How did Prudential perform in the third quarter of 2024 compared with the prior year?

Prudential swung to net income of $448 million, or $1.24 per Common share, from a net loss of $802 million, or $2.23 per share, a year earlier. After-tax adjusted operating income was $1.260 billion, or $3.48 per share, compared with $1.332 billion, or $3.62 per share. The year-ago quarter included $2.491 billion of pre-tax realized investment losses, which largely explains the swing in net income.

Which business segments drove results, and which declined?

PGIM adjusted operating income rose to $241 million from $211 million, and U.S. Businesses rose to $1.108 billion from $1.088 billion. International Businesses declined to $766 million from $811 million, reflecting less favorable underwriting and higher expenses. Corporate & Other was a loss of $487 million compared with a loss of $438 million, primarily due to higher expenses.

What did Prudential return to shareholders this quarter?

Prudential returned $721 million to shareholders in the third quarter, including $250 million of share repurchases and $471 million of dividends. Dividends paid were $1.30 per Common share, which the company described as a 5% yield on adjusted book value.

What is the $11 billion Guaranteed Universal Life transaction mentioned in the release?

The CEO's comments state that Prudential recently announced an $11 billion Guaranteed Universal Life reinsurance transaction as part of its effort to shift its business mix. The release does not provide further details of the transaction's terms or financial effects.

When and how can investors access the earnings call?

Members of senior management will host a conference call on Thursday, October 31, 2024 at 11:00 a.m. ET. It will be broadcast live over the Investor Relations website at investor.prudential.com, and a replay will be available on the website through November 14.

PRU 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

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

Prudential Financial, Inc. furnished its third quarter 2024 results on October 30, 2024 under Item 2.02 and Item 7.01, providing a news release (Exhibit 99.1) and a Quarterly Financial Supplement (Exhibit 99.2).

Both exhibits are furnished, not filed. The company reported net income attributable to Prudential Financial, Inc. of $448 million^a, or $1.24 per Common share, compared with a net loss of $802 million, or $2.23 per share, in the year-ago quarter. After-tax adjusted operating income was $1.260 billion, or $3.48 per Common share, versus $1.332 billion, or $3.62 per share, a year earlier.

Net income in the quarter included $805 million^b of pre-tax net realized investment losses and related charges and adjustments. By segment, PGIM adjusted operating income rose to $241 million from $211 million, and U.S. Businesses rose to $1.108 billion from $1.088 billion. International Businesses fell to $766 million from $811 million, and Corporate & Other posted a loss of $487 million versus $438 million.

Book value per Common share was $84.47^c versus $70.82, and adjusted book value per share was $98.71 versus $94.19. Capital returned to shareholders totaled $721 million, including $250 million of share repurchases and $471 million of dividends. Assets under management reached $1.558 trillion, and parent company highly liquid assets were $4.3 billion, in line with the year-ago quarter.

The release highlights the recently announced $11 billion^d Guaranteed Universal Life reinsurance transaction as part of management's effort to shift business mix. Management will host a conference call on Thursday, October 31, 2024 at 11:00 a.m. ET to discuss the results.

02—Key points

Key Highlights

Net income attributable to Prudential Financial of $448 million ($1.24 per share) versus a net loss of $802 million ($2.23 per share) in Q3 2023.
After-tax adjusted operating income of $1.260 billion ($3.48 per share), down from $1.332 billion ($3.62 per share) a year earlier.
Book value per share of $84.47 versus $70.82; adjusted book value per share of $98.71 versus $94.19.
Assets under management of $1.558 trillion, up from $1.361 trillion; PGIM AUM of $1.400 trillion, up 15%.
Capital returned to shareholders of $721 million, including $250 million in share repurchases and $471 million in dividends; dividends of $1.30 per share.
Institutional Retirement Strategies net account values reached a record $279 billion, and Individual Retirement Strategies sales of $3.6 billion rose 86%.
International Businesses adjusted operating income declined to $766 million from $811 million, while Corporate & Other losses widened to $487 million from $438 million.

03—Questions

Frequently Asked Questions

How did Prudential perform in the third quarter of 2024 compared with the prior year?
Prudential swung to net income of $448 million, or $1.24 per Common share, from a net loss of $802 million, or $2.23 per share, a year earlier. After-tax adjusted operating income was $1.260 billion, or $3.48 per share, compared with $1.332 billion, or $3.62 per share. The year-ago quarter included $2.491 billion of pre-tax realized investment losses, which largely explains the swing in net income.
Which business segments drove results, and which declined?
PGIM adjusted operating income rose to $241 million from $211 million, and U.S. Businesses rose to $1.108 billion from $1.088 billion. International Businesses declined to $766 million from $811 million, reflecting less favorable underwriting and higher expenses. Corporate & Other was a loss of $487 million compared with a loss of $438 million, primarily due to higher expenses.
What did Prudential return to shareholders this quarter?
Prudential returned $721 million to shareholders in the third quarter, including $250 million of share repurchases and $471 million of dividends. Dividends paid were $1.30 per Common share, which the company described as a 5% yield on adjusted book value.
What is the $11 billion Guaranteed Universal Life transaction mentioned in the release?
The CEO's comments state that Prudential recently announced an $11 billion Guaranteed Universal Life reinsurance transaction as part of its effort to shift its business mix. The release does not provide further details of the transaction's terms or financial effects.
When and how can investors access the earnings call?
Members of senior management will host a conference call on Thursday, October 31, 2024 at 11:00 a.m. ET. It will be broadcast live over the Investor Relations website at investor.prudential.com, and a replay will be available on the website through November 14.

04—Continue

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