Prudential Financial Inc (NYSE:PRU)
$ 117.61 1.32 (1.14%) Market Cap: 41.86 Bil Enterprise Value: 61.23 Bil PE Ratio: 10.45 PB Ratio: 1.38 GF Score: 69/100

Q3 2024 Prudential Financial Inc Earnings Call Transcript

Oct 31, 2024 / 03:00PM GMT
Release Date Price: $122.48 (-3.28%)

Key Points

Positve
  • Prudential Financial Inc (PRU) reported robust sales across its US and international insurance and retirement businesses, demonstrating strong market demand.
  • The company maintained a disciplined approach to capital deployment, returning over $700 million to shareholders during the third quarter.
  • PGIM, Prudential's Global Investment Manager, saw a 15% increase in assets under management, reaching $1.4 trillion, driven by market appreciation and investment performance.
  • Prudential Financial Inc (PRU) successfully executed a significant pension risk transfer transaction with IBM, reinforcing its leadership in the pension risk transfer market.
  • The company is well-positioned to capture the growing retail demand for fixed income products, supported by its diversified investment solutions and strong market presence.
Negative
  • Prudential Financial Inc (PRU) experienced elevated US dollar product surrenders in Japan due to the weakening yen, impacting earnings.
  • The company faced higher expenses to support business growth, which partially offset the benefits of higher interest rates and equity markets.
  • Legacy traditional variable annuity fee income was lower as the company pivoted to less market-sensitive products.
  • The transition to the new economic solvency regime (ESR) in Japan presents challenges, potentially requiring adjustments in capital management.
  • Prudential Financial Inc (PRU) anticipates continued near-term pressure on earnings due to elevated surrender levels in Japan.
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Prudential's quarterly earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.

I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.

Bob Mclaughlin
Prudential Financial Inc - Head of Investor Relations

Good morning, and thank you for joining our call. Representing Prudential on today's call are Charlie Lowrey, Chairman and CEO; Rob Falzon, Vice Chairman; Andy Sullivan, Head of International Businesses; and PGIM, our Global Investment Manager; Caroline Feeney, Head of US Businesses; Yanela Frias, Chief Financial Officer; and Rob Axel, Controller and Principal Accounting Officer. We will start with prepared comments by Charlie, Rob, and Yanela, and then we will take your questions.

Today's discussion may include forward-looking statements. It is possible that actual results may differ materially from the predictions we make today. In addition, our presentation includes references to non-GAAP measures. For a reconciliation of

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