, a $278 million unfavorable variance from market experience updates, and a $148 million higher income tax expense, partly offset by a $716 million favorable swing in pre-tax realized investment gains and losses excluding the Closed Block and the variable annuity hedging program. Total assets grew to $885.6 billion at September 30, 2019 from $815.1 billion at December 31, 2018, and total Prudential Financial equity rose to $65.8 billion from $48.6 billion, driven largely by a $16.6 billion increase in accumulated other comprehensive income. The company repurchased $2.0 billion of common stock in the first nine months, increased its 2019 share repurchase authorization to $2.5 billion, and declared quarterly dividends of $1.00 per share. In October 2019 it completed the acquisition of Assurance IQ, Inc. for approximately $1.8 billion in cash plus about $0.5 billion in restricted stock, with up to roughly $1.15 billion of additional contingent consideration payable in 2023. The company also announced a voluntary separation program to support its Financial Wellness Initiative, with severance charges expected in the fourth quarter of 2019. The filing notes that the company expects ASU 2018-12 to have a significant impact on its financial statements, with the effective date deferred to January 1, 2022. Management reports that the company settled SEC matters relating to securities lending for a $5 million fine and $27.6 million of disgorgement, and that the aggregate reasonably possible losses in excess of accruals for litigation and regulatory matters is less than $250 million.

    Nov 5, 2019
  22. 2019-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2019

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $708 million for the second quarter of 2019, compared with $197 million in the second quarter of 2018, and $1.64 billion for the six months ended June 30, 2019, versus $1.56 billion a year earlier. Total revenues were $15.39 billion for the quarter and $30.48 billion for the six months. Basic earnings per share were $1.73 for the quarter and $3.98 for the six months. Management attributed the quarterly improvement largely to a $1,624 million pre-tax favorable variance from annual reviews and updates of assumptions, partly offset by a $382 million unfavorable variance from variable annuity embedded derivatives and hedges and a $208 million unfavorable variance from market experience updates. The balance sheet grew over the period, with total assets of $873.83 billion at June 30, 2019, versus $815.08 billion at December 31, 2018, and total Prudential Financial, Inc. equity rising to $61.66 billion from $48.62 billion, driven largely by a $13.07 billion increase in other comprehensive income. Total assets under management were $1.497 trillion at June 30, 2019. The company repurchased $1.0 billion of common stock in the first half of 2019 and declared dividends of $1.00 per share in each quarter. The filing also highlights ongoing items for investors, including the adoption of ASU 2016-02 (leases), the expected significant impact of ASU 2018-12 on long-duration contracts, the deferral of its effective date to January 1, 2022 tentatively decided by the FASB, and a pending settlement discussion with the SEC regarding securities lending and foreign tax reclaim matters. Management states that the aggregate range of reasonably possible losses in excess of accruals for litigation and regulatory matters is less than $250 million.

    Aug 2, 2019
  23. 2019-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2019

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $932 million for the first quarter of 2019, compared with $1,363 million in the first quarter of 2018. Total revenues rose to $15.09 billion from $13.76 billion, but the swing in realized investment results was significant: realized investment gains (losses), net, were $(766) million versus $425 million a year earlier, driven largely by derivative losses of $(1,032) million tied to variable annuity hedging and interest rate and equity movements. Management attributed the $431 million decline in net income primarily to a $935 million pre-tax unfavorable variance from embedded derivatives and related hedges on certain variable annuities, partly offset by lower income tax expense and a $236 million pre-tax favorable swing from Divested and Run-off Businesses. Diluted earnings per share were $2.22 versus $3.14. Balance sheet and capital metrics strengthened over the quarter. Total assets increased to $849.32 billion from $815.08 billion at December 31, 2018, and total Prudential Financial, Inc. equity rose to $55.01 billion from $48.62 billion, reflecting a $6.30 billion increase in other comprehensive income, net of taxes, largely from net unrealized investment gains. Total capital was reported at $52.1 billion, and senior notes rose by $1 billion after a 4.350% issuance maturing in 2050. The company repurchased $500 million of Common Stock under its $2.0 billion 2019 authorization and declared Common Stock dividends of $415 million ($1.00 per share). Management highlighted several segment-level trends. Adjusted operating income before income taxes totaled $1.605 billion versus $1.721 billion, with International Insurance ($922 million, up from $856 million) and Individual Life ($105 million, up from $36 million) improving, while Retirement ($251 million, down from $317 million), Individual Annuities ($472 million, down from $519 million) and Corporate and Other operations (a $(412) million loss, versus $(294) million) weakened. The filing also disclosed that the company is in discussions with the SEC regarding a possible settlement of its securities lending and foreign tax reclaim matters, and that ASU 2018-12 is expected to have a significant impact on its financial statements when adopted in 2021.

    May 3, 2019
  24. 2018-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2018

    Prudential Financial, Inc.'s Form 10-Q for the quarter ended September 30, 2018 reports total revenues of $16,148 million for the third quarter of 2018 versus $16,313 million a year earlier, and net income attributable to Prudential Financial, Inc. of $1,672 million versus $2,238 million. For the nine months, net income attributable to Prudential Financial was $3,232 million, compared with $4,098 million in the prior-year period. Diluted earnings per share were $3.90 for the quarter and $7.51 for the nine months, versus $5.09 and $9.29 a year earlier. Management attributes the quarterly decline mainly to unfavorable variances in embedded derivatives and hedges tied to variable annuities, net realized investment results, and reserve and DAC updates, partly offset by lower income tax expense. The nine-month results were affected by a $1,586 million pre-tax loss from divested businesses, which includes a $1,458 million net charge from annual assumption reviews for the Long-Term Care business. Total assets were $822,748 million at September 30, 2018, down from $832,136 million at December 31, 2017, while total Prudential Financial, Inc. equity fell to $46,725 million from $54,236 million, driven largely by a decline in accumulated other comprehensive income to $9,150 million from $17,074 million. Management reports $1.41 trillion of assets under management and continued share repurchases, with $1,125 million of Common Stock acquired under a $1.5 billion authorization for 2018. The filing also discloses pending matters including an SEC review of a securities lending matter and foreign tax reclaim issues, for which the company says it is in discussions with SEC staff about a possible settlement. The company also notes that ASU 2018-12, effective January 1, 2021, is expected to have a significant impact on its financial statements, with the magnitude of the transition adjustment still being assessed.

    Nov 8, 2018
  25. 2018-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2018

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $197 million for the second quarter of 2018 (versus $491 million in the second quarter of 2017) and $1,560 million for the first six months of 2018 (versus $1,860 million). Diluted earnings per share were $0.46 for the quarter and $3.62 for the six months. Total revenues were $14,655 million for the quarter and $28,412 million for the six months. The filing attributes the quarterly decline mainly to a $1,302 million unfavorable variance from reserve and DAC adjustments reflecting annual assumption reviews, and to a $1,458 million net charge within the Long-Term Care divested business, partly offset by a $1,088 million favorable pre-tax variance from variable annuity embedded derivatives and hedges. Balance sheet highlights include total assets of $819,860 million and total equity of $48,592 million at June 30, 2018, down from $54,511 million at December 31, 2017, largely because accumulated other comprehensive income fell from $17,074 million to $11,655 million amid rising U.S. interest rates and credit spread widening. The company repurchased $750 million of Common Stock in the first half of 2018 under a $1.5 billion authorization and paid $769 million in common dividends. Dividends declared were $0.90 per share in each quarter of 2018. The filing also notes the redemption of $600 million of 8.875% junior subordinated notes, the issuance of $1.0 billion of medium-term notes, and the adoption of ASU 2016-01 and ASU 2018-02, which moved $847 million out of AOCI and reclassified $1,653 million of stranded tax effects to retained earnings. Management highlights ongoing pressure from the low interest rate environment and the Tax Act of 2017. The company disclosed that the Fifth Circuit vacated the DOL fiduciary rule effective June 2018, that it agreed to sell Pramerica of Italy (expected to close in early 2019), and that it exited PGIM Brazil operations in the second quarter of 2018. The filing reports approximately $1.388 trillion of assets under management as of June 30, 2018.

    Aug 3, 2018
  26. 2018-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2018

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,363 million for the first quarter of 2018, compared with $1,369 million in the first quarter of 2017. Total revenues rose to $13,757 million from $13,670 million, while total benefits and expenses increased to $12,064 million from $11,928 million. Basic earnings per share were $3.19 versus $3.14, and diluted earnings per share were $3.14 versus $3.09. Management attributed the flat net income mainly to a $268 million pre-tax unfavorable variance from Divested Businesses and a $205 million unfavorable variance from realized investment gains and losses, offset by a $360 million favorable variance from embedded derivatives and related hedges on certain variable annuities and a $107 million favorable variance from segment operations and lower taxes. Comprehensive income was a loss of $1,742 million, driven by other comprehensive loss of $3,106 million, mainly from net unrealized investment losses of $4,666 million before tax. Total equity declined to $52,175 million from $54,511 million at year-end 2017, reflecting the $1,653 million reclassification of stranded tax effects under ASU 2018-02 and the $3,106 million other comprehensive loss. Total assets were $829,677 million and total liabilities were $777,502 million at March 31, 2018. The company repurchased $375 million of common stock during the quarter under a $1.5 billion authorization for 2018, declared $387 million in common dividends ($0.90 per share), and issued $1.0 billion of medium-term notes. The filing also reports the early adoption of ASU 2016-01, which moved changes in fair value of equity securities into net income, and a $1.6 billion captive financing facility for Guideline XXX reserves. Management notes that interest rates remain low, that portfolio yields are expected to keep declining, and that the Fifth Circuit vacated the DOL fiduciary rule in March 2018.

    May 4, 2018
  27. 2017-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2017

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $2,238 million for the third quarter of 2017, up from $1,827 million a year earlier, and $4,098 million for the first nine months of 2017 compared with $4,084 million in the prior-year period. Diluted earnings per share were $5.09 for the quarter and $9.29 for the nine months. Total assets were $821.1 billion at September 30, 2017, up from $784.0 billion at December 31, 2016, and total Prudential Financial, Inc. equity rose to $50.4 billion from $45.9 billion, driven by retained earnings and accumulated other comprehensive income. The quarter's earnings increase was driven largely by a $373 million favorable variance from changes in the value of embedded derivatives and related hedges tied to certain variable annuities, and a $450 million net favorable variance from higher segment operating results. These gains were partly offset by $321 million lower net realized gains excluding the Closed Block and the variable annuity hedging program. For the nine months, results were affected by a $3,292 million unfavorable variance from variable annuity embedded derivatives and hedges, offset by a $1,987 million favorable variance from changes in how interest rate risk is managed for certain products. The company also recorded a $237 million charge in the second quarter of 2017 in the Individual Life segment related to a change in accounting for certain reinsurance cash flows. Capital and liquidity actions during the period included $937 million of share repurchases under a $1.25 billion authorization for 2017, $979 million of Common Stock dividends declared, and the issuance of $750 million of 4.50% junior subordinated notes in September 2017. The company amended its $4.0 billion credit facility, extending its term to July 2022, and no amounts were drawn at quarter end. Prudential also disclosed that the aggregate reasonably possible losses in excess of accruals for litigation and regulatory matters were estimated at less than $250 million, and that management believes ultimate outcomes are not likely to have a material adverse effect on financial position.

    Nov 3, 2017
  28. 2017-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2017

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $491 million for the second quarter of 2017 and $1.860 billion for the six months ended June 30, 2017, compared with $921 million and $2.257 billion in the prior-year periods. Diluted earnings per share were $1.12 for the quarter and $4.21 for the six months. Total revenues were $13.441 billion for the quarter and $27.111 billion for the six months, and total assets were $812.590 billion at June 30, 2017. The filing attributes much of the decline in net income to a $2.186 billion unfavorable variance in the quarter from changes in the value of embedded derivatives and related hedges on certain variable annuities, and to $1.092 billion of total realized investment losses in the quarter, compared with gains of $1.433 billion a year earlier. Operating results were mixed. Adjusted operating income before income taxes rose to $1.228 billion for the quarter from $1.057 billion, led by Individual Annuities and Retirement, while Individual Life posted an adjusted operating loss of $557 million, driven largely by a $653 million net charge from annual assumption reviews and a $237 million charge tied to a change in reinsurance accounting. Total equity was $48.640 billion, and the company repurchased $625 million of Common Stock under a $1.25 billion authorization for 2017 while declaring $655 million in common dividends during the six months. Management also reported that a new $4.0 billion credit facility was amended and restated in July 2017, extending its term to July 2022. The filing describes an ongoing low interest rate environment that management expects to continue pressuring portfolio yields, with approximately $187 billion of U.S. general account fixed maturity and commercial mortgage assets carrying an average yield of about 4.2%. Management also disclosed a planned reorganization of its U.S. businesses into new divisions effective in the fourth quarter of 2017, with no change to reporting segments or to the measure of segment profitability.

    Aug 4, 2017
  29. 2017-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2017

    Prudential Financial, Inc. (PRU) reported net income attributable to Prudential Financial, Inc. of $1.369 billion for the first quarter of 2017, compared with $1.336 billion in the first quarter of 2016. Diluted earnings per share were $3.09, versus $2.93 a year earlier. Total revenues were $13.670 billion, down from $14.329 billion, mainly because realized investment gains fell to $427 million from $1.881 billion. Adjusted operating income before income taxes was $1.660 billion, up from $1.325 billion, with the U.S. Retirement Solutions and Investment Management division contributing $1.061 billion. At March 31, 2017, total assets were $797.365 billion and total equity was $46.974 billion, compared with $783.962 billion and $46.088 billion at December 31, 2016. Total Prudential Financial, Inc. equity was $46.784 billion. Net unrealized investment gains on the balance sheet, reported within accumulated other comprehensive income, were $32.061 billion. Cash and cash equivalents declined to $13.308 billion from $14.127 billion. Common Stock repurchases were $312 million in the quarter, under a $1.25 billion authorization for 2017, and dividends declared were $0.75 per share ($327 million). The filing highlights a continued low interest rate environment, which management expects to pressure portfolio yields as assets reinvest at lower rates. It also notes a $1.238 billion unfavorable variance from embedded derivatives and related hedges tied to variable annuities, offset by a $1.472 billion favorable variance from changes in interest rate risk management for certain products. Total borrowings were $19.308 billion on a consolidated basis, and the company reported compliance with all debt covenants.

    May 5, 2017
  30. 2016-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2016

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,827 million for the third quarter of 2016 and $4,084 million for the first nine months of 2016, compared to $1,465 million and $4,907 million, respectively, in the prior-year periods. Total revenues were $16,961 million for the quarter and $45,729 million for the nine months. Adjusted operating income before income taxes was $1,558 million for the quarter and $3,940 million for the nine months, compared to $1,463 million and $5,049 million in the prior-year periods. Total assets rose to $819,865 million at September 30, 2016 from $757,255 million at December 31, 2015, and total equity increased to $56,974 million from $41,923 million, driven largely by a $12,640 million increase in accumulated other comprehensive income. The filing highlights several liquidity and capital actions during the nine months, including $1,375 million of common stock repurchases, $938 million of declared common stock dividends, the retirement of $750 million of senior debt at maturity, and a $500 million tender offer for senior debt. The company also established a new ¥100 billion three-year unsecured credit facility at Prudential Holdings of Japan and recaptured variable annuity living benefit risks as part of the Variable Annuities Recapture, which increased highly liquid assets at the parent by approximately $1.0 billion. Management also adopted a new asset/liability management strategy for variable annuity guarantees beginning in the third quarter of 2016. The filing also notes an out-of-period adjustment of $148 million reducing pre-tax income in the second quarter for certain universal life products, which management concluded was not material. Management reports total capital of $43.1 billion and assets under management of approximately $1.314 trillion as of September 30, 2016. Regulatory developments include the Department of Labor fiduciary rule, principles-based reserving adoption by the NAIC, and proposed Federal Reserve capital and enhanced prudential standards for Designated Financial Companies.

    Nov 4, 2016
  31. 2016-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2016

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $921 million for the three months ended June 30, 2016 (compared to $1,406 million in the prior-year quarter) and $2,257 million for the six months (compared to $3,442 million). Income from continuing operations before income taxes and equity in earnings of operating joint ventures was $1,341 million for the quarter, versus $2,129 million a year earlier. Total revenues were $14,439 million for the quarter. Management attributes the decline largely to a $1,670 million pre-tax unfavorable variance (quarter) from managing a portion of interest rate risk through its Capital Protection Framework, and a $1,029 million unfavorable pre-tax variance from DAC, other costs and reserve adjustments tied to annual assumption reviews. These were partly offset by $1,652 million of higher pre-tax realized gains and a $916 million favorable variance from embedded derivatives and related hedges on variable annuities. Adjusted operating income before income taxes fell to $1,057 million for the quarter from $1,841 million, with the Individual Life segment swinging to a loss of $290 million, reflecting a $420 million net charge from assumption updates and a $148 million out-of-period adjustment for universal life products. Total assets rose to $796.5 billion at June 30, 2016 from $757.3 billion at December 31, 2015, while total equity increased to $55.2 billion from $41.9 billion, driven largely by a $12.4 billion increase in accumulated other comprehensive income. Management reported approximately $1.268 trillion of assets under management. During the first half of 2016, the company repurchased $750 million of Common Stock, paid $629 million in declared dividends, retired $750 million of senior debt, and repurchased $500 million of medium-term notes via tender offer. Its 2016 share repurchase authorization totals $2.0 billion following an August 2016 increase of $500 million. The filing also notes regulatory developments including the FRB's advance notice on capital standards for Designated Financial Companies, NAIC adoption of principles-based reserving, the Department of Labor fiduciary rule, and the UK's non-binding referendum to exit the European Union.

    Aug 5, 2016
  32. 2016-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2016

    Prudential Financial, Inc. (NYSE: PRU) reported net income attributable to Prudential Financial, Inc. of $1,336 million for the first quarter of 2016, compared with $2,036 million in the first quarter of 2015. Total revenues were $14,329 million versus $15,552 million a year earlier, and diluted earnings per share from continuing operations were $2.93 compared with $4.37. Adjusted operating income before income taxes was $1,325 million, down from $1,745 million, with the decline concentrated in Individual Annuities ($328 million versus $529 million) and Retirement ($219 million versus $284 million). Total assets rose to $772,995 million at March 31, 2016 from $757,255 million at December 31, 2015, and total equity increased to $49,265 million from $41,923 million, largely reflecting a $6,785 million increase in other comprehensive income driven by net unrealized investment gains. The company repurchased $375 million of Common Stock and declared $316 million in Common Stock dividends during the quarter, with dividends declared per share of $0.70 versus $0.58 a year earlier. Management's remaining 2016 share repurchase authorization is $1.5 billion. The filing notes that the Company acquired an indirect 40% interest in AFP Habitat in Chile for approximately $532 million and that Deutsche Bank's India asset management business acquisition was completed in March 2016. Management also flags ongoing low interest rate pressure on net investment spreads, the Department of Labor fiduciary Rules issued in April 2016, and the potential impact of the UK referendum on the European Union. The quarter's lower income reflected several items disclosed in the filing: a $592 million unfavorable pre-tax variance tied to the Capital Protection Framework's management of interest rate risk, $387 million lower net pre-tax realized gains for PFI excluding the Closed Block division, and a $159 million unfavorable variance from DAC and reserve adjustments. These were partially offset by a $497 million favorable variance from changes in the value of embedded derivatives and related hedges for certain variable annuities.

    May 6, 2016
  33. 2015-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2015

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,465 million for the third quarter of 2015 and $4,907 million for the first nine months of 2015, compared with $512 million and $2,840 million for the same periods of 2014. Total revenues were $13,599 million for the quarter and $42,863 million for the nine months. Basic earnings per share from continuing operations were $3.22 for the quarter and $10.74 for the nine months, and diluted earnings per share were $3.16 and $10.56. The company completed the Class B Repurchase on January 2, 2015, after which it reports consolidated earnings and organizes its operations into four divisions. Total assets were $754,527 million at September 30, 2015, down from $766,655 million at December 31, 2014, and total equity was $42,770 million. Adjusted operating income before income taxes was $1,463 million for the quarter and $5,049 million for the nine months, and the filing attributes much of the period's reported volatility to realized investment gains, which were $4,190 million for the nine months, driven largely by derivative results. Management highlights a continued low interest rate environment, with the general account's current average portfolio yield for fixed maturities and commercial mortgage loans of approximately 4.5% expected to decline as assets reinvest. The company repurchased 3.0 million common shares for $250 million in the third quarter under a $1.0 billion authorization running from July 1, 2015 through June 30, 2016, and declared quarterly dividends of $0.58 per share. The filing also discusses regulatory developments, including the company's designation as a global systemically important insurer and its status as a Designated Financial Company under Dodd-Frank. Pending litigation and regulatory matters are disclosed, and management believes their ultimate outcome is not likely to have a material adverse effect on financial position. Ratings actions in 2015 included an S&P downgrade of the Japanese insurance subsidiaries' financial strength ratings from "AA-" to "A+" following the sovereign downgrade of Japan.

    Nov 5, 2015
  34. 2015-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2015

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,406 million for the second quarter of 2015 and $3,442 million for the first six months, compared with $1,090 million and $2,328 million, respectively, in the prior-year periods. Total revenues were $13,712 million for the quarter and $29,264 million for the six months. Results were supported by a $1,802 million pre-tax favorable swing in the quarter from realized investment results tied to the Company's Capital Protection Framework, although the Company also cited a $1,447 million decline in pre-tax realized gains for PFI excluding the Closed Block division, driven by interest rate changes in derivatives. The quarter reflected the January 2, 2015 Class B Repurchase, which eliminated the separate Financial Services Businesses and Closed Block Business reporting; the Company now reports four divisions and seven reportable segments. Adjusted operating income before income taxes was $1,841 million for the quarter and $3,586 million for the six months, up from $1,623 million and $3,194 million. Total assets were $762,731 million at June 30, 2015, compared with $766,655 million at December 31, 2014, and total equity was $42,292 million. Accumulated other comprehensive income declined to $13,404 million from $16,050 million, reflecting net unrealized investment losses from rising interest rates. Capital and liquidity actions during the period included a $1.0 billion junior subordinated note issuance in May 2015, $500 million of Common Stock repurchases in the first half of 2015, and a $651 million cash payment to repurchase Class B Stock. The Board authorized a new $1.0 billion share repurchase program for July 1, 2015 through June 30, 2016, and Common Stock dividends of $0.58 per share were declared in each of February and May 2015. The filing also notes a $4.0 billion credit facility amended in April 2015 with no borrowings outstanding, and that total capital was $39.8 billion at June 30, 2015.

    Aug 6, 2015
  35. 2015-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2015

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $2,036 million for the first quarter of 2015, compared with $1,238 million in the first quarter of 2014. Income from continuing operations before income taxes and equity in earnings of operating joint ventures was $2,748 million, up from $1,718 million. Total revenues rose to $15,552 million from $12,854 million, driven largely by $2,361 million of total realized investment gains, including $1,738 million from derivatives, compared with $208 million a year earlier. Diluted earnings per share from continuing operations attributable to Prudential Financial were $4.37, versus $2.58 in the prior-year period, which reflected former Financial Services Businesses earnings. The quarter followed the January 2, 2015 Class B Repurchase, under which Prudential repurchased and cancelled all Class B Stock for $651 million in cash. The company no longer organizes its operations into Financial Services Businesses and the Closed Block Business; its principal operations are now four divisions. Total assets grew to $778,612 million from $766,655 million at December 31, 2014, and total equity rose to $45,574 million from $42,349 million. During the quarter the company repurchased 3.1 million shares of Common Stock for $250 million and declared Common Stock dividends of $0.58 per share. The filing highlights continued sensitivity to the low interest rate environment. Management noted that the average portfolio yield on fixed maturities and commercial mortgage loans of approximately 4.5% is expected to decline as assets reinvest at lower rates. On April 14, 2015, the company entered into a new $4.0 billion five-year credit facility, which amends and restates its prior facilities, and no borrowings were outstanding under those facilities as of March 31, 2015.

    May 7, 2015
  36. 2014-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2014

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $512 million for the third quarter of 2014 and $2,840 million for the first nine months, compared with $1,027 million and a net loss of $207 million in the same periods of 2013. Total revenues were $12.38 billion for the quarter and $38.38 billion for the nine months. Results for the quarter were affected by out-of-period adjustments that reduced pre-tax income by $156 million, and by an income tax benefit of $234 million in the quarter compared with expense of $497 million a year earlier. Adjusted operating income before income taxes for the Financial Services Businesses was $1,353 million for the quarter and $4,547 million for the nine months, versus $1,913 million and $4,908 million in the prior-year periods. Total assets rose to $764.1 billion at September 30, 2014 from $731.8 billion at December 31, 2013, and total equity increased to $42.4 billion from $35.9 billion, driven largely by a $4.8 billion increase in other comprehensive income. The company repurchased $750 million of Common Stock in the nine months and declared Common Stock dividends of $0.53 per share each quarter. It also issued $1.8 billion of medium-term notes and expanded its Guideline AXXX captive financing facility to $3.5 billion of capacity. In October 2014 it announced a memorandum of understanding to acquire between approximately 34% and 40% of AFP Habitat in Chile for roughly $530 million to $620 million, with closing expected in the first half of 2015. The filing also discloses ongoing regulatory and legal matters, including a New York Department of Financial Services disagreement over statutory reserves for certain variable annuity products, and multiple unclaimed property and retained asset account lawsuits. Management states that the aggregate range of reasonably possible losses in excess of accruals is not material (less than $250 million).

    Nov 6, 2014
  37. 2014-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2014

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,090 million for the second quarter of 2014, compared with a net loss of $514 million in the second quarter of 2013, and $2,328 million for the first six months of 2014 versus a loss of $1,234 million a year earlier. Total revenues were $13,146 million for the quarter and $26,000 million for the six months. The swing is driven largely by realized investment gains, which were $609 million in the quarter compared with losses of $1,024 million a year earlier, along with foreign currency effects on Japanese operations that the filing describes as economically matched and offset in accumulated other comprehensive income. Pre-tax adjusted operating income for the Financial Services Businesses was $1,623 million for the quarter and $3,194 million for the six months, up from $1,517 million and $2,995 million. Total assets rose to $765,537 million at June 30, 2014 from $731,781 million at December 31, 2013, and total equity increased to $41,807 million from $35,881 million, reflecting higher accumulated other comprehensive income of $13,077 million. Total borrowings were $27.3 billion, and the company issued $1.2 billion of medium-term notes in the first half of 2014. Management reported that the Financial Services Businesses had $37.6 billion of total capital, and the company repurchased $500 million of common stock in the first half while declaring $493 million of common dividends. The filing also discusses several items that bear on future results: the impact of a low interest rate environment on net interest margins, a New York Department of Financial Services challenge to statutory reserves for certain variable annuity products, ongoing regulatory review of captive reinsurance, and a series of pending litigation matters, none of which management expects to have a material adverse effect on financial position.

    Aug 7, 2014
  38. 2014-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2014

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,238 million for the first quarter of 2014, compared with a net loss of $720 million in the first quarter of 2013. Results of the Financial Services Businesses improved substantially, driven by a $2,618 million swing in pre-tax earnings from foreign currency movements on non-yen assets and liabilities in Japanese insurance operations (economically matched and offset in AOCI), and by $1,112 million higher pre-tax realized gains excluding the variable annuity hedging program. Pre-tax adjusted operating income for the Financial Services Businesses rose to $1,571 million from $1,478 million, with Retirement (up to $364 million from $228 million) and Asset Management leading gains, while Individual Life and International Insurance declined. Total assets were $746.7 billion at March 31, 2014, up from $731.8 billion at December 31, 2013, and total equity rose to $38.9 billion from $35.9 billion, largely reflecting increased accumulated other comprehensive income. Total investments were $408.5 billion. Net cash from operating activities was $1,979 million for the quarter. During the quarter the company repurchased $250 million of Common Stock and declared Common Stock dividends of $247 million ($0.53 per share), and it completed the acquisition of UniAsia Life Assurance Berhad in Malaysia through a joint venture with Bank Simpanan Nasional. The filing also highlights several areas of ongoing attention: the New York Department of Financial Services disagreement over statutory reserves for certain variable annuity products, regulatory reviews of captive reinsurance, Prudential's designation as a Designated Financial Company under Dodd-Frank and as a global systemically important insurer, and a number of pending litigation and regulatory matters, none of which the company expects to have a material adverse effect on its financial position.

    May 8, 2014
  39. 2013-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2013

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $185 million for the nine months ended September 30, 2013, compared with net income of $701 million in the prior-year period. For the third quarter alone, net income attributable to Prudential Financial, Inc. was $1,042 million, versus a net loss of $584 million in the third quarter of 2012. Total revenues were $31.57 billion for the nine months, down from $38.90 billion, and total assets were $723.13 billion at September 30, 2013, up from $709.30 billion at December 31, 2012. The swing in results was driven largely by realized investment losses, principally derivative losses of $4.91 billion for the Financial Services Businesses in the nine-month period, mainly on product-related embedded derivatives and hedges tied to certain variable annuity contracts, as well as interest rate derivatives used to manage duration as rates rose. Adjusted operating income before income taxes for the Financial Services Businesses rose to $4.94 billion for the nine months from $2.93 billion, led by Individual Annuities, Retirement, and International Insurance. Total equity declined to $35.12 billion from $39.29 billion, reflecting a $3.34 billion decline in other comprehensive income, $563 million of Common Stock dividends, and $500 million of share repurchases. The filing also highlights regulatory developments: on September 19, 2013, the Financial Stability Oversight Council determined Prudential should be supervised as a Covered Company under the Dodd-Frank Act, and the Financial Stability Board identified the company as a global systemically important insurer. Management also reported ongoing capital management actions, including a new $1.0 billion share repurchase authorization for July 2013 through June 2014 and a pending acquisition of UniAsia Life Assurance in Malaysia.

    Nov 7, 2013
  40. 2013-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2013

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $521 million for the second quarter of 2013, compared with net income of $2,224 million in the second quarter of 2012. For the six months ended June 30, 2013, the net loss attributable to Prudential Financial, Inc. was $1,227 million, versus net income of $1,285 million a year earlier. Total revenues were $10,044 million for the quarter (versus $16,136 million) and $20,229 million for the six months (versus $25,759 million). The filing attributes the swing mainly to realized investment losses of $1,024 million in the quarter, driven largely by derivative losses and the effect of foreign currency movements on non-yen-denominated liabilities in the Japanese insurance operations, which are offset in accumulated other comprehensive income. Adjusted operating income before income taxes for the Financial Services Businesses rose to $1,513 million in the second quarter from $853 million, and to $3,001 million for the six months from $1,904 million. Management highlighted growth in Individual Annuities, Retirement, Asset Management, Individual Life and International Insurance, partly offset by higher Corporate and Other losses. Total assets were $705,615 million at June 30, 2013, and total equity was $35,908 million. Notable items include the acquisition of The Hartford's individual life insurance business for $615 million in cash on January 2, 2013, the sale of the wealth management solutions business to Envestnet on July 1, 2013, and a $1.0 billion share repurchase authorization for July 2013 through June 2014. The filing also discloses regulatory developments after quarter end: the Financial Stability Oversight Council proposed designating Prudential as a Covered Company under the Dodd-Frank Act, a determination the company is contesting, and the Financial Stability Board identified Prudential as a global systemically important insurer on July 18, 2013.

    Aug 8, 2013
  41. 2013-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2013

    Prudential Financial, Inc. reported a first-quarter 2013 net loss attributable to Prudential Financial, Inc. of $706 million, compared with a net loss of $939 million in the first quarter of 2012. Pre-tax adjusted operating income for the Financial Services Businesses rose to $1,484 million from $1,048 million. Total revenues were $10.185 billion, up from $9.623 billion, and total assets reached $724.097 billion at March 31, 2013, compared with $709.298 billion at December 31, 2012. The reported loss was driven largely by realized investment losses of $723 million and a $831 million income tax benefit, while the Financial Services Businesses' adjusted operating income improved across most segments. Key operating developments in the quarter included the acquisition of The Hartford's individual life insurance business on January 2, 2013 for $615 million in cash, which provided reinsurance for approximately 700,000 policies with about $141 billion of net retained face amount. The company also issued $1.2 billion of junior subordinated debt while $1.1 billion of senior notes matured, declared a first-quarter Common Stock dividend of $0.40 per share ($188 million), and had repurchased 2.7 million shares ($150 million) under a $1.0 billion authorization running through June 2013. In April 2013 it agreed to sell its wealth management services unit to Envestnet Inc., which the filing says will not have a material impact on results. The filing also discloses ongoing litigation and regulatory matters, including unclaimed property and escheatment proceedings, retained asset account class actions, and a shareholder derivative suit. Management states that the aggregate reasonably possible losses in excess of accruals are $0 to approximately $200 million. The company remains under consideration by the Financial Stability Oversight Council as a potential Covered Company under the Dodd-Frank Act.

    May 3, 2013
  42. 2012-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2012

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $618 million for the third quarter of 2012, compared with net income of $1.594 billion in the third quarter of 2011. For the nine months ended September 30, 2012, net income attributable to Prudential Financial, Inc. was $613 million, versus $2.944 billion a year earlier. Total revenues were $13.144 billion for the quarter and $38.903 billion for the nine months. Pre-tax adjusted operating income for the Financial Services Businesses was $982 million for the quarter and $2.808 billion for the nine months, compared with $509 million and $2.642 billion in the prior-year periods. The filing attributes the third-quarter swing largely to realized investment losses of $1.445 billion, mainly on derivatives tied to variable annuity hedging, and to foreign currency effects on Japanese insurance operations. Total assets rose to $671.7 billion at September 30, 2012 from $620.2 billion at December 31, 2011, and total equity increased to $39.4 billion from $34.8 billion. The company recorded two out-of-period adjustments in the second quarter of 2012 that reduced pre-tax income by $122 million for the nine months, and it disclosed a $615 million agreement to acquire The Hartford's individual life insurance business through reinsurance, expected to close in early 2013. Prudential also disclosed that the Financial Stability Oversight Council is considering it for designation as a Covered Company under the Dodd-Frank Act, and that it declared a 2012 annual common dividend of $1.60 per share, about 10% above 2011. The filing also details ongoing litigation, including a shareholder derivative suit and a securities class action filed in 2012 relating to unclaimed property and escheatment practices, along with a reasonably possible loss range in excess of accruals of $0 to approximately $250 million.

    Nov 8, 2012
  43. 2012-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2012

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $2,198 million for the second quarter of 2012 and $1,231 million for the six months ended June 30, 2012, compared with $789 million and $1,350 million in the same periods of 2011. For the Financial Services Businesses, pre-tax adjusted operating income was $829 million for the quarter and $1,844 million for the six months, versus $1,052 million and $2,148 million a year earlier. The filing attributes the quarterly decline mainly to a higher net charge tied to variable annuity guarantee reserves and deferred acquisition cost amortization, unfavorable mortality in Individual Life, and a $122 million pre-tax decrease from two out-of-period adjustments recorded in the second quarter. Total assets were $647,463 million at June 30, 2012, up from $620,244 million at December 31, 2011, and total equity rose to $38,630 million from $34,841 million. Total revenues were $16,136 million for the quarter, up from $12,244 million, largely reflecting realized investment gains of $1,763 million, which the filing says were driven primarily by derivative gains. Separately, the company retrospectively adopted new deferred acquisition cost guidance, reducing previously reported December 31, 2011 equity by $2.8 billion for the Financial Services Businesses. Capital actions in the period included $500 million of common stock repurchases in the first half of 2012, and a new $1.0 billion repurchase authorization for July 2012 through June 2013 after the prior $1.5 billion program was fully used. The company also sold $1.0 billion of asset-backed notes, terminated and replaced certain replacement capital covenants, and reported that its consolidated net worth for credit facility purposes exceeded the required minimum.

    Aug 3, 2012
  44. 2012-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2012

    Prudential Financial, Inc. reported a net loss attributable to Prudential Financial, Inc. of $967 million for the first quarter of 2012, compared with net income of $561 million in the first quarter of 2011. The Financial Services Businesses posted a net loss of $988 million, versus net income of $539 million a year earlier. Total revenues were $9.623 billion, down from $10.170 billion. The filing attributes the swing primarily to net realized investment losses of $1.384 billion, driven largely by losses on derivatives of $1.319 billion, which the company says reflect the impact of foreign currency movements on economically hedged assets and liabilities, net losses on embedded derivatives and hedges tied to variable annuities, and mark-to-market losses on interest rate derivatives as rates rose. Those currency-driven value changes were largely offset in accumulated other comprehensive income, which is not reflected in net income. Pre-tax income from continuing operations was a loss of $799 million, compared with income of $628 million in 2011, and an additional U.S. tax expense of $339 million was recorded related to the Star and Edison Businesses. Operating indicators were mixed. Individual Annuity total account values reached a record $124.1 billion, and Institutional Investment Products account values reached a record $93.9 billion, while Full Service Retirement account values were $146.0 billion. Asset Management assets under management reached a record $636.8 billion, and International Insurance constant-dollar annualized new business premiums rose to a record $819 million from $660 million. Adjusted operating income before income taxes for the Financial Services Businesses was $1.015 billion, down from $1.096 billion. Stockholders' equity attributable to Prudential Financial was $34.942 billion at March 31, 2012, up from $34.253 billion at December 31, 2011, and total assets were $637.7 billion. The filing also discloses an adoption of amended guidance on deferred policy acquisition costs, applied retrospectively, which reduced December 31, 2011 total equity by $3.0 billion and lowered the first-quarter 2011 pre-tax income by $76 million. Management also disclosed subsequent events, including the termination of replacement capital covenants on junior subordinated notes and entry into a new covenant, and a proposed extraordinary dividend request of $284 million from Prudential Insurance that is subject to regulatory approval.

    May 4, 2012
  45. 2011-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2011

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,534 million for the third quarter of 2011 and $2,980 million for the first nine months, compared with $1,244 million and $3,018 million in the prior-year periods. Net income of the Financial Services Businesses attributable to Prudential Financial, Inc. was $1,505 million for the quarter and $2,925 million for the nine months. Total revenues rose to $14,917 million in the quarter from $9,917 million, and to $37,350 million for the nine months from $30,151 million, largely reflecting the February 1, 2011 acquisition of the AIG Star and Edison Businesses in Japan, for a total purchase price of $4,709 million. The quarter included substantial realized investment gains of $2,528 million, driven mainly by derivative gains, offset in part by charges related to the variable annuity living benefit features. Income from continuing operations before income taxes was $2,334 million in the quarter versus $1,750 million a year earlier. Results also reflected a $139 million increase in reserves for death benefits identified through new Social Security Master Death File matching criteria, and a $1,428 million realized loss in Corporate and Other from temporarily hedging to a different target. The filing also reports that the Company repurchased 14.8 million shares of Common Stock for $750 million under a $1.5 billion authorization approved in June 2011, and that the Global Commodities Business was sold to Jefferies Group, Inc. on July 1, 2011 for cash proceeds of $422 million. Total assets were $611,473 million at September 30, 2011, up from $539,854 million at December 31, 2010, and total equity was $37,804 million, up from $32,928 million.

    Nov 4, 2011
  46. 2011-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2011

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $838 million for the second quarter of 2011 and $1,446 million for the six months ended June 30, 2011, compared with $1,077 million and $1,774 million in the same periods of 2010. Net income attributable to the Financial Services Businesses was $831 million for the quarter and $1,420 million for the six months, while the Closed Block Business contributed $7 million and $26 million, respectively. Total assets grew to $613.4 billion at June 30, 2011 from $539.9 billion at December 31, 2010, driven largely by the acquisition of the AIG Star and Edison Businesses in Japan on February 1, 2011 for a total purchase price of $4,709 million. The filing shows continued growth in account values and sales in several segments. Individual Annuity total account values reached a record $116.0 billion, Full Service Retirement account values reached $146.6 billion, and Asset Management assets under management reached $583.5 billion. Net realized investment gains were $418 million for the six months, down from $2,175 million a year earlier, with derivative gains falling sharply. Pre-tax income from continuing operations was $1,172 million in the second quarter, versus $1,506 million a year earlier, and the Closed Block Business reported a $206 million increase in its policyholder dividend obligation expense for the quarter. The company also disclosed a board authorization in June 2011 to repurchase up to $1.5 billion of Common Stock through June 2012, with no shares repurchased as of June 30, 2011. The sale of the Global Commodities Business to Jefferies Group, Inc. closed on July 1, 2011 for cash proceeds of $420 million, and Prudential Financial disclosed a potential IRS adjustment of approximately $200 million of tax and penalties related to foreign tax credit transactions, which it intends to contest.

    Aug 5, 2011
  47. 2011-Q1

    Prudential Financial Quarterly Report for Q1 Ended Mar 31, 2011

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $608 million for the first quarter of 2011, compared with $697 million in the first quarter of 2010. Net income of the Financial Services Businesses attributable to Prudential Financial, Inc. was $589 million, versus $536 million a year earlier, while the Closed Block Business contributed $19 million, down from $161 million. Total revenues rose to $10,186 million from $9,247 million, driven largely by the International Insurance division, and total assets grew to $599,008 million from $539,854 million at December 31, 2010, reflecting the February 1, 2011 acquisition of the AIG Star and Edison Businesses in Japan for a total purchase price of $4,709 million. Adjusted operating income before income taxes for the Financial Services Businesses increased to $1,154 million from $921 million, led by International Insurance ($672 million versus $491 million), Individual Annuities ($292 million versus $244 million) and Asset Management ($154 million versus $83 million). Realized investment losses were $50 million for the consolidated company, compared with gains of $389 million in the prior-year quarter. The filing also reports an out-of-period adjustment that reduced pre-tax income by $95 million, and a $153 million pre-tax gain from the partial sale of an indirect interest in China Pacific Insurance (Group) Co., Ltd. The filing highlights record Individual Annuity total account values of $113.8 billion and gross sales of $6.8 billion, and record Full Service Retirement account values of $146.0 billion. Management also disclosed an April 6, 2011 agreement to sell the Global Commodities Business to Jefferies Group, Inc. (expected to close June 2011), and the Japanese earthquake and tsunami of March 2011, for which an estimated pre-tax charge of approximately $55 million is expected in the second quarter at Gibraltar Life, in addition to a $19 million charge already recorded at Life Planner operations.

    May 6, 2011
  48. 2010-Q3

    Prudential Financial Quarterly Report for Q3 Ended Sep 30, 2010

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1.244 billion for the third quarter of 2010 and $3.018 billion for the first nine months, compared with $1.082 billion and $1.259 billion in the same periods of 2009. Income from continuing operations before income taxes and equity in earnings of operating joint ventures was $1.740 billion for the quarter and $4.284 billion for the nine months. Total revenues were $9.962 billion for the quarter and $30.308 billion for the nine months. Total equity rose to $34.068 billion at September 30, 2010 from $25.729 billion at December 31, 2009, driven partly by a $5.175 billion other comprehensive income for the nine months. The Financial Services Businesses reported net income attributable to Prudential Financial of $1.167 billion for the quarter and $2.501 billion for the nine months, with adjusted operating income before income taxes of $1.377 billion and $2.861 billion respectively. The Closed Block Business reported income from continuing operations before income taxes of $114 million for the quarter and $777 million for the nine months. Individual Annuity gross sales were $5.4 billion in the third quarter of 2010, and the company changed its adjusted operating income definition effective the third quarter of 2010 to exclude certain living benefit derivative results. The company agreed on September 30, 2010 to acquire AIG Star Life Insurance Co., Ltd., AIG Edison Life Insurance Company and related entities from AIG for a total purchase price of $4.8 billion, comprised of approximately $4.2 billion in cash and $0.6 billion in assumed third party debt, with closing expected in the first quarter of 2011. The company intends to fund about $2.2 billion from cash and short-term investments, roughly $1.0 billion from equity securities and roughly $1.0 billion from debt securities, and has a commitment letter for a $3.0 billion bridge facility.

    Nov 5, 2010
  49. 2010-Q2-A

    Prudential Financial Quarterly Report (Amendment) for Q2 Ended Jun 30, 2010

    Prudential Financial, Inc. filed Amendment No. 1 to its Form 10-Q for the quarterly period ended June 30, 2010, dated August 9, 2010. The amendment does not change any financial results or disclosures. Its sole purpose, as stated in the explanatory note, is to furnish the interactive data files (Exhibit 101, XBRL) for the original Form 10-Q, which was filed with the SEC on August 6, 2010. The XBRL exhibit covers the Unaudited Interim Consolidated Statements of Financial Position, Operations, Equity, and Cash Flows, along with the Notes to those statements. The filing states that no other changes were made to the Form 10-Q and that it does not reflect subsequent events or update prior disclosures. As a result, the filing itself contains no new financial figures, operating results, or management commentary for investors to analyze. The registrant is a New Jersey corporation headquartered in Newark, New Jersey, and is a large accelerated filer. As of July 31, 2010, 465 million shares of Common Stock and 2 million shares of Class B Stock were outstanding. The Class B Stock has no established public trading market. The report was signed by Richard J. Carbone, Executive Vice President and Chief Financial Officer.

    Aug 9, 2010
  50. 2010-Q2

    Prudential Financial Quarterly Report for Q2 Ended Jun 30, 2010

    Prudential Financial, Inc. reported net income attributable to Prudential Financial, Inc. of $1,077 million for the second quarter of 2010 and $1,774 million for the first six months, compared with $163 million and $177 million in the prior-year periods. Total revenues were $11.05 billion for the quarter and $20.35 billion for the six months. Results were driven in part by realized investment gains of $1.79 billion in the quarter, including derivative gains, and by an income tax expense of $433 million for the quarter, reversing a benefit in the prior year. The Financial Services Businesses reported net income attributable to Prudential Financial of $798 million for the quarter and $1,334 million for the six months, while the Closed Block Business reported income from continuing operations of $279 million for the quarter and $440 million for the six months. Adjusted operating income before income taxes for the Financial Services Businesses was $966 million for the quarter and $1.92 billion for the six months, versus $1.12 billion and $1.68 billion in the prior-year periods. The filing attributes the decline in the quarter mainly to Individual Annuities, where lower-than-expected market returns (actual second-quarter return of (5.2)% versus an expected 1.9%) led to charges of $284 million related to deferred acquisition cost amortization and variable annuity guaranteed benefit reserves. Asset Management, Retirement and International Insurance results improved or held steady, and Individual Annuity gross sales rose to $5.3 billion from $3.4 billion a year earlier. Total assets were $495.99 billion at June 30, 2010, up from $480.20 billion at December 31, 2009, and total equity was $30.27 billion. The filing also highlights ongoing risks. Net unrealized gains on general account fixed maturities of the Financial Services Businesses rose to $5.82 billion, and asset-backed securities collateralized by sub-prime mortgages were reclassified to Level 2 fair value in the second quarter. Management disclosed exposure to retained asset account class actions, the Dodd-Frank Wall Street Reform and Consumer Protection Act (signed July 21, 2010) with potential new capital and regulatory requirements, and a number of pending legal matters, which management believes are not likely to have a material adverse effect on financial position.

    Aug 6, 2010