Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Q1 2025 Earnings Presentation
25 slides from Prudential Financial's earnings presentation, May 1, 2025
Slide 1: 1Q25 Earnings Call
1Q25 EARNINGS 1Q25 EARNINGS CALL CALL MAY 1,1,2025 MAY 2025 Expanding access Expanding accesstotoinvesting, investing,insurance, insurance,and andretirement retirementsecurity security
Slide 2: Reflecting on Strategic Progress, Opportunities, and Challenges
REFLECTINGON REFLECTING ONSTRATEGIC STRATEGIC PROGRESS, PROGRESS, OPPORTUNITIES, OPPORTUNITIES, AND AND CHALLENGES CHALLENGES STRATEGIC STRATEGIC OPPORTUNITIES CHALLENGES OPPORTUNITIES CHALLENGES PROGRESS PROGRESS Leveraging Leveragingunique unique combination combination of scale, of scale, Signifi
Slide 3: Priorities to Drive Sustainable, Profitable Growth
PRIORITIES TOTO PRIORITIES DRIVE DRIVE SUSTAINABLE, SUSTAINABLE, PROFITABLE PROFITABLE GROWTH GROWTH 1 2 1. EVOLVING AND DELIVERING ON OUR STRATEGY SIGNIFICANT 3 2024 PROGRESS 2. IMPROVING POSITIONS US WELL OUR EXECUTION EVOLVING FOR THE FUTURE AND FOSTERING A HIGH- 3. FOSTERING IMPROVING OUR DELIVE
Slide 4: Well Positioned in Current Macro Environment
WELL POSITIONED WELL POSITIONED IN CURRENT IN CURRENT MACRO MACRO ENVIRONMENT ENVIRONMENT •Highly Highlyliquid liquidassets assetsofof$4.9 $4.9billion billion(1)(1), 2023(1) • Strong statutory solvency ratios support AA financial strength Strong statutory solvency ratios support BALANCESHEET BALANCE
Slide 5: First Quarter 2025 Highlights
FIRST FIRST QUARTER QUARTER 2025 HIGHLIGHTS 2025 HIGHLIGHTS FINANCIAL FINANCIAL HIGHLIGHTS HIGHLIGHTS EARNINGSDRIVERS EARNINGS DRIVERS ($ millions, except per share amounts) ($ millions, millions, pre-tax pre-tax adjusted adjusted operating operating income) ($ millions, except per share amounts) 1Q
Slide 6: PGIM: Active Global Investment Manager Across a Broad Range of Private and Public Asset Classes
PGIM I Active PGIM Active Global Global Investment Investment Manager Across aa Broad Manager Across Broad Range Range of of Private Private and and Public Public Asset Asset Classes Classes EARNINGS EARNINGS CONTRIBUTION CONTRIBUTION KEY PRIORITIES KEY PRIORITIES Trailing twelve months(1) (1) • Mai
Slide 7: U.S. Businesses: Diversified Portfolio with Favorable Growth Opportunities
U.S. BUSINESSES I Diversified U.S. BUSINESSES Portfolio with Favorable Growth Opportunities Diversified Portfolio with Favorable Growth Opportunities EARNINGS CONTRIBUTION EARNINGS CONTRIBUTION KEY PRIORITIES KEY PRIORITIES Trailing twelve Trailing twelvemonths months(1) (1) • Leverage Leverage stro
Slide 8: International Businesses: Market Leader in Japan with Expanding Presence in Growth Markets
INTERNATIONAL BUSINESSES Market Leader in Japan with Expanding Presence in Growth Markets INTERNATIONAL BUSINESSES I Market Leader in Japan with Expanding Presence in Growth Markets EARNINGS CONTRIBUTION EARNINGS CONTRIBUTION KEY KEYPRIORITIES PRIORITIES Trailing twelve months(1) •• Expand Expandpro
Slide 9: Significant Financial Strength
SIGNIFICANT FINANCIAL SIGNIFICANT FINANCIAL STRENGTH STRENGTH Objectives Objectives Position Position Highly Liquid Assets Highly > $3 billion $4.9 billion(1) > $3 billion $4.9 billion(1) than LiquidCapital Regulatory AssetsRatios Consistent with AA objectives Ratios remain in excess of our PICA RBC
Slide 10: Appendix
APPENDIX APPENDIX 10
Slide 11: Retirement Strategies: Expanding Access to Retirement Security
RETIREMENT STRATEGIES I Expanding Access Access to toRetirement RetirementSecurity Security EARNINGS CONTRIBUTION EARNINGS CONTRIBUTION KEY PRIORITIES Trailing twelve months(1) (1) • Expand Expandaccess access to to retirement retirement security security in in our our current current markets market
Slide 12: Group Insurance: Leading Group Benefits Provider with Opportunity to Further Diversify
GROUP INSURANCE I Leading Leading Group Group Benefits Benefits Provider Provider with withOpportunity OpportunitytotoFurther FurtherDiversify Diversify EARNINGS CONTRIBUTION EARNINGS CONTRIBUTION KEY PRIORITIES Trailing twelve months(1) (1) • Execute Executeon ondiversification diversificationstrat
Slide 13: Individual Life: Broad Product Portfolio and Multi-Channel Distribution
INDIVIDUAL LIFE I Broad Product INDIVIDUAL LIFE Product Portfolio Portfolioand andMulti-Channel Multi-ChannelDistribution Distribution EARNINGS CONTRIBUTION EARNINGS CONTRIBUTION KEY PRIORITIES Trailing twelve months(1) (1) • Improve Improveprofitability profitabilitythrough throughdisciplined disci
Slide 14: Broadly Diversified, High Quality Investment Portfolio
BROADLY DIVERSIFIED, HIGH QUALITY INVESTMENT INVESTMENTPORTFOLIO PORTFOLIO PORTFOLIOCOMPOSITION PORTFOLIO COMPOSITION (1) 1 HIGHLIGHTS HIGHLIGHTS $377 billion •• Broadly Broadly diversified, diversified, high highquality qualityportfolio PORTFOLIO COMPOSITION O t he r Equit ies 6% with strong portfo
Slide 15: Mortgage Loan Portfolio
MORTGAGE MORTGAGE LOAN LOAN PORTFOLIO PORTFOLIO • Conservative Conservative underwriting underwriting with with aa weighted weighted average averageloan-to-value loan-to-value(LTV) (LTV)ofof59% 59%and anddebt debtservice servicecoverage coverageratio (DSCR) ratio of 2.36x (DSCR) as as of 2.36x well
Slide 16: Adjusted Operating Income Reconciliation by Business
ADJUSTED ADJUSTED OPERATING OPERATING INCOME INCOME RECONCILIATION BY BUSINESS BUSINESS Alternative 1Q25 Expenses & 1Q25 Investment Underwriting ($ millions, pre-tax) 1Q25 Reported Alternative Reported Underwriting (2) Expenses & Other1Q25 (3) Core Core ($ millions, pre-tax) Investment Income Other
Slide 17: Seasonality of Key Financial Items
SEASONALITY OF KEY FINANCIAL ITEMS ITEMS ($ millions, pre-tax adjusted 2Q25 3Q25 4Q25 1Q26 operating income) ($ millions, pre-tax adjusted operating income) 2Q25 3Q25 4Q25 1Q26 PGIM $10 Lower compensation $10 Lower compensation $10 Lower compensation ($30) in bracketsHigher compensation PGIM $10 $10
Slide 18: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS Certain of the statements included in this presentation, including those regarding our strategy and the execution thereof, our financial targets and capital priorities, our commitment to improving financial performance and creating or delivering
Slide 19: Non-GAAP Measures
NON-GAAP MEASURES NON-GAAP MEASURES ThisThis presentation presentation includes includes references references to to adjusted adjusted operating operating income, income, core core adjusted adjusted operatingincome, operating income,adjusted adjustedbook bookvalue, value,and andadjusted adjustedoper
Slide 20: Non-GAAP Measures (Continued)
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of NON-GAAP MEASURES (CONTINUED) foreign currency earnings and current period yield adjustments, are included in adjusted operat
Slide 21: Non-GAAP Measures (Continued)
NON-GAAP MEASURES (CONTINUED) Adjusted operating income and core adjusted operating income do not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income and core Adjusted operating adjusted operating income areincome not a and core adjusted substitute operating
Slide 22: Reconciliations Between Core Adjusted Operating Income and the Comparable GAAP Measure
RECONCILIATIONS BETWEEN RECONCILIATIONS BETWEEN CORE CORE ADJUSTED ADJUSTEDOPERATING OPERATING INCOME AND THE COMPARABLE GAAP MEASURE INCOME First Quarter ($ millions) 2025 2024 F irst Q u a rte r ($ millions) Net income (loss) attributable to Prudential Financial, Inc. in brackets $ $ 2025 2024 N e
Slide 23: Reconciliations Between Core Adjusted Operating Income and the Comparable GAAP Measure (Continued)
RECONCILIATIONS BETWEEN CORE ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE (CONTINUED) F i r st Q u a r t e r ($ millions) 2 0 2Quarter First 5 2024 A dmillions) ($ j u st e d o p e r a t i n g i n c o m e b e f o r e i n c o m e t a xe s 2025 $ 1,5202024 Less: Adjusted operating income
Slide 24: Reconciliations Between Adjusted Operating Income Per Share and the Comparable GAAP Measure
RECONCILIATIONSBETWEEN RECONCILIATIONS BETWEEN ADJUSTED ADJUSTED OPERATING OPERATING INCOME INCOME PER SHARE AND THE PER SHARE ANDCOMPARABLE GAAP MEASURE THE COMPARABLE GAAP MEASURE First Quarter F i r st Q u a r t e r 2025 2024 2025 2024 N eNet t in cincome o me (lo(loss) ss) p eper r shshare a re
Slide 25: Reconciliation Between Adjusted Book Value and the Comparable GAAP Measure
RECONCILIATION RECONCILIATIONBETWEEN BETWEENADJUSTED BOOK ADJUSTED VALUE BOOK ANDAND VALUE THE COMPARABLE GAAP GAAP THE COMPARABLE MEASURE MEASURE ($ millions, except per share data) M a rc h 3 1 , 2 0 2 5 G($ A Amillions, P b o o k vexcept a lu e per share data) March$ 31, 2025 29,883 Less: Accumul