Prudential Financial has announced its financial results for the second quarter of 2024, reporting net income attributable to the company of $1.198 billion, or $3.28 per common share.
This marks an increase from $511 million, or $1.38 per common share, in the second quarter of 2023. After-tax adjusted operating income for the quarter was $1.234 billion, or $3.39 per common share, compared to $1.142 billion, or $3.09 per share, in the prior-year period.
PGIM, the global investment management business of Prudential, reported adjusted operating income of $206 million for Q2 2024, up from $179 million in the same quarter last year. The increase was driven by higher asset management fees and transaction-related revenues, partially offset by increased expenses.
PGIM's assets under management totaled $1.328 trillion, a 5% rise from the previous year, primarily due to market appreciation and net inflows, despite $9.5 billion in third-party net outflows.
US businesses reported adjusted operating income of $1.07 billion, up from $956 million in Q2 2023. This growth included a $51 million favorable impact from the annual assumption update and other refinements. Excluding this, the increase was mainly due to higher net investment spread results and favorable underwriting, offset by lower net fee income.
Within US businesses, retirement strategies, comprising institutional and individual retirement strategies, reported a combined adjusted operating income of $1.036 billion, compared to $876 million in the prior-year quarter. Institutional retirement strategies posted an adjusted operating income of $550 million, up from $428 million, benefiting from a $126 million favorable impact from the annual assumption update.
Account values increased by 3% to $265 billion. Individual Retirement Strategies reported adjusted operating income of $486 million, up from $448 million, with account values rising 8% to $124 billion.
Group insurance reported adjusted operating income of $121 million, down from $139 million in the year-ago quarter, primarily due to higher expenses. Individual life reported a loss of $87 million, compared to a loss of $59 million in Q2 2023, impacted by unfavorable annual assumption updates and refinements.
The international businesses segment, consisting of Life Planner and Gibraltar Life & other, reported adjusted operating income of $702 million, down from $784 million in the prior-year quarter. Life Planner's income decreased to $400 million from $487 million, while Gibraltar Life & other saw a slight increase to $302 million from $297 million.
Corporate & other reported an adjusted operating loss of $371 million, compared to a loss of $472 million in Q2 2023. The improvement was primarily due to lower expenses and higher income from pension and other employee benefit plans.
Net income for the current quarter included $128 million in pre-tax net realized investment gains and related charges and adjustments. This contrasts with a net realized investment loss of $757 million in the year-ago quarter.
The current quarter results were influenced by $77 million in net impairment and credit-related losses and $297 million in losses related to the net change in value of market risk benefits.
“Our fundamentals are strong, supported by our financial strength and our integrated investment, insurance, and retirement capabilities that fuel our growth. Prudential is well positioned to address the growing needs of our customers around the world with solutions and products that help them protect their life’s work and live better lives, longer,” chairman and CEO Charles Lowrey (pictured above) said.
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