What's New With Prudential Stock?

Core Insights - Prudential Financial's stock has increased by approximately 19% since early 2024, outperforming its peer AIG, which rose by about 9% during the same period [1] - The company reported better-than-expected Q3 2024 results, with adjusted operating income after taxes at $1.26 billion, or about$3.48 per share, compared to $3.62 per share in the previous year [1] - Prudential's assets under management have grown to around$1.6 trillion, driven by stock market appreciation, lower interest rates, strong investment performance, and net inflows [1] Financial Performance - The investment management business saw a 14% year-over-year increase in adjusted operating income to $241 million, attributed to higher asset management fees [1] - The insurance business demonstrated strong underwriting income in the U.S., while annuity offerings contributed significantly to the retirement business, with five annuity products exceeding$1 billion in sales for 2024 [1] Market Trends and Strategic Moves - Prudential has undergone a shift in its business mix, including a $11 billion reinsurance transaction that reduced exposure to guaranteed universal life policies by approximately 60$12.5 billion in March 2024, allowing for capital reallocation to less capital-intensive products [3] - The potential election of Donald Trump could lead to lower regulatory burdens and tax reductions, benefiting financial and insurance companies like Prudential [3] Shareholder Returns - Prudential has been increasing shareholder returns, repurchasing about $250 million of stock in the last quarter and paying out$1.30 per share in dividends, yielding roughly 5% on adjusted book value [3]