How did Prudential's first quarter 2024 earnings compare with the prior year?

GAAP net income attributable to Prudential Financial, Inc. was $1.138 billion ($3.12 per Common share), down from $1.462 billion ($3.93 per share) in Q1 2023. On an after-tax adjusted operating income basis, earnings rose to $1.141 billion ($3.12 per share) from $1.004 billion ($2.70 per share). The GAAP decline reflects net realized investment losses and other reconciling items, which the company excludes from adjusted operating income.

What drove the growth in PGIM and the U.S. Businesses?

PGIM's adjusted operating income rose to $169 million from $151 million, reflecting higher asset management fees and other related revenues, driven by incentive fees and seed and co-investment income. U.S. Businesses' adjusted operating income rose to $839 million from $760 million, primarily due to higher net investment spread results and more favorable underwriting results, partially offset by higher expenses and lower net fee income.

How did assets under management and flows change?

Total assets under management were $1.496 trillion at March 31, 2024, compared with $1.417 trillion a year earlier. PGIM assets under management were $1.341 trillion, and PGIM recorded third-party net inflows of $26.6 billion, including institutional inflows of $26.1 billion. Affiliated net inflows were $7.1 billion, driven by strong Retirement Strategies sales.

How much capital did Prudential return to shareholders, and what is the book value position?

Prudential returned $726 million to shareholders in the quarter, including $250 million of share repurchases and $476 million of dividends. Dividends were $1.30 per Common share. GAAP book value per Common share was $75.00, compared with $85.33 a year earlier, while adjusted book value per Common share was $97.03, compared with $97.29.

What are the key items that affected GAAP net income this quarter?

Net income included $97 million of pre-tax net realized investment losses and related charges, including $83 million of pre-tax net impairment and credit-related losses. It also included $38 million of pre-tax losses from divested and run-off businesses, including a loss from Assurance IQ tied to the decision to exit the business, and $123 million of pre-tax gains related to the net change in value of market risk benefits.

PRU 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Prudential Financial, Inc. (NYSE: PRU) reported first quarter 2024 results in a news release furnished as Exhibit 99.1, with a Quarterly Financial Supplement furnished as Exhibit 99.2.

Net income attributable to Prudential Financial, Inc. was $1.138 billion^a ($3.12 per Common share), down from $1.462 billion ($3.93 per share) in the year-ago quarter. After-tax adjusted operating income was $1.141 billion ($3.12 per Common share), up from $1.004 billion ($2.70 per share). Net income in the quarter included $97 million of pre-tax net realized investment losses and related charges, along with $83 million of pre-tax net impairment and credit-related losses.

Business segment results improved on an adjusted operating income basis. PGIM reported $169 million^b, U.S. Businesses $839 million, and International Businesses $896 million, while Corporate & Other posted a loss of $435 million, smaller than the $471 million loss a year earlier. PGIM had third-party net inflows of $26.6 billion, including institutional inflows of $26.1 billion tied to a large fixed income mandate.

Assets under management reached $1.496 trillion^c, versus $1.417 trillion a year earlier. Parent company highly liquid assets were $4.2 billion, compared with $4.6 billion a year earlier. Book value per Common share was $75.00, versus $85.33 a year earlier, and adjusted book value per Common share was $97.03, versus $97.29.

The company returned $726 million^d to shareholders in the quarter, including $250 million of share repurchases and $476 million of dividends, with dividends of $1.30 per Common share. The filing also notes that management will host a conference call on May 1, 2024, at 11:00 a.m. ET.

02—Key points

Key Highlights

Net income attributable to Prudential Financial, Inc. was $1.138 billion ($3.12 per Common share), compared with $1.462 billion ($3.93 per share) in Q1 2023.
After-tax adjusted operating income rose to $1.141 billion ($3.12 per Common share), from $1.004 billion ($2.70 per share) a year earlier.
PGIM reported adjusted operating income of $169 million and third-party net inflows of $26.6 billion, including a large fixed income institutional mandate.
U.S. Businesses adjusted operating income was $839 million, up from $760 million, driven by higher net investment spread results and more favorable underwriting results.
International Businesses adjusted operating income was $896 million, up from $840 million; Life Planner sales on a constant dollar basis rose 10%.
Book value per Common share was $75.00 versus $85.33, while adjusted book value per Common share was $97.03 versus $97.29.
Capital returned to shareholders was $726 million, including $250 million of share repurchases and $476 million of dividends ($1.30 per Common share).

03—Questions

Frequently Asked Questions

How did Prudential's first quarter 2024 earnings compare with the prior year?
GAAP net income attributable to Prudential Financial, Inc. was $1.138 billion ($3.12 per Common share), down from $1.462 billion ($3.93 per share) in Q1 2023. On an after-tax adjusted operating income basis, earnings rose to $1.141 billion ($3.12 per share) from $1.004 billion ($2.70 per share). The GAAP decline reflects net realized investment losses and other reconciling items, which the company excludes from adjusted operating income.
What drove the growth in PGIM and the U.S. Businesses?
PGIM's adjusted operating income rose to $169 million from $151 million, reflecting higher asset management fees and other related revenues, driven by incentive fees and seed and co-investment income. U.S. Businesses' adjusted operating income rose to $839 million from $760 million, primarily due to higher net investment spread results and more favorable underwriting results, partially offset by higher expenses and lower net fee income.
How did assets under management and flows change?
Total assets under management were $1.496 trillion at March 31, 2024, compared with $1.417 trillion a year earlier. PGIM assets under management were $1.341 trillion, and PGIM recorded third-party net inflows of $26.6 billion, including institutional inflows of $26.1 billion. Affiliated net inflows were $7.1 billion, driven by strong Retirement Strategies sales.
How much capital did Prudential return to shareholders, and what is the book value position?
Prudential returned $726 million to shareholders in the quarter, including $250 million of share repurchases and $476 million of dividends. Dividends were $1.30 per Common share. GAAP book value per Common share was $75.00, compared with $85.33 a year earlier, while adjusted book value per Common share was $97.03, compared with $97.29.
What are the key items that affected GAAP net income this quarter?
Net income included $97 million of pre-tax net realized investment losses and related charges, including $83 million of pre-tax net impairment and credit-related losses. It also included $38 million of pre-tax losses from divested and run-off businesses, including a loss from Assurance IQ tied to the decision to exit the business, and $123 million of pre-tax gains related to the net change in value of market risk benefits.

04—Continue

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