01—Abstract
Summary
Summary of the 8-K filed July 15, 2025. Cited figures are marked; the original filing is the authoritative source.
Prudential Financial, Inc. furnished a Current Report on Form 8-K under Item 2.02 and Item 7.01 to disclose preliminary, unaudited financial information for the quarter ended June 30, 2025, ahead of its quarterly earnings release and financial supplement scheduled for July 30, 2025.
The company reported assets under management of the PGIM segment of $1.44 trilliona as of June 30, 2025, and PGIM other related revenues, net of related expenses, of approximately $50 million on an adjusted operating income basis for the quarter. The company also stated that its financial closing procedures for the quarter were not complete and that actual results could differ materially from the preliminary figures. The most significant items for investors are the expected negative impacts from the annual review and update of actuarial assumptions and other refinements, which the company performs each second quarter.
The filing estimates a one-time adjusted operating income impact of $(80) million in Individual Retirement Strategies, $(30) million in Institutional Retirement Strategies, and a positive $60 millionb in Individual Life. Individual Retirement Strategies also expects an ongoing quarterly impact of $(20) million, and the filing states the segment's second-quarter 2025 impact totals $(100) million in aggregate.
In addition, the company estimates that alternative investment income of its General Account portfolio, excluding the Closed Block Division and Funds Withheld portfolios, for the quarter will be approximately $55 to $75 millionc below its near-term expectations. Together, these disclosures signal that second-quarter 2025 adjusted operating income will reflect both one-time actuarial charges and weaker alternative investment returns relative to expectations.
02—Key points
Key Highlights
- PGIM segment assets under management were $1.44 trillion as of June 30, 2025.
- PGIM other related revenues, net of related expenses, were approximately $50 million on an adjusted operating income basis for the quarter ended June 30, 2025.
- Individual Retirement Strategies expects a one-time adjusted operating income impact of $(80) million and an ongoing quarterly impact of $(20) million, totaling $(100) million for the second quarter of 2025.
- Institutional Retirement Strategies expects a one-time adjusted operating income impact of $(30) million, with no ongoing quarterly impact.
- Individual Life expects a one-time adjusted operating income impact of $60 million, with no ongoing quarterly impact.
- General Account alternative investment income for the quarter is estimated to be approximately $55 to $75 million below near-term expectations.
- Preliminary results are unaudited, financial closing procedures are not complete, and actual results could be materially different; full quarterly earnings are scheduled for release on July 30, 2025.
03—Questions
Frequently Asked Questions
What is the timing of Prudential's full second-quarter 2025 earnings release?
The company states that its quarterly earnings release and quarterly financial supplement for the quarter ended June 30, 2025, are scheduled for release on July 30, 2025. This 8-K provides preliminary information ahead of that release.
What are the expected one-time and ongoing impacts from the actuarial assumption update?
The filing estimates one-time adjusted operating income impacts of $(80) million for Individual Retirement Strategies, $(30) million for Institutional Retirement Strategies, and $60 million for Individual Life. Individual Retirement Strategies also expects an ongoing quarterly impact of $(20) million, with no ongoing impacts stated for the other two segments.
How much did alternative investment income affect the General Account this quarter?
The company estimates that alternative investment income of the General Account portfolio, excluding the Closed Block Division and Funds Withheld portfolios, for the quarter ended June 30, 2025, will be approximately $55 to $75 million below its near-term expectations.
Are the preliminary figures final?
No. The company states the preliminary information is estimated and unaudited, prepared in good faith on a basis consistent with prior periods, and that its financial closing procedures for the quarter were not completed. Actual results could be materially different from these preliminary results.
What is PGIM's current scale and recent revenue contribution?
As of June 30, 2025, PGIM segment assets under management were $1.44 trillion. For the quarter, PGIM's other related revenues, net of related expenses, were approximately $50 million on an adjusted operating income basis, covering incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.
04—Continue