Financial Data and Key Metrics Changes - The pretax adjusted operating income for Q4 2024 was $1.4 billion, or $2.96 per share, while the full year was $5.9 billion, or $12.62 per share, reflecting a 6% increase from 2023 [20] - The GAAP net loss for the quarter was $57 million, primarily due to interest rate-driven realized losses on the investment portfolio [20] - The adjusted operating return on equity improved by 70 basis points to 13.1% from 2023 [21] Business Line Data and Key Metrics Changes - PGIM reported higher asset management fees driven by strong net flows and market appreciation, with assets under management increasing by 6% to $1.4 trillion [24] - Retirement strategies generated strong sales of $50 billion in 2024, with pension risk transfer transactions exceeding $16 billion, the highest annual level since 2012 [28][29] - Individual life sales reached a record high of $326 million in Q4, up 60% year-over-year, contributing to a 23% increase for the full year [32][36] Market Data and Key Metrics Changes - International business sales increased by 6% in 2024, with Japan benefiting from new retirement and savings product launches, resulting in a 14% increase in sales [34] - Emerging market sales grew by 12%, driven by growth in Brazil [34] Company Strategy and Development Direction - The company aims to become a higher growth, more capital-efficient entity, with a disciplined approach to capital deployment and a focus on organic growth opportunities [10][41] - The introduction of new financial targets through 2027 includes an expected annual core earnings per share growth of 5% to 8% and an adjusted return on equity of 13% to 15% [39] - The company is exploring opportunities for inorganic growth while maintaining a disciplined capital deployment strategy [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term headwinds due to new business strain and runoff but expressed confidence in achieving the 5% to 8% EPS growth target over the next three years [88] - The company remains optimistic about the pension risk transfer market despite recent litigation affecting the industry, citing strong funded statuses and favorable market conditions [82][83] Other Important Information - The company returned nearly $3 billion to shareholders in 2024 and authorized share repurchases of up to $1 billion in 2025 [15][16] - The board increased the common stock dividend for the 17th consecutive year [16] Q&A Session Summary Question: Annuity outlook and sales growth expectations - Management noted strong annuity sales, with RILA sales up over 35% across the industry, and Prudential delivered $3.5 billion in sales in Q4, marking the ninth consecutive quarter of sales growth [50][51] Question: Prismic's potential for third-party deals - Management expressed optimism about Prismic's growth opportunities in Japan, highlighting the market's potential and the establishment of a dedicated team [56][59] Question: Free cash flow conversion and capital allocation - Management clarified that 30% to 40% of free cash flow is targeted for growth capital, with a focus on balancing financial strength and returning capital to shareholders [64][70] Question: Impact of recent lawsuits on transaction pipeline - Management indicated that while litigation poses risks to the pension risk transfer industry, they remain confident in the active pipeline and strong market conditions [82][83] Question: Expectations for 2025 EPS growth - Management reiterated confidence in the 5% to 8% EPS growth target, acknowledging that growth may not be linear due to near-term headwinds [88] Question: Future transactions with Prismic in Japan - Management confirmed ongoing work on multiple reinsurance transactions in Japan, indicating a significant market opportunity [91] Question: Insights on ESR implementation and capital levels - Management expects to maintain capital levels above target upon ESR implementation, with no significant changes anticipated in capital position [97][98] Question: Drivers of PGIM earnings growth - Management outlined expectations for margin improvement driven by an improving market environment, growth investments, and expense discipline [126]

4Q24 EARNINGS CALL FEBRUARY 5, 2025 Expanding access to investing, insurance, and retirement security Becoming a higher growth, more capital efficient company Maintaining disciplined capital deployment Supported by our rock solid balance sheet WE MAKE LIVES BETTER BY SOLVING THE FINANCIAL CHALLENGES OF OUR CHANGING WORLD 2 KEY MESSAGES BECOMING A HIGHER GROWTH, MORE CAPITAL EFFICIENT COMPANY SIGNIFICANT 2024 PROGRESS POSITIONS US WELL FOR THE FUTURE Growing our market leading businesses Increasing capital f ...

Core Viewpoint - Prudential's quarterly earnings of $2.96 per share fell short of the Zacks Consensus Estimate of $3.28 per share, marking a -9.76% earnings surprise, despite an increase from $2.58 per share a year ago [1][2] Financial Performance - The company reported revenues of $13.01 billion for the quarter, missing the Zacks Consensus Estimate by 8.08%, and showing a slight decrease from $13.02 billion year-over-year [2] - Over the last four quarters, Prudential has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2] Stock Performance and Outlook - Prudential shares have increased by approximately 0.3% since the beginning of the year, underperforming compared to the S&P 500's gain of 1.9% [3] - The company's earnings outlook is mixed, with current consensus EPS estimates at $3.50 for the upcoming quarter and $14.44 for the current fiscal year, alongside revenues of $14.17 billion and $58.43 billion respectively [7] Industry Context - The Insurance - Multi line industry, to which Prudential belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Adjusted operating income before income taxes for PGIM increased by 14% year-over-year to $241 million in Q3 2024[9]. - U.S. Businesses reported a 3% increase in adjusted operating income before income taxes, reaching $1,040 million in Q3 2024[9]. - International Businesses experienced a 3% decrease in adjusted operating income before income taxes, totaling $766 million in Q3 2024[9]. - Total adjusted operating income before income taxes for Q3 2024 was $1,560 million, a 4% increase compared to the same quarter last year[9]. - After-tax adjusted operating income for Q3 2024 was $1,208 million, reflecting a 2% increase year-to-date[9]. - Net income attributable to Prudential Financial, Inc. for Q3 2024 was $448 million, a significant increase of 138% compared to the same quarter last year[9]. - Return on Average Equity based on net income for Q3 2024 was 6.1%, compared to 19.6% in Q4 2023[9]. - Dividends paid in Q3 2024 amounted to $471 million, a 2% increase year-to-date[9]. - Total revenues for Q3 2024 reached $19,489 million, a 46% increase compared to $13,849 million in Q2 2024[22]. - Total revenues for Q3 2024 were $4,417 million, a decrease of 5% compared to Q3 2023[67]. Revenue and Premiums - Premiums collected in Q3 2024 amounted to $12,527 million, reflecting an 85% increase from $7,277 million in Q2 2024[22]. - Total revenues for U.S. businesses in Q3 2024 were $13.98 billion, an 86% increase compared to $7.48 billion in Q4 2023[39]. - Premiums for U.S. businesses surged to $9.69 billion in Q3 2024, a 190% increase compared to $3.51 billion in Q4 2023[39]. - Total revenues for Individual Retirement Strategies reached $1,318 million in Q3 2024, marking a 12% increase from $1,157 million in Q3 2023[47]. - Total revenues for the Group Insurance segment in Q3 2024 were $1,643 million, a 3% increase compared to $1,586 million in Q2 2024[55]. Investment Income - Net investment income for Q3 2024 was $4,436 million, up 12% from $4,218 million in Q2 2024[22]. - Net investment income rose significantly by 43% year-over-year to $1,505 million in Q3 2024, compared to $1,055 million in Q3 2023[47]. - Total investment income for Q3 2024 was $4,436 million, a decrease of 13.5% from $3,892 million in Q3 2023[89]. - Net investment income for the nine months ended September 30, 2024, was $14,668 million, compared to $13,367 million for the same period in 2023, reflecting a 9.7% increase[105]. Assets and Liabilities - Total assets under management and administration increased to $1,747.7 billion in Q3 2024, compared to $1,665.9 billion in Q2 2024[20]. - Total assets increased to $760,294 million as of September 30, 2024, up from $721,123 million at the end of 2023, representing a growth of 5.4%[24]. - Total liabilities increased to $727,719 million, up from $691,336 million at the end of 2023, representing a rise of 5.3%[26]. - Total debt as of September 30, 2024, is $20,026 million, an increase from $19,500 million as of December 31, 2023, representing a growth of 2.7%[28]. Expenses - Total benefits and expenses for Q3 2024 were $17,929 million, a 52% increase from $12,289 million in Q2 2024[22]. - General and administrative expenses for Q3 2024 were $749 million, an 8% increase from $731 million in Q2 2024[31]. - General and administrative expenses for U.S. businesses were $1.34 billion in Q3 2024, reflecting a 15% increase from $1.34 billion in Q2 2024[39]. - General and administrative expenses for the nine months ended September 30, 2024, were $10,426 million, compared to $9,783 million in 2023, reflecting a rise of 6.6%[105]. Market and Product Development - The company is focusing on market expansion and new product development to drive future growth, although specific figures were not disclosed in the call[109]. - The company continues to focus on market expansion and new product development to enhance revenue streams[121]. Ratings and Stock Information - Prudential Financial, Inc. maintains strong credit ratings with long-term senior debt rated A by Standard & Poor's and Aa3 by Moody's[156]. - The Prudential Insurance Company of America holds an A+ rating from A.M. Best and AA rating from Fitch[156]. - Prudential Financial's common stock is traded on the New York Stock Exchange under the symbol PRU[157].

In its upcoming report, Prudential (PRU) is predicted by Wall Street analysts to post quarterly earnings of $3.28 per share, reflecting an increase of 27.1% compared to the same period last year. Revenues are forecasted to be $14.15 billion, representing a year-over-year increase of 8.7%.The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initia ...

Core Viewpoint - Prudential Financial Inc. (PRU) is experiencing strong investor confidence, with its stock trading near a 52-week high and showing solid upward momentum, supported by positive growth projections and favorable analyst sentiment [1][4][5]. Group 1: Stock Performance and Market Position - PRU's shares have rallied 24.8% year to date, outperforming the Finance sector's return of 22.9%, but underperforming the industry's growth of 26% and the S&P 500's return of 26.7% [2]. - The company has a market capitalization of $46.1 billion, with an average trading volume of 1.48 million shares over the last three months [3]. Group 2: Growth Projections - The Zacks Consensus Estimate for PRU's 2024 earnings per share indicates a year-over-year increase of 14.8%, with revenues projected at $68.20 billion, implying a year-over-year improvement of 34% [4]. - For 2025, the consensus estimate for earnings per share indicates a year-over-year increase of 10% from the 2024 estimate [4]. Group 3: Analyst Sentiment - Six out of nine analysts covering PRU have raised their estimates for 2024, and four analysts have raised estimates for 2025 in the past 30 days, resulting in a 0.3% upward adjustment in the consensus estimates for both years [5]. Group 4: Financial Efficiency - PRU's Return on Invested Capital (ROIC) has been increasing, with a trailing 12-month ROIC of 0.9%, which is better than the industry average of 2.5% [6]. Group 5: Business Strengths - The company benefits from solid asset-based businesses, improved margins in Group Insurance, and international operations, with a high-performing asset management business and a strong position in the pension risk transfer market [7]. - PRU is among the top five individual life insurance companies in the U.S., holding leading positions in various life insurance products and expanding its retirement business [8]. Group 6: Market Expansion - The U.S. business segment is focused on enhancing customer experiences and expanding its addressable market with new financial solutions [9]. - PRU's strong international presence, particularly in Japan and Brazil, provides organic growth opportunities, with Brazil expected to contribute significantly to earnings growth in the coming years [10][11]. Group 7: Valuation - PRU's stock is currently undervalued compared to its industry, trading at a price-to-earnings multiple of 8.88, lower than the industry average of 9.63, and has an impressive Value Score of A [12]. Group 8: Conclusion - The combination of a growing presence in the pension risk transfer market, higher earnings from emerging markets, expanded distribution, and a solid financial position makes PRU a strong candidate for investment [13].

Financial Data and Key Metrics Changes - The company reported a pretax adjusted operating income of $1.6 billion or $3.48 per share for Q3 2024, with a year-to-date adjusted operating income of $9.98 per share, reflecting a 6% increase compared to the previous year [20][41] - Year-to-date adjusted operating return-on-equity improved by 0.5 percentage points to 13.7%, indicating stronger business performance and capital efficiency [21][49] Business Line Data and Key Metrics Changes - PGIM's assets under management increased by 15% to $1.4 trillion, driven by market appreciation and net flows, with total net flows of $3.2 billion in the quarter [26][27] - Retirement Strategies generated nearly $15 billion in sales during Q3, with institutional retirement sales totaling $11 billion, including a $6.3 billion pension risk transfer transaction with IBM [31][32] - Individual Retirement posted $3.6 billion in sales, marking its best quarter in over a decade, with strong performance from registered index-linked annuities and fixed annuity products [33][64] - Group Insurance sales increased by 3% year-to-date, driven by growth in supplemental health products [34] Market Data and Key Metrics Changes - Sales in international businesses rose by 25% year-over-year, with Japan's retirement and savings products sales up 30% compared to the prior year [39] - The company captured about 40% of the pension risk transfer market year-to-date [32] Company Strategy and Development Direction - The company is focused on becoming a higher-growth, more capital-efficient organization by diversifying product offerings and expanding global distribution networks [8][50] - Strategic partnerships, such as with JPMorgan Asset Management, are being pursued to enhance product offerings and market reach [12] - The company is investing in technology to improve sales, service, and claims experiences across its businesses [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and capabilities, highlighting a strong financial position with over $4 billion in highly liquid assets [17][49] - The company anticipates continued demand for retirement products in Japan and emerging markets, driven by demographic trends and evolving customer needs [60][39] Other Important Information - The company plans to introduce new intermediate-term financial targets to provide better insight into its financial outlook [48][91] - A disciplined approach to capital deployment was maintained, with over $700 million returned to shareholders during Q3 [17][56] Q&A Session Summary Question: Update on Prismic and capital usage - Management indicated a visible pipeline for reinsurance transactions, particularly in Japan, and emphasized a disciplined approach to capital redeployment [52][56] Question: Margins on retirement products in Japan - Management expressed confidence in the profitability of retirement product sales in Japan, expecting no negative impact on margins despite a shift in product mix [59][60] Question: Sales mix between yen and foreign currency products in Japan - The company reported that yen-based sales have nearly doubled over the last three years, contributing to a 29% year-over-year sales increase [66] Question: Impact of excess mortality on reserves - Management confirmed that their mortality assumptions reflect continued excess mortality through 2028, with a diversified mix of businesses providing natural hedges [70][71] Question: Institutional outflows and future expectations - Management noted variability in institutional fixed income flows but expects normalization as the rate curve stabilizes [75][78] Question: Reinsurance opportunities in Japan - Management highlighted the strategic importance of reinsurance for optimizing capital and mitigating risks associated with the new economic solvency regime [108][114]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-16707 Prudential Financial, Inc. (Exact Name of Registrant as Specified in its Charter) New Jersey 22-3703799 (State ...

For the quarter ended September 2024, Prudential (PRU) reported revenue of $19.48 billion, up 92.4% over the same period last year. EPS came in at $3.48, compared to $3.44 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $14.57 billion, representing a surprise of +33.71%. The company delivered an EPS surprise of +0.29%, with the consensus EPS estimate being $3.47.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Prudential (PRU) came out with quarterly earnings of $3.48 per share, beating the Zacks Consensus Estimate of $3.47 per share. This compares to earnings of $3.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.29%. A quarter ago, it was expected that this financial services company would post earnings of $3.43 per share when it actually produced earnings of $3.39, delivering a surprise of -1.17%.Over the last four quarters, ...