Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (December 2018)
20 slides from Prudential Financial's investor day presentation, Dec 6, 2018
Slide 1: 2019 Financial Outlook Conference Call Presentation
Prudential Financial, Inc. 2019 Financial Outlook Conference Call Presentation December 6, 2018 Exhibit 99.1
Slide 2: Unlocking Growth by Bringing Financial Opportunity to More Customers
2019 Financial Outlook Conference Call Unlocking Growth by Bringing Financial Opportunity to More Customers Differentiated Business Mix Leading market positions with scale: U.S. Financial Wellness Workplace Solutions Individual Solutions International PGIM Complementary mix produces: Enhanced growth
Slide 3: Well Positioned Mix of Complementary Businesses
Complementary earnings, cash flows, and capital benefits with long-term growth prospects 2019 Financial Outlook Conference Call Well Positioned Mix of Complementary Businesses Delivering Customer Solutions and Enterprise Benefits U.S. Financial Wellness Unique mix of high quality services, products,
Slide 4: Business Mix and Execution Drive Strong Financial Performance
4 2019 Financial Outlook Conference Call Business Mix and Execution Drive Strong Financial Performance From 2012 to 2017; based on after-tax Adjusted Operating Income. From 2012 to 2017; based on Adjusted Book Value. From 2013 to 2017; based on average Adjusted Book Value and after-tax Adjusted Oper
Slide 5: Achieve Financial Targets While Investing in Businesses and Increasing Shareholder Distributions
2019 Financial Outlook Conference Call Achieve Financial Targets While Investing in Businesses and Increasing Shareholder Distributions ROE based on average Adjusted Book Value and after-tax Adjusted Operating Income excluding notable items. Based on after-tax Adjusted Operating Income on average ov
Slide 6: Earnings Per Share Guidance and Sensitivities
2019 Financial Outlook Conference Call 2019 Earnings Per Share Guidance Sensitivities(4) Annual EPS Impact Equity Market: +/- 10% ~$0.30 Equity Market impact on Non-Coupon Investments: +/- 10% ~$0.30 Interest Rate: +/- 100bps ~$0.30 * Represents a one-time impact from the mark-to-market of investmen
Slide 7: Well Positioned For Credit Cycle
2019 Financial Outlook Conference Call Well Positioned For Credit Cycle Strong financial profile... Investment Portfolio High credit quality and well diversified Directly originate private assets Less cyclical industry sector exposure Balance Sheet Financial leverage better than our targeted AA leve
Slide 8: Unlocking Growth by Bringing Financial Opportunity to More Customers
2019 Financial Outlook Conference Call Unlocking Growth by Bringing Financial Opportunity to More Customers Differentiated Business Mix Leading market positions with scale: U.S. Financial Wellness Workplace Solutions Individual Solutions International PGIM Complementary mix produces: Enhanced growth
Slide 9: Appendix
Prudential Financial, Inc. Appendix December 6, 2018
Slide 10: Competitive Advantages of Our Market Leading PGIM and International Businesses
2019 Financial Outlook Conference Call Competitive Advantages of Our Market Leading PGIM and International Businesses PGIM Competitive Positioning Diversified top 10 global asset manager with distinctive multi-manager model Broad array of investment management and advisory services with expanding in
Slide 11: Competitive Advantages of Our Market Leading Financial Wellness Businesses
2019 Financial Outlook Conference Call Competitive Advantages of Our Market Leading Financial Wellness Businesses Competitive Positioning Global leader in Pension Risk Transfer with differentiated capabilities Leading provider of Financial Wellness solutions in the retirement market expanding and de
Slide 12: Competitive Advantages of Our Market Leading Financial Wellness Businesses
2019 Financial Outlook Conference Call Competitive Advantages of Our Market Leading Financial Wellness Businesses Competitive Positioning Among industry’s largest Variable Annuities providers Broad range of solutions to address customer needs Improving the risk profile with diversified products Prio
Slide 13: Key Assumptions
2019 Financial Outlook Conference Call 2019 Key Assumptions Equity market growth in Guidance: Equity market growth in alternative scenario: U.S. Dollar @105 Yen and 1,110 Won 10-Year U.S. Treasury of 3.15% at the end of 2019 30-Year Japan Government Bond of 0.94% at the end of 2019 Return on non-cou
Slide 14: Key Sensitivities and Business Unit Metrics
2019 Financial Outlook Conference Call 2019 Key Sensitivities and Business Unit Metrics(1) Total Company Sensitivities(2) Business Unit Sensitivities / Metrics PGIM Annual Other Related Revenues, net of expenses, expected to range from $175 million to $250 million International A one standard deviat
Slide 15: Low Adjusted Asset Leverage
2019 Financial Outlook Conference Call Low Adjusted Asset Leverage Asset Leverage Adjusted Asset Leverage Excluded non-credit risk assets(1): For example: government bonds, assets supporting experience-rated contractholder liabilities (2), and equities, etc. Exclude Closed Block(2): Risks are expect
Slide 16: Seasonality Of Key Financial Items
Seasonality Of Key Financial Items 1Q 2Q 3Q 4Q PGIM Other related revenues tend to be highest Retirement Case experience tends to be favorable PRT sales, episodic, tend to be highest in 3Q and 4Q Group Insurance Mortality tends to be unfavorable Sales tend to be highest Individual Annuities Individu
Slide 17: Forward-Looking Statements, Non-GAAP Measures, and Other Disclosures
Forward-Looking Statements, Non-GAAP Measures, and Other Disclosures Certain of the statements included in this presentation, including our expected earnings per share and the underlying assumptions, financial targets, market opportunities, priorities for growth, and sensitivities and metrics consti
Slide 18: Reconciliation of AOI Per Share to the Comparable GAAP Measure
2019 Financial Outlook Conference Call Reconciliation of AOI Per Share to the Comparable GAAP Measure(1) Represents results of FSB for periods prior to 2015.
Slide 19: Reconciliations of Adjusted Book Value to the Comparable GAAP Measure
19 2019 Financial Outlook Conference Call Reconciliations of Adjusted Book Value to the Comparable GAAP Measure(1) Represents results of FSB for 2012. 2017 amounts have been revised resulting from the elimination of Gibraltar Life’s one-month reporting lag. As of the fourth quarter of 2017, exchange
Slide 20: Reconciliation of AOI Earnings Per Share to the Comparable GAAP Measure
20 2019 Financial Outlook Conference Call Reconciliation of AOI Earnings Per Share to the Comparable GAAP Measure And to Earnings Per Share Excluding Notable Items Notable Items represent the impact on results from our annual reviews and update of assumptions and other refinements, the quarterly upd