ZACKSยท2025-10-30 17:55Core Insights - Prudential Financial, Inc. (PRU) reported third-quarter 2025 adjusted operating income of $4.26 per share, exceeding the Zacks Consensus Estimate by 16.3% and reflecting a 28% year-over-year increase [1][10] - Total revenues for the quarter were $16.2 billion, surpassing estimates by 16%, although this represented a 16.6% decline year over year due to lower premiums [2][10] - The company achieved total benefits and expenses of $14.3 billion, down 20.3% year over year, attributed to lower insurance and annuity benefits and operating expenses [2] Operational Update - Prudential Global Investment Management (PGIM) reported adjusted operating income of $244 million, a 1.2% increase year over year, driven by higher asset management fees and related revenues [3] - PGIM's assets under management reached $1.470 trillion, marking a 5% year-over-year increase due to equity market and fixed income appreciation along with net inflows [4] - The U.S. Businesses segment delivered adjusted operating income of $1.149 billion, up 10.4% year over year, supported by higher net investment spread results and favorable underwriting outcomes [5] - International Businesses saw adjusted operating income rise 15% year over year to $881 million, primarily due to improved net investment spread results [6] - Corporate and Other segment incurred an adjusted operating loss of $327 million, an improvement from a loss of $487 million a year ago, due to lower expenses and favorable foreign exchange impacts [7] Capital Deployment - Prudential Financial returned capital to shareholders through share repurchases totaling $250 million and dividends amounting to $481 million in the third quarter [8] Financial Position - As of September 30, 2025, Prudential Financial had cash and cash equivalents of $17.5 billion, a decrease of 5.5% from the end of 2024, and total debt of $20.2 billion, which increased by 0.2% [11] - The company's assets under management and administration increased 3.3% year over year to $1.81 trillion, with adjusted book value per common share rising 0.5% to $99.25 [11] - Operating return on average equity was reported at 17.5%, expanding 390 basis points year over year [12]